Coronavirus has exploded the quickie loans advertising growth in Finland

According to the Consumers’ Association, the marketing of quickie loan companies seems to have become more active in recent weeks. Entrepreneurs have also resorted to high-interest loans as the cash crisis threatened.

The Consumers' Association appeals to the Sanna Marin government and calls for opportunities to be explored to intervene in the activity of express loans companies under the Emergency Act during an emergency. Pursuant to Article 17 of the Emergency Act (Valmiuslaki), the Government may, in order to secure the livelihood of the population, limit the loan interest rates and impose other restrictions on the activities of creditors.

The Consumers' Association proposes temporarily reduce interest rates to as low as 5 % (or even less) from the current 20%. In addition, the association require to tighten credit conditions to ensure the borrower's solvency.

According to the Consumers' Association, the marketing of quickie loan or unsecured high-interest consumer credit, has been boosted by the coronavirus. Entrepreneurs in the cash crisis due to the coronavirus also seem to have resorted to unsecured loans in recent weeks. According to Sortter, a credit comparison platform, the entrepreneurs' share of consumer credit applicants increased by 36 % in the first two weeks of March compared to early February.

By-turn, female entrepreneurs have called for tax authorities to remove a 7% penalty interest rate for the rest of the year to ease the situation for entrepreneurs and avoid indebtedness.

The full information and the source text can be found at talouselama.fi.