Read more about Consumer Credit Law – What you need to know!

consumer credit law

Introduction to Consumer Credit Law

Consumer credit law is a key element of the financial landscape in Switzerland. It aims to protect consumers when they take out credit and to ensure healthy competition between lenders. In this article, we offer you a complete guide to the law on consumer credit in Swiss. This, including its main provisions, the rights of borrowers and the obligations of lenders. Find out everything you need to know before taking out a private loan in complete safety and under the best possible conditions.


  1. Basics of consumer credit law
  2. Obligations of lenders under the consumer credit law
  3. The rights of borrowers under consumer credit law
  4. The private credit broker and consumer credit law
  5. Advertising and Consumer Credit Law
  6. Sanctions for non-compliance with the law
  7. Advice for borrowers before taking out a loan
  8. Our conclusion on consumer credit law

Basics of consumer credit law

consumer credit law

The law on consumer credit in Switzerland (LCC) was put in place to regulate the consumer credit market and protect consumers. This law regulates in particular the loan conditions, interest rates, repayment terms and advertising around the credits.


The Consumer Credit Act applies to loans made by financial institutions or private lenders to individuals. This for the purpose of finance goods or services for private use. It concerns consumer credit, leasing and pawnbroking. However, it does not apply to mortgages or business loans.

Interest rate ceiling

The Consumer Credit Act provides for a ceiling on interest rates for consumer credit. This ceiling is set by the Federal Council and may vary depending on economic and market conditions. For more information on private credit interest rates, you can consult the following article. Increase in interest rates on consumer loans in Switzerland!

Obligations of lenders under the consumer credit law

The consumer credit law imposes a number of obligations on lenders. This is to protect borrowers and ensure a transparent and fair credit market.

Pre-contractual information

Before concluding a consumer credit agreement, the lender must provide the borrower with clear and understandable information on the main credit characteristics. This includes specifying the amount, duration, interest rate, fees and repayment terms.

Credit check

The lender has the obligation to check the creditworthiness of the borrower before granting consumer credit. This check should include revenue analysis, expenses and possible debts of the borrower. In addition, a consultation of the credit information center (ZEK) to check whether the borrower has already contracted other credits is also part of the lender's obligations.

Refusal of credit in the event of over-indebtedness

If the credit check reveals that the borrower is in over-indebtedness or presents a high risk of not being able to repay the credit, the lender must refuse to grant the consumer credit. This measure aims to protect the borrower against excessive indebtedness and to prevent situations of over-indebtedness.

Documentation and transparency

The lender must provide the borrower with a written credit agreement. This must detail all the relevant information concerning private credit. Such as the amount borrowed, the duration of the credit, the interest rate, the repayment deadlines and the associated costs. The contract must be written in a clear and understandable manner. This is to comply with the provisions of the consumer credit law.

The rights of borrowers under consumer credit law

The rights of borrowers

The consumer credit law also guarantees a number of rights to borrowers. The aim being to ensure their protection and allow them to contract a credit in the best conditions possible.

Right to retract

The borrower has a right to retract which allows him to waive consumer credit within 14 calendar days. This right runs from the date of conclusion of the contract. This, without having to justify its decision or pay penalties. To exercise this right, the borrower must inform the lender in writing before the expiry of the withdrawal period. He must make his request by letter, e-mail or fax.


The borrower has the right to refund all or part of his consumer credit in advance. This, at any time and without penalties. In this case, the lender must recalculate the amount of interest taking into account the prepayment. He will then adjust the outstanding balance accordingly.

Protection in the event of door-to-door sales

Concluding consumer credit through door-to-door canvassing is prohibited. In this case, the borrower has a withdrawal period of 14 calendar days to renounce the credit without having to justify his decision or pay penalties.

The private credit broker

The private credit broker

Broker fees and billing

Under no circumstances should the consumer pay compensation or fees to the broker who allowed him to take out credit. The broker's fees are fully covered by a commission that the lender pays to the broker. This of course following the conclusion of a private credit agreement with the client.

Authorization to exercise the profession of credit broker

Brokers wishing to practice the profession must obtain an authorization issued by the canton of residence of the latter. This authorization is granted on the condition that the broker can meet the following criteria:

  • he must enjoy a good reputation and present all the guarantees of an irreproachable activity;
  • the broker not to have suffered, during the five years preceding the application for authorization, any criminal conviction relating to the activity subject to authorization;
  • the managers do not see any act of default of property against them;
  • they must also have three years of experience in the field of financial services;
  • the broker must also have security up to CHF 10,000.- to guarantee the damage that could result from this activity.

If all the above criteria are met, then the credit broker can obtain an authorization to exercise the profession which will be issued by the canton. Please note that this authorization must be renewed every 5 years.

How to choose my private credit broker?

To choose correctly your private credit broker, be sure to check the following:

  1. Does my broker have a good reputation? To verify this information, all you need to do is check the reviews that consumers have given to the broker of your choice. You can for example check your google profile. It is also possible to check what is said about him on Facebook Or LinkedIn. Generally speaking, if you find bad reviews there or no information is available, it might be better to check the qualifications of your interlocutor in more detail by simply asking them a few questions.
  2. Is my broker licensed to operate? As a consumer, do not hesitate to ask him the question. If necessary, you can also ask for proof. As explained above, if your broker is authorized to exercise his activity, he will be able to present his cantonal authorization to you.

What customers say about Lica:

Arthur EstevesArthur Esteves
14:56 16 Apr 24
My experience was 5 stars. The person who handled my case was Ms. Mara Garcia. An excellent professional, very friendly and always available to answer all my questions. He handled the whole process in the best way possible. Everything was 5 stars.
Cergiogomes GomesCergiogomes Gomes
10:30 03 Apr 24
Hello, hello, look at you, Mr. Omar, he is at the top, very hardworking, attentive, very professional, responsible, I loved working with Mr. Omar, congratulations, call to have a colleague like that.
Haileab BehreHaileab Behre
00:40 02 Apr 24
Patricia DeMichelePatricia DeMichele
09:41 28 Mar 24
Mr. Manuel Ognissanti gave us 360 degree advice. Very competent and professional. It deserves more than 5 stars. Thanks to him, we got the credit.
Andrea DeianaAndrea Deiana
03:46 28 Mar 24
Mr. Ognissanti Manuel, with his professionalism and competence, was able to guide and advise me in the best possible way. It deserves more than 5 stars!
Véronique TeroscVéronique Terosc
16:29 27 Feb 24
Very good experience. She is very professional.
Arthur MoreiraArthur Moreira
13:51 21 Feb 24
Marta FerreiraMarta Ferreira
14:47 20 Feb 24
Jedidia AndrianarivonyJedidia Andrianarivony
13:49 20 Feb 24
It's impeccable
Anderson ZomerAnderson Zomer
12:08 15 Feb 24
Really satisfied with Oman! Very professional, clear and fast! THANKS
Houda KacemHouda Kacem
13:33 09 Feb 24
Andreas HerzigAndreas Herzig
19:58 05 Feb 24
Leonora NrecajLeonora Nrecaj
16:52 03 Feb 24
I can highly recommend the advice of Mirlinda Ahmeti at Lica. She is reliable, acts quickly and finds solutions. I am very satisfied with her. ??
Exceptional professionalism from Ms. Mara Garcia and her entire team. I recommend.
Eliane RibeiroEliane Ribeiro
11:33 30 Jan 24
I would like to share my positive opinion on the services of Lica Crédit. Their professional team was efficient in processing my credit application, with competitive interest rates and flexible repayment terms. I highly recommend your services.
Giuseppe Di CarmineGiuseppe Di Carmine
13:39 26 Jan 24
Manuel is a kind and very competent person. Someone who knows how to do his job and who doesn't give up. I really recommend him.
Matteo D'ArpinoMatteo D'Arpino
19:57 18 Jan 24
Rosario D'alessandroRosario D'alessandro
10:38 18 Jan 24
Manuel is a good guy
14:23 11 Jan 24
Always try until we find a solution for the customer
Marta CabralMarta Cabral
15:57 09 Jan 24
Filipa DiasFilipa Dias
14:05 05 Jan 24
Dovile TDovile T
13:22 03 Jan 24
Thank you Manuel for the professional assistance, fast and efficient feedback!
Lurdes CunhaLurdes Cunha
13:26 07 Dec 23
I would like to thank Mr. Omar Gourgel, because he was very professional, excellent advisor and efficient in his work. My husband (Mr. Artur Da Silva Cunha) and I are extremely satisfied and recommend your services.
Zeinab RkainZeinab Rkain
13:34 29 Nov 23
Nilsa TeixeiraNilsa Teixeira
17:02 16 Nov 23
The consultant Mara Garcia, in addition to being friendly, is a good professional. She is very good at what she does...
Pedro RamiaoPedro Ramiao
16:45 16 Nov 23
Ana BelloAna Bello
11:16 16 Nov 23
Mr. Omar was very professional and very attentive to my need to obtain the ceedito
Alberto FloresAlberto Flores
15:48 07 Nov 23
Hello gentlemen from LicaOf course I am satisfied with your attention, especially that of Mr. Omar Grougel, everything was a pleasant conversation with the advice to carry out this project, thank you very much for everything…Thank you Mr. Omar G
Fadil KamishiFadil Kamishi
20:44 03 Nov 23
Greetings Mr Manuel you are n1 congratulations I am very happy with the work you do for us thank you very much.
Václav PalarčíkVáclav Palarčík
18:59 03 Nov 23
Thank you very much Mrs. Mirlinda Ahmeti, she helped me a lot and always answered my questions immediately, she is the right woman, thank you.
My EmailMy Email
15:58 02 Nov 23
My experience with Miss Mirlinda Ahmeti from Lica was very helpful, she represented me very well with the lender and in the end I got the financial assistance without any problem. Regards C.W.
Renata HlaváčkováRenata Hlaváčková
14:21 02 Nov 23
I am very satisfied and Mrs. Ahmeti is very professional.Thank you very much Renata
Bekim ShalaBekim Shala
11:46 02 Nov 23
Consultant Mirlinda immediately understood my needs as a client and worked hard to achieve a positive outcome to my requests. Polite, efficient, precise, professionally competent and very empathetic personally. I highly recommend Mirlinda Ahmet
Václav PalarčíkVáclav Palarčík
10:02 27 Oct 23
Helder FilipeHelder Filipe
11:52 25 Oct 23
joao pintojoao pinto
10:08 23 Oct 23
Jules UddinJules Uddin
10:16 16 Oct 23
05:13 13 Oct 23
Marcelo FerreiraMarcelo Ferreira
11:34 12 Oct 23
Excellent professional Mara Garcia
Salvatore Lo GiudiceSalvatore Lo Giudice
11:20 12 Oct 23
Manuel N^1 was very precise, a true professional.
Angela CoelhoAngela Coelho
09:39 09 Oct 23
Christian FarinaChristian Farina
09:20 09 Oct 23
It was a pleasure! Very pleasant business partner!
juan alcaldejuan alcalde
06:36 04 Oct 23
always gives solutions
Luis GarciaLuis Garcia
16:50 03 Oct 23
Paolo ChieffoPaolo Chieffo
17:17 28 Sep 23
Kimberly BallamanKimberly Ballaman
16:18 26 Sep 23
He was able to answer all our questions and help us with our request.
Nadia DeBarrosNadia DeBarros
13:13 21 Sep 23
Renaldo GjoziRenaldo Gjozi
09:18 20 Sep 23
Joaquim AzevedoJoaquim Azevedo
17:15 15 Sep 23
Antonio SimoneAntonio Simone
11:31 15 Sep 23
Thanks to Mr. Manuel a very competent person in his work thank you very much
Roberto LabanoRoberto Labano
13:24 14 Sep 23
Je voudrais dire que Mara Garcia a été excellente pour résoudre ma demande. Du début jusqu'à la fin. Je recommande à 100%. Merci Mara 🙂
Ricardo RibeiroRicardo Ribeiro
06:49 14 Sep 23
Mara Garcia took care of my order. Super friendly, attentive and always available to help. In this branch of the best I have found.
Cosimo TassoneCosimo Tassone
14:44 31 Aug 23
The consultant Manuel Ognissanti is a very good guy in his work and available, thanks to his knowledge I managed to obtain the credit. I recommend it to everyone ..?? THANK YOU MANUAL..
Ricardo Da SilvaRicardo Da Silva
08:25 31 Aug 23
Fast, no problem.
Ricardo RibeiroRicardo Ribeiro
08:19 31 Aug 23
Francesco CrisafulliFrancesco Crisafulli
11:59 30 Aug 23
available and practical! what you need in these situations.informed
12:48 19 Aug 23
False advertising. Inability to obtain a loan. Consultant offering me no solution, except to manage on my own...I strongly advise against it and that's a shame.
Melitta CostantinoMelitta Costantino
11:06 08 Jun 23
Impeccable efficiency. From A to ZFast, clear, efficient and serious
Dave MartinsDave Martins
15:51 03 Tue 23
Mrs. Garcia, with whom I had contact from start to finish, was great, attentive and very professional, it should be noted because in this area it is very rare. I got my fat credit fast from them. I can only recommend
Rachel PittetRachel Pittet
12:33 02 Tue 23
Very satisfied, a good solution has been found. Thank you very much for your work
Rui P.SantosRui P.Santos
14:08 31 Jan 23
Excellent service, very good customer support all along the way. A real pleasure to have found them. Mara did everything to help me find a solution. Thank you
Danny FernandoDanny Fernando
14:37 25 Jan 23
Company that really gives of itself for these customers and that really tries to find solutions. Friendly service, support during all stages. Real pros. I highly recommend. Many thanks to Ms. Garcia for her professionalism and efficiency.
Flaco VerdeFlaco Verde
17:15 19 Jan 23
Many thanks to Mara for her help and efficiency.
Eugenie KouassiEugenie Kouassi
16:27 18 Nov 22
Yes I am very satisfied with Manuel, humanely available, explains clearly with professionalism, very courteous on the phone, I recommend Lica ++++++ and many thanks to Manuel!
Oberlin MichaelOberlin Michael
16:58 01 Nov 22
She really was me, she's the only one who believed in me, I find her just incredible
vincent morelvincent morel
13:14 24 Oct 22
Mara Garcia I recommend her for the credits
jaffyx leejaffyx lee
11:09 21 Oct 22
Very responsive and available

Advertising and Consumer Credit Law

Advertising and Consumer Credit Law

The consumer credit law also regulates consumer credit advertising. This is to prevent misleading practices and to ensure healthy and fair competition between lenders.

Prohibition of misleading advertising

The law prohibits any consumer credit advertising that is misleading or misleading consumers. For example, it is forbidden to present unrealistic or unrealistic interest rates or credit conditions.

Information obligation

Advertisements for consumer credit must clearly and legibly mention certain mandatory information. The effective interest rate, fees associated with the credit and repayment conditions must be specified. This obligation aims to guarantee transparency and allow consumers to compare credit offers in an enlightened way.

Supervision of promotional offers

Promotional offers for consumer loans, such as reduced interest rates or gifts, must follow certain rules. They must not encourage consumers to take out credit irresponsibly. For example, promotional offers must be clearly delimited in time. They must also not be conditional on the subscription of other products or services.

Sanctions for non-compliance with consumer credit law

The Consumer Credit Act provides penalties for failure by lenders to comply with its provisions. These sanctions make it possible to guarantee respect for consumer rights and the application of the rules governing the credit market.

Fines and administrative sanctions

Lenders who do not comply with consumer credit law obligations, such as pre-contractual information, credit checks or interest rate cap, may be subject to fines and administrative sanctions. These sanctions may include the suspension or withdrawal of the authorization to exercise the activity of lender.

Liability of lenders

Lenders can also be held liable for damages caused to borrowers for failure to comply with consumer credit law. For example, if a lender extends credit to a borrower in a situation of over-indebtedness, he may be required to pay damages to compensate for the damage suffered by the borrower.

Advice for borrowers before taking out a private loan

Advice for borrowers

Before taking out consumer credit, it is important to do your homework. Here are some tips to help you navigate the consumer credit landscape:

Assess your needs and repayment capacity

Before taking out a consumer loan, carefully assess your real needs and your ability to repay the loan. This, taking into account your income, your expenses and your possible debts. If you are unsure of your budget, get free help from an advisor from Lica.

Compare credit offers by contacting a recognized broker!

Take the time to ask the services of a private credit intermediary. He will be able to compare the consumer credit offers offered by different lenders. It will take into account interest rates, fees and repayment terms. In addition, a private credit professional may also maximize your chances of obtaining private credit at the best market conditions. His expertise and knowledge will be invaluable in properly preparing your loan application file.

Read the loan agreement carefully

Before signing a consumer credit contract, carefully read the terms and conditions of the contract, making sure to fully understand the information regarding the amount borrowed, the duration of the credit, the interest rate and the repayment terms. If you have any questions or doubts, do not hesitate to ask your private credit intermediary for explanations.

Keep in mind your right of withdrawal

Remember that you have a period of 14 calendar days to exercise your right of withdrawal after signing the consumer credit agreement. This, without having to justify your decision or pay penalties. If you change your mind, do not hesitate to exercise this right to protect your interests.

Plan the repayment of your private credit

Once you have taken out your consumer credit, it will be important to plan the repayment of it. Make sure you can meet the repayment deadlines. In case of financial difficulties, do not hesitate to contact your broker to discuss reimbursement solutions.

Consumer Credit Law – Our Conclusion

The consumer credit law is an essential mechanism for protecting consumers and guaranteeing a fair and transparent credit market in Switzerland. As a borrower, it is important to know your rights and the obligations of lenders. You can thus contract consumer credit safely and in the best possible conditions. Also feel free to seek advice from a private credit broker reputable before committing. Moreover, you can consult this complete guide to consumer credit law at any time to ensure that you comply with the rules in force.

Do you have questions before applying for private credit? Our advisors are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!

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Based on 173 reviews
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Cergiogomes Gomes
Cergiogomes Gomes
10:30 03 Apr 24
Hello, hello, look at you, Mr. Omar, he is at the top, very hardworking, attentive, very professional, responsible, I loved working with Mr. Omar, congratulations, call to have a colleague like that.
Haileab Behre
Haileab Behre
00:40 02 Apr 24
Patricia DeMichele
Patricia DeMichele
09:41 28 Mar 24
Mr. Manuel Ognissanti gave us 360 degree advice. Very competent and professional. It deserves more than 5 stars. Thanks to him, we got the credit.
See All Reviews

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