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Many Swedish SMS loan companies warned

Tuesday, 19 February 2013
Otherwise known as payday loan companies, their proliferation in Sweden in the past years have just in a few years started creating problems to Swedish families. This has called in the Consumer Agency, which is now warning many of these companies - at least 4 f them and the view is that any further violations will lead to closures.

With interest rates charged of over 200 percent and no questions asked when loans are applied for or past credit background checks carried out, a growing number of Swedish people, some families, and many women are being trapped into the grip of these companies.
The government in the past years has passed directives as to making these loan companies limit their activities by making sure that who borrows money from them should be able to pay back. But it does not seem as if this government requirement has in anyway made these companies to regulate their operations.
Therefore, four such payday loan companies have been warned on grounds that they are careless with credit assessment. Last year ten SMS loan companies received same warning.

Under the Consumer Credit Act, a company that lends money to a private person is supposed to check whether that borrower is able to pay the money back. If that company does not change its routines, it may lose the right to lend money.
By Scancomark.com Team

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