Long before lending was possible online, loan brokers advertised their services in classified ads. Full-bodied advertising statements, which only allowed the conclusion to dubious loan offers, that characterize the picture of this branch to this day – in some cases wrongly.
Because they exist, the reputable credit intermediaries who give their customers professional advice and get them really cheap loans.
Some of them have completely specialized in the online loan brokerage
In the following, we present how a credit brokerage works and what private individuals should pay attention to when using these service providers.
- Contact industry leaders. They are most likely to provide cheap loans and are reputable (see point 6).
- Never pay for any services or documents before the loan agreement is legally valid and the loan amount has been posted to your account. This applies even to small amounts.
- Do not conclude any additional contracts. If such contracts are sent to you along with a loan offer, just throw them away.
- Always categorically refuse home visits. The loan brokerage is done online, home visits are superfluous.
- They are looking for cheap loans and not for other services like financial restructuring or debt counseling. Never conclude such contracts.
- Even credit intermediaries can only provide loans if they have the appropriate credit rating. If their economic performance is not sufficient, even a small loan without a Credit Checker is not possible. If the debt grows over your head, advice at debt counseling centers is the right way, not taking out further loans to pay back old debts.
- Never sign any contracts, applications or other documents blank.
- Take the time to compare what brokers offer with some other offers from banks.
Credit brokerage: definition
There are three bodies involved in brokering a loan: the broker or broker, the borrower and the bank that issues the loan.
The credit intermediary does not grant loans and does not conclude any credit agreements. The loan agreement is concluded between the borrower and the lending bank.
This is the reason why customers of credit intermediaries receive documents from the bank with which there was no previous contact.
The credit broker or loan broker therefore only markets credit transactions, just as a real estate agent does not conclude a real estate purchase contract, but only brokers real estate transactions.
In the context of a loan transaction in which a credit broker is involved, two contracts are concluded. The loan brokerage contract is agreed with the broker and the loan contract itself is concluded with the bank.
Loan brokerage contract and commission
The brokerage agreement stipulates the rights and obligations of the broker and the customer. As a rule, it is at least about
- the definition of the loan to be brokered,
- the commission claims,
- data protection,
- Additional regulations about, for example, possible time limits or the placing of an exclusive order (impractical and also unusual for private customers).
The client pays the broker’s service with the agency commission. As far as can be seen, the case law assumes that 2% of the loan amount is appropriate and 6% considers it immoral, with the result that the contract is null and void.
If loans are brokered online, in many cases the bank pays the commission alone (packing).
It is therefore settled at the effective interest rate. There is only a special commission agreement in exceptional cases, for example when brokering micro-loans free of Credit Checker. At least that’s how it is handled by reputable credit brokers who are active in the private customer business.
Admission requirements and special requirements for consumer loans
Every commercial credit broker requires a license in accordance with Section 34c Paragraph 1 No. 2 of the Commercial Code.
The reliability of the applicant and whether the financial situation is in order are checked. However, the test is only carried out across the board.
There are also special provisions for consumer loans:
- The agency contract must be concluded in writing.
- A commission must be stated as a percentage of the loan amount.
- The customer only has to pay the commission after the loan amount has been paid out and it is no longer possible to withdraw the loan.
- The flat-rate collection of expenses without individual evidence is not permitted.
- If these requirements (especially the written form) are violated, the loan brokerage contract is void. The credit intermediary’s claims no longer apply.