The debts that Good Finance tries to recover due to unpaid quick loans from the 6 fast-loan companies SVD examined constitute 1.28% of the total debt of Good Finance. SVD writes that the total debt for fast loans is USD 92.4 million, but also that the total debt of the bailiff is USD 72 billion, and 92.4 million of USD 72 billion is 1.28%.
Furthermore, SVD writes that the 6 loan companies have submitted 40,000 cases to Good Finance since 2015 and that may sound like a lot, but it is not the same as 40,000 people. For example, Good Finance had over a million cases due to TV license fees and congestion taxes in 2014, but the number of people who had debts there was less than half a million. Well, these 40,000 fast-blue cases thus corresponded to just 4% of the total people owed to the state in 2014. Furthermore, we can add that the fast-blue cases were 57,000 in 2014, thus almost only one-eighth of the state requirements that were due to unpaid TV license fees and congestion charges.
So if this is something that the SVD and other newspapers should look at a little more, it is the state’s absurd penalties and its intense will to quickly submit its claims to the Crown Magistrate. The problems due to fast loans are nothing in comparison. Nor in comparison with unpaid mobile phone bills, we assume. We have not found any recent statistics on this, but in 2013 some 375,000 cases ended due to unpaid cell phone bills from the bailiff. In the same year, USD 49,000 ended up in blue-collar matters with the bailiff.
Of course, it is not good that tens of thousands of quick blue cases end up with the bailiff, we should not detract from that. 40,000 cases are not good at all, but you still have to put this in relation to other debts to see how big (or small) this problem really is. And no matter how you turn and rotate it, sms loans are just a small problem compared to much else.
However, we think it is good for SKEF to consider creating a common register where their member companies can see if applicants have already taken sms loans from one or some of the other member companies, or have made a fresh application there, as SVD writes. At present, it is virtually impossible for them to see if an applicant has made several applications at the same time, even when taking a credit report, so a joint register could clearly reduce debt due to sms loans. Very well thought out there!
The other day, I (myself) checked how my UC looked. As I looked through it, I was almost surprised at how outdated the information that was there was. First, my income for 2016 still had not reached UC yet, even though I declared several months ago. No, there was only my income from 2015. Second, there was no info on what credits I have today, it just says what my credits looked like in May and earlier, and that was over a month and a half ago. Apparently, this is only updated every two months.
This with the backlog of info at UC is really not very good and can clearly help people who should be denied a loan can get a loan anyway and that people who should be able to get a loan will be denied, unless you can pick up a mass income data and other information on their own.
Unfortunately, the Information Center cannot do much about the fact that the income information is currently outdated because it is based on your most recent declaration, but you think that the information about one’s credit should be updated more quickly. On the other hand, almost no fast loan companies use UC’s credit information, so when it comes to fast loans, it is more important that the other credit reporting companies are faster than UC is. And if a common SKEF register becomes a reality, it will surely increase consumer protection further and reduce debt.
Soon, the outdated income data will probably become history. At the end of 2016, the Ministry of Finance submitted the bill Individual-level information in the employer declaration, which proposes, among other things, that the employer must report the employer contribution for each employee on a monthly basis instead of showing how much an employee has earned during a full year. If this is done, the income information will thus be updated at UC and other credit reporting companies each month, which will provide a more up-to-date credit report.