For example, the industry is said to be forced into an agreement to determine which type of advertising campaign is aggressive. If no agreement can be reached within a reasonable period of time, the Federal Council determines which advertisement is offensive. A stricter credit check is also planned. The proposal adopted today is therefore largely in line with the preliminary draft that the Commission presented for consultation last year.
The Commission has responded to concerns about the rule of law by replacing the originally intended declaration of general application of the private agreement with a penal provision in the law. Thereafter, anyone who violates the advertising ban will be fined up to $ 100,000. The Commissioners are generally convinced that this proposal can help prevent private debt.
In their view, the submission with the involvement of the industry guarantees a practicable approach and a commitment from all involved. The reason for this is not primarily the granting of small loans, but a lack of financial competence. The application will now be submitted to the Swiss Council for assessment and then sent to the Swiss Council.
No aggressive advertising for microcredit
The federal government welcomes the proposed ban on advertising for microcredit. He noted this in his opinion published on Thursday on a draft submitted by the National Council’s Economic Commission. It is indisputable for the federal government that small loan advertising must also be limited in order to combat overindebtedness.
The industry itself should determine which advertising campaign is classified as offensive in a congress. If self-control fails, the federal government decides what is meant by offensive advertising. The Federal Council plenary supports the planned restriction of the advertising campaign. In his opinion, more aggressive forms of advertising favor thoughtless decisions and hasty commitments and increase the risk of over-indebtedness.
In addition, the Federal Council is of the opinion that forms of advertising that are aimed specifically at children and adolescents and should therefore also be described as offensive should also be prohibited. In addition, the Federal Council is committed to ensuring that only loans that are returned after three years at the latest
What are loans to be paid
Loans that are to be repaid in no more than four tranches and at most after twelve months are not subject to the consumer credit law under applicable law. In reality, this exemption enables very fast lending without having to check the financial situation of the consumer.
Finally, the Federal Council considers that the lender’s obligation to report to the consumer credit information office (IKO) is difficult for consumers who deliberately make false statements in connection with a loan application, from a data protection point of view.