The UFC-Que Choisir consumer association warns this Wednesday in a research on shopper loans contracted within the midst of a well being and financial disaster.
She calls on the European Union to power banks to supply restructuring measures to their clients extra shortly, within the face of an anticipated enhance in 2021 in defaults on shopper credit score, in a press launch on Wednesday.
“Faced with the expected wave of difficulties in repaying consumer loans”, explains the UFC-Que Choisir on Wednesday in a press launch, she “calls on European lawmakers to force banks to propose a restructuring measure from the second incident reimbursement and, in any event, before the possible transfer of a doubtful loan “.
Payment defaults of round 12 billion euros in 2021
According to its calculations, “consumer loans in default could, according to our estimates, exceed 12 billion euros (+ 40%) in 2021”, continues the affiliation, for which “credit institutions have a major responsibility in the management of these arrears, in order to prevent borrowers from falling into over-indebtedness.
In addition, they “should urgently provide them lasting options” because “the moratoriums granted within the spring are, for 2 thirds, expired in November”, explains the association. She also fears the nature of the action plan to be presented by the European Commission “to purge the banks’ stability sheets of their” rotten “credit”.
Explosion of complaints
“Far from looking for to treatment the too dangerous distribution practices in addition to the dangerous banking administration of the reimbursement difficulties of their clients, it intends to facilitate their resale to assortment corporations!”, Denounces the UFC-Que Choisir, including local associations “are already witnessing an explosion of complaints as a result of lack of safeguards in opposition to the aggressive practices of assortment corporations”.
For its part, the French Banking Federation emphasizes that “banks are dedicated to supporting clients of their tasks, and don’t share the alarmist observations” of the UFC-Que Choisir “.
For banks, default charges are low
In specific, “the indicators make it possible to show that the default rates are low, as the authorities have recently confirmed, and that, even in the current circumstances, the risks on loans to individuals change very little. The banks are extremely attentive on this point, and are mobilized to prevent the rise of difficulties and to face together “, argues the federation.
She insists that “banks lend responsibly” and that they “have no interest in seeing their customers not being able to pay”.