The exchange expensive loans cheap loans involve a lot of hassles and high cost. Often attempts of the conversion lead to disputes between creditors and debtors.
Fairness in financial transactions is big words. Everyone wants fair play, but when it comes to money, the noble intentions are quickly thrown overboard. Since such jostled football or hockey and kicked, now and then, as they say in the North, go to parties, here are the banks, building societies and insurance companies, there investors and borrowers, even with fists and sticks at each other. The most recent example of such struggles is the revocation Joker in credit.
Consumers headquarters in Bremen, Hamburg, and Leipzig have taken in the spring and summer of this year around 10,000 credit agreements under the microscope and have come to the conclusion that the teaching of revocation in 80 percent of cases is wrong. Thus, the debtors concerned have the option to convert the debt to more favorable contracts. The legal glitch seems to be the best gift from the East for some borrowers, but private citizens should not rejoice too soon. The change is usually associated with much trouble and great expense because is pushed behind the scenes by all the rules tricked. This is evident in the following example.
The financial question: risk provisions for many investors a foreign word
A private citizen has taken out a loan of 100,000 euros five years ago at a major bank. The debtor was at that time not top notch. He was financially weak in the chest, and equity was low, so the bank decided only after “a long struggle” to join the financing, of course, with the result that the borrowing rate was slightly higher. Instead of the usual 4.5 percent, 5 percent agreed. The borrowing rate is still five years. The repayment was adjusted to 1 percent. The 60 installments of 500 euros, which were paid to date have reduced the debt until today to 94,333 euros, and if everything goes in the second half, according to plan, the remaining debt will decline in the next 60 months to 87,060 euros.
Now a lawyer has found that the teaching of revocation was wrong. The debtor can reckon that the loan in five years could fall to 70,452 euros when would be the interest rate by half-time of 5 to 1.5 percent, the current interest rate for loans with a duration of five years lowered. That would be 16518 euros less, so it’s no surprise that the debtor suspects financially morning air. A difference of 16,518 euros, an amount for which one “create arg long” must, like any Schwabe know, and for this reason the man is more or less determined wild, throwing his hat into the ring. But that is easier said than done.
Who will assume the remaining debt?
By far the biggest problem is the question of who will take over the remaining debt. The debtor himself, although in the meantime more deserving, to not be able. He does not have 94,333 euros in the piggy bank, and the transition to the collection plate by friends or relatives promises no success. but just as little success also promises to talk to the bank. Long the sparrows from the rooftops that the banks concerned “pissed” are customers who actually make use of the revocation. They perceive the suggestion as a cheeky, and as a top naughty, not to say outrageous, they feel the desire of the customer, just quickly to replace the old lending rates even in new borrowing rates.