Although non-bank loans have been granted according to the stricter rules for three years, they have been the victims of misinformation. As a result, many potential clients refrain from choosing loan institutions. We straighten out the most widespread fake news about this sector.
Licensed lenders include not only banks and credit unions. Loan companies are also subject to relevant regulations.
Nevertheless, the non-banking sector still suffers for the sins of the past. Many myths and false information have accumulated around his activities. They make many potential clients who urgently need to refrain from borrowing money quickly and conveniently online.
According to BIK data last year, non-bank loans reached 571,000. people (KPF estimates that there were over three times as many because not all companies cooperate with BIK). In total, they contracted PLN 7.2 billion in liabilities. The vast majority (3/4) are people who simultaneously used a bank loan.
Already 70 percent loans market worth up to 4,000 PLN are controlled by non-banking entities. Is that safe?
From 2016, in accordance with the Consumer Credit Act , such institutions must meet the requirements of:
In addition, pursuant to the Mortgage Act, a Register of Loan Institutions was established at the Polish Financial Supervision Authority in 2017. As of July 5, 2019, it brings together over 460 companies that meet the above requirements. This means that their non-bank loans are legal and secure.
However, some lenders, including Extra Woab, went even further and joined the Conference of Financial Enterprises in Poland (KPF). The purpose of this employers’ association is, among others promoting good practices in customer relations (both in the context of the sales process and advertising of their services). Their confirmation is an ethical certificate.
Before taking a loan from a non-banking institution, it is worth checking whether the lender we are interested in is listed in the RIP and has a KPF ethical certificate. Then we will be sure that it works in accordance with the law.
If we see an offer with a slogan like a loan without BIK , a warning light should light up in our head. This message may be misleading. Why?
The law (Article 9 of the Consumer Credit Act) obliges the lender to assess the creditworthiness of the consumer before the conclusion of the contract.
None of the major players on the non-banking market promotes themselves in this way. There is no business in it.
Of course, for one borrower this approach may not bother you, he will be happy about it. However, several others will think that since the lender is not investigating credit risk, he is equally irresponsible about the protection of consumers’ personal data.
Only regulated institutions provide assurance that they properly collect, process, store and protect customer data. To this end, they invest in modern technologies, e.g. advanced data encryption protocols (SSL certificates). In addition, they comply with all legal standards related to this, including the GDPR.
Another myth is that in a non-banking company, virtually anyone can get a loan – also someone with no fixed income or with considerable debts disclosed. Meanwhile, almost all major loan companies report information on loans granted to BIK . In total there are about 80, including Super Penny.
Almost the same amount transfers to GIV InfoMonitor data on unreliable debtors (arrears of at least PLN 200 from at least PLN 30). According to data from January 2019, there were 361,000 in this register. people . Their total arrears due to payday loans and non-bank consumer loans amounted to PLN 2.4 billion.
1. First of all, this attitude of lenders protects unreasonable clients against the trap of excessive debt .
2. Secondly, the more reliable the verification of creditworthiness of customers by loan companies, the greater the chance for cheaper financing from this source .
Entities that encourage their services with the slogan “loan without BIK” compensate the risk incurred by very high fees. In other words: they grant very expensive loans to people who are still unable to pay their debts.