Consumer Credit Act

The Federal Act on Consumer Credit (Bundesgesetz über den Konsumkredit, KKG) covers credit that a lender grants or promises to a private person. It may be a deferred payment, a loan or a similar way of financing. Leasing for private use, when the rates rise if the contract ends early, and cards and overdrafts with a credit option count too (KKG, Art. 1).

It does not apply to credit under CHF 500 or over CHF 80’000. Nor does it cover credit you must repay within three months, or credit with no interest and no other charges (KKG, Art. 7). Where it applies, its rules may not be changed to your disadvantage (KKG, Art. 37).

What it means for your loan

For a loan it covers, the Act gives you a written contract that states the effective annual rate (KKG, Art. 9). The lender checks your creditworthiness before you sign (KKG, Art. 27a and 28). You have 14 days to withdraw (KKG, Art. 16), the right to repay early (KKG, Art. 17) and a maximum rate (KKG, Art. 14).

Swizeo lends CHF 1’000 to CHF 1’000’000.