Soon, more companies that grant or intermediate consumer credit may be required to obtain a licence

The Swedish Government’s bill on the implementation of the EU Second Consumer Credit Directive ("CCD2") proposes a new Consumer Credit Act (Sw. konsumentkreditlagen), stricter consumer protection rules and an extended licensing requirement for certain ancillary credit providers and credit intermediaries. This means that even companies that grant or intermediate consumer credit as an ancillary part of their business, for example, retail businesses offering deferred payment or ‘buy now, pay later’ solutions, may be required to obtain a licence from the Swedish Financial Supervisory Authority (Sw. Finansinspektionen, the "Swedish FSA"). The new Consumer Credit Act and other legislative amendments implemented proposed in connection with the Directive are proposed to come into force on 20 November 2026.

Extended licensing requirement for creditors and credit intermediaries

Since 1 July 2025, the general rule has been that a licence under the Swedish Banking and Financing Business Act (Sw. lagen (2004:297) om bank och finansieringsrörelse) is required to conduct business activities whose object is to grant or intermediate credit to consumers. The Government is now proposing that the licensing requirement be extended to cover consumer credit activities other than those whose main object is to grant or intermediate credit.

This means that the licensing requirement may apply to more companies than it does today, including where credit provision or credit intermediation constitutes only an ancillary part of the business. It is proposed that the licensing requirement and relevant business conduct rules be implemented through amendments to the Swedish Mortgage Credit Act (Sw. lagen (2016:1024) om verksamhet med bostadskrediter), which is simultaneously proposed to be renamed the Act on Mortgage Credit and Certain Other Consumer Credit Activities (Sw. lagen om verksamhet med bostadskrediter och vissa andra konsumentkrediter). The proposed licensing requirement is aimed at activities involving the types of credit covered by the scope of the new Consumer Credit Act and that are not subject to any relevant exemption.

Companies granted a licence under the amended Mortgage Credit Act will also need to meet requirements regarding, among other things, knowledge and competence, advisory services, remuneration systems and documentation.

The proposal may have implications for several types of operators, such as retailers and e-commerce companies that grant or arrange credit as part of their sales model, including arrangements involving deferred payment and ‘buy now, pay later’ solutions. The detailed assessment depends on the company’s specific role in the credit arrangement and must be made on the basis of the definitions and exemptions in the proposed legislation.

Exemptions from the licensing requirement

Certain activities are proposed to be exempt from the licensing requirement. This applies, for example, to activities carried out by small businesses relating to credit granted to finance the purchase of the business’s own goods or services, provided that the credit is interest-free and is not subject to any charges other than statutory late payment charges. Although such companies are exempt from the licensing requirement, it is nevertheless proposed that certain business conduct rules should apply, and it is proposed that these companies should be subject to supervision by the Swedish Consumer Agency (Sw. Konsumentverket).

In addition, so-called special invoice credits (Sw. särskilda fakturakrediter) are proposed not to fall within the definition of consumer credit under the amended Mortgage Credit Act. Companies offering deferred payment for their own goods or services may therefore fall outside the scope of the new licensing requirement, provided that the relevant conditions are met.

Furthermore, consumer credit activities carried out by credit institutions, payment institutions, and electronic money institutions within the framework of their respective sector-specific legislation are exempted. However, certain business conduct provisions are also proposed to apply to these actors.

Foreign operators conducting business in Sweden

Under the proposal, foreign companies wishing to conduct consumer credit business in Sweden that falls within the scope of the amended Mortgage Credit Act should be able to be granted a licence, provided that the business is conducted through a branch in Sweden and that the company conducts corresponding business in its home country and is subject to supervision there.

New Consumer Credit Act with stricter consumer protection rules

It is proposed that the consumer protection rules in CCD2 be implemented in Swedish law through a new Consumer Credit Act to replace the current Consumer Credit Act (Sw. konsumentkreditlagen (2010:1846)). The new Consumer Credit Act is proposed, in line with current rules, to contain provisions on, amongst other things, pre-contractual information, the right of withdrawal, marketing, and interest and cost caps. In addition, stricter requirements for creditworthiness assessments are proposed.

The new Consumer Credit Act is also proposed to have a broader scope of application than the current Consumer Credit Act. Unlike the current rules, there will not be the same exemption for interest-free credit involving only minor fees. Instead, a specific exemption is proposed for so-called special invoice credits and securities credits.

The Swedish Financial Supervisory Authority’s proposed regulations and general guidelines

The Swedish FSA has now published for consultation proposals for new regulations and general guidelines on consumer credit. The proposals concern, among other things, creditworthiness assessments, knowledge requirements and the extended regulation for companies that may be subject to the new licensing requirement.

The Swedish FSA's consultation paper (Sw. remisspromemoria) is also relevant to the distinction between different forms of credit intermediation. This distinction should, be understood in the context of the Government’s bill, which discusses the concept of a credit intermediary and the significance of a trader’s access to a creditor’s payment platform or checkout solution. In that discussion, the Swedish FSA has expressed a relatively broad view, whilst the government has taken a more cautious stance, stating that the assessment must be made on the basis of the circumstances of the individual case. In the consultation paper, the authority distinguishes between companies that receive credit applications and companies that merely provide access to a creditor’s payment platform. This indicates that even more limited arrangements may need to be analysed more closely, particularly if the trader receives a financial benefit from the creditor.

The rules will be important for companies’ preparations ahead of the proposed entry into force on 20 November 2026. The consultation period ends on 18 June 2026.

What should companies do before the law comes into force

Companies that grant or intermediate consumer credit should analyse how the proposals may affect their own operations. This applies in particular to companies that do not currently hold a licence but offer credit as an integral part of their sales or sales process. In their analysis, companies should, among other things, assess whether their operations may be subject to a licensing requirement, whether any exemptions may apply, how existing credit or intermediation arrangements are structured, and whether internal processes for creditworthiness assessment, information and documentation meet the new requirements. There is also reason to review whether remuneration models and advisory processes need to be adapted.

Timeline and next steps

The Swedish Parliament (Sw. Riksdagen) is scheduled to decide on the bill on 27 May 2026. Both the new Consumer Credit Act and the amendments to the Swedish Mortgage Credit Act are proposed to enter into force on 20 November 2026.

The proposal also contains transitional rules for certain companies that are already engaged in the business of granting or intermediating consumer credit. Under the proposal, a credit provider or credit intermediary that, at the time of entry into force, is operating and is entitled to operate such a business may continue to do so without a licence until 20 November 2027. If the company submits a licence application within that period, the business may continue until the application has been finally decided. These transitional rules should be analysed carefully on the basis of the final wording of the licensing provisions and the respective company’s business model.

The new Consumer Credit Act is proposed to enter into force largely without transitional rules. However, for credit agreements entered into prior to its entry into force, the repealed current Consumer Credit Act will continue to apply, with certain exceptions for credit agreements of indefinite duration.

We, DLA Piper Sweden, are monitoring the legislative process and assist companies with matters relating to licensing requirements, regulatory analysis and compliance with new consumer protection rules. Among other things, we assist with assessments of whether a business is subject to licensing requirements, analysis of distribution and credit models, and preparations for any licence application to the Swedish FSA.

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   Directive (EU) 2023/2225 of the European Parliament and of the Council of 18 October 2023 on credit agreements for consumers and repealing Directive 2008/48/EC