Credit Information Bureau – a control that closes the gate
BIK was created as a company that was to significantly improve the collection of information about citizens’ loans. However, the original information function turned into a control one. Each bank systematically places data on the indebtedness of its citizens in the Credit Information Bureau database. In this way, all lending institutions can easily check the tax history of a potential client. It is therefore a kind of safety valve, a form of protection against people who could not pay off the installments. After all, banks earn a loan with a hike in relation to the amount borrowed, which is why people whose credit history is questionable are automatically considered to be unattractive financially in the eyes of the bank. Bankers, however, forget about the factors of random and unpredictable circumstances that put debtors against the wall. Often, another loan is an attempt to save from complete bankruptcy, and one should not forget about the group of unfortunates who have been cheated by one bank and try to get money for living in another bank. The Credit Information Bureau, established by the Polish Bank Association and various private entities, limits the possibilities of borrowing money. Debt holders with narrowed maneuvering are opting for other methods, such as using a private loan.
Privately, but is it safe?
Private loans most often involve a relatively low amount (up to several thousand), which is granted almost immediately, but lenders set a high interest rate. Although private lenders declare they do not pay attention to the debtors’ database, in extreme cases they may decide to do so. The form of the collateral is a civil law agreement or pledge concluded with the borrower. However, the painful truth looks like that private investors have not been given a fixed amount many times. In addition, the enforcement of debt repayments did not help. Even in cases of breach of contract and bailiff intervention, it often turned out that debt is unpayable due to the lack of any assets. Thus, granting private loans is a risky option for investors.
On the other hand, it looks just as unconvincing. People without creditworthiness in the search for the last resort rescues decide on a private loan. A lucrative lender will, of course, agree to a loan, but he can take advantage of legal loopholes and draw up an extremely disadvantageous contract for the lender. The deceiver puts in the contract ravens and complexities that are unnoticeable for the average citizen, and can lead to his financial catastrophe. Recently, there have been numerous cases in which a simple loan of a small amount ended in the loss of property. As you can see, both lenders and borrowers must use a limited trust method for non-bank solutions.
The internet makes the task easier
Affair related to the activities of the parabanks did not discourage borrowing money outside legally operating banks. It seems that the power of the Internet only intensified the phenomenon of “wild” borrowing money. The advertising platforms are full of statements about the possibility of loan. A virtual network guarantees a high level of anonymity, and fraudsters hunt for desperates without financial and legal knowledge. In extreme cases, the amount was transferred as a loan to a completely foreign person, without any contract, but the law enforcement authorities try to limit the attempts to extort. However, objectively looking, there are also honest borrowers and lenders for whom the internet has become a helpful tool. Before popularizing the internet in Poland, people without creditworthiness most often sought help from family and friends, and the money was received at their word. Currently, in every region of the country you can find a lot of ads from virtual investors in a few moments.
Private loans are not supervised by state instruments. This means that the lender can impose cruel contract terms for people who have no other choice. In addition to the strange ways of distributing the repaid amount, there are also pre-paid offers, which are not regulated in any formal way. After paying the fee, the contact with the lender ceases, or a message stating that the loan is impossible to implement for some reason. Lack of top-down supervision by the state also means poor prospects for a possible legal enforcement of your rights.
In summary, the private loan sector has been developing dynamically for several years, mainly thanks to the Internet. A non-bank solution may be the last method for obtaining money by persons who appear in the debtors’ database. However, this option is extremely risky, without the control of state instruments, and the lender will probably construct a contract in such a way as to secure its own interest and disadvantage the potential borrower.