Danish FSA and the Consumer Ombudsman published guidelines to help consumer loan companies comply with the obligation to assess creditworthiness of consumers before granting loans. The guidelines are intended to aid companies that need to perform a credit rating assessment and constitute an important tool in ensuring that consumers do not end up being over-indebted. The guidelines contain both a comprehensive description of the requirements that follow from the Credit Agreements Act and case law as well as practical instructions on how to meet these requirements. The guidelines do not require all lenders to use one method to perform the credit rating and do not exclude a consumer with a low disposable income from borrowing money if the lender has assessed that the consumer will be able to repay the loans.
Keywords: Europe, Denmark, Banking, Credit Rating Assessment, Credit Risk, Guidelines, Loan Repayment, NPLs, Danish FSA
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