There are so many reasons to take out a consumer credit. Purchase an emotion such as your dream car or trip, help your children financially, finance buyer costs or close an existing debt gap with an extra loan.
Our Acceptance department needs a lot of information to be able to properly advise in advance whether or not a customer is in trouble. For example, bank statements with salary addition and depreciation of housing costs, there are sometimes cancellations, etc.
In this way we can identify irregularities or even fraud at an early stage and, via a rejection, protect people from any financial misery. Because you don’t help people who are already in debt with a new one.
If a customer does not borrow responsibly and stops paying because he / she has nevertheless got into trouble, all parties become the child of the bill. We as a credit specialist, the bank as a lender and the customer himself. Because once someone is in debt, it is not always easy to get out.
It is currently not good to sell that people can get into debt so easily, while this is preventable. From our joint duty of care to an intermediary and bank, you must always prevent extra debts.
One part of the solution to not getting too much into debt is on a personal level: being able to handle money properly. For example, if a child is already learning how to budget, does not spend more money than it receives, first learn to save, postpone impulse and emotion purchases (‘happiness is not for sale’).
Bailiff / collection agency Register
Suppose someone has all kinds of payment arrangements with different collection agencies, but the salary is seized. Then payments to the collection agencies are compromised. That is one of the most difficult aspects of building up debts: in the institution keeps a precise record of how many creditors there are. Or how much money is involved. As a customer you get caught up in time in the web of default, can no longer borrow, repay existing loans and in worst case lose your home, work and social environment.
We believe that there should be some sort of BKR where bailiffs / collection agencies should register their customers.
This reporting obligation would mean much more overview for customers. And for us as a lender, it would mean that we can see at a glance whether someone is already in the bailiff’s trajectory. Then we can reject an application at an early stage and in this way we protect potential customers from even more misery. Now we first have to go through all bank statements, which takes a lot of time and doesn’t always feel pleasant for customers.
If an official government body keeps track of whether someone has a file with two or more bailiffs, the government can switch much faster, adjust on time and offer help.
Taking out a loan is not a shame, but let it happen on a responsible basis.
For the time being we still have to say without such a type of ‘BKR registration for collection agencies’. But what can you already do yourself to apply for a loan responsibly?
Ask yourself a number of critical questions:
- Do I really need the loan goal (car, vacation, boat)?
- Can I save the money for my purpose instead of taking out a loan?
- Do I actually have enough income to pay the repayment every month?
- Do I have other loans in progress and can I first repay them?
Make smart use of our tools:
- Transfer or merge existing loans. This way you pay less interest, you gain an overview and you create the prospect of a debt-free existence.
- Fill in our loan guide and find out whether and which loan suits you best
- View what you can borrow responsibly
- View responsible lending in addition to your mortgage
- Do research and compare loans with different banks
- Also check the conditions, after every loan and every personal situation is different!