Archive February 2019

Credit despite debt collection

It is understandable that financial institutions are reluctant to lend despite collection. Finally, the loan seeker is recognizable at least once his payment obligations did not comply properly.Nevertheless, borrowing is possible after a completed debt collection procedure. How difficult this is depends not least on whether the debt collection by a collection agency of the private credit bureau is known.In all cases, it is possible to apply for a installment loan after collection together with another borrower. Its private credit bureau information may not contain a negative entry. A credit bureau is conceivable as an alternative to the co-applicant, but is much less liked by many banks than common borrowing due to high legal claims on the effectiveness of a guarantee by economically inexperienced individuals.

The loan application for a debt collection not reported to the private credit bureau

In order for the private credit bureau to enter a claim that has not been duly paid as a negative feature, it must be unequivocally in place and must be admonished. For the submission of the bill collection to a collection agency, however, the previous exhaustion of the dunning procedure is not mandatory. Above all energy suppliers often sell their existing receivables directly to a collection service provider, if final accounts are undeliverable and they have no direct debit authorization. Sometimes they even refrain from researching the customer’s file and thus do not even realize that their own clerk had forgotten to save the future address communicated by the energy user. You can only have a negative entry made,For the credit despite collection, which is not included in the private credit bureau information due to a not completed before the commissioning of the service provider reminder, all financial institutions are eligible to submit their request exclusively to private credit bureau and possibly Credit reform. Infoscore owns by far the largest debt collection market share, with the result that many financial institutions, in addition to private credit bureau, also submit a solvency request there. Whether the bank selected for the specific application for credit requests only from private credit bureau or from other credit bureaus is seldom apparent from their own statements. It is customary to grant a permit to obtain information from private credit bureau and comparable service providers. Few banks explicitly state which credit bureaus they use

Borrowing according to a private credit bureau registered debt collection

Borrowing according to a private credit bureau registered debt collection

According to the private credit bureau, a loan should be accessible despite debt collection following the settlement of the claim, as it evaluates negated entries marked as settled as neutral credit features. However, this classification is followed by only a few financial institutions, after which those affected look for their credit comparison. Furthermore, some banks, even with a soft private credit bureau negative feature, do not generally deny the loan application. In spite of debt collection and a private credit bureau entry marked as completed for this reason, the application for a loan encounters no particular difficulties for these banks.Alternatively, a Swiss loan can be applied for despite debt collection, since this is awarded without the participation of private credit bureau or another German credit agency. The loan amount in this case amounts to 3500 euros or 5000 euros, with settlement in the European single currency.A reputable credit intermediary asks for the loan requested by the customer despite debt collection at both German and foreign credit institutions. It bundles a high demand for loans and often receives the desired loan in cases where the requested banks have rejected a credit application submitted directly by the customer. The seriousness of the service provider easily recognize credit seekers by the non-calculation of prepayment interest.Consumers who need a bank loan despite a debt collection often accept the first offer available to them without further scrutiny, as they hardly believe that they are also welcome as loan clients to other financial institutions. The waiver of a careful credit comparison is not advisable, as even after a debt collection process several financial institutions as lenders come into question and can be found by checking different offers a cheap loan.

The organized personal loan after a debt collection

As an alternative to a bank loan despite debt collection, there is an organized personal loan that credit seekers can apply for on various online marketplaces. Private lenders are based much more on social criteria than on ordinary credit ratings and are aware of the requests of the applicants, who hardly get a loan from a traditional bank.A further criterion for deciding on a private lending exchange is the stated purpose, as the lenders registered there to a large extent deliberately promote projects that they consider to be worth supporting. A detailed description of the project to be financed therefore leads to a quick drawing of the loan request, which, depending on the amount, is made by one or more installments by several lenders.Part of the online platforms allows creditors to hide the credit data from the potential lenders. However, it is better to dispense with this possibility and to state openly that the request concerns a private loan despite collection, as the potential private lenders reimburse complete details and the non-publication of the credit-worthiness points anyway to a low creditworthiness. Of course, borrowers and lenders in the online credit marketplaces can not see their mutual names and address details, so privacy is guaranteed.

The Reason for Debt Reunification.

Many of the people who are overwhelmed by the pressure of their debts, could well put an end to their hardships through something called “debt reunification” and much publicized lately by non-banking companies. What is offered consists of unifying all the debts that can now involve different contracts, with different entities and at different costs or interest rates, under a single loan or credit. Something, which is very normal and common in many Spanish homes.

That is, the mortgage, the letter of the car, the personal loan for the reform of the house, the purchases made with the credit card, etc… However, be very careful with this of the “reunification of the debt”. Where is the benefit? Well, something as simple as paying less per month, but for more months. That is to say, behind the Reunification of the Debt there is the extension of a mortgage or the opening of a new one, with what happens to have a single installment, which is usually lower than what was previously paid for all the debts.

However, that lower fee will be paid for a longer period of time and, consequently, who always wins is the same: The Bank. Well, it is clear that the client or consumer also wins if what matters at a certain moment is paying less per month, even for more months. But that lightening of monthly money is not free, far from it. By lengthening the life of the loans one ends up paying much more in interest. The total cost can be increased by 80%, which in practice can mean paying the bank 472,000 euros for an initial debt of 197,000, that is, 275,000 euros of interest and other expenses.

Reunification of Debt

Reunification of Debt

So that no one is wrong with this of the Reunification of Debt, the Bank of Spain has provided advice to users in their Banking Client Portal, that when analyzing this operation, pay special attention to the total expenses of the operation, since these operations have processing and formalization costs; the credits that are canceled usually apply commissions or penalties for early payment; the modifications in the mortgages entail notary expenses, registration and taxes, and the opening of a new one entails other commissions and new disbursements. Within the financial sector this business is beginning to be pointed out as the closest thing that there is in Spain to subprime mortgages in the United States.

Its proliferation has caused alarm and has led the Ministries of Economy and Finance and Health and Consumer Affairs to try to regulate them. Currently, a bill is being processed which will oblige financial intermediaries, (a sector that has grown as the foam in recent years in Spain, according to data from Tormo y Asociados, currently operating 53 companies that they have 5,710 establishments) to sign up in a register and, above all, to detail the cost of their services well to customers. One of the objectives of this regulation is to try to make them more transparent. In many cases, the costs of the fees are included in the unified debt and the user does not even know that he is paying up to 10% for the services received. The fees depend on each entity and operation, but they are higher than in financial institutions.