During the daily ritual: reading the e-mail, I found an interesting message today. An e-mail on behalf of LendNow Bank, to promote the product Balance dip . I could borrow up to € 1500. And the best thing? It could still be in my account today. The above product is called a mini loan , or payday loan . The reason for this is that it is often a (relatively) small amount that is borrowed for a short period of time. Until 1 June 2011, this form of borrowing money was still outside the competence of the AFM. The internet is full of complaints from consumers, who by borrowing a small amount were saddled with hundreds of euros in collection costs.
From 1 June 2011, this form of borrowing has been included in the Consumer Credit Directive. This means that there must be clear information provision. The lender (in my case, LendNow Bank) also has a duty of care and must act transparently. On an annual basis, no more than 14% interest may be charged.
For whom is the mini loan of balance dip intended?
In the email I received (on behalf of Balance Dip ), some tips were mentioned on how to spend the money. That way I could go shopping with my friends for a day. A day at an amusement park should of course also not be missed. It therefore seems that this mini loan is aimed at young people, or people who can no longer get another money loan. This is understandable, of course, the majority of the population understands that taking out a loan for 30 or 60 days is a very expensive form of borrowing money. This loan was also taken out in “a flash”. So there is not much time for reflection.
How does the mini loan application work?
The site of Saldodipje provides clear information about this. For example, the applicant must be at least 21 years old and reside in the Netherlands. A minimum income of € 900 per month is also a requirement. After completing the application form on the website , a so-called credit check takes place automatically. This check checks whether you appear on lists of (known) defaulters. It is also checked whether the home / zip code entails an 'increased risk'. Is this the case? Then the loan will be rejected.
This check is performed by companies such as EDR Credit Services. Radar (see: http://kassa.vara.nl/nieuws/onterecht-wanbetaler-door-foute-postcode) has already paid attention to this. It can happen just like that that due to the (mis) behavior of a previous occupant, you will be classified as a defaulter. This is of course an extremely bad thing.
Approved, now what?
Has your mini loan been approved? Then Balance Dip sends you a text message with a confirmation. The amount you wanted to borrow will be deposited within the term you have chosen. From that moment on it is important to ensure that you pay back on time. Providers of mini-loans make use of the (for them) favorable Dutch collection legislation. This enables them to immediately charge € 40 in file costs, so that you are hunted down even further.
I am personally not a fan and supporter of this product, and certainly not the recruiting method. For example, I received an unsolicited e-mail in which I was promised all kinds of nice days. Do you have the same or different experience with borrowing money via a mini loan from balance dip? Then contact me. I want to collect the feedback to do more research into this form of borrowing and especially: its impact on the consumer.