It must become less attractive both to take out and above all to grant bad loans. This is what the government thinks, which is now presenting four new legislative proposals.
Niklas Wykman claims that these are tough measures to protect the country's consumers.
Now we're hitting the brakes and we're hitting them hard, he says at a press conference.
Lower interest rate ceiling
The government proposes that the interest rate ceiling be lowered from 40 percentage points to 20 above the reference rate.
This will be a halving of the maximum interest rate that can be charged on this type of credit, notes Wykman.
In addition, a cost ceiling is proposed, which means that the costs of the loan may not exceed the original loan amount.
This sets a limit on how expensive it can be to have this type of loan, or how profitable it can be to grant this type of loan, says Wykman.
The government also wants to ban companies from extending credits more than once if it incurs a cost for the borrower.
Another proposal is that those who market loans must be clearer about what it costs and the risks of debt.
The proposals are being presented in a referral to the Council on Legislation, which will now be sent to the Council on Legislation.
More may be needed
What do you think the measures will have for an effect?
They are collectively aimed at strengthening the position of consumers. One should not be affected by very high interest rates, says Wykman.
This is very much about pointing out those who are responsible for irresponsible lending and then taking measures that strengthen consumers in relation to them.
He does not rule out that more may be needed.
New figures showed earlier in the week that more and more Swedes are having trouble paying their bills on time. The number of new debt collection claims is increasing and is at record levels. Even the debts with the Enforcement Authority are increasing. In just two years, the debt amount has increased by 70 percent.
The measures are proposed to come into force on March 1, 2025.
