JOIN THE BUSINESS OF DEBT. Transparency? REGULATORY ? Unprotect?
Feb 4, 2009
Rising interest rates has led many families into debt and small businesses have trouble reaching the end of the month, which triggered the activity of companies that offer debt reunification as "saviors" of the family economy promised a single monthly payment less than the sum of the above. His usual practice is to mortgage the property of the client or renegotiate your mortgage to pay previous debts, but also tend to give credit for the consolidation, the debt even more.
The repayment term increases but the stakes are very high, so we are in a position of whether they are somehow "unfair", grazing the legality.
The Ombudsman Enrique Múgica emphasized that these companies have proliferated in recent years and that its activity is very difficult to describe, "which has contributed to the confusion of the public. Why claims are subject to an urgent "strict regime" to govern their actions and asked to go to the supervisory body to monitor its performance. It depends, as warned, the economic security of a large number of families and businesses, as these entities have attracted a large amount of debt in recent times.
The Organization of Consumers and Users (OCU) has been reported that these companies, like the credits faster, serve customers more hurry, but in exchange for higher prices in the market. The association stressed that the reunification of debts is more expensive than directly negotiate the extension or modification of the terms of credit with a bank or savings bank.
One of the problems caused by lack of administrative control is that the number of such entities operating in the country and the amounts billed. The Bank of Spain has not been able to do more than prohibit any use of the nomination 'bank' in its name because it is reserved for the supervised entities. Some experts have estimated that its growth in recent years has been between 30% and 50%, reaching a volume of more than 3,500 million and over 20,000 transactions.
Apart from the lack of transparency when reporting to clients of the costs to use their services, taking advantage of "good faith", who are desperate to grab a nail on fire "and that when the signature is not conscious of it.
The Spanish Association of Banks (AEB) is also requested that the Administration who is responsible for regulating this sector, which sent a letter to the Ministry of Finance to regulate that as these companies have to behave. The Ministry replied that financial intermediaries are not under the supervision of the Bank of Spain and that it is not regular and that he is under the jurisdiction of the Ministry of Health and Consumption.
Anyway, before the gap and uncertainty involved, the company claims to an administrative intervention shouts, clear and precise rules governing the standards of performance and control of these companies.
Given that this situation, in most cases is due to the mortgage on a house and knowing that the right to housing is a constitutionally recognized right to Art. 47 CE:
"All Spaniards have the right to enjoy decent housing and adequate. The public authorities shall promote the necessary conditions and establish appropriate standards to make this right effective, regulating land use in accordance with the general interest to prevent speculation ... "
Thus, both by the various associations for the protection of consumers and users of banking regulation is an urgent calling in this sector, as well as a specific law for the suspension of payments to consumers to allow a suspension of payments adjusted the opportunities for families with a flexible and free, unlike the Insolvency Act 2003. Either a specific law that regulates debt.
The repayment term increases but the stakes are very high, so we are in a position of whether they are somehow "unfair", grazing the legality.
The Ombudsman Enrique Múgica emphasized that these companies have proliferated in recent years and that its activity is very difficult to describe, "which has contributed to the confusion of the public. Why claims are subject to an urgent "strict regime" to govern their actions and asked to go to the supervisory body to monitor its performance. It depends, as warned, the economic security of a large number of families and businesses, as these entities have attracted a large amount of debt in recent times.
The Organization of Consumers and Users (OCU) has been reported that these companies, like the credits faster, serve customers more hurry, but in exchange for higher prices in the market. The association stressed that the reunification of debts is more expensive than directly negotiate the extension or modification of the terms of credit with a bank or savings bank.
One of the problems caused by lack of administrative control is that the number of such entities operating in the country and the amounts billed. The Bank of Spain has not been able to do more than prohibit any use of the nomination 'bank' in its name because it is reserved for the supervised entities. Some experts have estimated that its growth in recent years has been between 30% and 50%, reaching a volume of more than 3,500 million and over 20,000 transactions.
Apart from the lack of transparency when reporting to clients of the costs to use their services, taking advantage of "good faith", who are desperate to grab a nail on fire "and that when the signature is not conscious of it.
The Spanish Association of Banks (AEB) is also requested that the Administration who is responsible for regulating this sector, which sent a letter to the Ministry of Finance to regulate that as these companies have to behave. The Ministry replied that financial intermediaries are not under the supervision of the Bank of Spain and that it is not regular and that he is under the jurisdiction of the Ministry of Health and Consumption.
Anyway, before the gap and uncertainty involved, the company claims to an administrative intervention shouts, clear and precise rules governing the standards of performance and control of these companies.
Given that this situation, in most cases is due to the mortgage on a house and knowing that the right to housing is a constitutionally recognized right to Art. 47 CE:
"All Spaniards have the right to enjoy decent housing and adequate. The public authorities shall promote the necessary conditions and establish appropriate standards to make this right effective, regulating land use in accordance with the general interest to prevent speculation ... "
Thus, both by the various associations for the protection of consumers and users of banking regulation is an urgent calling in this sector, as well as a specific law for the suspension of payments to consumers to allow a suspension of payments adjusted the opportunities for families with a flexible and free, unlike the Insolvency Act 2003. Either a specific law that regulates debt.
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