Kreditkonsumtion i Sverige, 1945–1985: Avbetalningshandel, kreditkort och dess politiska reglering

Abstract

Consuming on credit in Sweden, 1945–1985: The political regulation of instalment selling and credit cards

Consumer credit developed rapidly in postwar Sweden and with it came political attempts to regulate the terms of credit. The rationale for such regulation has been twofold, financial stabilization and consumer protection. This development is traced here through the analysis of governmental investigations, as well as magazines representing the consumer cooperative movement and home electronics retailers.

During the second world war, the United States introduced credit restrictions known as Regulation W, stipulating a maximum length of instalment plans (12 months) and a minimum down payment (a third of the price) while allowing for certain products to be sold under more generous terms. Around the time that Regulation W was abolished in the US, i.e. 1952, similar regulations were introduced around Europe as a way to stabilize exchange rates under the Bretton Woods accords. While countries like France and Germany legislated to restrict the terms of credit for consumers, in the mid-1950s the government of Sweden instead tried to create a system of voluntary agreements with various trade business associations. But with the exception of car retailers this system soon collapsed.

Around 1960, Sweden’s relatively liberal credit policy contributed to the rapid spread of television sets; within a few years after the launch of broadcasting, an overwhelming part of households owned a receiver. Sweden became the European country with the highest amount of instalment credit per capita. Another contributing factor was the newly founded credit bureau that collected exhaustive data on the economic standing of every individual, taking advantage of the Swedish public administration’s high degree of centralization and transparency. However, this credit bureau was abolished in the 1970s following new laws to protect privacy. This in turn spurred the growth of credit cards.

During the period examined, 1945–1985, the public debate on credit consumption shows two distinct peaks, around the years 1960 and 1980. Before the 1970s, however, the regulation of credit consumption was not an issue dividing Sweden’s political left and right; instead it was the consumers’ cooperative movement (KF) that represented the restrictive view on credit consumption. But during the 1960s, even KF began to move towards a more liberal attitude, chiefly motivated by KF’s recent investment in department stores selling durables. In 1979, KF finally gave in and controversially introduced its own credit card.