Consumer credit regulation

In Switzerland, consumer credit regulation aims to prevent over-indebtedness and ensure transparent lending. It covers typical consumer loans, certain leasing and payment arrangements, and requires pre-contractual information, creditworthiness checks, formal contract content, and limits on abusive terms or excessive costs. Borrowers may have withdrawal or early repayment rights depending on the arrangement. The rules interact with banking supervision, debt enforcement, data protection, and advertising standards. Comparative law commonly adds interest caps, responsible lending duties, and special protection for vulnerable consumers.