The Ministry of Finance recently introduced a bill that will increase the control of sms companies. Today, sms lenders do not need a license for their business, but only need to register with the Financial Supervisory Authority to start their business. The bill proposes that the sms companies must apply for permission to run their business, that the companies should provide ongoing reports to the Financial Supervisory Authority and the Financial Supervisory Authority should be able to examine sms lenders much more closely.
What does this mean for you as a borrower?
What does this mean for you as a borrower of sms loans then? Nothing. Yes, that is our answer here at Yeswill Credit. Nothing. Sure, this is supposed to give you a customer a stronger protection against rogue sms lenders (and we welcome that), but no sms lenders you find here on Yeswill Credit are trying to fool you. The terms, the repayment times and the borrowing costs mentioned on the lenders’ websites are the ones that apply.
But you might be affected anyway…
Although, in fact, the new proposal on regulating sms companies is probably that the state wants to make it harder for sms lenders to lend money. In the long run, they probably want the lenders to raise their claims so that you who have had a troubled economy should be penalized for having payment remarks. We strongly oppose this. Sure, you should not borrow money unless you are sure you can repay, but payment remarks should not be an obstacle. We feel that you should not be punished for having misplaced it once in a while, something you probably couldn’t imagine. If this is what the government and the Financial Supervisory Authority want to do, it will of course affect many sms customers.
Earlier this winter, the government also considered proposing that amounts that are below USD 1000 should not be able to end up with the Crown Magistrate. If this foundation were to become a reality, it is quite possible that several sms lenders will raise their minimum loan amount to USD 1000, as they would like to be able to claim back their money through the kroner if you do not repay your loan. It doesn’t really matter, since a loan of USD 1000 is hardly large.
Time can simply show what the government and the Financial Supervisory Authority really want if the new bill goes through.