The Swedish Consumer Agency went out last spring and warned five companies that mediate E-Money loans. The reason for this was that the companies provided unsatisfactory information to the consumer, which made it very difficult to calculate the total cost of the fast loan. In addition, the loan companies consistently obtain insufficient information to assess customers’ creditworthiness.
Warnings issued by the Consumer Agency this spring were the following
- The well known loan broker Good Finance (read the report here).
- Fast loan company Message loan (read report here).
- Good Invest & Finance with the brand name Goodkredit (read the report here).
- E-Bank Capital with the brands E-Bank and OK Money (read the report here).
NOTE! Since the warning was issued, everyone except the Message Loan has implemented all the necessary changes the Consumer Agency requested at the time of the warning.
Two new companies are warned
In the autumn and winter of 2012, the Consumer Agency is investigating another five loan companies. In early November, the Consumer Agency announced that two more of these have substandard routines when gathering information on the borrower’s financial situation. The two new companies on the Consumer Agency’s black list are IPT Sweden with the brand Kundfinans (read the report here) and Mobillån Sverige AB (read the report here).
Warned companies that do not review their routines and take appropriate action are at risk of losing their right of lending.
E-Money loans are a controversial form of loan
There are divided opinions on whether or not the goods of the E-Money are. Many borrowers are positive that these quick loans are also available to people with weaker personal finances, while others believe that E-Money loans are a debt trap rigged for weak, vulnerable and desperate individuals.
Many also believe that the interest rates for these lows are far too high and that they are often about pure low interest rates. At the same time, it is important to point out that many of the companies that offer E-Money loans are actually operated in accordance with Swedish law and live up to the requirements of the Financial Supervisory Authority.