Unsecured credits for consumers

Thirteen companies participated in the survey. A model for organizing these companies
is: 1) independent credit providers, and 2) credit providers connected with the consumer
retail trade.

The consumer's cost for credit with the latter group of companies has been generally
higher than with independent credit providers for several years. The reasons for this
difference are partly the nominal interest rates offered by the companies connected with
the retail trade that are not linked to any reference interest rate and partly weak
competition. There appear to be no major incentives for interest-rate adjustments. Since
the setting of interest rates is not regulated, only consumer behavior can influence these
conditions.

It was not possible to determine any significant difference in the various companies'
forms of testing for credit-eligibility. Consequently, it is not possible to say that
companies in a certain group assume a higher level of risk in providing credit, which
could otherwise justify higher interest compensation. However, FI has reason to return to
the issue of whether testing for credit-eligibility corresponds to the credit provider's
responsibility not to contribute to consumers becoming exc essively indebted.

During inspection, deficiencies were found in clarity of information regarding fees and in
the design of contract terms and conditions. As a result, the Consumer Agency intends to
investigate this area in greater detail. FI also intends to highlight this aspect in its
continuous inspection of companies.

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