Does the loan ring the edge?
Are there worse times for bank and non-bank lenders? Some politicians are very deep in the stomach of loan advertising, which people like naughty devils whisper to borrow money here for a new car, the kitchen or a new house.
You sit like this one afternoon at home on an old but comfortable couch, watching some interesting still or movie on TV and you do not need anything extra.
And then there are several commercials in which popular actors and other familiar faces convincingly tell you that your couch is really old and also uncomfortable that your kitchen is incredibly old-fashioned and that the car should have been lying under for at least ten years rock or scrap yard.
Confused, you begin to look for your apartment, which suddenly comes to you so blatantly old and a hundred years behind the zenith, after all, would need a complete renovation.
Yeah, but where do you get the money if you don’t steal? Fortunately, the only right solution will be in advertising. Just take a bargain loan. Everything is so simple and fast, everyone is smiling and happy. So why not take advantage of it once and live better?
You want the sea too, but you don’t have the money? Borrow! How about a few days by the sea you will repay the next few months…
Famous personalities earn money from loan advertising
The ban on advertising for loans with the exception of housing loans would primarily want to ban the “popular” political parties by the GFI. They do not like the fact that people who often do not have money for the loan, that is to repay it, are watching the loan ads.
In advertising, they see only the good and are unable to calculate how much the loan actually costs. Quite often they get into trouble and cannot repay the loan.
A ban on loans would probably be the least welcome to non-banking companies that provide loans to less solvent clients. Banks check each potential customer thoroughly, both in terms of income and expenses, and in the registers of debtors. The ban would certainly not like actors and other celebrities who are very well paid for performing in such advertisements.
- „We will pay you up to 500 000 USD within 2 days. John Stubb nobody will pay even execution. “Facing this ad on the non-bank loan is well known and popular actor Robert Belle.
- “What, are you going to lend me money for free?” Another reporter’s famous personality wonders, wide-eyed, and handyman Láďa Hruška, who helps promote non-bank loans.
Robert Belle and Lida Gruska are by no means the only Czech celebrities to earn money by performing in similar loan advertising. Others are actors Marielle Dlezova and many others.
They should also realize what they are promoting for the product and how much they can have on ordinary people whose financial literacy is not too high. But easy earnings are always tempting.
Do I know what will help you? Loan!
Will ads not only disappear from TV, but also from newspapers, the Internet or radio?
Apparently, GFIs are very adept at advertising. They would like to cancel them and make loans for loans from all media disappear. In addition to television, it would be the Internet, newspapers, and radio. Just on the radio, the ads are the worst…
According to them, the indebtedness of Czech households is too high and something needs to be done.
“In a situation where the Czech Republic is highly indebted with the consequences of a high number of executions, it seems necessary to substantially reduce this type of advertising,” the Communist representatives, who are most concerned about TV ads, are calling for a ban on loan advertising. and the Democrats agree with them in the words of their deputy.
The former boss Mark Výborný: “We want to limit what is coming from the online space of the Internet and television to the citizens. We want to minimize the attack in the quotes by advertising the public, people. Because if you look at it today, it’s still true, some 60-70% of the ad is actually about consumer credit ads, various microloans, and so on. ”
Advertising bans allegedly reduce holiday and Christmas loans
Criticized are advertisements that encourage people to take out a loan for Christmas gifts, for an expensive and luxurious holiday, or when they are threatened with execution.
However, such loans often end in a so-called debt spiral. Borrowers are unable to repay an expensive loan and other loans are taken in installments until one day they are stopped by a “wall” in the form of distraint. The only exception would be mortgages, which are not usually taken by people for the purpose of buying a holiday or hammering a wedge.
The government is not very enthusiastic about the proposal. The proposal is not entirely bad but needs to be modified, completed and reworked.
“The present proposal assumes that restricting or completely excluding the dissemination of certain information to the addressees will change their risk behavior, but this assumption is not substantiated in the submitted proposal,” government representatives said in their opinion on the proposal to ban loan advertising.
According to the government, it is much more important that people have all the important information and be able to evaluate it correctly.
How about taking a vacation loan on a sailboat? My wife has been asking for a long time, so why not let her do it. Just borrow a few tens of thousands of crowns.
Even the carpenter will fall down once
Loans are often applied by people who do not have enough money to repay. In order to obtain the loan, the application will deliberately give false, false or insufficient information.
Banks and responsible non-bank providers will examine their applicants and will not provide them with an application confirmation. However, this does not apply to some non-bank providers.
In this way, Sean Cole paid a loan of USD 30,000 to the client, who withheld the information on the repayment of obligations in the application. The provider has filed an action against it because the client did not repay the loan. However, the client eventually escaped without punishment. According to the court, although she broke the law, the harmfulness of her conduct was low.
The court cited the provider as the culprit because he provided the client with a loan contrary to good manners and now Sean Cole even faces a fine of up to several million. The reason is an insufficient examination of the client’s situation at the time of the loan application.
“For example, she had a non-bank register of debtors, but she was not driven by the prospect of profit. As her then-chief executive testified, she had at her disposal, among other things, statements of debtor’s account, which at first glance show her at that time the deplorable financial situation.
If the injured party fulfilled its obligations, it would never be able to grant the defendant credit, ”the court verdict says. Let it be a warning to all unfair lenders that such behavior may not always go through.