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Avida Finans sanctioned and given reprimand for insufficient credit checks

Spread of different Swedish bank notes.
Photo: Getty Images

The loan firm granted customers loans on more than 30 occasions which should not have been approved.

Finansinspektionen, the Swedish Financial Supervisory Authority (FSA), has sanctioned the loan agency Avida Finans AB SKr 20m ($2.1m) for granting loans to consumers even though they lacked the ability to repay them.

The FSA conducted an investigation into how the company complied with the requirements in the Consumer Credit Act