Despite low interest rates: consumers pay over 2 billion euros too much for loans every year

Last year, consumers in Germany concluded new installment loans with a volume of 102.2 billion euros. Those who completed their loan on the Internet paid an average of 1.67 percentage points less interest than the national average- Find the Best Payday Loans in 2018. If all borrowers had completed their loan on the internet, they would have saved a total of 2.2 billion euros. This is shown by data from the Bundesbank, Schufa and the credit portal Smava.

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“Not all borrowers are aware that there are large price differences in loans even in the current low-interest-rate phase. That’s why we create transparency and want to encourage consumers to compare their credit prices. For anyone who has to borrow money should not have to pay too much for interest, “says Alexander Artopé, Managing Director of Smava.

 

706 Euro instead of 997 Euro – online credit saving saves 29 percent

Despite low-interest rates, 2017 saw large interest rate differentials. According to the Bundesbank, consumers paid an annual interest rate of 5.75 percent, according to the Bundesbank. Who completed his loan on the Internet, paid on the information of the online loan portal Smava on average 1.67 percentage points less (4.08%). These interest rate differences caused price differences. The example of the average installment loan shows how strong they turned out. According to Schufa, the average installment loan amounts to 8,854.60 euros and a term of 45.6 months. In the federal average, thee cost 996.91 euros in interest. The average installment loan on the internet cost an average of 705.81 euros in interest. That’s a price difference of 291,10 Euro (29%) per loan. If you add up the price difference per loan to all 7.37 million new installment loans per year according to Schufa, then it becomes clear: If all borrowers had completed their loans online, they would have saved a total of 2.2 billion euros.

 

Hardly any awareness of price differences

According to Schufa, an average of 1.46 loan offers are compared in Germany before a loan is concluded. In comparison to the total loan offer, that is very little. “This is also because the comparison of branch credit offers is complex, unpleasant and hopeless. I have to go from branch to branch. Always reveal me to a stranger. And in the end, no matter how many stores I visit, I never have a comprehensive overview, “says Artopé. Without knowing it, many consumers pay too much for their credit.

 

Trend goes to an online credit

According to a GfK market study on consumer and motor vehicle financing on behalf of the Banking Association, the share of credit on the Internet has increased since 2015 from 21 to 27 percent in 2017. “More and more consumers realize: On the Internet, I get the same or even better performance on more favorable terms. So I benefit from the credit on the Internet, “says Artopé.

 

Going online is not enough – you can only save money with cross-bank credit comparison

“If you only go to a bank, you usually pay too much money,” says Artopé. Banks are focused on selling their own credit products. “Comparing multiple banks is therefore very rewarding.” Those who are not interested in going from store to store and reveal themselves to strangers each time can use credit portals like smava & Co. With them, several loans from different banks can be compared at once. According to the portal, in the case of smava, there are currently 70 loans from 25 banks.

Financial entities will anticipate Social Economy associations financing salary costs

 

 

The objective of the agreement is to have an advance payment of the amount of the subsidy approved by the Board before the liquidation of the aid, through the formalization of a loan under preferential conditions.

This will facilitate and improve the financing of the wage costs of workers with disabilities in special employment centers and workers at risk of exclusion in the Insertion Companies that have applied to the Ministry of Employment for subsidies to finance the first 50 percent of the Minimum Interprofessional Salary (SMI).

Specifically, they have signed the agreement Banco Caixa Geral SA, Banco Caja España de Inversiones, Salamanca and Soria SA, Banco Santander SA, Caja Rural de Zamora Cooperativa de Crédito, Triodos Bank NV and Banco Popular Español SA

On behalf of the Social Economy sector, the agreement has been signed by the Spanish Business Federation of Associations of Special Employment Centers (FEACEM CYL), the Association of Special Employment Centers of Castilla y León (ACCECYL), which encompass the employment of people with disability in the Community, and the Association for the Promotion in Castile and Leon of the Companies of Insertion (FECLEI), which brings together companies that employ workers in situations or at risk of social exclusion.

The Minister of Employment, Carlos Fernandez Carriedo, stressed the relevance of this agreement, which facilitates credit to companies that benefit from these grants, which mean that the Board subsidizes the first 50 percent of the SMI, something that remains the amount has been raised, a “positive” initiative of the State, but that must also suppose that the Central Executive assumes its share of the cost.

Fernandez Carriedo has highlighted the importance of the agreement signed not only by the creation of employment in its amount, but by the type of employment generated by the entities that have signed this agreement, which also contribute to the professional promotion of people with disabilities or in risk of exclusion, many of which have made the “jump” to the ordinary labor market, which in turn opens the door for other people in their situation to access these jobs in the Social Economy.

In addition, the counselor recalled that although it was not commitment of the legislature, public procurement of a social nature gives priority to EWCs and integration companies, which will have advantages that will involve a greater workload and people with disabilities can find work .

For his part, José María Ibáñez, of FEACEM, has highlighted the importance of the agreement because behind this act there are about 6,000 workers, 33 percent in rural areas, and 220 companies between CEE and insertion companies. In this regard, he said that employees can continue to charge on time, since there were no delays, but even a little sooner.

Ibáñez has highlighted the reference that is Castilla y León in this area and has said that now with active policies have “tailwind” in this term.

It has also influenced that every time that it contributes more to generate employment that improves quantitatively and qualitatively and this contributes to generating wealth, since for every euro invested it is returned to the public fund 1.7, although if there are other factors it can increase.

Ibáñez, after highlighting the positive aspects of public-private collaboration in Castilla y León, believes that there are still pending issues and that we must continue talking about visibility, investing projects and incorporating more added value into the sector, as well as addressing issues of responsibility corporate social

On the part of the financial entities, Isabel Sánchez, of Triodos Bank, has expressed the satisfaction of being able to contribute so that these employees can collect the payroll on time and has highlighted the work of the social entities because it considers that it is necessary to keep in mind that the activity human is linked to the economic.

In addition, he considers it satisfactory to join a number of financial institutions, has been confident that they will do more and stressed that the social entities move forward is a “duty of all” and in the case of the financial world it is not it is separate from the human and the social.

ACHIEVED GOALS

ACHIEVED GOALS

The Minister of Economy, recalled that several objectives have been achieved to which the Board had committed for the current term, such as to overcome the 5,000 disabled workers employed in the Community, since December 31, 2017 have been reached the 5,462 employees in the EWC, who also increase for the first time until they reach the 215 Special Employment Centers registered in Castilla y León.

In addition, he recalled that the budget of the Employment Council of 2018 in the field of Social Economy for employment with disabilities and workers in situations or risk of exclusion amounts to 24 million euros, representing an increase of 4.3 per percent compared to the previous year.

The counselor has also pointed out five other issues that have been achieved in the area of ​​Social Economy over the past few years, specifically complementing up to 75 percent of the SMI of new contracts for workers with disabilities, with special difficulties, assuming the increase approved by the State; recover the financing of investments linked to new projects and the hiring of workers with disabilities in the CEE; promote the hiring of support technicians for workers with disabilities who work in the ordinary company and the hiring of support personnel for workers in situation or risk of exclusion in insertion companies.

FINANCIAL CONDITIONS

FINANCIAL CONDITIONS

The banking entities undertake to study and formalize in favor of the EWCs and the insertion companies a loan linked to the approved grants, with financial conditions with a maximum fixed interest rate of 1.75 percent on the amounts provided, and up to 0.25 percent of opening commission; and the amortization at the moment of the effective income of the subsidies. The only personal guarantee that is established is the irrevocable domiciliation of the requested subsidy.

The Ministry of Employment, through the General Directorate of Social Economy and Autonomous and the nine Territorial Work Offices, will certify the registration of the EWCs and insertion companies in the corresponding registry and the list of applications submitted corresponding to the call for proposals. financing of labor costs, as well as the amounts granted.

The agreement will have a duration of one year from the signing, being able to agree the extension for a period of up to four additional years or its extinction. The agreement also allows the subsequent accession of more financial entities to this agreement.

Obama, five years after the bankruptcy of Lehman: "We are not where we need to be"

 

The president of the United States, Barack Obama, attends the second day of the G20 summit that hosts the city of St. Petersburg 

US President Barack Obama recalled on Monday the fifth anniversary of the bankruptcy of investment bank Lehman Brother , which triggered the biggest financial crisis since the crash of 1929, and recalled that there is still work to be done to prevent the recurrence of problems that led to those crises.

Obama says that when Lehman filed for bankruptcy he began “the worst crisis of our lives” In a media appearance, the president recalled September 15, 2008, the day the giant Lehman Brothers filed for bankruptcy, as the historical event that led to “the worst economic crisis of our lives”.

“We have cleared the ruins of the financial crisis and we have begun to lay the foundations for a new prosperity and economic growth ,” Obama said today, recalling that the US has once again created wealth and has gone from an unemployment rate of more than 10% to 7.3%.

 

Obama said that since his arrival at the White House in 2009, his priority has been to put an end to the effects of a crisis that ruined large financial institutions, sank Wall Street and brought the US to its worst recession since World War II, effects that They are still noticeable in the global economy.

“In a matter of a few days and weeks of fear, some of the biggest investment banks in the world went bankrupt, markets collapsed and banks stopped giving loans to families and small businesses,” the president recalled. At the end of 2008, the Gross Domestic Product of the first world economy fell at an annualized rate of 8 percent and some 800,000 jobs were destroyed per month, something that dragged all the major world economies and widened with a public debt crisis like the one that suffers Europe.

The president recalled that there is work to be done to reduce inequality in the United States. Obama stressed that his government encouraged spending on infrastructure, on public services, modified mortgage regulations, rescued the automotive sector and got approval for a health reform to extend the medical coverage to the most vulnerable.

However, he acknowledged that “we are not where we need to be” and there is work to be done to reduce inequality in the United States between rich and poor and to put definitively the new banking regulations before the end of the year.

It’s been more than three years since Congress approved the financial reform known as ‘Dodd-Frank’, but even two thirds of the regulations contained in that mammoth legislative project have not been implemented, even though they are seen by the Obama administration as the basis to prevent a new financial collapse .

In a statement, Treasury Secretary Jack Lew described the 2008 crisis as a unique event in modern economic history, which was not due to a single cause, but to an accumulation of “excessive risks, too much debt and a structure regulator out of phase “.

Lew, who was a top investment executive at Citigroup between 2006 and 2008, called for a rush to complete the remaining elements of financial regulations, since “it’s not about writing the new rules and then leaving the field.”

The causes of the crisis now enjoy golden retreats President Obama said that, after the progress of the last five years, many are still “struggling to stay in the middle class” and it is necessary “to put ladders of opportunity for the poorest”, and he recalled that the richest 1% of Americans own 20% of the country’s wealth. With this motive, he requested the commitment of the Congress, especially of the Republican opposition, to approve a budget that replaces the automatic cuts initiated at the beginning of this year, and measures to finance public investments and improvements in education and health.

Meanwhile, five years later, some of the executives in the most relevant positions on Wall Street and responsible for not having warned of the dangers of credit practices too risky, such as “subprime mortgages”, now enjoy golden retreats, remember the means .

Richard Fuld, CEO of Lehman Brothers when he filed for bankruptcy, now owns a discreet firm of advisors and keeps his fortune of more than 500 million he amassed between 2000 and 2007 thanks to practices considered abusive and fraudulent.

Despite the profound changes in Wall Street, many of those responsible for the irresponsible behavior that led to the 2008 crisis have not responded criminally for their management.

Jimmy Cayne, CEO of Bear Stearns, another of the big promoters of “junk mortgages,” retired with a fortune of nearly $ 90 million in premiums and spends his days in bridge tournaments.

 

The Congress will debate on Tuesday the creation of Hispanicbonds and the solution to the preferred ones

The Economy and Competitiveness Committee of the Congress will meet on Tuesday with the aim of discussing, among other issues, the socialist proposal to create Hispanicbonds to support the financing of the autonomous communities, as well as the requests of several parliamentary groups for the Government to give a solution to those affected by the commercialization of preferred shares.

The Economy and Competitiveness Committee of the Congress will meet on Tuesday with the aim of discussing, among other issues, the socialist proposal to create Hispanicbonds to support the financing of the autonomous communities, as well as the requests of several parliamentary groups for the Government to give a solution to those affected by the commercialization of preferred shares.

Thus, the members of this parliamentary committee will meet on Tuesday from 11.30 am to discuss, first, the proposed law of the Plural Left (IU-ICV-CHA) urging the Government to coordinate with the Commission National Stock Market (CNMV) a “comprehensive review” of convenience tests.

The group asks that the “subscription contracts for any financial risk product that are not appropriate to the client’s knowledge profile or the risks that it wants to take,” be sanctioned, and that entities that “ignored the legal requirements for the commercialization of this type of products “.

In the same line, it claims that the CNMV be required to guarantee “in the future” that performs its functions in this matter, and coordinate with the Bank of Spain the necessary actions to guarantee the return of the initial capital. The Plural Left also calls for measures for financial entities to stop “systematically ignoring” the rules of conduct and a Law of Transparency and Quality in the Marketing of Financial Products, to be presented at the next session.

Protection for users

Protection for users

The debate on this issue will not end here, since immediately the Economic Commission will also discuss another initiative, of UPyD on this occasion, on the protection of users of financial products, in which magenta training demands “short” forms , approved and uniforms mandatory use by all financial institutions “for the contracting of this type of securities, as is already done with mortgages.

They also propose that a “greater separation” be promoted from commercialization and financial advisory activities in the entities, and that the Bank of Spain be able to “supervise the remuneration policies of financial entities, which allow them to combat the perverse incentives that generate Short-term behaviors. “

Improving the protection agencies of users of financial services by expanding their powers and means, and studying the possible unification of the currently dispersed investor protection organizations, to increase both their effectiveness and their social visibility, complete UPyD’s initiative .

The subject has already been discussed

The subject has already been discussed

In addition to these initiatives, other groups have presented proposals along the same lines. For example, last March, a proposal by the PSOE was rejected, in which it required guaranteeing the clients who purchased preferential shares the recovery of their initial capital and regulating the information that is given on these financial products.

Before the vote against the PP, the Socialists have chosen to register another proposal in which they ask the Government to prohibit by law the sale of preferred shares to retail investors and to guarantee those who subscribed in the past the return of one hundred percent of the nominal value of these bank securities.

CiU, for its part, has also presented a proposal -which has not yet been debated- requesting the Government to file a file with the banks that sold preferred shares to individual clients, as well as punishing those who may have violated the law, and present a bill of transparency and quality in the commercialization of banking products.

Guindos wants to give you a solution

Guindos wants to give you a solution

In addition, the Attorney General of the State, Eduardo Torres-Dulce, has announced that it is studying civil, and even criminal, to typify the marketing of these products and accommodate a consumer demand in defense of the interests of the consumers and users; and the Economy Minister, Luis de Guindos, acknowledged that “they should never have placed (these titles) among the small saver”, especially when institutional investors were already rejecting them, and promised to seek “an exit as much as possible”. possible “to this situation.

In fact, a subcommittee on Transparency in Information on Financial Products and Mortgages of Credit Institutions has already been constituted in the Congress, under the Economic Commission, which will hold its third session this Wednesday starting at 5:00 p.m. , with the organization of the works as the only point of the day.

HISPANOBONOS

On the other hand, the Economy Committee of Tuesday also has in its agenda the debate of a proposal not law of the PSOE in which urges the Government to negotiate with the autonomous communities within the Council of Fiscal and Financial Policy ( CPFF) the best formula to support the regional debt, either with Hispanic bonds, with guarantees or with direct loans from the ICO or the Treasury.

Its objective is to improve the debt rating of the autonomous communities -which in some cases reaches the ‘junk bond’, worse than that of some of the countries intervened- and to achieve a saving in financial expenditure with which to help achieve the objective deficit of 1.5% this year.

Thus, it is requested to open the possibility to each regional executive to choose the option that best suits them, or even to make a ‘mixed’ of several, between the State issuing debt through hispanobonos and negotiating with the communities how to distribute those funds, that the Treasury or the Official Credit Institute (ICO) go on the market and then grant direct loans to the communities; or that State guarantees are given to the issuance of regional debt.

This same Friday, the Vice President of the Government, Soraya Sáenz de Santamaría, explained in a press conference that the Executive has not yet approved this tool because it requires “punctual” legal changes that are being studied, and not because it is waiting for it to materialize. the sanitation of the bank.

 

the derby against Atlético

There were the knives, including mine, sharpened against Zidane for his disastrous decisions in  , when he suddenly gave Barça a chance to lose in Malaga and covered everything. Definitely, the Gaul is a lucky guy, which is not little in the world of football.

Bale, Benzema and Cristiano

I trust the coach in the gala team, where he left in Milan to conquer the Eleventh . It sounds logical. The shape states gave him equal. Well, it was not all bad, because Madrid dominated, it was better and I think more goal chances. Not many, but more.

Already ahead on the scoreboard, chaos came. It was obvious that Atletico was going to go up to the goal of the tie, the party was crying out to Zidane to get another midfielder to control the ball and his rival. And the Gaul removed Kroos to put Isco. The BBC, untouchable again.

There was a time when the BBC was compared to MSN . Not so long, in fact. Now, it sounds like laughing. To match Cristiano with Messi, you have to be very believing. Comparing the goals scored by Benzema with those of Luis Suárez makes me have homicidal tendencies. And Bale, the only one who could hold the pulse with Neymar, is injured every two times and has become a disaster.

What I mean by this is that Messi, Suárez and Neymar are untouchable and Luis Enrique does well to leave them on the field always, especially in decisive matches. But it is not the same with the trident of Madrid , especially with Benzema and the current Bale. Because the white team has one thing that does not have its eternal rival, a spectacular bench. There’s Isco, asking for more minutes in important matches. And Asensio, all talent. Also Kovacic, an ideal midfielder for the final minutes of matches as against Atlético.

Now comes the game in Munich, against Bayern. There he won 0-4 with the BBC in ’11’, by the way , but it is not advisable to always trust miracles. In this tie, Zidane must decide what kind of coach he wants to be, and that will depend on how many minutes Bale and Benzema play. Because Cristiano is something else.