Banks irresponsably with credits for minima

Spent: 10 March 2005 07.46 last modified: 10 March 2005 08.22 THE HAGUE - banks and commercial credit suppliers lend too easily large amounts to minima. That finds the Dutch association for Volkskrediet (NVVK), which identifies irresponsable practices. The association requires its old ' leading role ' in the market of credits for people who live of an income at assistance level. President G. Jaarsma of the NVVK put Thursday that the government must return on restrictions which have been put to the financial trade freedom of local governments and associated institutions. That so-called Ceteco-affaire are that in the summer of 1999 came to light at the province zuid-Holland according to him adjusted after, where community money was abused to make profit by means of risky loans. Since then the municipal credit banks which have been dovetailed the NVVK can, no more loan supplies to people with an income of 130 per cent of the minimum wage or higher. ' that the reason has been that credit portfolio on a low pitje the much of our members ', thus Jaarsma has put. ' commercial financial institutions have jumped in that breach in an irresponsable manner ', continue Nvvk-voorzitter. If someone knocks for a credit for the replacement of a broken wasmachine, commercial institutions offer too easily credits to of, however, 2000 euro. This way someone needs no longer than 500 euro, but runs vervolgens touch risk in the problems. Nvvk-voorzitter denounce especially the practices in shops to buy equipment on the pow expensive. Those people who only had one wasmachine necessary, are seduced also still new stereoset or television to buy. Those people then frequently see again we in the help with debt problems. THE NVVK, which were set up in 1932, as an association of credit banks, obtain per cent now still approximately 10 of the turnover from supplying loans. The 68 members occupy themselves for approximately 60 per cent with help with debt problems and 30 per cent income management. The number of debt ears that at Nvvk-lid knock for aid, grow the last years according to Jaarsma each time with approximately 10 per cent. According to first estimates the association got previous year in sum approximately 35,000 debt aid requests. Approximately 25,000 households gave their income in management, partly because of debts and partly for that to occur. (c) DUTCH PRESS AGENCY
Source "banks irresponsably with credits for minima": nu.nl

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