Archive April 2019

Payday Loans “You To Me, I To You”

Few people have a secret that in our country there are sites on which Russians can take a payday loan or issue it (P2P – the market). Already a year ago, the BBG Finance seriously thought about how to put such sites in order and regulate their activities. This year, the regulator intends to accept the project, which prescribes special sites to obtain a license on a mandatory basis and transfer information about loans in the CII. The latter are likely to create new ones, especially for processing just such data. Such measures should help combat fraud and more detailed scoring of borrowers.

Site owners in which citizens give each other payday loans warned that in the near future a study will be launched in which some sites will operate strictly according to the new rules. During the study, ACB Bank wants to find out what rules really help and they need to be added to the bill. As far as we know, the new law will be signed this year, and in the middle of the next one will fully function. The BBG Finance confirmed the information that active work is underway to launch the project.

Under the sight of the ACB Bank P2P, the platforms came at the beginning of last year. In our country there are three types of such resources on the Internet. The first kind is sites on which almost anyone can issue or borrow from another. And you can find a payday loan, both from an individual and from the company. In addition, there are crowdfunding crowdinvesting platforms where people can invest their money in the project they like and, in case of project success, receive a percentage of the profits or finished products. It is very difficult to fully evaluate the P2P market. The regulator receives reporting documents from 20 organizations, but operating on the market is somewhat more. From the information received last year, ACB Bank estimated this financial segment at 1.5–2 billion rubles, suggesting a significant increase. Therefore, it was decided to make this market more transparent.

Fraud, unfortunately, is present today almost everywhere. Financial pyramids may now appear on P2P resources, with the help of which, investors’ money disappears. Therefore, the sites themselves are interested in the help of the regulator. In addition, lenders located on such sites will not mind receiving a more accurate description of a potential borrower. We should not forget about the specific instructions of the President of Russia and the Prime Minister aimed at improving the situation in the financial sector.

 

What are the requirements for P2P resources?

What are the requirements for P2P resources?

First of all, the site owner must have a license of the BBG Finance, that is, be a bank. Or the organization must be present in the register of microcredit companies. We consider the requirements for the authorized capital of the company, whether the appropriate tax and financial statements. Some market participants believe that it is necessary to better protect investors who use these resources. For example, special accounts should be involved in the process that will better protect money from fraudulent actions of unscrupulous P2P resources. Most likely, the lenders will have to improve the quality of verification of their clients and know exactly the order of funds movement. In any case, the new rules should improve the situation, reduce risks and protect consumers.

These Shortcomings May Affect Your Credit History In The Future.

If you have already read our article “Evaluation of credit history: the main factors”, then you already know which moments most affect the status of CI. But, requirements for borrowers are tightened every day, the same is true of the requirements for their history. Therefore, pay attention to the following list of criteria and try not to make mistakes that may emerge in the near future.

 

Fines for parking and other traffic violations

Fines for parking and other traffic violations

An unpaid parking ticket can easily create a crack in your scoring. If you do not pay the fine for a long time, then it will go to court. A court order is a public act, which, in turn, may adversely affect the credit history.

 

Credit Report Error

Credit Report Error

Your CI is a certain snapshot at a particular moment, the data in it often change and, accordingly, the score too. Therefore, in order to identify an error in the report on time, it is best to periodically check it. Also, do not forget that different fragments of credit history may be located in different LIC due to the fact that different banks work with different bureaus. So, check all parts of your CI to identify on time or eliminate the presence of errors in the document.

 

Reception with multiple credit cards

Reception with multiple credit cards

There is a technique that many active borrowers use to improve their scoring. They apply for as many credit cards as possible and thereby increase their total amount of approved credit. If they do not use credit cards, the ratio between the total amount of approval and the amount of debts is improved in favor of the borrower. But do not overdo it with this technique – a sharp taking of several loans can only worsen your credit history.

 

Various government fees

Various government fees

Failure to pay, for example, school government fees, such as: improving the laboratory, purchasing books for the library or repairing the gymnasium, can also be reflected in the credit history. So, do not forget about such things, otherwise they can harm your CI for a long time, even a long time after paying the debt.

 

Utilities

pay utility bills on time

Be sure to pay utility bills on time. Even, if at the moment in our country there is no mass practice to send cases of non-payers on utility payments to collection companies, you can always present an official document to the bank manager who will confirm your responsible attitude to your financial obligations.