§ 5-23. Lease financing (leiefinansiering): when leasing counts as credit

This section decides how lease agreements are treated under the credit rules. The starting point is that chapter 5 does not apply to leasing where the lessee is not obliged to take over the item.

There is, however, an intermediate group. Some lease agreements in practice give the same economic result as a credit purchase, even though the lessee does not have to become the owner. Some special rules apply to them. A consumer can terminate at any time, and an agreed notice period cannot be longer than one month.

The lessor can only charge a termination fee in the first three months after the agreement took effect. The fee and the rent already paid cannot together exceed three months' rent. If it is stated in writing in the agreement, the lessor may instead charge rent according to its normal terms for the time the customer has had the item. The Government can issue supplementary regulations on lease financing.

In the context of the rest of the Act, § 5-22 lists credit agreements (kredittavtaler) that are exempt from the chapter, while § 5-23 draws the line against leasing. Sections § 1-2 (the scope of chapters 2 to 6), § 1-7 (definitions for credit agreements and personal guarantee (kausjon) agreements) and § 3-22 (duty to provide information before the agreement is entered into) all refer to this section.

Example: A consumer leases an item under an agreement set up as a repayment plan, but with no obligation to buy. The consumer terminates after two months. The lessor can charge a termination fee, but the fee and the rent paid cannot together exceed three months' rent.