Danish Financial Supervisory Authority says wider range of consumer lenders must be authorized by 20 November 2026

The Danish Financial Supervisory Authority has outlined a legal change that will bring more firms within Denmark’s consumer lending regime from 20 November 2026, requiring authorization for businesses that offer loans to consumers. The change extends the licensing, supervision and consumer protection framework to all firms offering consumer credit agreements, even where lending is only a limited part of the business, and implements the European Union Consumer Credit Directive. The expanded scope covers businesses offering consumer credit agreements such as loans or installment payment arrangements, firms providing secured consumer credit, and certain savings and lending businesses previously exempt under Danish financial legislation where they receive funds for charitable or other public benefit purposes. The update also narrows the exemption for interest-free and fee-free credit: traders had been able to allow payment up to 90 days after delivery without triggering an authorization requirement, but that limit will fall to 50 days, meaning payment deferrals beyond 50 days will generally no longer be exempt. Firms that become subject to the regime must submit an authorization application to the Danish Financial Supervisory Authority by 20 November 2026 in order to continue their lending activities. Businesses that apply by that date may continue operating until the authority has decided on the application. Providing consumer loans without authorization, unless otherwise exempt, can be punished by a fine or imprisonment for up to four months.