EU directive requires extensive credit checks

Grounds for this development is an EU directive which, according to the Swedish Consumer Agency (Konsumentverket), requires that extensive credit checks are undertaken in addition to the usual credit report for certain types of loans. These rules apply when the customer must take out credit or payment plans. It requires the customer to provide information about his/her financial situation before a credit decision can be made to give the lender a better idea of the customer's ability to repay.

The rules for extensive credit checks have been around since 2011, but it is only recently that the Swedish Consumer Agency has taken hold of the issue. The rules aim to create conditions for a healthier consumer climate and help reduce over-indebtedness.

“Many of our customers come to us with these types of questions, so we decided to develop a proprietary product that solves the problem. We have already noticed great interest from the market,” says Gunnar Algemark, COO Alektum Group Information.

How Easy Consumer Credit works

Easy Consumer Credit requires no major IT investments or adaptation of existing systems. The module is integrated into the customer's web shop and ERP system. It then handles all logic and dialogue needed to process applications, overdrafts and long instalment plans, as required by the new rules. Because we manage the system fully, we can make sure that we always offer services that comply with prevailing laws and regulations.

Our customer logs in using their BankID and fills in the client’s data. The system then analyses the data and provides answers about the client’s creditworthiness based on the information provided. The customary credit report, along with the tools to assess ability to repay, can then be the basis for credit decisions.

“We look forward to launching a new product that can really prevent over-indebtedness of vulnerable individuals, a tragic situation for everyone involved, including debt collection companies that actually serve only those who can pay. Solutions like this one shows how our investment in a unique credit bureau is paying off in the form of innovation and deeper customer partnerships,” says Mats Augurell, CEO Alektum Group.

For more information, please contact
Gunnar Algemark, COO Alektum Group Information, telephone +46 (0)703 10 41 91 or gunnar.algemark@alektumgroup.com.