Judge prohibits warranty
Borrow money easily? Until recently, the mini loan was the credit of choice if you needed money quickly. It was also easy if your creditworthiness was sufficient. A BKR listing did not have to be a problem. You did have to earn enough with a permanent job. Recently, the mini loan is no longer a solution. The court in Utrecht has prohibited the guarantee (or surety) in a lawsuit brought by a lender. With mini-loans, the guarantee is the most important revenue model.
LoanRider loses lawsuit
Lender LoanRider from Estonia has been active on the Dutch market for some time. The company also thought it could earn a nice amount by providing mini-loans with a guarantee. However, the vast majority of customers have no one willing to vouch for them. They are therefore dependent on the surety of a third party. Obviously for a hefty fee of 20-25% of the loan. Often the borrowers cannot pay back on time. LoanRider made the big mistake by going to the Dutch court to claim the credit immediately. The judge in question made short shrift of Loanrider's guarantee and ordered that the guarantee must also meet the maximum interest.
Mini loan will disappear?
This lawsuit will probably have major consequences because now other borrowers of a mini-loan can also go to court to have the surety banned. The main lender of mini loans is LendNow. They will have seen the course of events with sorrow. Their earnings model is now likely to be restricted. The mini loan may have had its day.
Borrow money easily
The best credit for borrowing money easily is revolving credit. This is a loan that is constantly available if you need money. The bank determines the amount of your revolving credit and the interest on the basis of your income. The cheapest revolving credit can usually be found at an online bank. These are often subsidiaries of large banks.