The bank refused? The usury does not ask. This is how private loans work in Poland
Don’t you get a bank loan? Be careful because the alternative can be a usury. Poles are increasingly going to the loan underground.
The consumer federation warns against the growing scale of the phenomenon, which are informal loans granted by private individuals. The results of the survey conducted by ABR Sesta show that many Poles reach for illegal financing after refusing a loan at a bank or loan institution. This decision is usually made by people in a difficult financial situation who are not able to cover current expenses. Even interest rates reaching or exceeding 100% do not discourage them from signing the contract.
Urgency
The refusal to finance usually does not contain justification, but respondents suspect that the reason is low rating in BIK, arrears in bills, lack of work or past delays in repayment of liabilities. A group of respondents was varied – from people with vocational education to university graduates. The common denominator was the sudden need for money resulting, among others from the loss of employment, illness, inflation, divorce or difficult situations of loved ones.
Loans from private people were the last resort for them. Unaware of negative entries in BIK first tried to obtain funds at the bank, and only then in loan companies. Those who knew about a bad credit history immediately sought other sources. They used search engines, Facebook groups, OLX ads and posters on poles. They did not check lenders carefully – it was enough for them information that a person conducts a pawnshop or speaks “professional language”.
High interest
The contracts usually amounted to 1-5 thousand. PLN, but the refund included twice the borrowed amount. The meeting ended with signing a simple document and cash withdrawal. The key was for debtors: the amount, repayment date and form of return. Although they were not satisfied with costs, they appreciated the speed and “kindness” of lenders.
The security included, among others Personal data, family information, tableware or threats of visiting “boys from the city”. Loans from the family or neighbors were treated differently – only as much as it was borrowed, without interest and contracts. After all, most respondents admitted that they are not planning to use such forms of financing again.
