Finanstilsynet will ban consumer loans over five years. But Norwegian consumer banks are unhappy that they are taking away their flexibility.
On Friday, FSA sent the proposal for a new regulation for consumer loans to the Ministry of Finance for consideration. The major issue of dispute is the requirement for a maximum term of five years for repayment of consumer loans, writes Dagens Næringsliv.
The proposal is not well received by the banks.
“There should be room for the bank and the customer to contract a longer term than five years in cases where there is obviously no danger that customers assume debt obligations that they later are unable to pay off,” says Oddbjørn Berentsen, Managing Director of Easybank.
“This will mean that people who have a need to clean up their finances by refinancing expensive loans will not get it if they fail to handle the monthly installments over five years. I do not think it was the intention of the audit, and I hope there is something that the Ministry of Finance is willing to change,” he said.
© NTB scanpix / #Norway Today