Federal Law on Consumer Credit

In Switzerland, consumer loans are subject to a maximum interest rate of 15 percent in order to protect consumers against excessive interest. The Federal Law on Consumer Credit offers a further degree of protection by awarding consumers comprehensive information rights. Lenders are also obliged to check the credit standing of their customers. To do so, they have created a consumer credit information office. This is the agency to which lenders report all of the consumer loans they grant and which holds a database of reliable information which enables them to check the financial circumstances of their customers. Consumer loans may be granted only if the customer's income permits the loan to be repaid within three years. Anyone intending to grant and broker consumer loans on a commercial basis requires a licence from their respective canton.

For complete documentation please refer to the pages in German, French or Italian.