Need a little cash fast? Mini-credits abound on the internet, but beware: several lenders practice usury rates, denounces the UFC-Que Choisir, which files a complaint against three of them.
Borrowing up to 1,000 euros on the internet is easy: some banks and financial companies have even made it a sort of scratch game. But beware of small lines. Behind the reassuring speeches presenting the mini-credit as an alternative ” responsible »To conventional credit and bank charges linked to overdrafting, these loans can accelerate bad debt and expose the borrower to defaults which could further weaken his budget. The UFC-Que Choisir therefore sets out to attack the sector by filing three complaints against Bling, Cashper and Floa Bank with the Paris Public Prosecutor.
The new loan sharks
These three lenders are accused of deceptive marketing practices. The annualized interest rate of the credits offered in order to obtain the advance within the announced period is concealed, attacks the consumer association. The three organizations in the sights “blithely” exceed the maximum authorized rate of consumer credits, from four to more than a hundred times. Worse: Cashper charges an annualized rate of 2.234%! You should also know that if the consumer waits fourteen days before receiving the borrowed amount, he will not pay any fees (or they will be limited). But if he needs the money right away, which is usually the case, his fees skyrocket, up to 30 euros.
Review the regulations
Beyond the case of these three lenders, the UFC-Que Choisir asks European lawmakers to ” put an end to the privileges made to mini-credits »: They should be subject to the regulations that apply to conventional loans, as part of the review of the consumer credit directive. Will the association be heard by Brussels? It’s entirely possible. But in the meantime, caution is in order.