Ban on aggressive advertising for small loans
The National Council wants to ban aggressive advertising for small loans, in particular to protect young people from falling into debt. On Thursday, it approved a bill to that effect. However, the law does not define what constitutes aggressive advertising.
The National Council relies on self-regulation: the credit industry should define for itself what exactly is prohibited. The law merely stipulates that consumer credit may not be advertised aggressively.
If the Council of States also agrees, the industry must define what is prohibited in a convention. If no agreement is reached within a reasonable period of time, the Federal Council will determine what falls under the ban. Anyone who violates the rules will be fined up to CHF 100,000.
No forms on the street
According to the draft convention on self-regulation, the credit industry wants to refrain from advertising instant loans that suggest that the loan is available without a credit check, among other things. The industry also wants to refrain from distributing credit application coupons on the street or advertising coupons reminiscent of banknotes.
According to the Federal Statistical Office, 19% of young adults between the ages of 18 and 29 lived in a household that had taken out at least one consumer loan in 2008. Among 30 to 49-year-olds, the figure was 18.2 percent. In both age groups, around 9 percent lived in a household with a critical volume of overdrafts or arrears. (SDA)
