Do you have a credit card and do not know what you pay? Did you sign a loan with any entity and it seems that it never ends? Have you been paying in installments for a long time and do you feel the quotas never end?
“As much as payment seems that the credit never ends” is the phrase most repeated by the people affected by this type of financing who end up paying “notably higher” and “manifestly disproportionate to the circumstances of the case” interests, and, Usually, without knowing how they got to that situation.
The commercialization in most cases of little or no transparency of this type of loan, with interests that double or triple the normal price of money, with an APR above 20%, are beginning to bring most financial institutions to Justice in recent months.
This is evidenced by the accumulation of favorable sentences that the Reclama Por Me lawyer platform is getting against financial institutions that grant microloans, mini loans, fast loans, credit lines or revolving cards.
“Every day we receive a notification from the court with a final ruling in favor of those affected,” explains Fernando Renedo, Legal Director of the platform.
Do you think you can have a revolving card or credit?
Fernando Renedo explains that “the majority of people are unaware that they are paying these exorbitant interests and realize time later.
The reason is that by deferring payments in “comfortable installments” they are paying two or three times the main loan and, by the time they take action on the matter, they realize that they have not only paid much more than they borrowed but also There is a lot of money left to return ”.
Can it be happening to me without realizing it?
Yes. From the platform, they are very clear at this point.
“From the outside, sometimes you have the preconceived idea that these situations only happen to people who are going through an economic downturn or who go to this type of financing do not read the conditions well before signing the contract and we tend to judge them severely because of his irresponsibility, ” explains Javier López, director of Marketing and partner of the company.
The profile of the person affected by a revolving card or microloan
On the basis of age, the people who claim are among the age range of 40-45 years, although, on average, that credit was requested 6 years before.
Considering gender, men are more likely to have a contract in their name, thus being in 66% of cases while women represent 34%. However, about 80% of the people who come to them have a family, so we could say that it does not affect the economy of a single person, but a family group.
But the most relevant aspect is found in the causes that led to having contracted this type of financing where we found 3 main reasons:
- 19% are going through an economic downturn: far from being a solution, revolving cards and microcredit facilitate bad indebtedness or over-indebtedness. This financing option is totally discouraged since the spiral of debts can be made unattainable. The control in the concession of this type of product to people with economic difficulties should be much stricter, they say. These cases are those that are denounced from a human perspective as well as from a legal perspective.
- 13% of those affected go to these products actively, in a favorable economic position: They are people who, in order to pay something concrete, seek financing without knowing the consequences that entail: a car, a reform in the house, an appliance, a vacation, aids to the family … They use this financing that they assume as “advantageous” because it is usually marketed.
- 68% had no intention of hiring it and, however, for some reason, it is linked to this financing without knowing very well how: Those affected explain very different situations. The most common: a young boy approached in a shopping center, the bank granted it indicating that it was a new card with points when financing a home loan, this was linked to another loan … They did not need it, they had not heard talk about it and yet they suffer the consequences now.
That as explained from the platform
The majority of those affected when he signed the contract (if he did it because there are numerous cases in which there is not even said signature) he did not know what he was doing because the entity was very little transparent
They give us an example a favorable sentence against Good Finance notified this week where the judge indicates that it does not exceed the transparency control since “nowhere are the TIN and APR rates applicable to the provisions made, so in mode, Some of the plaintiffs could have knowledge of the amount that should be paid for the granting of the credit line ”and“ the box confirming that the plaintiff was satisfied with the subscription of a loan is not even marked ”.
“If the granting of these types of credits is made under these conditions, how will an affected person know that he has hired him and what he pays for it? Shouldn’t we look at our own accounts and make sure we are not in this situation without knowing it? ” explains Javier López, who encourages anyone who is paying monthly fees of some kind, to get in touch with MyCredit Lender to study it without obligation.