The Netherlands Authority for the Financial Markets (AFM) recently warned again about the dangers of a foreign payday loan. The provider NuGeldLenen provides mini loans up to 1500 US dollars. When looking for more information, it turns out to be a payday loan Now. The lender is Nikan Bank. The bank tries to attract customers with a negative BKR listing via a simple Dutch website. An application can be processed within 12 hours.
The bank tries to inspire confidence with a number of logos of well-known names. The Trustpilot logo with a check mark and five green stars feels familiar. However, when you visit the Trustpilot website, there appear to be no reviews yet NuGeldLenen. The logo of the Dutch Association of Financing Advisers (NVF) also radiates authority. The Nikan Bank is owned by the Novum Bank from Malta. This bank from Malta is legally allowed to offer its products in the Netherlands according to European law.
As a consumer you have to be aware of this construction. In case of complaints, for example, you cannot go to an independent Dutch disputes committee, but you must send a letter to the bank in Now. How objectively will a complaint be handled there?
Hidden Costs Payday Credit Now
The costs of a payday loan should not be confused with the interest that is charged. On the NuGeldLenen site, the rates include a table with the requested interest payment per loan. For a mini loan of 1500 US dollar, 25 US dollar interest is requested. As a borrower, you might find this reasonable and therefore apply for a credit.
However, there are also costs on top. These costs are normally also on the website and usually make up 20-25% of the loan amount. At NuGeldLenen you cannot see these costs in advance. These costs will not be mentioned until your application is approved. This is stated in the general terms and conditions. This way of working is quite unusual. You can see in advance what these costs are with a known lender of mini-loans in the Netherlands.