Four new legislative proposals are intended to make it less attractive to grant bad loans – and also to take them.
The government is proposing, among other things, that the interest rate ceiling be lowered from 40 percentage points to 20 above the reference rate. They are also proposing a cost ceiling, which means that the costs of the loan may not exceed the original loan amount.
The Financial Supervisory Authority believes that these proposals will make a difference.
Primarily when it comes to the cost ceiling, which is the most important. The loans will not be able to grow indefinitely, says Anna Hult at FI.
"Somewhat regrettable"
They believe that this will lead to more restrictive lending. The only thing they thought was missing was a comprehensive debt register.
Today, there are several credit information companies from which you can obtain information about the consumer. But not everyone has a register of all credits. So it was somewhat regrettable.
The Swedish Consumers' Association also views positively the proposals presented by Financial Markets Minister Niklas Wykman (M).
On the whole, we think these are good proposals and, above all, that the government is taking the issue of over-indebtedness very seriously, says Johanna Hållén, Secretary-General of the Swedish Consumers' Association.
Work more preventively
However, some important parts are missing. For example, the Swedish Consumers' Association would like to see an even greater reduction in the interest rate ceiling in the long run. And when it comes to marketing, further tightening is needed:
We would like to see a special restraint, that the rules are tightened so that one cannot use unscrupulous and intrusive terms.
It will still be possible to take out loans without collateral, adds Hållén.
Will these measures help to reduce indebtedness?
We really hope so. It is important to continuously follow up on what is happening with over-indebtedness in the country. At the same time, one must invest in preventive work; in consumer guidance, budget and debt counseling, and we would like to see increased education on economics and consumer issues in school, says Johanna Hållén.
