Press release: Honest Bank, MyCredit Lender and Good Credit became the overall winners of the Navigator of Safe Credit 2016.
And in the Navigator news, they also received the highest A – EXCELLENCE rating. In the evaluation of the USD 30,000 loan, Honest Bank won ahead of MyCredit Lender and Good Credit, while in the case of the USD 100,000 loan, MyCredit Lender, Honest Bank and Era scored.
“Although this may not seem to be the case as the results are similar to those of last year, there have been significant changes in consumer credit on the Czech market in 2016,” says Sean Cole, Professor at Charles University and guarantor of the whole project.
As he adds, this is largely due to pressure not only on safe but also responsible lending, but the preparation for the functioning of safe companies after the entry into force of the new Consumer Credit Act becomes increasingly strong. This will happen on December 1, 2016.
“First of all, it is very nice for us to see that its approach to credit is slowly but still changing banks. In recent studies, these have not been performing well in the long term, mainly due to various fees associated with loans or sanction conditions. This year we see only slow, but still improving, ”says Professor Cole.
In 2016, the Safe Loan Navigator was surveyed for 42 providers and a total of 69 consumer loans. However, only 19 entities have been categorized as ‘secure providers’. Among them are mainly banks.
After the change in the lending company at Agree Bank, only Good Credit as remained at the top positions in non-bank lenders, with MyCredit Lender approximately in the middle of the ranking.
For loans over thirty thousand, Honest Bank, MyCredit Lender and Good Credit performed best. For loans over USD 100,000, GFI joined them.
New – distinguishing safe by convenience shows NBU rating
A new feature of this year’s Safe Credit Navigator is rating. Assessing only safe lenders is a preparation for a change in the study, which will take place in response to a change in legislation and hence also the functioning of the credit companies themselves.
“With effect from 1 December 2016, the Safe Credit Navigator will lose its original meaning – the classification of entities between safe and dangerous (gray zone, usurers), due to the GFI’s licensing and supervision by this institution.
Nevertheless, a large number of aspects that will be good to monitor, evaluate and provide the results of this analysis to consumers beyond the statutory parameters and specifics will remain, ”explains Professor Sean Cole.
In 2016, we are talking about the Transition Year study, which on the one hand “finishes” the old evaluation according to the original criteria, and on the other hand, the study also gives an insight into its future.
This year’s rating, although not yet covering all the parameters of the following years, allows simulating a new categorization of credit companies on the Czech market into consumer credit rating categories.
Will legal change bring large sales of borrower contracts?
The new Safe Credit Navigator study is presented literally on the eve of the most fundamental change in the credit environment in the last 20 years.
Legislation that will now begin to “flip” into life, which will include, for example, the GFI’s methodology for licensing companies, the number of entities going through the process, and the state’s approach to law enforcement, especially for those who decide to lend outside legal framework, accommodates responsible lending and consumers.
Although it is necessary to wait for the impact of the new legislation, it can be assumed that the first wave will result in a substantial resale of credit agreements, not only for lenders who will gradually phase out but also for many others who want some contracts to clear up their portfolio. It is estimated that this will be tens of thousands of contracts.
In this context, it should be noted that the credit agreement remains valid in the form in which it was concluded. However, some contractual fees may vary with reference to the current price list, as may the approach to recovering overdue receivables.
“A claim cannot be charged if it is properly repaid, but otherwise there may be a fundamental change.
Consumers should be cautious during this period if they solve their credit repayment problems and be interested in whether their contracts remain with the original owner of the credit or whether they are sold, and under what conditions they will be sold.
The new owner of the receivable to act” says Ryan Black, spokesperson for the Navigator of the Safe Credit project.