§ 5-8. Tied selling (koblingssalg): requiring other purchases to get a loan

The Financial Contracts Act (Finansavtaleloven)·LOV-2020-12-18-146

Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська

The text of the law (unofficial translation)

§ 5-8. Tied selling

It cannot be made a condition for entering into a credit agreement (kredittavtale) that the customer (kunde) also enters into an agreement to buy or sell goods or services. Such contract terms are not binding on a consumer (forbruker). It may nevertheless be made a condition that debt insurance or other insurance is taken out that strengthens the customer's ability to fulfil the credit agreement, and a condition that an account agreement (kontoavtale) is entered into in connection with the credit agreement. The Government (Kongen) may lay down further exceptions in regulations (forskrift).
Source: Lovdata — Finansavtaleloven (the Financial Contracts Act) § 5-8

What does this mean?

The bank cannot make it a condition for a loan that you also buy or sell other goods or services. For consumers, such conditions are not binding. Requiring debt insurance or other insurance that strengthens your ability to pay, or an account agreement, is nevertheless allowed. The Government can lay down further exceptions.

The permitted conditions become relevant in § 5-5: If the bank has not assessed your creditworthiness according to the rules, they do not become binding on the customer. This section sits alongside usury (åger) (§ 5-7) and the duty to refuse credit (avslagsplikt) (§ 5-4).

Related sections
All sections of the Financial Contracts Act →