SP wants action against mini-loans

24th August 2007, Comments 0 comments

SP wants action against mini-loans

24 August 2007

THE HAGUE – Finance Minister Wouter Bos should take action against Finnish company Ferratum, Socialist party SP MP Sadet Karabulut said on Friday.

Research by Nibud (the national institute for household budget advice) indicated on Thursday that the company is offering a mini loan at exorbitant interest rates via sms text message and internet.

"Nibud says that the interest charged by Ferratum comes to 600 percent a year. That is beyond usury. That percentage would be simply laughable if this weren't so serious a matter. Because it is the people that will be the victim in this," says Karabulut.

Since recently people can borrow up to EUR 300 from the Finnish company Ferratum via an sms text message or internet loan application. The loan must be repaid within 15 days and is subject to a EUR 75 handling fee when the loan is repaid within the loan period.

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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