The new faces of consumer credit

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With the economic crisis and the impact of the reform of the Lagarde Law, consumer credit has evolved. Today, despite the precariousness of employment, fixed-term and temporary workers can benefit from numerous dedicated offers proposed by banks for people usually excluded from consumer credit.

Remember that 20% to 30% of consumers do not have access to consumer credit. The increasing precariousness of the job market (more than 83% of hires are made on fixed-term contracts in companies with more than 10 employees) encourages the actors of “consumer credit” to adapt their offers so as to also reach this significant share of customer base.


New offers dedicated to short contracts

consumer credit

This is the case of Best Bank, which will offer, from February 2014, a specific offer. As explained by Cedro Puebla, head of the credit offer for the Best Bank banks: “We are going to widen our eligibility criteria … Concretely, we are going to modify our score engine: our advisers will be able to enter the period worked by a person in CDD or acting. This will allow us to calculate his unemployment rights and his future income. The risk is therefore controlled and the rate of credit no more expensive than for a client on a permanent contract. “Jenny Van Porich , Director of the Consumer General Public Market for the Best Bank banks, explains why this change in parameters signals a profound change: “Some of our employees could self-censor for a personal loan request from a young person under the age of 30 years on a fixed-term contract. Thus, the overall acceptance rate for a credit request reaches 75%, but among 18-28 year olds, it drops to 62% ”.


Consumer credit offer

Consumer credit

A specific offer but whose rate was around 8.9%, ie 200 to 250 basis points above the rate applied in the case of subscribers holding CDIs. Irene Cevelord, director of Lenders Bank Personal Finance France, specifies that “he was responsible for providing access to a credit offer to people on fixed-term contracts, especially young people. However, this production remains marginal: it concerns around 6,000 loans in 2013, for an amount of 25 million dollars. We note that young people are self-limiting because culturally, a young CDD is not used to applying for a loan ”. In addition, despite the refusal of one complete file out of two, Lenders Bank also noted a 30% higher cost of risk for CDD clients compared to CDI.

In any case, the promotion of loans to precarious young people is a new phenomenon. Some establishments even go even further, such as Lenders Bank, which will offer a free return-to-work assistance service for its customers on fixed-term contracts next February.

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