The sms loan industry is never protected from criticism. Of course, it should be possible to criticize all types of financial services and the actors operating within them, but it is also important that the criticism is based on concrete and indisputable facts. Otherwise, there is a discrepancy between reality and facts and it is not something that consumers who may have a need to apply for SMS loans are served by.
More recently, SMS loans as a service and, above all, their construction, have been the subject of debate at the highest level in Sweden and both the government and individual ministers have been very critical about this form of lending. The catalyst for the sudden great interest from the power holders is the report on fast loans 2014 that enforcement authority has published and the task that has been most on the wallpaper is the one that shows the increase in unpaid fast loans.
A quick look at the graph that enforcement authority reports gives at hand that the development with regard to fast loans that are not paid and goes to enforcement authority looks bleak. At the same time, the graph does not give the whole truth.
More people take quick loans
The greater the number of fast loans granted, the more cases will eventually come to the Crown Magistrate. There is nothing special about fast loans. Should other loan types increase in popularity at the fastest rate as fast loans, the trend in unpaid loans for these loan types would follow the same pattern.
Changes in the ground
Another factor behind enforcement authority’s gloomy report and the subsequent occasional hot debate is that the authority has screwed up the selection. A quick look at the background data for enforcement authority’s compilation shows that the sample between 2006-2013 was credits of up to $4000 and that the sample for the statistics for 2014 included all fast loans, ie credits of up to $15,000. Suddenly a very large part of all fast loans are included, it is no wonder that the number of unpaid loans is increasing.
About sms loan
Here at Best Bank, we see fast loans as a way to quickly obtain cash in case it is scarce in the household cash register. We see sms as a service that has a justification for existence and there is certainly a great demand.
We never recommend applying for a sms loan for consumption and we are careful to point out that there are risks in applying for this type of credit. At the same time, we are critical of the disinformation that is spreading around sms loans. In finance and economics, it is important to have accurate information so that consumers can make conscious and favorable choices based on their own economy. With the actions of the authorities and politicians, we think this principle is set aside and it is unfortunate.