These dubious providers are not interested in financing a loan, but only in collecting high fees. They take the last of the money out of the pockets of people who are in financial difficulties!

Despite the Small Loans Act (KKG), there are still various dubious companies on the Internet. Therefore, take a close look at such dubious providers! And above all, do NOT pay any fees! In most cases, these are companies that only offer financial restructuring. You will soon realise that these are just illegal enticements and promises. Most of the credit companies that advertise such bait offers come from abroad, e.g. Germany, Austria, England, Spain, etc. It is impossible for the individual customer to take legal action here, as these companies operate abroad. Since 2003 it is strictly forbidden by the (KKG) law to charge additional fees for a loan to the customer. 

 

We list the most common tricks used by loan rip-off artists:

 

Financial restructuring
Consumers in need of money grasp at any straw. Even unconditional credit offers à la "We don't turn anyone down!", "With us you get credit - even without a credit check." seem tempting. But beware, this is a trap.

For consumers in financial difficulties, such offers from credit brokers are often the last hope. But in reality, they are actually a trap: "Instead of the hoped-for financial blessing, customers are sent an invoice." The financial hardship can thus become even greater. The reason: Instead of a loan brokerage, customers have ordered what is known as a fee-based financial restructuring. "This is no different than commercial debt counseling, but without any guarantee that the consumer's situation will improve.

Not even proof of activity would the financial rehabilitator have to provide to the customer. "This means that consumers are supposed to pay a bill without the alleged intermediary having to prove that he has provided the service owed.

Even if the financial worries are great: Customers shouldn't sign contracts they haven't read carefully, especially with promises like these. "In the contracts, the term 'Financial Restructuring' and the fee agreement often only in the small print, then you'd better leave it alone. Consumers should avoid offers where payment must be made in advance or cash on delivery is required.

Credit without ZEK / SCHUFA
Did you know that all credit banks are obliged to report credit information to the ZEK and the Informationsstelle für Konsumkredit (IKO)? If you are promised a loan without a credit check or without ZEK, it is very likely that a fraudster is behind it.

Credit despite debt collection
A second attempt at enticement often goes via debt collection. On the Internet, loans are offered and promised despite debt collection. If you have debt collection, you are usually not considered creditworthy. Read our blog post "Can I get a loan with open debt collection?".

Fees
A credit broker earns from the commission reimbursed by the bank and not from the processing fees. To protect the consumer, all fees must be included in the loan interest rate. Nevertheless, credit scammers in the Internet networks first demand an advance payment in order to send the contract documents at all. If fees are charged, these are not reputable lenders.

Forwarding to 0900 number
Dubious companies promise cheap instant loans. Prospective customers have to call an expensive 0900 number and are then stalled for hours. But behind this is a cost trap that will cost you dearly.

Instant loans
With an empty promise remains also the instant credit. So that customers can go through the whole thing again, the law states (KKG) that the small loan may only be paid out after 14 days. So it is impossible to dispose of the money immediately.

Unrealistic interest rate offers
If a broker advertises low interest rates, you should consistently ignore this! In Switzerland, the lowest interest rate on loans is between 5.9% and a maximum of 15 %.

Foreign banks/intermediaries
Check with the zefix.ch (Commercial Register) whether the bank/broker that promises you a small loan is also registered. If the company has an address in Switzerland, this does not mean that the company is registered in the commercial register. We recommend that you check the companies in the zefix.ch to be checked. Foreign banks/brokers without a banking licence are not permitted to grant consumer credit in Switzerland.

Imprint / General Terms and Conditions
In the General Terms and Conditions / Imprint you will find more detailed information about the credit provider's activities. And lo and behold, they are not credit providers and certainly not intermediaries, they only provide information!

Example excerpt general terms and conditions:
The information provided on the respective providers comes exclusively from the respective providers and is provided without guarantee for their content and the resulting information and calculations. The operator of this website is not a credit institution or credit broker. It merely provides information on the subject of financial restructuring and loans and offers the opportunity to compare various providers, offers, financial restructuring variants with each other.

Fixed office address and telephone number
For a year now, every company with a website has been obliged to display an imprint on the site. The imprint shows whether the company is reputable or not. The fixed office address, telephone number and commercial register number should be visible. Do not trust any website that does not show a commercial register number, address or telephone number. If you only find a mobile phone number, we also advise you not to contact the company.

Incompetent staff
A credit broker should have well-trained staff, with impeccable written and spoken German. It doesn't hurt to call a provider to get a feel for who is behind a supposedly reputable website.

 

In the case of debt: Contact a cantonal counselling centre

• Avoid debt rehabilitators who advertise in newspapers or send junk mail to homes
• People with money problems should also be extremely careful with offers on the Internet.
• Never make an upfront payment when you receive an offer to reorganize debt or arrange a loan
• Never call credit brokers who can only be reached via an expensive 0900 number
• If you have debt problems, contact one of the cantonal debt counselling centres.

 

Addresses of reputable debt counselling centres

 

Financial restructuring is NOT a loan!

You can't make a buck off a buck!

The financial restructuring contracts offered by the companies do not involve the disbursement of a loan amount, but only the restructuring of already existing debts (debt settlement). A financial restructuring company tries to agree on payment relief in talks with the creditors. Many consumers understand the term financial restructuring to mean the arrangement of a loan, and therefore sign the contracts sent to them.

 

Link to the Complaint Center Switzerland: Private loans: How to recognise fraudsters

Link to the Ktipp article: Credit swindlers rip off consumers in rows - Ktipp.ch 2019

Apply for a loan

 

Save article as PDF: Beware of dubious credit offers on the Internet.pdf