§ 3-8. When the service provider can block or terminate an agreement

This section allows a service provider (for example a bank) to block or otherwise terminate an agreement on financial services when it is necessary to comply with obligations arising from the law, from regulations (forskrift) or from an order from an authority or court. This applies regardless of the ordinary rules on notice of termination and cancellation of the contract (ending the agreement because of breach). The right applies only to the extent necessary, and only if notice of termination is not an option. If the service provider can instead give notice of termination of the agreement under the termination rules, it must do so.

The termination triggers a duty to notify. The service provider must tell the customer in writing that it cannot offer the service and that the agreement is being terminated. The customer must also be given more detailed reasons, unless this would conflict with the obligations behind the termination. The notice must state the right to complain and the possibility of taking the case to a complaints board under § 3-54. If possible, the notice must come before the termination begins. If factual or legal circumstances prevent this, the notice must be sent as soon as the obstacle ceases, unless it is clearly unnecessary to give notice at that point.

The third paragraph refers to termination rules elsewhere. When an account agreement is terminated, the rules on what the customer is entitled to when an account is closed, in § 4-42 third paragraph, apply correspondingly insofar as they are appropriate. That provision gives the customer the right to have the balance paid out with accrued interest, a proportionate share of prepaid costs and access to information about transactions from before the agreement ended. When a credit agreement is terminated, § 5-13 second and third paragraphs apply correspondingly. The third paragraph of that section gives the customer the right to a proportionate refund of prepaid fees and costs. These rules apply only when nothing else follows from the obligations in the first paragraph or from the rules on cancellation of the contract.

The fourth paragraph limits which claims the customer can make against the service provider because of the termination. The customer can only make claims under the Act if two conditions are met: the service provider understood or ought to have understood that the agreement would conflict with the circumstances that later led to termination, and that these circumstances would lead to the agreement being terminated. If the termination is due to something the customer can be blamed for, the service provider is not liable.

The complaints board in § 3-54 is a body that the Government (Kongen) can approve when it has been established by agreement between service providers or their organisations and organisations representing customers. The Government can issue regulations on, among other things, who can bring cases before the board. The section is closely related to the requirement in § 3-9 that agreements be in writing when entered into, and the notice of termination must also be in writing.

Example: A service provider receives an order from an authority to stop a customer's access. The service provider can block the agreement to the extent the order requires. The customer must receive written notice, if possible before the blocking, with information about the right to complain.