Quick consumer loans may be prohibited

MoneyIllustration. Money.Photo: pixabay.com

Norwegians consumer debt has almost doubled in eight years. A report the government has ordered, concludes that it may be prohibited to promote “simple, easy and fast” loans.

– There is a worrisome increase in consumer loans, especially among young people, says Consumer Minister Solveig Horne as told to VG newspaper.

These type of loans are promoted by offering them with easy access, loan for whatever you want and obtain the funds quickly on account.

The government has now received a report from the Danish lawyer Tanja Jørgensen who concludes that direct marketing of consumer lending may be prohibited, and that it may also be prohibited to promote consumer loans which encourage “irresponsible borrowing.”

– It means that wording such as “quickly” borrow or loan money, and that it is “simple” and “easy” to obtain is what is stated.

Forbrukerådet (Consumer Council) also made the same suggestion two years ago.

– We are concerned about the development. There have been several new participants and consumer loans is a growing industry.

It is our firm view that the marketing pressures have increased both in tone and scope, says Technical Director Jo Gjedrem in Consumer Ombudsman.


Source: NTB scanpix / Norway Today