Mobile loans put Swedes in debt

THERE IS a brouhaha brewing in Sweden where high tech loan approvals stand accused of sending youngsters spiralling into debt.

A bright spark in the banking industry hit on a wizard wheeze that allowed punters to apply for a loan using a text message on their mobile phone.

SMS loans, which put 300 Euros into your bank account in 15 minutes, took off, particularly among cash strapped teens who found themselves without cash and needing to go out.

While it might have saved a few domestic rows, because the teens in question did not have to hit their parents for cash, it has plunged more than a few of them into debt.

Debt collectors have been having a field day collecting money from those who have suddenly not been able to pay.

According to AFP one debt collection agency is trying to collect cash from 20,000 people, most of them aged 18 to 25.

The Swedish Consumer Agency said the system was an accident waiting happen because it enabled people usually barred from receiving loans, like teenagers and other low and no-income groups, to borrow cash in no time flat.

A spokesman for Mobillaan Sverige, which was the first to offer SMS loans said it was all "exaggerated", a storm in a teacup and all sorts of other things that indicate that it is all OK. µ

L'Inq
AFP