Loans On Your Cell Phone

Apparently the Finns have no patience. The budding instant-loan industry in Finland allows consumers to get loans in about five minutes by sending a text message from their mobile phone. But these loans come with exorbitant interest rates. Think payday loans, but optimized for the impulsive.

According to the NPR article:

[Finland's Consumer Ombudsman] has found that customers can get money transferred to their own bank accounts using another person’s cell phone and national identification number. Planting-Visa says another big problem is that people simply don’t realize what they’re getting into.

SAM GLOVER

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(Photo: samwilkinson)

Comments

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  1. niccernicus says:

    It would be nice to be able to get an instant loan via text message while I’m standing at the (insert cell provider) store upgrading my handset. What a country! Wait, I’m not in Finland.

  2. mopar_man says:

    What a horrible idea. Those payday places are bad enough but having them on-demand via cellphone?

  3. niccernicus says:

    What if you needed a loan to pay back a payday loan place and all you had was a cell phone?

  4. B says:

    How is this different from cash advances on a credit card?

  5. MariKoo says:

    I’m living in Finland, and we have had quite a lot of conversations about these text message loans. Loans seems to be quite popular among persons under 30 years here and also in Sweden: some information from Sweden, in Swedish, sorry!.

    I suppose that we do not have so much credit cards here, and that’s one of the reasons to take a loan (even it’s really expensive and stupid thing to do…)

  6. snowferret says:

    wow what a horendously stupid idea…

  7. Nygdan says:

    This is almost as bad as having little plastic cards that you carry with you everywhere that you can use to take out loans for groceries and other purchases.