Financial Consumer Protection

Source: Central Bank Act (No. 92/2019); Consumer Credit Act (Lög um neytendalán, No. 33/2013)

Written in plain language for general understanding. This is educational content, not legal advice. Based on Icelandic Acts of the Althingi, statutory instruments, and official guidance.

Icelandic National Law

What is this right?

Iceland's financial consumer protections are overseen by the Central Bank of Iceland (which absorbed the former Financial Supervisory Authority in 2020):

  • Consumer Credit Act (No. 33/2013): Covers virtually all loans to individuals, including mortgages. Lenders must conduct creditworthiness assessments and provide standardised pre-contractual information.
  • 14-day cancellation right: Borrowers can cancel a consumer loan within 14 days of signing.
  • Mortgage protections: Act No. 118/2016 on Real Estate Loans to Consumers provides additional safeguards for mortgage borrowers.

Dispute resolution: The Complaints Committee on Transactions with Financial Firms handles disputes on payments, deposits, credit, loans, mortgages, and securities.

When does it apply?

  • You have a dispute with a bank, lender, or financial service provider.
  • You believe a lender did not properly assess your ability to repay before granting a loan.

What should you do?

  • Complain to the financial institution first — most have internal complaints procedures.
  • If unresolved, file with the Complaints Committee on Transactions with Financial Firms.
  • If you recently signed a loan, check whether the 14-day cancellation window is still open.

What should you NOT do?

  • Don't sign a loan without reading the pre-contractual information — lenders are required to provide it.
  • Don't assume you have no recourse — financial disputes have a dedicated complaint process.

More in Consumer Rights

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