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Finance Minister Siv Jensen (Frp) made a wise decision to tighten bank lending practices, helping many people avoid the luxury trap
. a settlement for sound lending practices for consumer loans. It is time – and obviously a necessary political step. Consumer loans can be good. However, both individual consumers and many loan providers have a relaxed relationship with consumer loans and the potential consequences of "easy-to-win" solutions. And there are many loan providers who are at the limit of the regulatory framework. More stringent regulation is in place.
The most common figures are as follows: Norwegian households have on average more than twice as much debt as annual income. The growth of consumer credit has been tremendous and today, Norwegians are struggling with more than 100 billion consumer debt. About 14% of Norwegian households' interest expenditure is on consumer loans, although these loans are significantly lower than home loans and auto loans. But in return, borrowers are penalized with much higher interest rates, often between 15 and 20%.
Last year was a very important change: the aggressive marketing of consumer loans was banned. Lenders no longer have the option of using advertising that says that it is an advantage to raise loans quickly. It improves, but the temptations are online, even in terms of advertising: at the present time, advertising is announced, for example, by vacation trips and the ease of making loans to the public. consumption to live the dream vacation. Solhungrige nordlendinger can easily bite …
Finance Norway and computer company Evry will now manage Norwegian accounts of consumer and credit card debt. This allows the bank and other lenders to easily determine the amount of consumer debt a potential customer. Thus, the limit of the recovery of consumer loans will become clearer.
With a high average income it was previously enough to "hit the button" if we wanted big loans for consumption. Indeed, borrowing a million was actually possible, one to two. Unfortunately, there are sadder examples of this.
A report from Finanstilsynet also concludes that more banks are deviating from regulation by offering consumer loans. When confronted, the excuse is that "the competitors are doing the same thing." "This is not an acceptable justification," says Finanstilsynet. They are all fine. And prove with certainty that a new regulation is in place!
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