General terms and conditions

These general terms and conditions apply to goods-or-services-related one-time credits, Part Payment credits and Purchase credits that are granted by Svea Bank AB (publ), filial i Finland to the Borrower for the Borrower’s purchases and that are repaid in instalments.

1. DEFINITIONS

Creditor: Svea Bank AB (publ), filial i Finland (Svea), business ID 3237195-7. Borrower: a person who has been granted a Part Payment/Storepay credit for the purchase of products or services. Part Payment/Storepay credit (credit): goods-or-services-related one-time credit that is granted for purchasing a product or a ser-vice and that is repaid in agreed instalments.

Campaign Benefit: a campaign benefit that is announced in connection with the sales of a product or a service and that may entail its own special terms and conditions with regard to interest, repayment etc.

2. GRANTING OF CREDIT

2.1. In connection with the purchase, the Borrower has applied for credit from Svea for paying for the product or service. Advance credit-related information and the terms and conditions of the agreement have been presented to the person applying for credit before the selection of the payment method, to be stored in a permanent manner. Svea sends the credit agreement, general terms and conditions and the Standard European Consumer Credit Information form to the Borrower, to the mailing address or email address indicated by the Borrower, for approval and signature. The Borrower must return the signed credit agreement to Svea within fourteen (14) days of the date of the credit agreement or to approve the credit agreement with e-signature in Svea’s e-service. The credit agreement can also be signed in the shop selling the product or service.

2.2. The Borrower is provided with an invoice for agreed instalments. The Borrower may also pay a monthly instalment that is smaller than the agreed Part Payment instalment by approving with their signature the Purchase Credit agreement offered in connection with the invoice (Part Payment instalment). With the Purchase Credit agreement, the Borrower must pay at least the minimum instalment indicated on the invoice (see the terms and conditions 7–24).

2.3. Svea checks the Borrower’s creditworthiness before approving a credit application. Svea may reject an application for a new Part Payment credit, Storepay credit or Purchase Credit without indicating the reason for doing so.

2.4. Svea pays the credit amount directly to the seller stated on the front page of the agreement as payment for the purchase price.

3. CREDIT PERIOD

When making the purchase and applying for Part Payment credit, the Borrower has selected the suitable repayment period. The credit, along with its interests, fees and expenses charged, must be fully paid at the end of the credit period.

4. COSTS OF THE CREDIT

The credit costs according to the campaign terms and conditions are indicated on the front page of the credit agreement under “Special terms and conditions”. (An example of credit cost calculation for the use of Part Payment credit is included at the end of these general terms and conditions.)

5. REPAYMENT OF THE CREDIT

5.1. A credit itemization report (“Part Payment”) is sent to the Borrower each month, detailing the amount of outstanding debt, interests and fees as well as the minimum instalment. In addition to the principal amount, the debt balance also includes setup fees, interest payable, invoicing fees and any costs of reminders/demands for payment.

5.2. The debt is only reduced by a payment made to Svea and the credit cannot be validly repaid to the seller.

5.3. The debt is repaid during the agreed period of credit in monthly instalments according to the annual instalment method. The instalment consists of the part payment, the monthly processing fee and interest. The fee for setting up the credit is paid in the first instalment, i.e., the first instalment is larger than the other instalments by the amount of the setup fee.

5.4. Payments are allocated to the debt balance in the following order: interest, credit costs, overdue interest, overdue charges, capital.

5.5. The Borrower may be entitled to campaign prices more advantageous than the basic terms for interest and fees. These are to be agreed separately for each campaign. The Borrower must adhere to the repayment terms and conditions defined for getting the Campaign Benefit. If the Borrower fails to pay instalments on the due dates defined in the campaign terms and conditions, the Borrower loses the Campaign Benefit and is obligated to pay the credit according to the basic terms and conditions in monthly instalments, at 19,95 % credit interestt, but not more than the maximum interest rate in accordance 
with Section 7:17 a of the Consumer Protection Act.

5.6. The Borrower always has the right to make early payment of the credit in full without any additional cost. However, Svea may collect credit setup fees, as specified in the credit agreement, and credit interest, as specified in the credit agreement, for the credit use period until the repayment date.

5.7. The Borrower has the right to obtain, on request, the instalment schedule of the credit from Svea free of charge once a year.

6. INTEREST

6.1. Credit interest of 19,95 %, but not more than the maximum interest rate in accordance with Section 7:17a of the Consumer Protection Act, is charged for the credit used (CPA section 7:7a: The interest rate charged on the credit taken out by the consumer may not exceed the reference rate referred to in Section 12 of the Interest Act with the addition of 15 % points. In any case, the agreed interest rate on the credit shall not exceed 20 %). The interest amount is calculated monthly for the outstanding capital.

6.2. Annual percentage rate refers to the percentage rate obtained by calculating the credit costs as an annual interest for the credit amount, taking the part payments into account. When calculating the annual percentage rate, it is assumed that the credit agreement stays valid until the end of the agreed period and that the Creditor and the consumer both fulfil their obligations according to the terms and conditions as well as dates stated in the credit agreement. See the calculation example at the end of these general terms and conditions.

6.3. In connection with the purchase, Svea may grant an interest-free payment period as a Campaign Benefit. If the Borrower does not pay an instalment at the latest on its due date, the validity of the credit’s interest-related campaign benefit terminates immediately, and the Borrower is obligated to pay the normal credit interest (19,95 %, but not more than the maximum interest rate in accordance with Section 7:17a of the Consumer Protection Act) of the Part Payment credit for the outstanding debt balance as well as other credit expenses. Likewise, after the agreed interest free period terminates, the Borrower is obligated to pay the agreed credit interest for the outstanding debt balance until the end of the agreed credit period or until the debt has been paid in full.

6.4. The Borrower may be entitled to a period free of payments for its purchases based on the seller’s campaign offer, after which the Borrower must pay the agreed monthly instalments with their credit costs within the agreed payment period. The payment-free period may be interest-free. After the payment-free period, 19,95 % interest, but not more than the maximum interest rate in accordance with Section 7:17a of the Consumer Protection Act, will be charged for the credit.

6.5. If a credit payment is delayed or neglected, the Campaign Benefit terminates and Svea is entitled to request 19,95 % credit interest, but not more than the maximum interest rate in accordance with Section 7:17a of the Consumer Protection Act, for the outstanding debt balance for the period after the due date of the unpaid instalment. In this case, the share of part  payment of the instalment is reduced and the credit period becomes longer.

6.6. Svea is entitled to implement changes in the interest collected for the credit if such a change is caused by a credit policy decision by a legislator, an authority or other similar parties, an increase of Svea’s borrowing costs or other increase in expenses which Svea was not able to predict at the time when the credit was granted. Svea applies the above-mentioned condition also when the change benefits the Borrower. Any changes are announced on Svea’s web site at www.svea.fi. Svea also communicates any changes in interest and credit costs in the credit itemization report and/or a separate notification sent to the Borrower’s valid mailing address at least one (1) month before the change enters into force.

TERMS AND CONDITIONS OF THE PURCHASE CREDIT AGREEMENT

7. APPLICATION OF THE PURCHASE CREDIT AGREEMENT

In connection with the Part Payment invoice, the Borrower is offered the chance to pay the credit in instalments that are smaller than the agreed monthly instalment. When the Borrower selects the smaller monthly instalment offered in connection with the Part Payment invoice, instead of the monthly instalment agreed in the Part Payment/Storepay credit agreement, the following terms and conditions of the Purchase Credit agreement will be applied.

8. PURCHASE CREDIT AGREEMENT

8.1. Information about the credit and it´s general terms and conditions are provided in advance with the invoice or Part Payment and Purchase Credit agreement. The 
Borrower approves the Purchase Credit credit with its terms and conditions by signing the part Payment and Purchase Credit agreement, paper or electronically, and 
paying at least the minimum instalment indicated on the Part Payment invoice by the invoice due date.

8.2. With the Purchase Credit agreement, the Borrower may pay their purchases in several monthly instalments.

8.3. By approving the terms and conditions of the agreement, the Borrower adopts the responsibility for making Purchase Credit payments and adhering to the terms and conditions of the Purchase Credit.

9. CREDIT PERIOD

The credit period is determined on the basis of the selected instalment amount. The maximum credit period is, however, always 36 months. The monthly minimum payment is always EUR 10 or a minimum of 3 % of the total credit.

10. COSTS OF THE CREDIT

In addition to the principal and interest, the Borrower is obligated to compensate Svea for the set up fee and processing fee costs on a maximum of 0,01 % per day resulting from the credit, but a minimum of EUR 5 and a maximum of EUR 150 yearly. Credit costs are always stated in the terms and conditions received by the customer and/or on the seller’s web site.

11. REPAYMENT OF THE CREDIT

11.1. A credit itemization report is sent to the Borrower each month, detailing the amount of outstanding debt, interests and fees as well as the minimum instalment to be paid. In addition to the principal amount, the Purchase Credit balance also includes setup fees, interest payable, processing fees and any costs of reminders/demands for payment.

11.2. The debt is only reduced by a payment made to Svea and the Purchase Credit cannot be validly repaid to the seller.

11.3. The debt balance is repaid during the agreed period of credit in monthly instalments according to the annual instalment method. The instalment consists of the part payment, the monthly processing fee and interest as well as any costs of reminders for payment. The setup fee is stated in the first credit itemization report, after which it is added to the principal amount of the Purchase Credit.

11.4. Payments are allocated to the debt balance in the following order: interest, credit costs, overdue interest, overdue charges, capital.

11.5. The Borrower always has the right to make early payment of the credit in full without any additional cost. However, Svea may collect initial credit fees, as specified in the Purchase Credit agreement, and credit interest, as specified in the agreement, for the credit use period until the repayment date.

11.6. The Borrower has the right to obtain, on request, the instalment schedule of the credit from Svea free of charge once a year.

12. INTEREST

12.1. Credit interest of 19,95 %, but not more than the maximum interest rate in  accordance with Section 7:17a of the Consumer Protection Act, is charged for the credit starting from the date of purchase. The credit interest is calculated for the Purchase Credit debt balance on a daily basis. 

12.2. Annual percentage rate refers to the percentage rate obtained by calculating the credit costs as an annual interest for the credit amount, taking the part payments into account. When calculating the annual percentage rate, it is assumed that the credit agreement stays valid until the end of the agreed period and that the Creditor and the consumer both fulfil their obligations according to the terms and conditions as well as dates stated in the credit agreement. See the calculation example at the end of these general terms and conditions.

12.3. Svea may implement changes in the interest collected for the credit if such a change is caused by a credit policy decision by a legislator, an authority or other similar parties, an increase of Svea’s borrowing costs or other increase in expenses which Svea was not able to predict at the time when the credit was granted. Svea applies the above-mentioned condition also when the change benefits the Borrower. Any changes are announced on Svea’s web site at www.svea.fi. Svea also communicates any changes in interest and credit costs in the credit itemization report and/or a separate notification sent to the Borrower’s valid mailing address at least one (1) month before the change enters into force.

COMMON TERMS AND CONDITIONS FOR PART PAYMENT AND PURCHASE CREDIT

13. OVERDUE INTEREST AND OTHER CHARGES

13.1. In addition to the capital amount and the interest, the Borrower is obligated to pay the initial fee and the invoicing fee detailed on the front page of the credit agreement under “Credit terms”.

13.2. Svea is entitled to increase the fees at any time during the period of credit in proportion to the increase of costs incurred by the operation in question to Svea.

13.3. The Borrower may also be required to pay fees other than those resulting from Svea’s credit costs. Such fees may include, amongst others, the payment reminder fee (currently EUR 5) and payment demand costs according to the Debt Collection Act (22 April 1999/513, with later amendments).

13.4. In case of a delay in the payment of the capital, interests and fees, the Borrower must pay annual overdue interest as stated in Section 4 of the Interest Act (20 August 1982/633, with later amendments). If the Borrower’s obligation is related to a consumer credit agreement or other agreement mentioned in Section 2, Subsection 2 of the Interest Act, the overdue interest must be paid on the same basis as before the due date for a maximum of 180 days after the date when the debt has become due in full.

13.5. A fee of EUR 10 will be charged for any certificates, copies and other documents. EUR 5 will be charged for a change of due date for a minimum of 14 days based on the request of the Borrower but a maximum of EUR 20 per year.

14. VALIDITY AND TERMINATION OF THE CREDIT AGREEMENT, SPECIAL GROUNDS GIVING RISE TO THE CREDIT BECOMING DUE

14.1. The credit agreement is valid for the agreed credit period.

14.2. Svea may terminate the credit agreement and cause the credit to become due in full pursuant to Chapter 7, Section 33 of the Consumer Protection Act in the following cases:

a) The Borrower’s payment has been delayed by at least one (1) month and still remains unpaid and the delayed amount equals at least 10 % or, if it contains more than one instalment, at least 5 % of the total credit price or covers the entire remaining debt to Svea.

b) The Borrower’s other material breach of agreement.

14.3. When it is demanded that the credit matures prematurely, a period of notice of a minimum of one (1) month applies, starting from the date when Svea sends the notification of termination to the Borrower as a letter by mail. If Svea has required a premature repayment of the credit debt balance according to the above section 8.2, the Borrower is, however, not obligated to repay the entire debt amount prematurely if they pay the delayed amount before the end of the period of notice or rectify another breach of agreement.

14.4. The Borrower is entitled to terminate the credit agreement at any time with a period of notice of one (1) month. The termination must be made in writing.

15. THE BORROWER’S RIGHT TO CANCEL THE AGREEMENT

15.1. The Borrower is entitled to cancel the consumer credit agreement (Chapter 7, Section 20 of the Consumer Protection Act) by notifying Svea of the cancellation in a permanent manner within fourteen (14) days of receiving, in a permanent manner, the agreement in question, its conditions, and preliminary information concerning the credit. The cancellation notification must be submitted in writing within the time limit to the following address: Svea Bank AB (publ), filial i Finland / Payments, Mechelininkatu 1a, FI-00180 Helsinki, Finland or asiakasinfo@svea.fi. The notification must include the details of the credit agreement being cancelled.

15.2. If the Borrower cancels the credit agreement, the Borrower may be required to pay compensation covering the interest for the credit for the period that the credit has been available to the Borrower.

15.3. The Borrower must, without delay and no later than thirty (30) days after sending the cancellation notification, pay the funds to Svea that have been made available on the basis of the credit agreement and make the payments as required in Chapter 7, Section 20.2 of the Consumer Protection Act. If these requirements are not met, the cancellation will become void.

15.4. Exercising the right to cancel the consumer credit does not affect the obligation to pay for the product or the service financed by the credit agreement. If the Borrower has cancelled the credit, the Borrower must, without any delay and no later than thirty (30) days after sending the cancellation, pay the price of the purchase to Svea. Otherwise, the cancellation will become void, and the credit agreement will be activated. In distance selling, Svea also has the right to collect credit interest for the period that the credit has been available to the Borrower. The interest that is to be collected is the credit amount multiplied by the credit interest from the credit contract in question and the amount of days that the credit has been available to the Borrower. The product is to be divided by 36 500.

16. INFORMATION CONCERNING REMOTE AGREEMENTS, RIGHT OF CANCELLATION, ETC. (CONSUMER PROTECTION ACT, CHAPTER 6)

16.1. Pursuant to Chapter 6, Section 14 of the Consumer Protection Act, in distance selling, the consumer has the right to cancel the agreement by informing the seller of this with a cancellation form or in another unambiguous manner no later than fourteen (14) days after concluding the service agreement or the agreement on electronically delivered digital content or, in case of a trade agreement, receiving the goods or the last lot of goods or, in case of regular delivery of goods, receiving the first lot of goods (for further details on cancellation and restrictions concerning the right of cancellation, see Chapter 6, Sections 14 and 16 of the Consumer Protection Act).

16.2. Pursuant to Chapter 6, Section 21 of the Consumer Protection Act, if the consumer cancels a door-to-door or distance selling agreement, the associated credit is also cancelled without separate measures. In case of cancellation, the Borrower must always send a written cancellation notification also to the address Svea Bank AB (publ), filial i Finland/Payments, Mechelininkatu 1a, FI-00180 Helsinki, Finland or to the email address asiakasinfo@svea.fi. If the credit agreement is cancelled, the Creditor must, without delay and within thirty (30) days of being informed of the cancellation of the agreement, return any payments it has received from the consumer. The consumer must return the goods they have obtained, unused, to the seller without delay.

17. RESPONSIBILITY OF THE SELLER COMPANY, COMPLAINTS

17.1. The seller company providing goods or services paid on credit has obligations towards the customer according to the applicable legislation.

17.2. Complaints shall be made primarily to the seller company. The Borrower must also notify Svea of a complaint without undue delay. The Borrower who is entitled to withhold payment or receive a reimbursement of the price, compensation for damage or other monetary compensation from the seller or the service provider based on this breach of agreement by that party, has the same right also towards the Creditor who has financed the sales of goods or services. However, pursuant to Section 39 of the Consumer Protection Act, the Creditor is not required to pay the consumer any more than what it has received from them as payments.

18. NOTIFICATIONS

18.1. The Borrower must notify Svea immediately of each change of address and other condition which might affect the relationship between Svea and the Borrower, using the following contact details: Svea Bank AB (publ), filial i Finland / Payments, Mechelininkatu 1a, FI-00180 Helsinki, Finland / tel. +358 9 4242 3330 / email: asiakasinfo@svea.fi.

18.2. If the credit-related notification has been sent to the Borrower by mail using the valid address stated in the credit application or in the agreement or otherwise known to Svea, the notification is to be considered as being received by the recipient at the latest on the seventh day following the mailing of the notification. A notice sent by email is considered as being received by the recipient immediately.

19. LIMITATION OF SVEA’S LIABILITY

Svea shall not be held liable for damages caused by legal requirements, actions of the authorities, acts of war, strike, embargo, lockout, boycott or other reason not due to Svea. The reservation concerning strike, embargo or lockout also applies when Svea has become the object of such action or undertakes such action itself. Svea shall not be held liable for damages resulting from other reasons if Svea has observed customary care in its operations. Svea shall not be held liable for indirect damages in any case. Should Svea be unable to receive a payment as a result of a matter mentioned above, Svea shall only be entitled to receive the interest based on the conditions applicable on the due date for the duration of the obstacle.

20. ASSIGNMENT OF THE CREDIT AGREEMENT

Svea shall have the right to assign or pledge its receivable from the Borrower, including all the adjoining rights, to a third party with right of further transfer without hearing the Borrower. The Borrower shall, however, be notified of the assignment.

21. INFORMATION CONCERNING THE PROCESSING OF PERSONAL INFORMATION AND APPROVAL OF SUCH PROCESSING

We process your personal information in accordance with applicable legislation at any given time.

The borrower accepts that when granting the credit the creditor checks the applicant's personal credit information from a credit register maintained by Suomen Asiakastieto Oy and/or Bisnode Finland Oy, as well as acquires other worthiness information considering borrower´s credit capacity from various credit rating companies, public data controllers or population information system provide for credit granting purposes. The borrower gives the creditor right to collect and process information from the consumer information query system maintained by Suomen Asiakastieto Oy in order to process this credit application, and agrees that the creditor will provide information to the consumer information query system maintained by Suomen Asiakastieto Oy from the credit granted on the basis of this credit application.

Further information regarding collecting, protecting and processing your personal data and your rights can be found in our data protection description at www.svea.fi.

22. NOTIFICATION OF PAYMENT DELAYS TO THE CREDIT INFORMATION REGISTER

Svea shall be entitled to notify any payment delays to the credit information register according to the conditions of the license of the register (when the payment is delayed by more than twenty-one (21) days from the reminder for payment and more than sixty (60) days from the original due date).

23. MONITORING, COMPLAINTS AND DISPUTES

23.1. Provisions of Chapter 7 of the Consumer Protection Act (20 January 1978/38) apply to this agreement. The Consumer Ombudsman, the Consumer Authority and regional state administrative authorities monitor the compliance with the provisions of the Consumer Protection Act.

23.2. Complaints can be submitted to Svea by calling +358 9 4242 3330 or sending email to asiakasinfo@svea.fi. Should the resolution of any disputes by means of negotiations fail, the Borrower may take the matter for resolution by the Consumer Disputes Board (www.kuluttajariita.fi).

23.3. Should disputes be brought for resolution by a court of law, the complaint shall be filed in the district court according to the Borrower’s place of residence. Disputes shall be resolved according to Finnish legislation.

Annual percentage rate calculation examples

An example describing a typical use of the Purchase Credit:
Credit costs: the setup fee EUR 5 and the annual interest 19.95 %.

Credit EUR 1,000, the term for payment 12 months. The total cost of the credit EUR 116.33, the annual percentage rate 22.93 % and the credit price according to the Consumer Protection Act is EUR 1 116.33.

An example describing a typical use of the Part Payment credit:
Credit costs: loan fee EUR 2.80 per month, the annual interest 19.95 %.

Credit EUR 1,000, the term for payment 12 months. The total cost of the credit EUR 144.93, the annual percentage rate 29.02 %. The credit price according to the Consumer Protection Act is EUR 1,144.93.

 

Last updated 9 Nov 2023