The Norwegian Government has announced it will impose new restrictions on the marketing of credit cards and other high-interest loans.
High-interest consumer debts rose by 15% in 2016 and now stands at NOK90bn (€9.5bn), according to the country’s banking industry regulator, which has prompted the Government to take action.
The new rules, it said in a statement this week, will offer consumers enhanced protection.
The Norwegian Government intends to restrict what it describes as the most aggressive forms of marketing. However, it has banning the marketing of such products altogether, much to the disappointment of some consumer advocates.
A newly implemented ‘debt information law’ will also see a centralised debt register established, which will enable banks to assess an customer’s total debts. It will also become mandatory for lenders to better inform borrowers of the size of their overall debt.
The Norwegian Government recently proposed ‘regulations on good credit marketing’, which are currently under review.