Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 05 NOVEMBER 2025

Regulatory Update: New Interest Rate Caps For Consumer Credit Announced

Borel & Barbey
Explore more from Borel & Barbey

On 31 October 2025, the Federal Department of Justice and Police (DFJP) has announced a reduction of the statutory maximum interest rate applicable to consumer credit agreements in Switzerland.

SwitzerlandConsumer Protection
Luca Bozzo
Luca Bozzo
Clément Bouvier
Clément Bouvier
Author LinkedIn connections

Statutory Maximum Interest Rate for Consumer Credit to Decrease as of 1 January 2026

On 31 October 2025, the Federal Department of Justice and Police (DFJP) has announced a reduction of the statutory maximum interest rate applicable to consumer credit agreements in Switzerland. Effective 1 January 2026, the maximum permissible rate will decrease by one percentage point to:

  • 10 % for cash loans (crédits au comptant), and
  • 12 % for overdraft facilities (découverts), including credit card balances.

This adjustment follows several consecutive decreases in interest rate levels and is based on the calculation method set out in the Ordinance on the Federal Consumer Credit Act (Ordonnance relative à la LCC, OLCC / Verordnung zum Konsumkreditgesetz, VKKG), which links the annual percentage rate (APR) cap to the three-month compounded SARON (SAR3MC), plus a statutory margin. The SAR3MC stood at 0.0054 % at the end of August 2025, prompting the adjustment to the

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New EU Obligations On Labelling Requirements For Legal Guarantees, Repair Information And Software Updates

The European Union has introduced new mandatory labelling requirements that will fundamentally change how manufacturers and retailers communicate product information to consumers. These obligations cover legal guarantees, repair information, and software update commitments, creating a comprehensive framework for consumer transparency. Understanding these requirements is essential for businesses operating in or selling to EU markets to ensure compliance and avoid potential penalties.
European UnionConsumer Protection
MME Legal | Tax | Compliance
MME Legal | Tax | Compliance
Article

EU’s New Guarantee Notices: What Changes In September 2026 For B2C Sellers

Starting September 2026, EU businesses selling goods to consumers must display two new mandatory notices at point of sale: a standardized legal guarantee notice and the GARAN label for products with extended durability guarantees. The challenge lies not in the content itself, but in implementing these requirements across diverse sales channels, product catalogues, and distribution networks.
SwitzerlandConsumer Protection
Logan & Partners
Logan & Partners
Article

LETA: What New Obligations Will Companies Face As Of 1 October 2026?

Switzerland is introducing a central register of beneficial owners through the Federal Act on the Transparency of Legal Entities and the Identification of Beneficial Owners (LETA), effective October 1, 2026. This reform requires Swiss and certain foreign companies to identify beneficial owners, document their control, and report information to a new federal register administered by the Federal Office of Justice. Companies must prepare for these new governance, documentation, and compliance obligations by en
SwitzerlandCorporate/Commercial Law
Borel & Barbey
Borel & Barbey