The Financial Supervisory Authority recently agreed on more stringent amortisation requirements for home mortgages. The debt burden on Swedish households has long been a concern for regulators, and the authority is now taking an activist approach in an effort to mitigate the risk of a widespread crisis in case of a downturn in the housing market.
A case regarding the enforceability of an electronic promissory note was recently decided by the Supreme Court. The court investigated whether the relevant electronic loan document was to be viewed as a non-negotiable or negotiable instrument, and settled that it was indeed a non-negotiable promissory note. This meant that the requirement to present an original document to the Enforcement Authority did not apply.
The Supreme Court recently clarified how to interpret joint and several liability when the creditor settles with one of the debtors and simultaneously releases that party from any future claims. The court concluded that the foundation of a joint and several liability between debtors is that the debtor that repays more than its pro rata share of a loan has a right to recover and claim the exceeding amount from the other debtor or debtors.
Consumer credit may be granted only after the creditor has assessed the consumer's creditworthiness. The assessment must be based on sufficient information, as stipulated in the EU Credit Directive and the Consumer Credit Act. However, neither the directive nor the act defines 'sufficient information'. In a recent Administrative Court case, the Consumer Agency argued that a creditworthiness assessment based on details from a creditor's scoring model did not give sufficient information.
The government recently issued directives for a commission of inquiry to analyse the market for crowdfunding and peer-to-peer lending. As Sweden has yet to introduce regulations that explicitly address crowdfunding platforms or peer-to-peer lending, the directives contain instructions to consider which laws apply to the different forms of crowdfunding and whether new legislation and penalties are required.