Buying on credit often causes headaches, of the Dutch who buy something on credit at a home shopping organization, such as a mail order company or a webshop, one in three has payment arrears. This is the result of new research by the Netherlands Authority for the Financial Markets (AFM), which Minister Hoekstra (Finance) is sending to parliament today. He calls the results ‘worrisome’.

It must be different, according to Hoekstra. These types of loans are not self-evident and the industry can not claim that they are. The percentage of payment arrears on this market, which is now 34, must in any case decrease from the Minister. If the sector itself does not intervene successfully, the government will investigate measures, Hoekstra warns the companies.

The minister wants mail order companies and web shops that give credit to customers to become more reserved with the offering of these loans. Furthermore, they should no longer encourage customers to opt for a higher loan amount or a longer term. On the sites of companies, for example, it must also be stated more clearly that if it is bought on credit, it is a loane.

A purchase including a loan is done quickly
“This government wants to reduce the number of people with problematic debts and better help people with debts,” says Hoekstra. More than half a million people are now registered with the Agency for Credit Registration because of payment arrears in connection with a so-called consumer credit. He says he is worried about the high interest rates in combination with long maturities.

Consumers will also be warned about loans in a different way in the future. The current slogan ‘Please note! borrowing money costs money ‘seems to have too little influence. Hoekstra is looking for a new warning.

More than half of the Dutch (54 percent) have a so-called consumer credit product. This may be something that has been bought on credit, but there is more to that term, such as a revolving credit or a credit card. It turns out that people in financial problems experience a lot of stress and therefore can make an impulsive purchase on credit. That is also easier done online. A purchase including a loan is done quickly.

Source: telegraaf.nl
Photo: banken.nl