The fast credit companies They have taken advantage of the crisis to tighten their conditions and raise their interest rates very significantly, as confirmed by the Bank of Spain. That is why when hiring a product of this type there is a risk that the client ends up paying more.
The minicréditos They are loans of small amounts, ranging from a minimum of 50 euros to a maximum of 1,000 euros to be repaid, in very short terms, a maximum of 90 days and in most cases, 30 days. It is extraordinary financing that very few companies can offer. According to estimates of AsufinIn 2020, 890,000 loans of less than 3,000 were granted in our country.
This same association has presented a barometer showing the companies that impose the highest interest rates on this type of loan. The five most expensive are: Kredito24, Loan10, Créditomás.es, CreditoSi and Contante, with interests ranging from 8,538% APR and 540% TIN -in the case of the former- and 3,564% APR and 420% TIN -in the case of the latter-.
The problem with this type of credit is that they are marketed with high interest rates, which are also not visible in their advertising. The consumer only knows the exact price at the time of signing the transaction. In addition, they are offered with various claims. The first is to have the money quickly in the account, in terms of 24-48 hours and, in many cases, even within the day, with immediate transfers.
The second is to suggest that its cost is low, when reality shows the opposite. For example, paying 135 euros for a loan of 300 euros, to be repaid in one month, means facing an APR of 8,538% as an effect of combining high cost with short term. For this reason, any price increase, however small it may seem, translates into a notable increase in prices, as Asufin points out.
Usury convictions
Recently, the court of first instance number 11 of Madrid has condemned the fast credit company for usury Prestamer after applying to one of your clients a TAE of 657%, according to a car to which he has had access to Vozpópuli.
The judge has declared that the affected you will only have to return the money you requested, without having to pay any type of interest. In addition, the loan company has been ordered to pay costs. This sentence, obtained by Asufin’s collaborating lawyer Rodrigo Royo, highlights the enormous risk posed by these instant credits.
Prestamer is a company of fast loans registered in Malaga that offers liquidity at a very high interest rate. On their website they sell that these loans are offered with a daily interest rate of 0.96%, which represents an APR of 350%.
The TAE It is the annual calculation of interest and is used to determine the price of financial products. If an interest rate of 1% (daily) is offered, the APR is 365%; if an interest of 1% per month is offered, the APR will be 12%. This is a claim that fast credit companies are using with which, at times, it is not completely transparent.
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