A payday loan from a balance dip: what is that?

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.

Apply for a flist credit? Pay attention!

AFM and Nibud warn against payday loans

The AFM regulator has established that not all providers of short-term credit are yet complying with the new regulations and warns consumers to only do business with companies that have the correct license. "A number of providers of so-called flash credit may offer credit without a license and in some cases charge very high rates."

These providers have now been instructed by the AFM that they must comply with the rules and license requirements. "If this is not done Demorei, it can lead to sanctions," said the regulator.

Since June 1 of this year, the rules for consumer credit have changed. As a result, loans with a term of less than three months are now also subject to the rules. For example, no more than a statutory maximum in interest and costs may be charged (currently 16% per year). Companies that offer such credits must now also have a license to do so, unless the fee they charge is insignificant and therefore very low. Consumers can check whether a company has a license on the AFM website.

Nibud notes that some providers have adjusted their offer. They now ask for extra money for certain services, such as a guarantee, advice about insurance and a quick transfer of the money. In addition, they charge hefty fines. Nibud thinks this is a worrying development and explicitly points to alternatives to payday loans, such as overdrafts. "This is a cheaper option," said Nibud.

Flash credit and overdraft therefore also receive a maximum cost.

Short-term loans (less than 90 days) will soon be placed under financial supervision. This is necessary with regard to the European consumer credit directive. The bill contains guidelines for rules on advertising, a mandatory creditworthiness test and insight into the annual costs. The maximum credit reimbursement will also apply to these loans: no more interest and costs may be charged annually than 12% plus the statutory interest (currently a total of 15%). The measure applies to (among other things) loans with a term of less than three months, such as overdrafts at banks and flash loans.

Usurious interest in overdrafts.

The high interest rates that banks ask for overdrafts are a thorn in the side of State Secretary Frans Weekers of Finance. He said that during Question Time in the Lower House on Tuesday. The reason was a report from the Tros Radar program, which shows that banks charge up to 20 percent interest on overdrafts, without informing consumers of this. Weekers joined GroenLinks MP Bruno Braakhuis, who spoke shame of the `` usurious interest. '' Weekers and the House have previously decided to cap the interest rate to 15 percent and demand fairness and clarity from the banks about the costs. A bill on this matter is now in the Senate. The interest that the banks now demand is still formally permitted by law. Nevertheless, Weekers hopes that the banks will improve their lives in advance of new legislation. "The costs charged by the bank are not clear now and are much too high," Weekers said.