The Crédit Municipal de Paris, old Mont-de-Piete, recently began offering a new personal loan, the Reducto Flex, designed to limit the indebtedness of borrowers.
Today, because of the crisis, more and more households are caught in the throat by a stack of consumer loans, including revolving credit (an easily accessible pool of money prohibitive interest rates, which can range up to 20%). Hence the idea of a repayment solution called “bearing” on the model of what offers banks for home loans. The principle is simple: the bank Crédit Municipal (CMP Bank, whose real name) buys the loans and other consumer debt and replace them with a single loan at a fixed rate (around 7%), with monthly payments ranging depending on changes in cash borrowers. Can subscribe to this loan all households in Ile-de-France, regardless of their income.
Most banks already offer repurchase of credit solutions, often with costly conditions. The approach of the Municipal Credit, as a public institution, wants to ethical and responsible. Emmanuel Bouriez, Deputy CEO of CMP Bank, argues: “We see too many households, not just small customers, who are drowning in consumer credit. Some have 10 or 15. The idea is to get them out of this spiral. ”
How? Anticipating the future to better adapt to customer monthly payments: a retirement (and thus a decrease of resources), children soon age to study, the late repayment of a home loan … “the goal is not to limit access to credit, we do not want to go back thirty years ago! But to consider the future repayment capacity to limit the risk of debt distress. And for that, there is no secret, one must take the time to meet with the client and discuss with him. “The approach is not really revolutionary, but away from the current practice of the major credit agencies.
“687 euros booking fee, all right, there’s worse …”
The testimonies are unanimous: it is (too) easy to get a consumer credit. “Not only agencies do not verify the debt ratio but they also grow increasingly borrow rate a man of anonymity. At first, took a revolving 1,000 euros to get treatment. You pay and you are granted without asking 2000 and 3000 euros, and so on. ” Three years later, 8 revolving credit contracted and 27,700 euros of debt, just take out a loan Reducto Flex. Verdict: “687 euros booking fee, all right, there’s worse …” When redemptions of loans, banks are remunerated by charging often expensive study the file. The Crédit Municipal de Paris is not one gift either. Booking fees cost between 1.5 and 2% of the credit amount.
This new loan – a limited scope since it is open only to Parisians – once again raises the question of management of these consumer loans. Including revolving credit, which crystallizes critics, some advocating the outright ban. A bill reforming the consumer credit will be on the agenda of the Assembly on 13 January.