30 percent interest loans for 30 days.

The fast and easy credit via SMS is a phenomenon that is particularly rife in northern Europe: After the Scandinavian countries, measures against excessive debt have taken the mobile credit now a problem in Estonia.

 

Banking transactions with the phone to execute, this country is still an exotic niche phenomenon. True success as a mobile wallet account, and probably only in high-tech nations such as Japan and South Korea as well as in emerging countries. It replaces the mobile phone in Japan are increasingly cash when making purchases for daily needs, while in countries like India the mobile phone assets now account for the first But for millions of poor people.

Serious offer already on the homepage of SMS Laen we learn that for 30 days credit up to 30 percent interest is charged

Less well known is another form of mobile financial transactions, although this in northern Europe is widespread: Spontaneous credits via SMS. In this special kind of mobile banking companies promise to quickly and easily transfer money to pump. They hold the provider with old-fashioned practices such as the review of the creditworthiness of, but they require, however, unfortunately, annual interest of up to one thousand percent.

The mostly young borrowers are these exorbitant interest rates but most do not realize, because the loans are usually only for a few weeks are awarded.

Estonia indebted to mobile

Currently, the SMS is booming lending business, especially in Estonia, where no fewer than ten companies that operate business model questionable. Overall, the company is an annual loan volume of up to half a billion Estonian crowns (32 to 64 million euros) awarded - exact figures are obviously not to be identified because the credit transactions in their companies generally do not publish.

The undisputed leader of the SMS-loan industry in Estonia is
SMS Laen, the company will be around for half of sales responsibility. In a press release SMS Laen, said last November that about ten percent of his customers are serious problems with the repayment would have. This is contrary to that already in April a representative of the company Julianus collection from the good order situation in its sector through the SMS-loan case geschwärmt had.

Accordingly, it is for most of the insolvent debtors to amounts from 1400 to 1600 euros. And not even the global financial crisis, including through the rotten loans to U.S. home buyers was triggered, it seems that the questionable lending in Estonia to disrupt. Consumer loans without collateral have their permission to
SMS Laen, said CEO Aare Sosaar late last year because they allow for "unforeseen bottlenecks" to be bridged.

The first wave

Your first big boom experienced SMS credit wave two years ago in the Scandinavian countries. And after more and more young borrowers headless in the case of credit had fallen, the phenomenon has been appropriately critical perception. So did the Finnish Financial Supervision FIN-FSA in 2006 a study has concluded that with the SMS credits a new problem had arisen.

IN COOPERATION WITH ...

De-Bug

Magazine for electronic life aspects

www.de-bug.de

In the Scandinavian countries, but the regulators are now responding to the problem. In Sweden, for example, since early 2008, a scheme under which the loans are no longer within a few minutes to be allowed. On the payment must be in Sweden since then until the next day wait, so the SMS credits are no longer for spontaneous shopping adventures are suitable, which can then be immediately regretted it.