Customers of SMS loan services can receive small loans at relatively high interest rates within minutes of applying either by text message or through the internet. Officials are to look into whether companies that offer this service are operating within Finnish laws. Picture: Lehtikuva - Timo Jaakonaho

According to an inquiry by the Finnish Consumer Agency and the Data Protection Ombudsman on Monday, many companies which offer fast SMS loans do not act according to laws applying to the sector.

Problems with SMS loans are primarily linked to identifying credit applicants as well as notifying customers of the real annual interest rate. Some companies also continue to pay money into their customers' accounts during night time, which is prohibited.

Officials are to investigate the problems, and have also been asked by the Consumer Agency to look into a suspected case of usury.

STT