Credit advertisement for easy loans and debt
Credit advertising for loans – We have seen a lot of advertising and advertising in various media, on TV and especially more social media trying to get involved with easy loans, personal credit without paperwork, guaranteed home financing, vehicles, digital accounts and credit card without consultation in name and other financial products usually only indicate to the consumer basic and superficial information, but this should change.
A manual on sustainable credit was prepared by the Brazilian Federation of Banks since 2014, but it does not seem to have the expected effect. Having credit is good, of course it is! Being able to contract long-term financing is also excellent, however, the ease of obtaining credit if used in an undisciplined or irresponsible way can bring serious problems to the citizen.
” We all know that the use of credit to obtain money or goods must be done in an orderly and planned manner, if done in excess, the financial losses generated are incalculable. ” The levels of indebtedness and over-indebtedness in Brazil are alarming. Since 2013 several renegotiation programs have been carried out by the protection agencies (Clean name of Serasa) to bring debtors closer to creditors to together find satisfactory solutions for both.
Credit advertising and easy loan
Thinking of minimizing this problem, the Brazilian Federation of Banks plans to make credit, loans and financing advertisements alert to the dangers of operation and over-indebtedness.
The main idea is for bank credit advertising to report through messages, the risks involved in taking credit in general with tips on conscious credit and similar methods.
You have already noticed that there is nothing original about the proposal, this type of alert we are already accustomed to see in the ads that involve alcoholic drinks, cigarettes and medicines. Each one that is made these campaigns but foments the market – is palliative.
Even a lot of loan advertisements I’ve seen on TV, for example, are not as aggressive, but on the streets of São Paulo, in the big capitals, and incredible even in the small interiors of cities, many financiers and credit institutions advertise credit ostensibly over the population, moreover, do not pass the information properly.
Handbook on credit and sustainable lending
Currently we can note that most private and state institutions are trying to improve the criteria to grant credit, when borrowing for example, the lines offered are appropriate to the type of customer profile, interest as well.
In addition to the concession theme, texts with standards on available information should be adequate for each type of request channel: agencies, internet, mobile, ATM etc.
The manual will provide extensive guidance on delinquency and early settlement. Questions about staff training and dissemination of channels for debt renegotiation will also be addressed.
It is worth remembering that this initiative of Febraban will not be the lifeline of the indebted or for those who are over-indebted, nor will it end this scenario that we are currently experiencing.
The problem of over-indebtedness is very complex and it will take a few years until the population is financially conscious to do the right thing with their own money.
Here in Brazil we have a very vague idea of what the manual on sustainable credit will be, but in Portugal this theme has been part of the financial system for a long time. Let’s see what is included in the credit advertisements to Portuguese consumers.
In the advertising of financial products and services, in the context of consumer credit, financial institutions should:
# 1 – Indicate the Annual Effective Charge (APR), similar to ours (CET).
# 2 – Provide a representative example that includes at least:
- The total amount of credit.
- The repayment term.
- The nominal annual interest rate (in the case of flat rate).
- The index and the spread (in the case of variable rate).
# 3 – Calculation of the interest rate at least at the beginning of the credit advertisement and indicate the month to which it refers.
# 4 – In advertising announcing easy loans, financing or credit to consumers with fixed installments, indicate the value of said installment in detail and:
- The repayment term from the beginning of the loan to the end.
- The balance of the financing corresponding to the announced benefit.
# 5 – In advertising announcing loans, financing or credit to consumers with variable benefits over the loan, indicate:
- The amounts of benefits and the repayment term.
- The amount paid initially for the loan and the end.ando.
- The total balance of the loan, including interest and fees.
It is a well-known fact that credit advertising can influence people in the decision to hire interest-financed money, buy movable and durable goods, and obtain services.
It is also a fact that in many and many cases the citizen is driven by the consumption impulse by acquiring easy loans and credit without any need.
Conclusion : I believe that, in order to have effective consumer protection, there should be a regulated law that places the publicity of financing transactions, easy loans and credit in general, within the principles of lawfulness, veracity and respect for the rights of citizens who consume products and financial services.
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