Exemption for cooperation, due to the impact of COVID-19, between lenders relating to temporary suspension of payments on loans owed by individuals

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• Case number: 27/2020
• Date: 10/6/2020
• Company:
  • Samtök fjármálafyrirtækja
• Sectors:
  • Financial services
• Policy Area:
  • Excemptions
• Summary

  The Icelandic Competition Authority has today authorized the cooperation of lenders relating to temporary suspension of payments on loans owed by individuals who experience temporary payment problems due to a fall in income attributable to the COVID-19 epidemic. The decision constitutes an exemption from competition law’s prohibition against collusion.

  The exemption is subject to conditions designed to further protect the interests of individuals who have entered payment difficulties. Thus, the conditions should ensure that the cooperation agreement does not prevent individual lenders from providing clients in payment difficulties with other remedies in addition to those that the cooperation agreement stipulates.