On Jul. 1, DEN FSA announced an extension of licensing requirements.
DEN FSA published guidance on the expanded scope of the Act on Consumer Loan Companies, implementing the EU Consumer Credit Directive.
Follows DEN FSA Sep. 2023 said many companies must now be licensed, see #185428.
Key Points
The authorization requirement is extended to all companies offering credit agreements to consumers, regardless of whether lending is the company's main activity or only a minor part of the business.
Companies offering interest- and cost-free loans running longer than 50 days will also fall within scope; the previous exemption allowed payment deferral of up to 90 days without interest or costs, which is now shortened to 50 days.
Newly in-scope entities include companies offering credit agreements or instalment plans to consumers even on a limited basis; companies providing secured credit agreements such as car mortgages or other movable property; and savings and lending undertakings receiving funds for charitable or non-profit purposes under section 389(1)(2) of the Danish Financial Business Act, for whom the previous exemption is repealed.
Effectiveness
New rules enter into force on Nov. 20, 2026; companies must submit an authorization application to DEN FSA before that date to continue lending activities.
Companies that have submitted an application by Nov. 20, 2026, may continue operations until a decision is received.
Companies granting consumer loans without permission may be subject to a fine or imprisonment of up to four months.
