SMS loan defaults at record high: report

Published: 3 Feb 10 08:54 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/24754/20100203/

The Swedish Enforcement Authority (Kronofogden) received notice of 46,000 unpaid text message loans in 2009, an increase of 30 percent on 2008.

Swedes reach new peak in mountains of debt (29 Dec 09)
Sweden announces SMS loan crackdown (30 Oct 09)
Swedes' unpaid debts continue to pile up (3 Jul 09)

"We have received several reports of people taking these loans to pay other bills and debts, especially now during the recession," Janne Åklerlund at the authority said in a statement on Wednesday.

The authority has expressed concern in recent years that even those with poor credit are able to secure loans.

"We hope that our proposals will be adopted within the legislative proposition that the government has submitted for referral, including the tightening up of credit checks and to reduce the incidence of text message loans being a fast track into debt," Åkerlund said.

The authority however welcomed the news that the proportion of defaults by young people continues to decline. In 2009 the number of applications submitted directed at those aged 18-25 also declined in real terms.

"We can finally see that the trend concerning young people has been broken. We hope that the change is not temporary."

The Enforcement Authority is accountable to central government, but operates as an autonomous public authority. The authority supervises bankruptcies, collect debts, offers debt relief and is responsible for preventive action.

Peter Vinthagen Simpson
news@thelocal.se
+46 8 656 6518

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09:27 February 3, 2010 by Nemesis

SMS loans should be banned.

SMS loans are the quickest way to kronofogen in Sweden and seem to be guarenteed to go that direction.

If someone wants a loan, they should have to talk to a bank manager.

There needs to be fiscal responsibility in people's lives, not just in banks or governments.

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12:47 February 3, 2010 by Twiceshy

Agreed... ban these predatory loans.

Report abuse »

18:26 February 3, 2010 by Renfeh Hguh

Arrrrggggghhhh I agree with Andrea :(

Although I thought that the SMS loans are of such a low amount that a Credit Card should be sufficient to supply the credit needed.

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20:13 February 3, 2010 by krigeren

"Although I thought that the SMS loans are of such a low amount that a Credit Card should be sufficient to supply the credit needed."

Haha...hook em with a taste and keep em in debt for life.

Report abuse »

22:08 February 3, 2010 by Nemesis

@ Renfeh Hguh

I have been in a club and present when someone has sms'd for a loan and got it all within a couple of minutes.

It is designed to get people in debt.

Report abuse »

22:47 February 3, 2010 by dizzymoe33

Another example of technology gone wrong. Some technology is good and some is just plain bad.

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23:05 February 3, 2010 by Twiceshy

It's not technology gone wrong. Unless you think someone using a car to kill a person is also technology gone wrong.

What this is, is financial business gone wrong...

Report abuse »

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