New Consumer Credit Act 2026 – stricter requirements for lenders, credit intermediaries and merchants

The Swedish Government has submitted a draft bill to the Council on Legislation proposing a new Consumer Credit Act to strengthen consumer protection and modernise the rules governing how credit is offered to consumers. For many businesses, this will mean reviewing existing credit processes, agreements and internal procedures, not least to ensure that legal support on the Consumer Credit Act and consumer credit is engaged in good time before the new regime takes effect.

The proposed Act covers the entire lifecycle of a consumer credit: from marketing and information through to credit assessment, the right of withdrawal, interest and cost caps, early repayment and the handling of payment difficulties. In addition, a new, expanded licensing requirement is proposed, bringing more providers and intermediaries of consumer credit within the supervision of the Swedish Financial Supervisory Authority (FI).

These changes should be seen in the context of a broader development in financial regulation, with legislators progressively tightening requirements on governance, controls and consumer protection. Businesses operating on or adjacent to the credit market—even where credit is only one element of the offering—must therefore understand the implications for their operations and, where needed, engage lawyers specialising in financial regulation.

Background – implementation of the EU Consumer Credit Directive

The draft bill aims to implement the EU’s new Consumer Credit Directive (sometimes referred to as the second Consumer Credit Directive) in Swedish law through a new, consolidated Consumer Credit Act. The intention is to create a more comprehensive and technology-neutral framework that accommodates today’s credit offerings, including digital solutions and various forms of interest-free credit.

The Government proposes that the new Consumer Credit Act should apply from 20 November 2026. Until then, affected businesses need to analyse how their current and planned business models relate to the new rules and commence the necessary change programmes.

Broader scope – more credits and contract forms are covered

A clear change is the widening of the Act’s scope. The basic principle is that virtually all types of credit provided or offered by traders to consumers will be covered, regardless of whether the credit is perceived as “traditional” or embedded in another service.

The proposal identifies, among others, the following forms of credit as falling within the new Act:

• interest-free credit provided by an external party (for example, financing via partner lenders),
• running-account credit, such as revolving credit linked to an account or card,
• hire and leasing arrangements where the consumer has the option to acquire the hired or leased asset.

This brings more instalment models and various “buy now, pay later” solutions within consumer-credit regulation. Consequently, requirements follow regarding, among other things, credit assessment, information, handling of contractual changes and procedures for payment difficulties.

Tightened credit assessment to counter over-indebtedness

The rules on credit assessment are a cornerstone of the framework. The assessment must be carried out in the consumer’s interest, and the legislation clarifies the types of information to be considered when the lender evaluates the consumer’s ability to repay.

For lenders and credit intermediaries this may, among other things, mean that:

• existing processes, policies and instructions for credit assessment need updating,
• documentation of what information has been collected, how it has been analysed and how the decision was reached must be strengthened,
• risk models and automated decision flows are reviewed to ensure they meet the new statutory requirements.

The aim is to reduce the risk of over-indebtedness by ensuring that credit is granted only where the consumer can meet their obligations.

New rules on withdrawal, early repayment and payment difficulties

The proposal also amends the rules on the right of withdrawal and early repayment. An important adjustment is the clarified link between the right of withdrawal and the information provided: the withdrawal period begins only when the consumer has actually received information on the right to withdraw from the credit agreement. This tightens the requirements for clear, accurate and traceable information at contract formation.

In cases of payment difficulties, the lender’s responsibilities are highlighted more clearly. Before taking more intrusive action, the lender must seek less onerous solutions together with the consumer. Such measures may, for example, include:

• an interest reduction or lower interest rate,
• temporary payment deferral.

This reinforces the requirement for lenders to work systematically with early-stage measures when payment problems arise, rather than quickly moving to debt collection.

New licensing requirement – more businesses under the Financial Supervisory Authority

Another central element is an expanded licensing requirement. More actors that provide or intermediate consumer credit will need authorisation and thus fall under the supervision of the Swedish Financial Supervisory Authority (FI). Licensing entails, among other things, requirements regarding competence, organisation, internal governance and controls.

The licensing obligation can also capture businesses where credit is only part of the overall offering. For example, suppliers of goods and services that offer instalment solutions via external lenders may be covered if they meet the Act’s definitions of lender or credit intermediary.

At the same time, exemptions are retained for certain already-regulated entities. Businesses operating as credit institutions, payment institutions, electronic money institutions or mortgage credit institutions already hold authorisations under other financial-market regulation and will not require a separate licence solely due to their consumer-credit activities.

Special exemptions are also introduced for smaller businesses. In this context, a smaller business means an undertaking with fewer than 250 employees and annual turnover of at most EUR 50 million, or a balance sheet total not exceeding EUR 43 million per year.

The concept of credit intermediary – when is a merchant caught by the rules?

The new Consumer Credit Act includes a definition of a credit intermediary. In simple terms, this is a trader that is not itself a lender but, for remuneration, assists in a consumer obtaining credit from a lender.

An actor may be regarded as a credit intermediary if, for example, it:

• presents or provides a credit agreement to the consumer,
• assists the consumer prior to entering into a credit agreement, or
• concludes the credit agreement as the lender’s agent.

A merchant that allows a consumer to pay for goods or services using credit from an external lender may therefore, depending on the set-up, be considered to offer the consumer a credit. To classify the merchant as a credit intermediary, there must also be some form of remuneration from the lender.

What in practice constitutes remuneration, and whether the merchant’s role means it is in fact considered to intermediate credit, is a matter to be assessed on the facts of each case. Agreements between merchants, lenders and any other intermediaries are therefore of major importance when assessing responsibilities and licensing obligations.

Which actors are affected in practice?

The broadened scope affects a range of actors in the consumer-credit market. The proposal concerns, among others:

• lenders granting credit directly to consumers,
• businesses whose business model is to intermediate consumer credit,
• suppliers of goods and services offering financing via external lenders,
• traders that market or offer consumer credit as part of their proposition.

Businesses that have so far conducted limited lending or intermediation alongside their core business—and have therefore not been subject to licensing—may now fall within the licensing regime. This includes, for example, merchants offering financing solutions in physical stores, in e-commerce or through various partner arrangements.

A key premise is that the business must meet the criteria to be regarded as a lender or credit intermediary to be subject to the expanded licensing requirement. A supplier of goods or services collaborating with an external lender does not, in itself, become subject to licensing—much depends on how the collaboration is structured, how the offer is presented and how remuneration between the parties is arranged.

How businesses can prepare

For lenders, credit intermediaries and other affected actors, the new Consumer Credit Act means that governance, processes and documentation need to be reviewed well ahead of commencement. Priority workstreams include:

• analysing whether the business is subject to licensing and, if so, planning the authorisation application and necessary organisational adjustments,
• reviewing models, criteria and procedures for credit assessment and strengthening decision documentation,
• updating customer information on, among other things, withdrawal, early repayment and the handling of payment difficulties,
• reviewing and, where needed, renegotiating agreements between merchants, lenders and credit intermediaries to clarify roles, responsibilities and remuneration models,
• ensuring that competence, internal governance and control systems meet the requirements applicable to licensed actors.

At Morling Consulting, our lawyers in financial regulation and consumer-credit matters support businesses in analysing how the new Consumer Credit Act affects their operations, developing action plans and addressing questions on authorisations, governance and contractual structures. The aim is robust compliance and reduced risk of future supervisory and sanctions issues.