New Swedish credit law requires shoppers to disclose income, housing and other financial details

On November 20, the new Consumer Credit Act will come into force, a change that may have gone completely unnoticed by many. However, it has recently become noticeable to people who use the payment service Klarna, for example.

In its app, Klarna asks customers to provide information about their personal finances and housing situation so the company can “assess what you can afford”, as it puts it.

Lenders are obliged to ask more questions and collect more types of information. They say the checks must now be thorough. Previously, they could be carried out more at the lender’s discretion, Anna Lindström, a lawyer at the Swedish Consumer Agency, tells TT.

Tightened requirements

The change in the law, which was decided in January 2026, means that several types of credit are covered by the rules, including interest-free credit provided by third parties, such as Klarna and similar providers.

This stricter requirement for credit checks is a way to counter over-indebtedness in society and ensure that people do not get credit they cannot repay, says Anna Lindström.

She points out that there is no established practice regarding purchase amounts.

If it is a recurring grocery purchase from the same credit provider, you may not need to carry out this check every time. The check must also not be disproportionately extensive in relation to the credit, maturity or amount. But certainly, consumers will initially face more questions.

Looks positive

Anyone who chooses not to provide their information risks being refused the option to shop on invoice, but can always choose to pay by credit card, provided they have enough credit available for the purchase.

The Swedish Trade Association views the change in the law positively. But Bengt Nilervall, an expert in business policy, points out that there is still some uncertainty among retail companies about whether they should be classified as credit intermediaries.

Are there also concerns that this will lead to lower consumption?

We think the starting point must be healthy consumption and responsible use of credit. It is clear that many people have run into trouble and taken out loans they should not have taken out. It may then be that fewer people choose this type of payment method, he says.