Instant Cash Loan

The instant cash loan market is growing, but the statistical coverage of the market is limited. This means that the debate is often based on opinions and individual accounts from companies, debt counsellors, interest groups or consumers themselves. On that basis, the Competition and Consumer Agency, as the secretariat of the Competition Council, has prepared this analysis.

The conclusions and recommendations of the analysis are those of the Competition and Consumer Authority - as the
secretariat of the Competition Council. The analysis has been conducted as an industry survey under the Danish Competition Act, cf. section 15 d. Among other things, the analysis shows that the market for instant cash loans is concentrated with a few providers. The vast majority of small consumer loans are used for general spending on e.g. electronics, clothing, furniture or pleasure. Over half of consumers who have tried to take out small consumer loans did not consider any alternatives, and more than 40 percent subsequently regretted taking out the loan.

Summary and main conclusions are available for download.
Full publication available in Danish