Non-bank loans in the world date back to the 1970s, while they reached Poland several years ago. Initially, only people in a very difficult financial situation decided to do so, with time, when banks tightened the rules on granting loans, more and more customers began to apply to non-bank companies. How have payday loans changed over the years?
What legal changes were introduced during this period?
Non-bank loans have been growing in popularity for several years. Why? To a large extent, due to the tightening introduced by banks in 2008 regarding the principles of granting loans and credits. It is also important to spread the Internet thanks to which more people reach for modern online payday loans.
How did the history of non-bank loans entering our home market look like? What legal regulations have been introduced in this area over the years?
A few words about the history of payday loans in Poland and in the world
The idea of non-bank loans appeared in the USA already in the 70s and 80s of the last century, in response to the growing inequalities in terms of generated income. It came to the point that the richest people earned even more, while the poorest, less and less.
At the turn of the 1980s and 1990s, as a result of deregulation of the banking market, a lot of loan companies appeared, which noticed the demand for their services among the poorest social strata. Over the years, the payday market has grown. The success of non-bank companies in the United States meant that the idea of non-bank loans soon reached the UK, and finally covered the entire European continent.
What is the history of payday loans in Poland? This idea did not reach our country until a dozen or so years ago. Initially, people were skeptical about them, but over time, this changed a lot. Why? Mainly due to the financial crisis and subsequent restrictions introduced by the banks regarding the criteria for granting loans. As a result, fewer people could count on a bank loan.
Non-bank loans perfectly filled this gap. The development of modern technologies is also important. Fasting on the Internet made online payday loans, and later popularized, appear. Online loans are fast and convenient, so they perfectly match the needs of the modern, demanding customer.
What has changed in the legal aspect?
Payday loans have a number of followers and it is not surprising, because using them wisely is for many people an effective way to get rid of debts. They also have opponents who point to high interest rates on non-bank loans. In the interests of users of this type of loans, the state began to introduce appropriate legal regulations. The Act on non-bank loans is constantly taking on a new sound. All this to eliminate unfair practices on the part of loan companies.
Another chapter in history – loans without BIK
The changing provisions of the loan law and the general, full of fluctuations, financial situation of the society contributed to the creation of a special type of loans offered to people with a bad credit history.
More and more people, due to various adversities, are in financial trouble, which often results in an entry in debtors’ registers such as BIK or KRD. In such a situation, you can no longer count on a bank loan, because these institutions cannot provide financial support to people with a bad credit history.
Loan companies perfectly filled this gap by offering payday loans without BIK , i.e. without checking your credit history. Thanks to this, people who once had a leg curled up at some point in their life can still count on getting a loan or credit. The more that as a rule they can afford a loan, but the unfortunate entry in the debtors’ databases, almost always cuts off the possibility of receiving a loan from the bank.
As you can see, the development of non-bank loans and the dissemination of online payday loans is not all that has changed over the past several years. It is also important to regularly introduce and improve legal regulations that make loans of this type a safer solution available to everyone. It is no wonder then that as the years go by, they are becoming more and more popular and it seems that this tendency will persist for a long time.