General terms and conditions

These general terms and conditions apply to goods-or-services-related one-time credits (Purchase Credits) that are granted by Svea Bank AB, Filial i Finland to the Borrower for the seller-specific purchases.

1. DEFINITIONS

Creditor: Svea Bank AB (publ), Filial i Finland (Svea), business ID 3237195-7.

Borrower: a person who has been granted an Purchase Credit for the purchase of products or services.

Purchase Credit: goods-or-services-related one-time credit that is granted for purchasing a product or a service.

2. GRANTING OF CREDIT

2.1. The Borrower has selected Svea’s invoice as the payment method for purchasing the goods or the service, in accordance with the terms and conditions presented in connection with the purchase transaction. When sending the invoice, Svea has offered the Borrower the chance to pay their purchases in monthly instalments, with the Purchase Credit. With the invoice, the Purchase Credit agreement and the general terms and conditions of the Purchase
Credit have been delivered for approval and the minimum instalment amount to be paid has been indicated.

2.2. The Borrower approves the Purchase Credit agreement with its terms and conditions by signing the Purchase Credit agreement and paying at least the
minimum instalment indicated on the purchase-based invoice by the invoice due date. With the Purchase Credit agreement, the Borrower may pay their
purchases in several monthly instalments.

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

2.4. Svea pays the Purchase Credit amount to the seller’s bank account as payment for the purchase price.

3. 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.

4. COSTS OF THE CREDIT

4.1. The costs applicable to the Purchase Credit are indicated in these terms and conditions for the Purchase Credit. An example of the credit costs of typical
use of the Purchase Credit is included at the end of these general terms and conditions.

4.2. 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 may vary seller by seller and they are always stated in the terms and conditions received by the customer and/or on the seller’s web site.

5. REPAYMENT OF THE CREDIT

5.1. A credit itemization report (“account statement”) 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.

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

5.3. 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 partial 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.

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

5.5. 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.

5.6. 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 7:17 a 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.

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 partial 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 fulfill 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. 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.

7. OVERDUE INTEREST AND OTHER CHARGES

7.1. In case of a delay in the payment of the principal, 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 debtor’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 (credit interest 19.95 %) for a maximum of 180 days after the date when the debt has become due in full.

7.2. The Borrower must compensate Svea for the cost of receivable monitoring and collection costs.

7.3. Such fees may include, amongst others, the payment reminder fee (EUR 5) and payment demand costs according to the Debt Collection Act (22 April
1999/513, with later amendments).

7.4. 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 based on the request of the Borrower but a maximum of EUR 20 per year.

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

8.1. By default, the Purchase Credit agreement is valid for a maximum of 36 months.

8.2. Svea may terminate the Purchase 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.

8.3. When it is demanded that the Purchase 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 Purchase 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.

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

9. THE BORROWER’S RIGHT TO CANCEL THE AGREEMENT

9.1. 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 concluding the agreement in question or of a later time when the Borrower has obtained a written or an electronic copy of the credit agreement containing the information stated in Chapter 7, Section 17 of the Consumer Protection Act. 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.

9.2. 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. If Svea has made payments to the authorities as a result of entering into the credit agreement and if such payments are not refunded in case of cancellation, Svea shall also be entitled to compensation from the Borrower for such payments. The Borrower may be required to pay interest and/or payments when the Borrower has been informed in advance of the obligation to pay and the amount of interest and payments.

9.3. The Borrower must, without delay and no later than thirty (30) days after sending the cancellation notification, return to Svea the funds 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.

9.4. If the Borrower has cancelled the credit but wishes the purchase to remain valid, the Borrower must, without delay and no later than thirty (30) days after sending the cancellation notification, pay the price of the purchase to Svea and, if Svea so requests, pay the Purchase Credit interest for the period from
the date when the credit became available to the Borrower until the repayment date.

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

10.1. 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).

10.2. 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. In case of cancellation, Svea is, however, entitled to require the Borrower to pay compensation for interest of the credit made available to the Borrower for the period when the credit was available to the Borrower. The consumer must return the goods they have obtained, unused, to the seller without delay.

11. RESPONSIBILITY OF THE SELLER COMPANY, COMPLAINTS

11.1. The seller company providing goods or services paid with the Purchase Credit arrangement has obligations towards the customer according to the applicable legislation.

11.2. 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.

12. NOTIFICATIONS

12.1. 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.

12.2. If the credit-related notification has been sent to the Borrower by mail using the valid address stated in the credit application or 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.

13. 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.

14. 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.

15. 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.

16. 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).

17. MONITORING, COMPLAINTS AND DISPUTES

17.1. 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.

17.2. 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).

17.3. 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 example

Credit costs of typical use of the Purchase Credit: the setup fee EUR 5 and 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.

 

Last updated 9 Nov 2023