Will End Credit Credits for People

Earlier this week we wrote about Veronica Berg who was surprised when she received a credit card with a limit of 11,000 crowns after the purchase of a machine to wash with partial payment.

Åsunn Lyngedal, a member of the Storting Finance Committee for the PA, believes that the current guidelines do not last.

"Those who already have a bad economy can end up in a tragedy if they receive a loan with a higher limit than what they ask for," she said.

Do you want regulation

Lyngedal believes that the operation of some consumer banks is not correct. Sending something you do not want is a super-aggressive marketing, she claims.

– She must say no when she receives the card. This must be in violation of both the requirement of a good credit rating and the marketing of consumer loans. It's not okay to give credit to people, "Lyngedal said.

When Veronica Berg ordered the 5000 crown washing machine, she simultaneously created a shopping account associated with a card. She was informed in advance of the Santander credit card, which arrived in the mail a week later.

– There can not be a good credit score to give a $ 6,000 student that she has not asked, Lyngedal said.

In addition, she believes that if it is not an illegal marketing, then it must be banned.

– The bank can not know if it has any other consumer credit. We have not yet received a register for consumer loans, and that's what the bank knows, "she says.

Lyngedal says banks must be forced to credit all their loans.

– The Labor Party believes that this must become a regulation. I am pleased that the Minister of Finance now seems to support it.

She believes that if banks break the rules, we have to bribe them. At worst, take the concession from the bank.

– We must apply the rules we make, she says.

Increase in the number of consumer loans

Several members of the Storting Finance Committee answer the question of credit. Including Alexander Stokkebø from the right.

– In the case of Veronicas, you get twice what you really requested.

He believes that banks should not pay their clients larger loans than necessary.

– They must not get people to take out more consumer loans than they want and drive people to disability, "says Stokkebø.

He believes that Veronica Berg is focusing on a growing problem.

– The number of consumer loans is increasing, he says.

He says that last year, there was a doubling in the number of unpaid consumer loans, only in Oslo alone.

– In the future, it is therefore important that we ensure that as few consumer loans as possible are taken, he says.

11. June, the Storting discussed the announcement of the financial market. They then adopted new measures to limit consumer loans. With respect to the new measures, the finance committee largely approved the decisions.

Banks Must Take Responsibility

Stokkebø says they will eliminate the aggressive marketing of consumer loans. Measures were introduced last year, but not all banks have followed the new restrictions.

– It is not allowed to announce that consumer loans are quick and easy. The customer should not be misled, he says.

Another measure already implemented is that the credit card bill must be clear to the customer.

– The bill should show everything the client owes. In this way, the customer can get a complete overview of the current credit, overall, he explains.

Stokkebø reports that they are also carrying out debt registries. Stokkebø says that they must see the effect of the changes that they have made.

– If consumer lending continues to increase, we must consider tightening it further, he says.

The Interest Rate Division Committee

– The only point where there has been a political disagreement is whether interest rates should be raised, "explains Åsunn Lyngedal.

The law said no to the maximum interest rate on consumer loans. Ap said willing to investigate interest rates, to see if it worked. However, she believes that interest rates are not only positive.

– It is difficult for us to ensure that an interest rate cap does not become a floor if banks suffer "losses" on those who previously had the interest rate the lowest. If it is introduced, banks do not differentiate between good and bad customers, she says.

Today, the interest rate on consumer loans is 13-14 per cent on average, and an interest rate is likely to be much higher than that, estimates Mr. Lyngedal.

– This may not be a good thing. The most important thing is to get a good credit score.

Sharing the Troubles of Politicians

– Helping a mother-in-law that she buys a necessary washing machine at its fair value, this is not wasting money for the people. It's about helping to solve an everyday problem, says Arne Brevik, director of sales finance in Santander, Norway.

He says that they share the discontent of politicians because some banks are pushing the aggressive push of consumer loans.

– But then we talk about completely different products and dimensions.

Brevik explains that a credit card trading account has been on the market for decades. He believes that it is a useful product for people who have to repay a purchase over time.

– Customers who request a purchase account generally want larger action rooms than the individual purchase. The line of credit is therefore defined as a standard slightly higher than the amount of the purchase. Of course, always based on a complete individual credit rating, says Brevik.

He says that if the customer wants a credit limit lower than the one allocated, he can be quickly arranged with a phone at the bank. That the payment is given by a credit card, it is indicated in several parts of the application process, according to Brevik.

– We disclose the terms before the application and in the agreement that the client signs. In this case, the customer's response shows that the information was clearly not clear enough, he said.

Brevik says he will examine how trading account information is communicated through e-commerce to see if it can be made even clearer.

Supplementary Credit Act

– We understand that people can respond to getting a larger credit framework than they need, but this is not illegal, "says Martin Skaug Halsos of Consumer Council.

If you get a higher credit limit, you can contact your creditors and ask to lower it, he says.

– The one who will give you a credit will check your finances based on the information you provide about yourself and needed from the relevant databases. This will happen again if the amount changes.

He says that the creditor also has a disclaimer.

– If the bank thinks you can not afford a loan, it is bound to discourage you. If they leave, you can not pay.