With proceedings recorded at the debt enforcement office or a negative ZEK entry, a loan between individuals remains possible in Switzerland, provided it rests on a written acknowledgement of debt, traceable transfers and total distrust of upfront fees.
What being under debt enforcement means in Switzerland
Debt collection is governed by the federal law on debt enforcement and bankruptcy (LP). Every payment order is entered in the register of the debt enforcement office at the debtor's address, and the extract requested by landlords or banks reveals it.
ZEK and IKO, two databases separate from the enforcement register
The ZEK, a credit bureau fed by financial institutions, and the IKO, set up under the federal consumer credit act (LCC), record current loans and arrears. A negative entry there often closes the door to banks, even without active proceedings.
Why banks refuse and who can still lend
The LCC requires professional lenders to assess creditworthiness, and enforcement proceedings almost always make that assessment negative. A parent or friend lending occasionally falls outside this regime, which is why the family circle matters so much for these borrowers.
Occasional lender or unauthorised professional
Granting credit commercially in Switzerland requires cantonal authorisation. A stranger posting repeated ads on Facebook or classifieds sites offering money to people under debt enforcement is no occasional lender and deserves immediate suspicion.
The upfront-fee trap aimed at Swiss debtors
Fraudsters target people under debt enforcement, assuming they are in a hurry. Typical script: approval within hours, then processing or release fees paid by transfer abroad or prepaid card. First apply our method to check whether a private lender is genuine.
Interest cap: the cash credit benchmark
For cash loans, the ordinance implementing the LCC sets a maximum rate, kept at 10 % by the Federal Department of Justice and Police. Staying below it between individuals is prudent, since exploiting someone's distress can amount to criminal usury.
Writing an acknowledgement of debt under the Code of Obligations
A loan for consumption falls under articles 312 and following of the Code of Obligations. A signed acknowledgement of debt lets the lender seek provisional lifting of an objection if payments stop, hence the value of a written, dated loan agreement with figures.
Keeping lent money out of reach of a seizure
When wages are already being garnished, the office calculates a subsistence minimum and can seize available assets. It is safer for the lender to pay a specific creditor directly against a receipt rather than credit an exposed account.
Removing an unjustified entry from your extract
Since the 2019 revision, article 8a LP lets debtors ask the office to stop disclosing proceedings when the creditor did not pursue them after an objection. After five years, proceedings are no longer disclosed to third parties.
Getting debt advice before taking on a new loan
Dettes Conseils Suisse brings together recognised budget advice services, often free, and Caritas also supports indebted households. A negotiated repayment plan can stop debts piling up, as our file on loans for over-indebted people explains.
Crowdlending platforms and FINMA oversight
Swiss crowdlending platforms generally consult the ZEK and reject applications burdened with enforcement proceedings. Before contacting any intermediary, check FINMA's list of authorised institutions on its website, together with its warning list of suspicious companies.
Where to report a loan scam from Switzerland
After an attempted fraud, file a complaint with the cantonal police and report it to the Federal Office for Cybersecurity (NCSC/OFCS), which records online fraud. Keep screenshots, IBAN numbers and WhatsApp conversations as evidence.
Arranging a private loan despite enforcement proceedings
- Order your debt enforcement register extract and request your ZEK data so you know exactly what the lender will see.
- Draw up a budget with a Dettes Conseils Suisse service to check an extra monthly payment fits within the subsistence minimum.
- Ask an identifiable relative first, and refuse any offer from a stranger met on social media or a messaging app.
- Write an acknowledgement of debt stating the amount, annual rate, schedule, final repayment date and both signatures.
- Have the funds paid by bank transfer, ideally straight to the creditor pursuing you, and keep the payment receipt.
- Repay by standing order from your account so every instalment is dated and provable in any dispute.
Costs and caps to know in Switzerland
| Item | Order of magnitude | Note |
|---|---|---|
| Interest between individuals | Free, 10 % maximum as a benchmark (indicative) | Maximum cash credit rate set by the Federal Department of Justice and Police |
| Debt enforcement register extract | Small fee in CHF (indicative) | Rate set by the office or canton |
| Debt counselling | Often free | Member services of Dettes Conseils Suisse, Caritas |
| Drafting by a lawyer or notary | Variable fees in CHF | Useful for a large amount |
| Fees demanded upfront by a so-called lender | Probable total loss | Fraud signal, never pay |
Papers to gather before asking a relative
- Valid identity card or residence permit
- Recent debt enforcement register extract
- Payslips or pension statement
- Seizure decision and subsistence minimum calculation, if any
- Acknowledgement of debt signed in two copies
- Monthly repayment schedule in CHF
- Records of transfers received and made
Warning signs and frequent mistakes for Swiss debtors
- Paying processing, insurance or notary fees before receiving a single franc: no legitimate lender works this way.
- Believing an ad promising credit with no ZEK check or enforcement extract, posted by an account with no verifiable identity.
- Sending a copy of your passport and bank card to a stranger, which opens the way to identity theft.
- Taking the money in cash without an acknowledgement of debt, leaving both sides without proof before the enforcement office.
- Agreeing to pass a third party's funds through your account in exchange for a loan, a classic money mule scheme.
Your questions on private loans under Swiss debt enforcement
Can a relative legally lend to me while I have enforcement proceedings?
Yes, nothing prevents an individual from lending occasionally to a debtor under enforcement. Bear in mind, though, that money paid into an account may be seized, and a written acknowledgement of debt remains essential to protect both parties.
Does a ZEK entry prevent a family loan?
No, the ZEK is only consulted by its members, mainly banks and credit companies. A parent has no access to it and no need for it, but it is honest to explain your situation yourself and show your enforcement extract.
What interest rate should individuals agree in Switzerland?
The rate is free, but staying well below the cash credit maximum, 10 % according to the federal department as an indicative figure, avoids any suspicion of usury. Many families choose an interest-free loan, stated in writing.
What if an online lender asks me for release fees?
Stop all payments and contact. Gather the messages, bank details and usernames used, then file a complaint with the cantonal police and report the case to the NCSC. Also warn your bank if you have already sent money.
Will a private loan make my enforcement entries disappear?
Only if the money pays the creditor and the creditor withdraws the proceedings, or if you obtain non-disclosure under article 8a LP. Ask the creditor for a payment certificate to hand to the debt enforcement office.