Ideal offer – What problems affect loan companies?

Operating on the loan market is not a simple task. The domestic market is dominated by very large, international corporations involved in servicing telephone loans, in fixed-line branches, as well as via the Internet. Some corporations have not only one website for servicing online loans, but many different services targeted at specific target groups. This is a wide diversification, often excluding entities with a smaller budget from competition.

However, this is not only about the competition problem

But also about numerous legal changes. All loan companies are currently struggling to set an upper limit on non-interest costs. What does this mean in practice? Just a few years ago, it was worth sending an agent to a client remote from the branch of a loan company to charge an additional fee.

Currently, it is not worth doing because of the limit on non-interest costs. The limit was imposed because of usury obligations that were imposed on unaware customers. Today, the termination of a possible loan agreement with prohibited clauses is a small problem. All you need to do is report to your local consumer ombudsman.

In addition

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Courts look favorably at cheated clients of loan companies. The changes in the regulations clearly state that non-interest costs may under no circumstances exceed 100% of the amount paid to the borrower. This is a fair assumption, but definitely unprofitable for small players in the industry. Earlier, loan companies earned 200 – 300% on clients, not only on an annual basis, but in shorter periods.

By the limits, loan companies have tightened the conditions for monitoring risky clients. This naturally limits the scope of the borrower’s service. Taking some risk with risky clients is pointless. It is not paid extra. It is not only about setting an upper limit for non-interest costs, but also about optimizing debt collection fees. If the customer has overdue payments, no excessive costs can be imposed.

 

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