Are you afraid that someone will take out a loan for your data? Check how loan companies defend themselves against fraudsters

Financial fraud and borrowing of false data is an unpleasant everyday for loan companies. Fortunately, modern lenders have a number of tools to expose dishonest borrowers. What tools are we talking about? Advise.

Many loan companies offer ID cards. You only need your ID, mobile phone number and account number to sign them up. Although it may seem that payday loans without certificates are the perfect gateway to fraud and abuse, this is just a pretense.

To eliminate the risk of fraud and fraud, loan companies use personal data verification procedures.

Checking data by making a verification transfer

money loan

To check if the person who takes out the loan is the one that the lenders actually claim to be, they ask borrowers to make a verification transfer.

Its amount is minimal and may range from 0.01 to 1 USD.

When the lender receives the money he will be able to check if the bank account holder details match the application data. If the information is the same, the lender may proceed with further examination of the application. If they differ from each other, it may be a sign that we are dealing with an attempted extortion.

What instead of a transfer?

money loan

If your account has been taken, e.g. by a bailiff, and you do not have the option to perform a verification transfer, you can use a special application.

The application will connect to your bank account, download and provide key information to the lender. Using the application is simple and secure, and in addition – allows you to maximally reduce the time needed to verify the application.

Certificates from the employer

money loan

Another way to secure the interests of the borrower and the lender is to provide a certificate from the employer regarding employment and / or income. This form of verification is characteristic especially for companies offering installment loans. Remember, however, that additional documents are needed only in justified cases.

Lending companies, taking care of the comfort and satisfaction of their clients, try to simplify procedures as much as possible and reduce the amount of formalities to the necessary minimum.

Before you apply, make sure you know what documents you need to get a loan.

I lost my ID. What to do?

If you notice that your ID card is missing, do not waste time and reserve the document as soon as possible. How? Using the website of the Credit Information Bureau. Restricting the document will be possible only if you have an account on the BIK website. So it’s a good idea to set up an account in advance.

Thanks to it, you will not only be able to provide proof from anywhere in the world and at any time. A profile at the Credit Information Bureau will also allow you to check your credit history.

After the evidence has been stipulated, you will also need to report the theft (or loss) to the police.

Watch out for phishing scams

Are you also wondering how to take out a loan without worrying about personal details? Unfortunately, despite the security of data leaks are still a pressing and current problem. Especially for loan companies that can lose customers through such incidents.

When taking out a loan, use only the services of known loan companies with a stable market position. How to recognize such a company? The first step should be a visit to her website. What to look for on a loan company website? Check if the company provides its clients with contact details. Please also note the NIP and KRS numbers.

Note: there are lenders who use a premium rate number to contact customers. If the phone number on the site raises your doubts, be careful. No self-respecting loan company makes you pay customers USD 8 for 1 minute of conversation with a consultant.

Before you sign the contract, also check out reviews on lenders in social media, forums and discussion groups. A small investigation will help you avoid wrong decisions that can have dramatic consequences.

Watch out for misselling

Watch out for misselling

Loan fraudsters often act in a veiled and seemingly harmless manner. An example of this is misselling. Misselling is dirty sales – using low ethical and honest techniques to sell a product at all costs.

Misselling is also associated with deliberately misleading the customer through a lack of reliable, true information on the functioning of financial products.

Honest lenders do not recognize or do so. By presenting all costs of the loan to the client, informing him about additional fees, the amount of commission and the consequences of late repayment, they act honestly and ethically.

Being aware of all the pros and cons of a given financial product, a potential customer has a chance to make a responsible decision based on rational, real arguments.

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What is the difference between credit and consumer credit?

Although we deal with broadly understood finances almost every day, it often turns out that the problem is for us to define even some basic concepts. On the one hand, it can be evidence of what experts of all kinds often say, namely too low level of economic awareness of our society.

Credit and consumer credit? 

credit score

On the other hand, it is not uncommon for problems with a precise distinction between two different concepts to a large extent simply due to the ambiguous nature of Polish provisions. It is this remark that applies to the distinction between the terms consumer credit and consumer credit.

In practice, these two terms are very often used in a completely interchangeable way. What’s more, this type of practice can often be found even in the press or websites. However, it is worth realizing that, despite very similar names, consumer credit is by no means the same as consumer credit .

Let’s take a closer look at this issue

credit score

First of all, it should start with the fact that the concept of “consumer credit” has a utilitarian rather than formal character. The law itself does not separate such a category of financial products as consumer loans. It would seem that this fact may be a bit easier from the point of attempts to define both concepts, but this is not entirely true. On the one hand, we are dealing with the Consumer Credit Act, which uses the term consumer credit not only in relation to services provided by banks or Cooperative Savings Banks, but also in relation to services provided by loan institutions. From this perspective, consumer credit will be, for example, online payday loan, non-bank installment loan or loan line.

On the other hand, the Banking Act defines the concept of credit as referring to financial services provided by banks. It is no wonder then that in practice an alternative and a slightly more precise concept has emerged – consumer credit. Let’s follow this through several points containing the most relevant information:

1. Each consumer loan is also a consumer loan, however, a consumer loan need not be a consumer loan

2. A consumer loan is also a loan granted by a loan institution (remember that a loan institution is an entity appearing in the Register of Loan Institutions kept by the Polish Financial Supervision Authority)

3. The provisions contained in the Consumer Credit Act shall apply to consumer loans

4. The Consumer Credit Act regulates the way not only banks, but also lending institutions operate

5. Consumer credit is a service belonging to the definition spectrum of consumer credit, which means that credit cannot be, for example, “consumer” and “mortgage”

Sounds complicated? Unfortunately, this is more or less the way in the current Polish legal reality. If, for example, we tried to eliminate the use of the concept of consumer credit, which is not specified by law, we would only get more chaos. It should be taken into account that the definition of consumer credit includes solutions as different as a credit card, revolving limit, installment loan in a bank ( consumer loan ) or non-bank installment loan .

What situations do the provisions of the Consumer Credit Act apply to?

credit score

It has already been mentioned that consumer and consumer credit is by no means one and the same. At the same time, it is worth realizing that the legal regulation of the concept of consumer credit also applies to the so-called non-banking sector. What does this mean in practice? Primarily:

1. A distinction should be made between legally operating lending institutions (entities appearing in the aforementioned RIP operated by the Polish Financial Supervision Authority) and other entities which in practice may also grant loans.

2. The provisions on consumer credit theoretically apply to all possible lenders, however, in practice only clients, banks, credit unions and lending institutions can be considered reliable lenders.

3. Companies with the status of loan institutions are not only obliged to act in accordance with the provisions of the Consumer Credit Act, but are also subject to supervision by the Office of Competition and Consumer Protection. However, in relation to other categories of non-bank lenders (parabanks, pawnshops, lenders), one should rather talk about the lack of systematic supervision.

4. Non-bank lenders , who do not have the status of loan institutions, very often appear on the Warning List of the Polish Financial Supervision Authority or the Consumer Warning List of UOKiK

Summary information about loans

credit loan

So, as you can see, the issue of differences between the terms consumer credit and consumer credit is really important. Practice shows that customers using, for example, popular payday loans often do not even realize that a given loan is a consumer loan in accordance with the law, which imposes certain obligations on the lender, and the borrower grants certain rights.

Meanwhile, knowledge in this area and awareness of the formal difference between a lending institution and other types of non-bank lenders in many situations can be of great importance for our financial security.

Consequences of a loan being not repaid on time

By borrowing money from a loan company, you will have a maximum of 61 days (InCredit, Money Man) for their return. If you do not pay back the loan on time, the lender will have the right to start the recovery procedure and charge you with additional costs. Today we will tell you what consequences you should take into account, delaying the return of a quick loan.

Just a few months ago, before the anti-usury act came into force, the costs associated with late repayment of liabilities could have been really high.

Delaying the return of a quick loan

cash loan

It was not uncommon for the monthly cost of reminders, i.e. reminders of debt and the need to pay back a loan, to be as much as 40% of the payday amount.

People who wanted to “buy some time” to be able to generate the amount needed for repayment could continually extend the cash return period. Of course, you pay dearly for it.

What is the situation today?

cash loan

Pursuant to the new law, the maximum fees resulting from late repayment of loans are currently equivalent to 6 times the NBP lombard rate, i.e. 15% per annum.

This means that in the case of a loan in the amount of USD 1,000, one day of delay in repayment will cost you USD 0.41, 15 days – USD 6.16, and 30 days – USD 12.33.

Admittedly, compared to the amounts of prompts before the introduction of the new law, they are proverbial pennies.

Not just the financial consequences

cash loan

If, despite reminders, the borrower still does not repay his debt, the lender will be able to refer the case to an external debt collection company or take legal action.

Considering the fact that loan companies have stopped earning money from latecomers, they do it much more willingly and faster than just a few months ago.

A good example is the Pandamoney company. In the loan agreement concluded with this lender we can read:

“Failure to reimburse the total loan amount together with interest and additional costs on time may result in the Borrower’s debt obligations being transferred to a debt collection agency or legal action against the Borrower after 7 days from the first unsuccessful request for payment received by the Borrower.”

Therefore, the case may be transferred to an external debt collector faster than it may seem.

External debt collection and what next?

External debt collection and what next?

If the case is transferred to an external debt collection company, we will also have to cover debt collection costs in addition to the loan amount and any additional fees.

If the case goes to court, the next stage may be the bailiff’s seizure of remuneration and even property.

Entry in the register of debtors

If the delay in repayment lasts more than 60 days, the lender has the right to put the debtor’s data in the register of debtors – National Debt Register, ERIF Register of Debtors or BIGInfo Monitor.

The amount of debt should be at least USD 200 (already with interest).

Importantly, the lender is obliged to inform the debtor of his intention to enter his data in the register of debtors. He should do so by sending a registered letter, at least 30 days before entering.

Entry in the debtors database can make it more difficult for you to do such simple things as signing a contract with an internet or mobile operator.

Information in the Credit Information Bureau

Another consequence of late repayment may be the transfer of information on debt to the Credit Information Bureau. Such information will worsen the borrower’s credit history and significantly reduce its rating in BIK.

If the borrower repays his debt, the creditor’s obligation will be to inform the registers of the debtors. This information will cause the late client’s data to be removed from them.

In the case of BIK, however, the case does not look so good.

A negative credit history can follow you for up to five years, making it much more difficult to borrow more.

Why choose fast credit? – Special features of the offer.

A machine to buy, unpaid debts to settle, a holiday project for Christmas, various events jostle in the life of an individual over the course of a year. It is certain that without the necessary financial means, the management of all these events becomes complicated. However, applying for a bank loan is not always easy, when you know that you have to meet all the requirements of the credit institution.

In addition, the file is dragging, the response is often late, which creates discomfort in the execution of the project. The solution to all of this is unequivocal fast credit.

How does fast credit work?

How does fast credit work?

Tired of being forced to answer the banker’s interrogations and submit to fairly drastic conditions? Choose to take out credit online fast. This specific loan makes it easy to obtain $ 5,000 in less than a day, or even more, depending on the conditions of the lessor. The repayment period can be extended to 84 months to have fairly reduced monthly payments.

This is a great advantage knowing that borrowing costs can weigh on the individual’s monthly budget. Either way, most urgent credit deals can unlock short-term funds. If it happens that the borrower decides to terminate his contract, he generally has a withdrawal period of 14 days after signing the agreement.

In addition, students can also claim to take out fast credit. Indeed, if the legal age to access the service of banking establishments is 21 years, fast online credit is accessible to any person, from the age of 18 years. Any beneficiary can use the loan for their own needs, whether it’s paying school fees, making big purchases, or financing a trip.

What are the steps to get fast credit?

What are the steps to get fast credit?

To unlock credit quickly, online subscription is the most convenient method. There is no longer any need to go to a bank and undergo lengthy procedures to validate the request. Today, you just need to go to an urgent online credit platform and quickly fill out the form to send your request.

In less than 72 hours, or even a day, the requester obtains his response. If his request is accepted, a contract stipulating the conditions of the offer will then be sent to him for signature. He has the time he wants to study the contract. As soon as he has read and approved it, he will then have his loan.

Is it possible to renegotiate a fast loan?

Is it possible to renegotiate a fast loan?

Normally, the signing of a credit contract is irreversible once the withdrawal period has passed. This means that the borrower will have to repay his debt until the end of the term. On the other hand, it is possible to renegotiate the terms of the rapid credit, that is to say the schedule, the rate and the borrowing conditions by contacting the lessor.

The renegotiation of the credit will depend on the reasons of the borrower, whether he is in financial difficulty or wants to quickly free himself from the weight of his monthly payments and settle the rest of his debts. Note that you must pay the processing fees for any request for rapid credit renegotiation and that the interested party will also have to pay additional compensation in the event of early repayment.

Real estate credit: how to negotiate well with your online bank?

Successfully negotiating a mortgage is a perfect mastery of certain financing parameters. What are the essential points to consider for optimizing the cost of a mortgage?

Credit rate

Compare the offers of credit in order to appreciate the advantage you have in accepting the offer of credit if the rate is fixed. If the rate is variable, it is essential to know its index and the margin of online banking. From this moment, the sum of these two parameters determines the real rate. It should be remembered that the more profitable the loan, the lower the bank’s margin. However, check in the loan offer, the effectiveness or not of a security relating to a maximum rate.

Credit insurance

Credit insurance

You have more to gain by effectively negotiating loan insurance than focusing on the interest rate. Insurance is generally required by banking institutions and represents almost 20% of the total cost of credit. It is important to understand that a specialized insurance institution is likely to lower the rate to 0.14% for example for the benefit of a young borrower. On the other hand, insurance companies which are under the supervision of banking establishments are less flexible. They do not integrate certain considerations such as age, lifestyle etc.

They have a rate of around 0.40%. Then ask your online bank for the possibility of taking out external “delegation of insurance” insurance. Rest assured, you have the right to do so and moreover, if the bank had another proposal, it is obliged to justify its choice to you.

Early repayment and penalties

Early repayment and penalties

You should remember and make the request for the cancellation of penalties on the anticipation of reimbursement to your online bank. This must be done at the time of credit negotiation. Indeed, it may happen that you have other ambitions during the reimbursement period. So you can decide to sell the property and focus on something else. If the nullity of penalty clause is not clearly defined when requesting the offer, you will be obliged to pay it. It is also equivalent to 3% of the amount owed with six months of interest cap.

File study and brokerage fees

The current competition leads the majority of financial establishments to the abolition of brokerage fees or case study. In addition, these costs are less significant compared to other products and services. Suppose that an online bank offers you a rate of 4% for a credit of 100,000 USD to be repaid over a period of 20 years.

If the cost of studying the file comes back to 1,000 USD for example, the initial rate will tacitly drop to 4.08%. A bank which would offer for the same loan a rate of 4.04% with the free of charge of said administrative and brokerage fees would be more beneficial.

Credit Break

Credit Break

Negotiating a credit break allows you to relieve yourself in times of financial constraint. Indeed, this break favors the postponement of certain deadlines. A good negotiation can give you the right to make 4 breaks of around 3 months. This is equivalent to a period of 1 year for the termination of payment of installments. As a result, such negotiation is more economical for you than “loss of employment” insurance, which will be very expensive for you.

Maximum loan down in 2020.

Thanks to new standards and an adapted calculation, you can now borrow less

Thanks to new standards and an adapted calculation, you can now borrow less

As of 1 January 2020, new loan standards for 2020 have been published by the Association of Financing Companies in the Netherlands (VFN). The VFN loan standards serve as the basis for the maximum loan calculation that many parties in the credit market use. The calculation on this website is also based on these standards. To be clear, this is the calculation of the maximum loan and not the maximum mortgage.

The standard amounts change regularly, but this time the calculation itself has also been adjusted. These adjustments are a result of measures taken by the AFM supervisor to force the parties on the loan market to do more to prevent over-crediting. The consequence of the adjustments is that less can be borrowed in 2020 than in 2019.

Calculate the maximum loan with the 2020 standards.

Adjustment calculation

Adjustment calculation

The calculation itself has therefore been adjusted. We do not discuss the calculation itself in detail here (an explanation of the calculation can be found here), but the most important adjustment is that a surcharge has been added to the calculation of the loan standard.

Loan standard = (basic standard) + (15% * (net income – / – standard of housing load – / – basic standard)) + storage

The amount of this surcharge depends on the household type of the applicant for the loan. The following surcharges currently apply to the four different household types:

  • Single: $ 40
  • Single with children: $ 226
  • Living together / married: $ 119
  • Living together / married with children: $ 244

By adding this extra surcharge, the budget that someone who wants to apply for a loan can use to spend on a loan has decreased. This automatically leads to a lower maximum loan amount. Especially for people with children, the amount that can be borrowed in 2020 can be considerably lower than in 2019.

Adjustment of loan standards

Adjustment of loan standards

In addition to the adjustment of the calculation, the loan standards have also been adjusted. This happens regularly. These adjustments also mean that the maximum loan in 2020 will be somewhat lower on average.

For completeness, see below an overview of the old standards (valid from June 2018). You can find the most recent standards here.

Top 5 tips to save on a loan

 

Borrow cheaper money with smart tips

Borrowing money costs money – we all know that. Even if the interest rate is 0%, a lender must state that borrowing money costs money, if only to make people aware that a loan should not be a habit. Anyway, if you still have a loan or need to borrow money, then of course preferably as cheap as possible. Starbuck gives you tips for cheaper borrowing!

Borrow cheaper money with smart tips

1. Compare loans properly

There are still plenty of people who just go to their bank and apply for a loan there. Not smart: it is often much cheaper to arrange online. The interest at the bank is often higher than what is possible elsewhere. That is not surprising: those bank branches and all that staff also have to be financed from something. Fortunately, comparing loans online is not difficult: here on Starbuck we help you with a clear and fair comparison.

Compare loans directly

2. Do not borrow via the webshop or mail-order company

2. Do not borrow via the webshop or mail-order company

Those who make a purchase in the large webshop – the modern version of the former mail-order companies – can often easily do this on credit. That is no effort and seems interesting due to a low monthly amount. However, look a little further and you will see that there is a very high-interest rate incorporated in those monthly payments. Just calculate what you pay in total (the monthly amount x the number of months) for your purchase!

3. Set the running time as short as possible

It is also smart with a regular personal loan to keep the term as short as possible. Of course, the associated monthly charge must be payable, but the shorter the term, the less you pay in total for your loan. A higher monthly amount means faster repayments and therefore less interest on the whole.

4. Prevent overdraft on your payment account

4. Prevent overdraft on your payment account

Not everyone realizes it, but overdraft on your checking account is also borrowing money. For that form of borrowing, you pay a substantial interest to your bank. In addition, there is a difference in interest between ‘permissible’ and ‘illicit’ overdraft. You can be overdrawn within the limit that you have previously agreed with your bank – so that is permitted. If you are redder than agreed, it is illegal and you pay a significantly higher interest rate.

5. Keep comparing with current loan

5. Keep comparing with current loan

If you have taken out a loan, well compared, lowest interest … are you ready? In itself, you can keep that loan until it has been fully repaid. It can only be fine that interest rates fall over time, making new loans even cheaper. Then it can be interesting to transfer your current loan to a new one.

Check for penalty-free repayments

Therefore, check when taking out your loan whether you can repay it without penalty. That’s great anyway: if you win a lottery or suddenly get a large amount at your disposal through something else … then the first thing you want to do is, of course, pay off your loan. Without penalty. An additional advantage is that you can also switch to another lender without a fine. Then you can take advantage of the decreased interest!

What consequences can arise when we do not pay back the loan on time?

Online loans no longer surprise anyone – most of us take out loans to finance a specific purpose, e.g. purchase of an apartment, car or holiday trip. As such services on the current market are not difficult. Banks and financial institutions are outdoing each other in seeking customer interest.

And if everything is tailored so that the customer uses the offer as soon as possible, then often there are various difficulties in settling the receivables, and this has far-reaching unpleasant consequences. What can threaten the client for failing to pay the loan on time and how to avoid it?

Reading the contract and asking questions

Reading the contract and asking questions

Taking out a loan is now extremely easy – in many cases, it is enough to have access to a computer and the Internet. Then complete the simple form and mark the documents as “read”. This is the most common mistake customers make.

As they do not even get acquainted with the content of the agreement, which they agree to.

To consciously manage your own finances and make a loan, which is a serious commitment, you must carefully read both the contract and all attachments. It is crucial to know what we agree to when we take on debt.

What if we don’t pay back on time?

What if we don

Late repayment of the loan within the set deadlines can cause a number of serious consequences that we will suffer very painfully in our portfolio. Especially that parabanks or financial institutions offering so-called Payday loans, at the same time, pay very high interest in their services, as they bear high financial risk.

Then, after a short period of time, after a maximum of several months, the amount must be paid in accordance with the contract within the prescribed period. Otherwise, you can get into big financial trouble. Finally, to the loan amount to be paid back, interest is often added, which is several hundred percents, or even more than the debt was initially equal. Such problems most often affect people who assess their creditworthiness and, above all, their options, poorly.

When, after two or three months, it is time to pay off several thousand zlotys of debt and the monthly income is e.g. USD 2,000, then there is panic and borrowing more money to settle the debt. Then it is very easy to fall into big financial problems and a vicious circle of debts, from which it is difficult to get out. That is why it is so important to know exactly the terms of your debt and the possible consequences of default.

What about large loans?

bank

In the case of larger amounts of debt, the matter gets a little more complicated. In the case of, for example, mortgage loans, failure to pay the loan on time may even result in the house being taken back by the bank and putting it up for auction to recover money.

It is, therefore, a very unfavorable situation in which no one would want to be found. It is therefore worth being aware of the responsibility for timely payment of installments. To avoid unpleasant surprises, which we agree with the contract.