The Best Place To Find Payday Reviews / Wed, 11 Mar 2020 12:30:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.3 Perfect Payday Review /search-payday-reviews-online/ Wed, 11 Mar 2020 12:30:09 +0000 http://www.jiaoyw.com/loan-online-bad-credit-online-loans-for-very-bad-credit-request-your-cash/ Search payday reviews online

When you go online and conduct a free payday review, you will quickly learn that there are many companies that are ideal for anyone. The more companies that you research, the more options you will have for a great interest rate. This is because some lenders only provide one option.

You will also find that some lenders do not provide the best deals on their sites due to the fact that they use search engines to provide you with the data. Instead of searching for a lender that can give you the best rates and the best terms, you may be directed to a page that has a combination of all of these aspects. If you do not want to be redirected to the same page every time you conduct a search, you should first search for the company on Google to determine if the information is available anywhere else.

Some of the companies that you find on the internet that offer the best possible results may not even be listed on the search engine results. This could make it difficult to find the payday loan providers that can offer you the best rates. So when you go to a free payday loan review, you should try to be as specific as possible.

It is a good idea to check out some of the best-known payday loan providers in the area. By doing this, you will be able to get a real sense of how well they work and how they handle customers. This is something that you cannot accomplish by doing a free payday loan review.

It is true that a lot of the major search engine results include links to the companies that are capable of providing you with the best deal on the internet. But when you go to one of these search engines, you will see that most of the search results are not for the right company. In addition, these companies may not be in your area.

The best place to find these reviews is online. In addition, you should understand that some of the best reviews are coming from real customers who have already tried the service. So if you want to find the best payday loan providers in your area, this is the place to start.

A perfect payday loan review can also help you understand how the entire process works. Some consumers feel that the best way to get approved for a payday loan is by submitting to a personal visit from a bank teller. However, a free payday loan review can provide you with the answers you need to find the most appropriate place to apply for one.

Be knowledgeable enough by the product

A payday loan review can help you get a better sense of how well the companies in your area are. If you do not know the name of the person that works at the local payday lender, you will not be able to determine whether the person is knowledgeable about the product. By reviewing the company’s history and their background, you will be able to decide if you will be getting the best possible service from them.

A payday loan provider in your area that has worked with your neighborhood bank will usually be less expensive than an unscrupulous lender that has only worked with other banks. If you cannot verify this information, you should take your business elsewhere. Otherwise, you may end up paying a little more than you need to for your next payday loan.

While most people tend to look at the minimum payments on a payday loan provider and conclude that they are going to be extremely high, this is not the case. However, if you compare the charges with the usual minimum payments, you may end up spending more than you need to. Therefore, when you look at a perfect payday loan review, you should pay close attention to the cost of the interest rate.

In addition, you should look for a payday loan review that tells you about the same company that other customers have used. You should be aware that this does not mean that the company has the best rate for their service. Rather, it means that they have a good reputation and a good track record with satisfied customers.

]]>
Credit portals: better protected against the insurance mesh /credit-portals-better-protected-against-the-insurance-mesh/ Tue, 25 Feb 2020 08:41:44 +0000 http://www.jiaoyw.com/credit-portals-better-protected-against-the-insurance-mesh/ Four weeks ago we presented our test on credit portals and generally recommended it for credit comparison. However, we warned against taking out so-called residual debt insurance with the loan. It is very expensive, but its protection is imperfect. Nevertheless, the portals previously offered the insurance packages in passing, and some customers may have taken out expensive insurance with the cheap loan.

Some portals responded to our criticism and promised improvement. In the meantime, the application routes have improved for several. The so-called IDD directive of the EU is likely to have played an important role in this. This has recently required providers to specifically ask customers’ needs.

In future, customers will no longer be slipping into unnecessary protection as quickly. Unfortunately, the three credit portals are still trying to give the impression through suggestive wording that you as a customer absolutely need insurance.

If you have taken out expensive insurance for your loan in the past, you have two options for getting rid of the insurance: cancel or revoke it later. We explain how to do this in our guide.

 

“No, I bear all costs and risks myself”

credit loans

And this is what the application routes looked like when we went through them again at the end of March: Credcheck48 is now giving its credit customers the choice of “Yes” or “No” under the heading “Interest in credit protection”. You can’t go on without a hook. We like that. We do not find it so good that the answer Yes is highlighted in green and provided with the addition: “Yes, I am interested in simply securing the loan.” The answer No, on the other hand, is black and provided with the note: “No, I am carrying all costs and risks themselves and do not need credit protection against unemployment, restrictions and death. “

Moneysparks is still going another way. The portal has not yet asked prospective creditors to take an active decision about the insurance package, but has preset the waiver of residual debt insurance. Even with this solution, you do not “accidentally” get this insurance.

All four comparison portals are well suited to finding a cheap loan – which is why we recommend them. Only a residual debt or credit insurance should not let you gossip.

And because politicians are aware of the problem, the IDD directive has also made it mandatory to send information a week after it has been completed, in which you will be informed about your right to object. Only then does the 14-day cancellation period start to run. (Or the 30-day one, that is, in cases where insurance for death is included.)

 

How to get rid of your insurance

How to get rid of your insurance

However, in the past it may have happened to you that you involuntarily took out an insurance contract for a loan due to the striking appearance. Then you now have two options to get rid of this useless insurance: cancel or revoke it later.

The conditions under which you can terminate the insurance separately from your loan agreement are stated in the small print of the insurance. If there is a minimum insurance period, you can only get out of the insurance contract by repaying the loan. You can implement this in such a way that you reschedule the loan, i.e. apply for a new loan from another bank for the outstanding loan amount and forego the insurance packages offered. Final costs and previous premium payments for the previous insurance package are then lost, but you can still get back the insurance premiums for the rest of the agreed term.

Subsequent cancellation is possible if your cancellation policy was incorrect. This is the case in more than 80 percent of all credit contracts with residual debt insurance that were concluded before mid-2010. You can read more about this in our guide.

]]>
Building loan: Find and apply for the best building loan! /building-loan-find-and-apply-for-the-best-building-loan/ Tue, 25 Feb 2020 08:25:29 +0000 http://www.jiaoyw.com/building-loan-find-and-apply-for-the-best-building-loan/

In order to inform you optimally about the application for building loans, we have worked out a building loan comparison with our finance team and experienced experts for a good overview. If you would also like to read more about the topic or are interested in specific aspects, you can find a comprehensive guide under the comparison. Find the best building loan for you now and apply for it online!

 

Building loans at a glance

Building loans at a glance

  • The building loan with life insurance or building society contract for investors
  • The transparent annuity loan as a classic with secure interest
  • For risk-conscious people, the building loan with quick repayment through shares
  • The construction loan in foreign currency for the global player

Applying for building loans is easier than ever today – almost everything is now possible online and is becoming increasingly popular with consumers. Banks make it as easy as possible for themselves and those interested in credit today, because the low interest rate level almost forces the banks to lure with increasingly cheaper offers – but these are the crux of the matter. The large selection can often cause confusion.

 

What can be financed through the construction loan?

construction loan?

The building loan is a loan that is usually guaranteed by banks. An extension is the inclusion through the leading house bank at the Reconstruction Credit Institute , conceivable with energetic renovation when buying a house or energy-conscious new building. The building loan is always earmarked, so it will usually only be used for the new construction, conversion or purchase of a property. Of course, some banks also offer exceptions, so in some cases they also ensure modernization or restructuring measures.

 

What amounts are financed with a building loan?

building loan?

The amount that the bank makes available depends heavily on the intrinsic value of your dream property and your personal creditworthiness. The framework therefore only sets your personal circumstances and your income, as well as the available share of equity.

 

What does a building loan cost?

building loan cost?

In addition to the loan amount, the borrower traditionally also has to bear the interest costs. Depending on the creditworthiness, term and amount, these have been individually determined by the bank in advance for the construction borrower. But there is a lot more to consider.

A precise comparison and the determination of the building blocks from the “small print” are important in order to be prepared for a bad awakening in the event of an emergency. Factors such as a fixed interest period, of course the exact term, options for making special payments or an agreement on flexibility in payment by installments – such as a possible payment break – are important for a comparison of the various offers and conditions.

We would like to give you a few examples on these separate terms:

  • Banks often record so-called commitment interest in their contracts. These arise when the loan is approved but not called up immediately. This can be the case in the case of payment after construction progress. This is often up to 0.25 percent, which is due in this case. A comparison of the deadlines is advantageous here, the more “free months” the bank makes available, the better.
  • If the loan is made available but not called up and then terminated because the purchase of the property may not have come about, the bank can request compensation for the non-acceptance of the loan. So you should definitely let the bank explain the fine print in detail.
  • If the loan is rescheduled during the term, there is usually a prepayment penalty. A comparison and, if necessary, renegotiation is also worthwhile here.
  • If a home loan is taken out with the building loan, closing fees always apply. However, with this model, the costs are reduced overall, since the building society contract generates credit interest.
  • However, no bank may charge fees for the appraisal or inspection of the property. Here, too, it is important to ask more precisely.

 

Apply for a building loan – how it works

building loan - how it works

As with a personal loan request from a bank, questions about the project, the desired property, your person and, of course, contact details are first asked without obligation when comparing online. It is very important to provide real facts and figures, which should be as accurate as possible before the data is sent.

As a rule, you will be personally advised on the telephone within 24 hours. This gives you the opportunity to clarify any questions about any uncertainties or to adjust the numbers.

Your individual information is then used to make a comprehensive and free comparison at numerous well-known banks.

The issuers then assess your creditworthiness and risk based on the figures provided. If your data is confirmed positively, you will receive a financing proposal tailored to your specific needs, which you can compare in peace.

If the financing proposal for the building loan fits into your planning, then simply send it back to the provider.

 

Apply for a building loan – the following criteria are important

Apply for a building loan - the following criteria are important

  1. Realistically assess your financial resilience with a building loan. Careful planning and a detailed breakdown of income and expenses are the basis for determining how high the monthly rate may actually be. Don’t forget to take future costs into account. For your calculation, the classic annuity loan offers the advantage of the constant rate. Don’t forget the interim financing if you still have to stay in the old property while the new one is ready to move into. This means either further rent payments for the apartment that is still occupied or the old own property cannot be sold in time, then it is advisable to provide interim financing through a final loan, which is then repaid in full at a rate if the old property could be sold.In the case of a rented apartment,
  2. Equity, which is available to you, plays a major role in classic building loans. In general, the banks want a 20 percent share of the total loan amount. Equity not only reduces the total amount to be financed, it also significantly lowers the interest rate because the risk of the bank is significantly minimized. In general, the following applies: the more equity is available, the cheaper the building loan will be. In any case, it must be taken into account that at least part of the equity capital must be used for additional costs when purchasing real estate or building a new house. These are usually costs for notary, entry in the land register, broker commission, real estate transfer tax and court fees or expenses for expert opinions.
  3. Secure your construction loan through appropriate default swaps from which continue to pay the rate in the event of insolvency in order to avoid the loss of a home in the worst case. In the event of death or nursing care, this is covered by residual debt insurance or risk life insurance. The occupational disability insurance will step in again if the regular income of the main earner fails. Most of the time, banks offer such insurance with their loan offer anyway.
  4. Check the possibility of paying the construction loan with repayment repayments instead of the annuity loan. This could be life insurance or a building society contract, for example. The advantage is: Your repayment rate then builds up equity each month and at least with the home loan contract, you will receive good interest. This means that in addition to the necessary final repayment rate, additional equity capital can be built up for later purchases or requests. It also lowers the risk of interest rate changes in the home savings contract.The surely necessary follow-up financing can then be obtained not only at significantly more favorable terms, but also at an interest rate that is already known today (see information in the home loan and savings contract).
]]>
Loans without credit record – personal loans immediately online /loans-without-credit-record-personal-loans-immediately-online/ Thu, 20 Feb 2020 08:57:34 +0000 http://www.jiaoyw.com/loans-without-credit-record-personal-loans-immediately-online/

A long-held wish, a necessary purchase or a financial bottleneck – there are many reasons that can make a loan necessary. Sooner or later, many people find themselves in a situation from which only an instant loan can help.

So you are dependent on a loan without credit record . A few years ago it was extremely difficult to obtain a loan as a private individual and with a negative entry at credit record . However, numerous credit institutions now offer cheap instant loans online.

 

Loans without credit record are straightforward, though

Loans without credit record are straightforward, though

Loans without credit record are usually easy to apply for. Employees aged 18 and over can get a loan without credit record from many banks. In addition, borrowers must demonstrably have a regular income and live in Germany . The creditworthiness is not determined by credit record queries.

The biggest advantage of a loan without credit record , however, is the fact that the request is not registered with credit record . This prevents difficulties with possible future financing, for example in building a house or financing a new car.

Loans without credit record do not need to state the reasons. Such an installment loan can therefore be used freely. You may need the amount to reschedule other loans, use the installment loan to balance your checking account, finance a holiday, repair your car or replace broken household appliances.

 

Cash reputable and discreet

Cash reputable and discreet

Since the cash in this type of loan is sent neutrally by post with some providers and the installments are made by bank transfer or payment card, the house bank usually does not learn about the loan. Neither the employer nor any other lenders are informed about the instant loan. Since these loans have no impact on existing or planned loans, it is the perfect secondary loan.

But with all the advantages, you still have to be careful. On the one hand, it is important to find a reputable provider. Advice and quotation should always be free of charge. If high processing fees are due before financing has been paid out, this does not speak for the credibility of the lender.

As a borrower, you should urgently check whether an instant loan without credit record really needs to be. As a rule, loans with credit record are significantly cheaper and easier to process. This can be checked in advance by a private request from credit record. However, if you then think that you cannot get a loan, then an installment loan without checking the creditworthiness is appropriate.

 

Apply for a loan online without credit record?

Apply for a <a href=loan online without credit record?” />

You can get an instant loan online very quickly. There are loan providers who offer relatively cheap loans. This type of online provider represents an innovative alternative to traditional banks. The conditions are often much cheaper because the running costs for online companies are lower and there are no expensive branches.

The self-employed in particular have the advantage that they receive an instant loan without the deposit of collateral. All borrowers benefit from low interest rates. So this is a cheaper alternative to small bank loans, where interest rates are generally very high.

No matter what type of loan you choose, it is always important to get enough information and compare many offers. The decisive factor should always be the APR, which includes all fees that are otherwise often overlooked. Then loans are relatively cheap even without credit record.

]]>
A clear advantage with a credit card /a-clear-advantage-with-a-credit-card/ Thu, 13 Feb 2020 08:17:26 +0000 http://www.jiaoyw.com/a-clear-advantage-with-a-credit-card/

If you have a current account with the Astro Finance, you can also use one or more credit cards. This has many advantages, especially abroad. Read here how credit cards work.

A credit card is practical because it allows you to withdraw money or make cashless payments worldwide – for example in restaurants or shops. However, the service is not free of charge. First, an annual flat rate for the use of the credit card is due. In addition, in many countries there is an additional fee if you use the credit card to get cash with the PIN at the machine or on presentation of your passport at the counter.

You can also pay contactlessly with a credit card in many places – up to 25 dollars even without a PIN. Since July 2017, all new Astro Finance credit cards have been equipped with a contactless function – you can see this from the contactless symbol on the card. Pay attention to the corresponding logo on the terminals at the dealers. It shows you whether you can pay contactless.

 

In order to get a credit card

In order to get a credit card

The hurdle credit record information must be taken in Germany. The card-issuing institute can obtain information on the creditworthiness of the customer from credit record: does the consumer have a loan? Are invoices undisputedly open and reminded? On the basis of this information, it is weighed whether the customer will be able to carry the credit card charge in the future without any problems. Because with most credit cards in Germany, billing takes place only once a month. This means that the credit card company collects all amounts that are paid with the credit card in the course of a month and debits them from the current account at a fixed time. If you don’t keep an eye on your expenses, you can quickly slide into the red. This type of credit card, which is also used by the savings banks, is called a charge card.

 

Different types of credit cards

credit cards

There is also a so-called debit credit card, which, like the Charge Card, is valid worldwide and is called the base card at the Astro Finance. This is a rechargeable credit card that has all the functions of a conventional credit card. For example, you can use it to shop online, pay for travel and cash out at an ATM. With the rechargeable credit card you have full cost control. However, expenditure is only possible within the framework of the previously deposited credit.

A third type is particularly common in the United States. The credit cards there, also called revolving cards, offer real credit. This means that at the end of the month, not all of the sum, but only a part of it is debited from the checking account. The rest of the time, however, is subject to high interest rates.

 

What to do in the event of card misuse?

What to do in the event of card misuse?

In Germany you often need a credit card if you want to shop online. Fraudsters take advantage of this. You must report incorrect bookings to your Astro Finance immediately. If the card is lost or stolen, you should have it blocked immediately: The blocking emergency call in Germany for all cards.

]]>
Where to get credit for employees in the public service. /where-to-get-credit-for-employees-in-the-public-service/ Mon, 20 Jan 2020 08:33:57 +0000 http://www.jiaoyw.com/where-to-get-credit-for-employees-in-the-public-service/

Civil servants are placed on a permanent basis for civil servants. Their job is very safe and they can almost never lose their job. That alone is enough for many banks as collateral to grant a loan to public sector employees. There is no need for additional collateral. Banks often place the condition that old loans and other payment obligations are only repaid before the loan is freely available.

Bank loans of various types

Bank loans of various types

Banks lend to public sector employees with very favorable terms. At some banks, the loan seeker can get the loan at their free disposal, but at others the loans are earmarked. For example, this includes real estate loans and investment loans. But there is also the possibility of taking out various loans that are tied to funding guidelines.

A high degree of flexibility can be achieved with investment loans. They differ from fixed and variable interest rates. So-called working capital loans are just as popular. These can be compared to an overdraft facility as found in private accounts. Once this loan has been set up for civil servants, the applicant can access it at any time.

Official credit for this professional group

Official credit for this professional group

Public service employees, like everyone else, want to fulfill wishes and make larger purchases in the private sector. A loan for civil servants can also be taken out in the form of a civil servant loan. The conditions are very good, the interest is low and the repayment rates can be configured flexibly. It must be noted here that the installments of the loan are not repaid monthly, but contributions from a life insurance.

This is issued when the contract is concluded with the loan and runs as long as the loan. The saved contributions repay the loan at the end of the term. You also have the option of applying for a normal installment loan from the bank if the loan amount is not too high.

Large selection comparison

Large selection comparison

If you have such a large selection of loans, you should make a comparison. This is particularly important if the offer is so large. The offers are all very different and can vary considerably. The annual percentage rate reveals the total cost of the loan, so that the borrower knows in advance what costs to expect and can thus calculate his monthly total costs better.

]]>
Loans to friends and relatives: What applies to tax /loans-to-friends-and-relatives-what-applies-to-tax/ Sun, 19 Jan 2020 08:51:10 +0000 http://www.jiaoyw.com/loans-to-friends-and-relatives-what-applies-to-tax/ Friendship ends with money, as the saying goes. Nevertheless, friends and relatives borrow money from each other. This is practical, but not without risk. In certain cases, the tax office is also interested.

 

Loans between friends and relatives are different from loans granted by a credit institution

Loans between friends and relatives are different from <a href=loans granted by a credit institution” />

So the debtor does not have to provide Schufa information and sometimes has to pay little or no interest. In addition, the creditor is usually more relaxed when it comes to repayment. But what if he doesn’t get the money back because the debtor is broke? Can he then claim the loss as a loss in value for tax purposes?

Yes, judged the Federal Finance Court (BFH, judgment of October 24, 2017, file number VIII R 13/15). With the introduction of the flat-rate withholding tax, the separation of the asset and income levels for capital income was abandoned. Therefore, the default of a capital claim now leads to a loss to be taken into account for tax purposes – if it is certain that the default is final.

 

Secure yourself

Secure loan

If you want to lend money to friends or relatives, you should protect yourself. Write a letter in which you write down the loan amount, the interest and the date of payment and the repayment date. You should not pay the money to your borrower in cash, but by bank transfer, so that the payment can be proven beyond any doubt.

If you request interest, you must state this as investment income in the KAP Appendix to the income tax return. Incidentally, the tax office will also pay attention if you lend a large sum at a very low interest or even without interest. It can consider the lost interest as a gift and charge gift tax for this. The recipient pays this in principle, but it can also be taken over by the donor.

The allowance for gifts to children is 400,000 dollars, while that for gifts to friends is only 20,000 dollars. If you want to do your relatives or friends a favor, you should make sure that you and yourself do not suffer any disadvantages.

]]>
Why are online payday loans the fastest? /why-are-online-payday-loans-the-fastest/ Tue, 31 Dec 2019 16:41:20 +0000 http://www.jiaoyw.com/why-are-online-payday-loans-the-fastest/

Surely more than once you have needed immediate money and the idea of ​​requesting a fast online payday loan to solve your financial problems has occurred to you. It is possible that you have been assaulted by doubts, that you have wondered if you will really have the money as soon as you need it and if you can return it without problem according to your economic situation.

Well, in RightMoney Credits we are going to answer all your questions regarding fast loans and we tell you why it is the best option if you have your money as soon as possible.

 

Online credits: the fastest loans

Online credits: the fastest loans

Far away is the idea of ​​having to gather hundreds of supporting documents and move with them to an office to apply for a loan. Today, all this has gone down in history because you already have at your fingertips the possibility of requesting your quick online payday loan of RightMoney Credits from your home or from anywhere else, since the application form is completed 100% through the Internet. This novelty has completely modified the steps to follow, facilitating the procedures and greatly speeding up the process.

Thanks to an automated algorithm that values ​​every request received in the act, with RightMoney Credits you will know at once if your request has been accepted, and you can confirm it and receive the money you need in your bank account in a matter of minutes, to remedy That financial gap. You just need to have your ID and bank account number, be of legal age and resident in Spain and provide a mobile phone number and an email. Forget about paperwork and waiting. And it is that the speed, both at the time of applying for the loan, and at the time of receiving the money, is one of the main teachings of the personal online payday loans from RightMoney Credits.

Therefore, if you need immediate financing for a personal or professional project, if an unexpected expense has arisen or if you have to make a payment that you cannot delay (a traffic ticket, a repair, a medical or dental treatment, a breakdown at home …), remember that an online credit without complications is the solution to your problem.

 

Why is speed so important?

Imagine that you need urgent money to pay a fine that has come home and can not wait any longer. You try to apply for a loan but the process slows down because you have to present guarantees and paperwork and, after that, you still have to wait for hours or days to evaluate your application and decide if they grant it to you. At that time, the fine has probably become even bigger and you need even more money to be able to solve it, so that the credit will not have served at all.

Or consider the case that your car has broken down and you need to take it to the workshop as soon as possible because it is essential for you to go to work. Until you have the appropriate money to pay for the repair you will not be able to pick it up and, therefore, you will have to look for your life to go to work, with the inconvenience and expense at greater than that implies. If you ask for a credit from a financial institution that needs to take its time to decide if you are able to grant it and to enter your money, every minute that passes will be a complication for you in situations like this.

When we ask for a fast online payday loan many times we do it because we need urgent financing and we are not waiting for an answer. This is the main reason why we cannot trust any loan and it is better that we go for sure, that we use a loan that we know will provide us with the money we are looking for in the blink of an eye. And in such cases, RightMoney Credits does not fail.

 

How to know that a fast online payday loan is what you are looking for?

online loan is what you are looking for?

Do you want to know if an online payday loan is a good option for you? Finding out is very simple: if you are looking for fast money, you go from paperwork and accounts with a stable source of income, a fast online payday loan will provide you with what you need in the most comfortable and effective way.

With RightMoney Credits you can request from 100 to 5,000 dollars, without payroll, without endorsement and without needing to give any explanation on what you intend to spend them because nobody will ask you what you are going to invest your money.

Fast online payday loans of RightMoney Credits can be repaid for up to 48 installments and you can choose if you want to pay them automatically from your own PayPal or Trustly account, using your credit or debit card, or if you prefer to enter them by ordinary transfer or online transfer, always depending on what is most comfortable for you at all times.

 

Fast online payday loan, also with Asnef

Fast online loan, also with Asnef

Being on a list of defaults or defaulters like Asnef does not close the doors to you to receive a quick online payday loan from RightMoney Credits. We know that today it is not difficult to appear in one of these files and that does not mean that the person in question is insolvent in order to take responsibility for a quick loan, which will help him to bear any type of expense that may have arisen.

For this reason and unlike many financial institutions, in RightMoney Credits we grant loans with Asnef to those whose current solvency allows them to return it without problems, whether or not they appear in a list of delinquents.

Apply now for your fast online credit and in just a few minutes you will know if we can grant it and you will have the money you are looking for in your bank account without waiting for more!

]]>
Consumers and the Housing Loan Directive /consumers-and-the-housing-loan-directive/ Wed, 11 Dec 2019 09:10:23 +0000 http://www.jiaoyw.com/consumers-and-the-housing-loan-directive/

On March 21, 2016, the “Law on the Implementation of the Residential Real Estate Loan Directive and Amendments to Commercial Law” came into force in Germany.

Actually, the guideline adopted two years ago should improve consumer protection for construction finance in the member states of the EU. But at least for the citizens of Germany, the bottom line is little improvement.

 

1. Protection of the banks: Right of withdrawal expires even if the instruction is incorrect

1. Protection of the banks: Right of withdrawal expires even if the instruction is incorrect

The right of withdrawal expires in any case 12 months and 14 days after conclusion of the contract, even if the bank has incorrectly instructed the consumer ($ 356 b para. 2 USD). The legislator wants to prevent an eternal right of withdrawal in any case. This creates legal security for banks and is at the expense of consumers.

 

2. Protection of the banks: For the perpetual right of withdrawal for old building loans

In the case of old construction financing that was concluded between August 1, 2002 and June 10, 2010, the right of withdrawal expires three months after the law comes into force, i.e. on June 21, 2016 (Art. 229 $ 38). The banks could have re-instructed and made up for their mistakes. But they didn’t want that. Instead, legislators are now creating legal certainty – at the expense of consumers.

 

3. New leaflet: European standardized leaflet (ESIS) becomes mandatory

house loan

So far, every consumer has received a European leaflet on pre-contractual information. This will now be mandatory and it will be a little more extensive. More and standardized information is correct and important. But ESIS is nothing new, and the situation is not really improving for consumers.

 

4. Banks need to check creditworthiness

From now on, lenders must also check the creditworthiness of the consumer according to the German Civil Code ($ 505 USD). Banks are already doing this out of self-interest. So not much will change for the consumer. The situation is different with so-called policy loans and so-called credit report-free loans! The lenders who have not made a credit report request so far and are therefore not now obliged to do so. In any case, you must then check the creditworthiness differently. This duty doesn’t do much good for consumers.

 

5. Protection for consumers: Revocation possible with zero percent financing

4. Banks need to check creditworthiness

With 0% financing there is now a right of withdrawal according to $ 356 USD. This means that consumers can consider whether they really need the loan taken out for 14 days. The 0% financing is treated like a normal consumer loan. This also has advantages for related businesses. Even if there is no interest on the loan, consumers will no longer have to pay installments if they withdraw from the purchase. This was exactly the case before.

 

6. Consumer protection: More information and rights on foreign currency loans

If consumers take out a loan in foreign currency during the construction financing, they will have to be informed about currency fluctuations in the future. The exchange rate upon conclusion of the contract is used as a basis. If the value of the balance or the value of the installments increases by 20 percent, the providers must inform the borrowers. They also have the right to switch to their own currency ($ 503 USD). This gives consumers the chance to get out of currency speculation before it gets even more expensive. However, it is also difficult to correctly assess the further development of the currencies.

 

7. More transparency: Whoever mediates must be knowledgeable

6. Consumer protection: More information and rights on foreign currency loans

Real estate loan brokers who are new to the market are obliged to prove their expertise ($ 34). This is good for consumers, since better-trained intermediaries generally also offer better advice. But as with insurance and investment brokerage, there is a good old-fashioned rule here too. So if you are there longer, you can still mediate.

 

8. Banks have to advise when consumers are constantly in the overdraft facility

If consumers overdraw their account permanently, the lenders must offer advice. For the legislator, “permanent” means that customers use 75% of their budget for six months. Advice should focus on cheaper alternatives to the overdraft facility and the consequences of long use. Consumers do not have to accept the offer. Legislators estimate that banks now have to approach 4.8 million customers. However, customers should not necessarily rely on the bank advisor and also find out for themselves how they can repay their overdraft debts. Because the best alternative may have another provider in the program!

 

9. More transparency: Banks must finally show the overdraft interest clearly on the websites

home loan

In the future, banks will have to provide clearly visible information about the amount of the overdraft interest (section 675 USD). If the provider has a website, the interest rate must be displayed there. This makes it easier to compare the different offers. As of November 2015, the Correctiv research center had tried to collect all the interest rates of the savings banks; in March 2016, the data from 19 savings banks were still missing.

The law does not bring:

  1. an upper limit for the amount of the overdraft and overdraft interest
  2. an obligation to advise in the event of overdraft
  3. a cap on prepayment penalties for construction finance

The bottom line is that the residential property loan directive is a good law for banks. The few regulations in favor of consumers with zero percent financing and foreign currency loans do not make up for the cuts in consumer rights.

]]>