SMS Text Loans Cause Concern
Swedish authorities are concerned that young people are jumping on a new sms mobile text money loan service but are getting caught out when it comes to paying the money back.
The service which kicked off at the beginning of the year, offers loans of upto 300 US dollars in minutes, simply by sending a text message.
Speaking to Swedish Radio, a company called Short Money Seservices, said that their service cuts red tape, but the consumer ombudsman warns that calculated over 1 year, the interest rate is a sky high 792 percent.
It’s now emerged that over 1000 people have defaulted on payments over the last 6 months