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The number of payday loan companies have doubled in Sweden just within five years

Thursday, 06 September 2012
Sweden has become a very lucrative market for fast loan companies, otherwise known as payday loan companies. Within the past 5 years, their number has exploded.

Some authorities feel that it has pushed many people into debt trap as these loan companies have interest rates on borrowed money of more that 1000 percent. According to a new survey commissioned by Swedish television, these companies have more than doubled in the past five years.

SMS loans as they are also known make people to apply for a loan with no question asked and within a very short time, the money is in their account. But repayment has shown that it has pushed so many into the debt trap. But for those who lend the money, it is often a good deal. As the market become lucrative, more want a piece of the pie.
sms-loans

The number such loan companies have more than doubled in the past five years, the figures from the Swedish FSA show. In 2006 there were 95 such companies but five years later, they had become 277 such firms.
To set up such a business is not very complicated, compared to setting up Scandinavian companies and market.

FSA has previously indicated to the Government that there are major gaps in the oversight of these companies. The Minister for Financial Markets, Peter Norman has indicated that control in the future may make it harder – maybe with a condition that licences can be revoked if the companies does not measure up. But so far, the field is left to feel free and operate as it wishes .

The increase in the number of companies such companies is a sign that this is an easy and lucrative market. And it’s a market that is very accessible, according to Swedish television.
by Scancomark.com team