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Record numbers failing to pay back instant loans

Published torsdag 31 januari 2013 kl 16.24
Photo: Jonas Ekströmer/Scanpix

A record number of people have been referred to the state debt collection agency, Kronofogden, because they have failed to pay back instant loans taken out via mobile phone text message.

The ease at which people can borrow the money is said to be one of the reasons why so many people use the service, but then also have trouble paying the money back, according to Swedish Radio News.

Fifty-four thousand new cases were reported to the debt collection agency last year, up 62 percent. A fifth of those cases involved young people.

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