Loans for bad payers
Obtaining funding in the current climate of economic crisis and job market precariousness is not easy. The picture becomes even more difficult if the applicant has had problems in repaying previous loans, that is, if he is registered in the register of so-called ” bad payers “. Subjects who, however, can resort to loans for bad payers with assignment of the fifth.
Before talking about the conditions applied to loans for bad payers with assignment of the fifth, however, it is necessary to take stock of who the bad payers are. Unlike what one might think, in fact, the status of bad payer is a condition that can be reached even by delaying the payment of some installments.
Finding oneself registered in SIC databases as bad payers is in fact simpler than many believe. Not to mention that the report remains for some time.
The inscription of a name in the lists of “bad payers” can last up to three years from the moment in which the financing ends. The bad payer status determines, in the eyes of the paying agencies, a high probability of insolvency and this determines, in most cases, the rejection by banks of the application for funding.
SIC data registration and deletion
But how does reporting in SIC databases take place? Banks and financial institutions send to the Italian SIC (Credit Information Systems) databases every month. Data concerning both loan applications accepted by the institutes and those rejected and withdrawn. Obviously, in addition to the requests, the data communicated to the SIC also concern the reimbursement of the credit lines in progress.
Once transmitted, the data remain in memory for a certain period of time, depending on the type of signaling. Specifically, the following storage times are foreseen.
- 6 months in the event of an application for funding being evaluated;
- 1 month for loan applications waived or refused;
- 36 months for loans that have been repaid regularly;
- 12 months for delays related to 1 or 2 monthly installments;
- 24 months for delays concerning 3 or more monthly installments;
- 36 months for loans not repaid or presenting serious default.
The data recorded in the SIC databases therefore not only concern loans that show irregularities in the payment of installments, but also those that have been repaid regularly. A fact that we must take into consideration when we go to deal with the issue of deletion of SIC data.
The deletion of positive data is always possible and can be requested free of charge by contacting the bank or financial company with which the loan referred to has been contracted. Alternatively, you can request cancellation by contacting the company that deals with the management of your SIC data (the main one in Italy is CRIF).
Instead, the question for the negative data is different. Once retention times have elapsed, negative data is automatically deleted. Consequently, it is not necessary to request cancellation, which in any case cannot take place before the storage period has elapsed.
The assignment of the fifth
The reason why lenders are unwilling to lend to those who are reported as bad payers is obviously attributable to the fact that this person is considered unreliable. This is why bad pay loans usually involve higher interest rates than those applied to traditional personal loans.
Despite the difficulties highlighted, there is also a solution for bad payers and foreclosures: bad pay loans with assignment of the fifth. Let’s find out the characteristics and especially how to get them.
Who can get them
The distinctive element of these financial products is the transfer of the fifth. It is a type of financing that provides for the withholding of the monthly installment, which cannot exceed a fifth of salary or pension. The beneficiaries are in fact employees, preferably if they have an open-ended employment contract, and retirees.
However it is necessary to specify that not all retirees can obtain loans for bad payers on assignment of the fifth. The holders of the following social security benefits do not have access to this type of financing.
- civil disabilities;
- allowances for pensioners;
- pensions and social allowances;
- income support allowances;
- family allowances.
Recall that for pensions with joint ownership, the transfer of the fifth can be granted only for the share pertaining to the applicant.
How the refund takes place
Now that we have seen who can get loans for bad payers with assignment of the fifth, let’s move on to the question of repayment. As the name suggests, the amortization installments are not paid by the beneficiary, but reduced at the source.
The installment is therefore retained by the monthly benefit (salary or pension) by the employer or by the social security institution and is paid to the lender. The sums provided cannot exceed 60 thousand euros, while the repayment plan can reach 120 monthly installments.
If the customer can count on a fixed-term contract, the duration of the latter must be greater than the loan amortization plan. In any case, the applicant will go to take out an insurance that will protect the provider in the event of death or loss of the client ‘s job.
If the beneficiary of the loan is an employee of a private company, the insurance company can claim other requirements that affect the company (type of company, number of employees, etc.). Not only that, from the point of view of the requirements, the employee could be called to provide the accumulated severance indemnity.
The installment remains the same for the entire repayment period and can never exceed one fifth of salary or pension, this means that the amount provided to the customer depends directly on the monthly allowance received. If the beneficiary is an employee, his employer, who is in charge of retaining the installment and paying it to the chosen bank or financial institution, cannot oppose the process of transferring the fifth.