§ 3-28. Information about the costs of financial services (finansielle tjenester)
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- The customer (kunde) must be told the total amount and the individual items.
- If the price is uncertain, the basis for calculating it must be stated.
- A reference interest rate or reference exchange rate requires information about how it is calculated.
- Additional rules apply to credit and payment services (betalingstjenester).
The text of the law (unofficial translation)
§ 3-28. Information about costs
- the total amount of all costs and fees etc. that the customer is to pay to the service provider (tjenesteyter), and a specification of any individual elements, cf. also § 3-34, or the basis of calculation if the exact cost of the services cannot be stated
- any costs that depend on fluctuations in the financial markets, and in that case information that historical changes in value and returns cannot be used as an indicator of future development and returns
- any interest rates and exchange rates that are to be used, cf. § 3-15, including information that these may be changed, and if a reference interest rate or reference exchange rate has been agreed, information about the method of calculating the actual interest rate or exchange rate and the relevant date, index or basis for determining the reference interest rate or reference exchange rate
- any terms on the immediate application of changes in the reference interest rate or the reference exchange rate and, if so, how information about these changes will be given under § 3-15 second paragraph
- any special costs that the customer is to pay for the use of a means of distance communication, apart from payments to the service provider
- where applicable, that other costs may also exist apart from payments to the service provider
- which payment arrangements are available.
What does this mean?
This section is about what the customer must be told about price. The core is the total amount the customer is to pay the service provider in costs and fees, together with an overview of the individual items. If the service provider cannot state an exact price, a basis of calculation must be given. In addition, the customer must be told about costs that follow the market, and that past returns say nothing certain about future returns. Interest rates and exchange rates to be used must also be stated, along with the fact that they may change. Furthermore, the customer must be told about special expenses for distance communication, about other costs outside what the service provider charges, and about which payment arrangements are available.
If a reference interest rate (an interest rate from a public source that both parties can check) or a reference exchange rate has been agreed, the customer must be told how the actual interest rate or exchange rate is calculated, and which date, index or other basis is used. If it is agreed that changes in the reference take effect immediately, the customer must be told this and how the changes will be communicated. The background is § 3-15: changes in the interest rate or exchange rate that follow such a reference can be put into effect immediately without the notice that § 3-14 second paragraph otherwise requires, but the customer must be informed in writing as soon as possible unless otherwise agreed.
The rules are general. For credit, § 3-34 gives a separate list, including the effective interest rate (effektiv rente) (annual cost as a percentage, including fees) and late payment interest (forsinkelsesrente) (the interest that accrues on late payment). For single payment transactions (betalingstransaksjoner), the customer can ask for a written document about costs and interest (§ 3-32). § 3-33 has rules on a standardised fee information document and an explanatory glossary, and § 3-39 has a special duty to provide information for offers made in a telephone call.
- § 3-15Reference interest rate and reference exchange rate
- § 3-34Information about credit agreements (kredittavtaler)
- § 3-32Lighter information duty for certain payment services
- § 3-33Standardised fee document for payment accounts (betalingskonto)
- § 3-39Offers of financial services in a telephone call