Consumer Credit and Loans in Denmark (2026 Legal Guide) — Rules & Requirements
About this article
Sourced from Danish Acts of Parliament (love), executive orders (bekendtgørelser), and official government guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Danish law sets strict requirements for consumer lending:
- Creditworthiness assessment: Lenders must assess your ability to repay before granting credit — irresponsible lending can be sanctioned.
- APR disclosure: All consumer credit must clearly state the annual percentage rate of charge (ÅOP) including all fees and costs.
- APR cap: Since 2020, consumer loans have a maximum ÅOP of 35% — loans above this rate are unlawful.
- Cost cap: The total cost (interest + fees) over the life of the loan may not exceed 100% of the principal — in other words, you can never owe more than double the amount borrowed.
- Right of withdrawal: You have 14 days to withdraw from a consumer credit agreement at no cost (you must repay the principal plus any accrued interest).
- Early repayment: You have the right to repay a loan early — the lender may charge a limited compensation fee.
When does it apply?
- You take out a consumer loan, a credit card or a buy-now-pay-later agreement.
- You have a dispute with a lender about terms, fees or lending practices.
What to do if a lender charges more than the legal interest maximum in Denmark
- Compare ÅOP rates before borrowing — the effective rate includes all fees.
- If you suspect the loan exceeds the 35% ÅOP cap or the 100% cost cap, report it to Finanstilsynet.
- If you want to cancel, exercise your 14-day right of withdrawal in writing.
- If you cannot repay, contact the lender early to discuss restructuring — or seek free debt counselling.
What should you NOT do?
- Don't sign credit agreements without reading the ÅOP — the "monthly fee" may seem small, but the annual rate can be high.
- Don't borrow from unlicensed lenders — check that the lender is registered with Finanstilsynet.
- Don't ignore payment demands — unpaid consumer debt is sent to Gældsstyrelsen and can lead to wage attachment.
About Consumer Rights in Denmark
If something you bought is defective, Købeloven (the Sale of Goods Act) gives you 2 years to demand repair, replacement, a proportionate price reduction or cancellation — and defects that appear within the first year are presumed to have been present at delivery. For online and distance purchases, Forbrugeraftaleloven (the Consumer Contracts Act) gives you a 14-day right of withdrawal. Misleading advertising and unfair contract terms are prohibited under Markedsføringsloven (the Marketing Practices Act), enforced by Forbrugerombudsmanden (the Consumer Ombudsman). Unresolved disputes can be brought before Forbrugerklagenævnet (the Consumer Complaints Board).
Common Questions
What is the maximum legal interest rate on consumer loans in Denmark?
Since 2020, consumer loans in Denmark have a maximum ÅOP (annual percentage rate of charge) of 35 percent — loans above this rate are unlawful. The total cost of the loan, including interest and fees, may not exceed 100 percent of the principal, so you can never owe more than double the amount borrowed under Kreditaftaleloven.
Can I cancel a consumer credit agreement in Denmark after signing?
Yes. You have a 14-day right of withdrawal on a consumer credit agreement at no cost — you only repay the principal plus any accrued interest. Exercise it in writing. You also have the right to repay the loan early, although the lender may charge a limited compensation fee.
What do I do if I think my Danish consumer loan exceeds the interest caps?
Compare the ÅOP rates — the effective rate includes all fees. If you suspect the loan exceeds the 35 percent ÅOP cap or the 100 percent cost cap, report it to Finanstilsynet. Check that the lender is registered with Finanstilsynet before borrowing. If you cannot repay, contact the lender or seek free debt counselling.
What is the consumer credit and loans right in Denmark?
Danish law sets strict requirements for consumer lending:Creditworthiness assessment: Lenders must assess your ability to repay before granting credit — irresponsible lending can be sanctioned.APR disclosure: All consumer credit must clearly state the annual percentage rate of charge (ÅOP) including all fees and costs.APR cap: Since 2020, consumer loans have a maximum ÅOP of 35% — loans above this rate are unlawful.Cost cap: The total cost (interest + fees) over the life of the loan may not exceed 100% of the principal — in other words, you can never owe more than double the amount...
When does it apply — consumer credit and loans?
You take out a consumer loan, a credit card or a buy-now-pay-later agreement.You have a dispute with a lender about terms, fees or lending practices.
What should I do if I think my consumer loan has an ÅOP above the legal 35% cap in Denmark?
Compare ÅOP rates before borrowing — the effective rate includes all fees.If you suspect the loan exceeds the 35% ÅOP cap or the 100% cost cap, report it to Finanstilsynet.If you want to cancel, exercise your 14-day right of withdrawal in writing.If you cannot repay, contact the lender early to discuss restructuring — or seek free debt counselling.
What should you NOT do — consumer credit and loans?
Don't sign credit agreements without reading the ÅOP — the "monthly fee" may seem small, but the annual rate can be high.Don't borrow from unlicensed lenders — check that the lender is registered with Finanstilsynet.Don't ignore payment demands — unpaid consumer debt is sent to Gældsstyrelsen and can lead to wage attachment.