Alektum Group Granted Credit Management License by Financial Supervisory Authority
On January 1, 2024, the new law (2023:714) on the acquisition and management of non-performing credit agreements came into effect. This legislation mandates that credit managers must apply for, and be granted, a license by the Financial Supervisory Authority (Finansinspektionen) to operate. Consequently, the Financial Supervisory Authority has also taken over the oversight of debt collection agencies from the Swedish Authority for Privacy Protection (IMY).
In this context, Alektum Group is one of the first to obtain this license, recognising our commitment to maintaining the highest standards and respecting borrowers’ rights. This license permits Alektum Group to receive and hold funds from borrowers, which is a crucial aspect of their operations in acquiring and managing non-performing credit agreements.
What Does the New Law Entail?
The new law introduces several significant changes and updates:
- License Requirement: Credit managers must now obtain a license from the Financial Supervisory Authority, which requires companies to have effective governance and internal control mechanisms.
- Management Requirements: Company leadership must possess sufficient knowledge and experience to ensure borrowers’ rights are respected.
- Enhanced Consumer Rights: Consumers gain strengthened rights to file complaints against credit managers and receive clear information when credit agreements are transferred.
Why is the Financial Supervisory Authority Taking Over from the IMY?
The Financial Supervisory Authority is assuming responsibility for debt collection agencies from the IMY for several reasons:
- Consumer Protection: Consolidated oversight under one authority makes it easier for consumers to know where to turn.
- Uniform Assessments: Reduces the risk of differences in judgments and practices within the debt collection sector.
- System Stability: Efficient debt collection operations are crucial for the stability of the financial system.
Benefits for Consumers
For consumers, these changes mean enhanced rights and more centralized, easier-to-navigate oversight:
- Simplified Complaint Handling: Consumers gain strengthened rights to file complaints and receive clear information when credit agreements are transferred.
- Centralized Oversight: With the Financial Supervisory Authority as the sole supervisory authority, it becomes clearer where to direct feedback or complaints.
- Improved Oversight: Consolidated supervision reduces the risk of discrepancies in judgments and practices within the debt collection sector, improving the stability of the financial system.
The granted license is evidence that Alektum Group meets the stringent requirements for being a credit manager.
“This license is a recognition of Alektum Group’s commitment to maintaining high compliance standards and respecting borrowers’ rights. With this new legislation and the centralized supervisory responsibility of the Financial Supervisory Authority, we look forward to continuing to support our customers and contributing to a more stable and transparent financial system,” says Catharina Bergquist, Chief Legal Officer of Alektum Group.