In a referral to the Council on Legislation, the government proposed that fast-loan companies must apply for a banking license to continue their operations. The alternative, if they do not do so, is to shut down. The proposal is part of the work to address over-indebtedness.
It is a significant social problem, said Minister for Financial Markets Niklas Wykman (M) at a press conference at the end of January.
However, the proposal is now facing harsh criticism from the Council on Legislation, which writes that parts of it restrict both the freedom of enterprise in the Swedish Constitution and the freedom of establishment according to the EU treaty.
The Council on Legislation further writes that the restrictions must not go beyond what is necessary to achieve the goal of the law and that there are "reservations from a proportionality perspective", and that the part of the referral that concerns credit intermediaries is not approved.
"The Council on Legislation recommends that the issue be further analyzed and that it, like other parts of the referral related to this issue, be handled within the framework of the legislative process aimed at implementing the EU's new Consumer Credit Directive", writes the Council on Legislation.
In total, around seventy companies are affected by the proposal.
