In 2020, the Swedish Consumer Ombudsman initiated proceedings against Svea Ekonomi AB, currently Svea Bank AB, with the purpose to ban late fees in consumer credit relations. In the proceedings, the Ombudsman asserted that late fees were prohibited pursuant to the Swedish Act on Compensation for Collection Costs etc. Since late fees have been used by the industry for a long time, the question was of great principle importance. The principle importance of the question is also apparent from the fact that trade associations chose to engage in the case.

The Ombudsman’s action was granted by the Patent and Market Court as well as the Patent and Market Court of Appeal. However, the Supreme Court came to the opposite conclusion in a judgment rendered on 14 February 2024 (Supreme Court Case No. T 3408-23). In the judgment, the Supreme Court concludes that late fees are not prohibited pursuant to the Swedish Act on Compensation for Collection Costs etc. Since the Ombudsman has invoked a secondary cause for its action, which has not been tried by the lower courts, the Supreme Court vacates the judgment of the Patent and Market Court of Appeal and remits the case to said court for continued trial.

Gernandt & Danielsson's team consisted of Partners Niclas Rockborn and Daniel Waerme, and Senior Associate Martin Bengtsson. The judgment can be accessed via this link: Supreme Court Case no T 3408-23