Parliament bans aggressive credit advertising

On Thursday, the Council of States amended the bill, which is now ready for the final vote. The only controversial point was whether a fine should also be imposed for negligent violation of the ban. The small chamber has now accommodated the National Council on this point and removed the penalty for negligence from the revision of the Consumer Credit Act. Intentional violation of the ban on aggressive advertising, on the other hand, can be punished with a fine of up to CHF 100,000.

This would make the law so toothless that it could be rejected outright, said Anita Fetz (SP/BS), who had also campaigned for the punishment of negligent injury. Pirmin Bischof (CVP/SO) disagreed: the threat of punishment for intent not only covers intent, but also contingent intent. An entrepreneur who accepts the violation of the ban on aggressive advertising must therefore also expect a fine. The two chambers had already agreed on the main features of the bill in earlier consultations. In particular, they rely on self-regulation:

The credit industry itself can define what advertising is considered aggressive. The law requires them to regulate this in an agreement. A draft is already available. According to this, the distribution of credit application coupons on the street, for example, should be avoided in future. If no agreement is reached or if the Federal Council deems it insufficient, it can determine when advertising is considered aggressive.

According to the law, creditworthiness should not only be checked if there are doubts about the accuracy of the applicant's information. The credit company can now generally request documents, such as an extract from the debt collection register or proof of salary. The rules for express loans will also be tightened. (SDA)

Image: Parliamentary Services 3003 Bern