Danish Financial Supervisory Authority and Consumer Ombudsman clarify lender discretion under new creditworthiness rules

The Danish Financial Supervisory Authority and Consumer Ombudsman have issued a joint statement clarifying consumer creditworthiness requirements applying from November 20, 2026. Lenders will retain discretion over which information to use and how extensively to document it, but must conduct a thorough assessment tailored to each consumer. The rules implement the 2023 European Union Consumer Credit Directive, whose implementation also brings wider authorization requirements for consumer lenders from the same date. Assessments must use relevant and accurate information about consumers’ income, expenditure and other financial circumstances, proportionate to the credit’s nature, duration, value and risks. Lenders must verify information appropriately, obtaining independent, verifiable documentation where necessary. Additional evidence may be needed where information appears inconsistent with the consumer’s circumstances. Estimates based on the individual consumer’s situation remain permissible in some cases, such as expenditure in a newly purchased home where historical data are unavailable. The rules expressly allow lenders to provide credit only where the assessment indicates that the consumer is likely to meet the agreement’s obligations. The authorities’ November 2025 creditworthiness guidance will cease to apply when the new rules take effect because its underlying provisions are being replaced. However, its overall principles remain compatible with the new requirements.