The bank-insurance policeman, the Prudential Control and Resolution Authority, has published a warning for the public on the microcredit offers (up to a thousand euros) which are currently flourishing, in particular among young people.
The ACPR recalls that only companies approved and listed on the Register of financial agents (Regafi) are authorized to offer this type of loan, and that its total cost, including service charges, must not exceed ” the limits set by the prohibition of usury », that is to say which exceeds the maximum legal rate (rate of wear).
Non-existent just a few years ago, micro-credit offers, which provide quick access to a sum of money (often in less than 24 hours) under very flexible conditions, are now offered by several banks (Flo Bank, Cashper) and fintechs (Bling, Lydia, Finfrog, etc.) via the use of mobile apps.
“Cash advances” still poorly regulated
Like the split payment, these microcredits – often presented as ” cash advances – have benefited in particular from the covid period, which has particularly affected young people, the main target of these establishments. And with the purchasing power crisis looming this year, these services should grow further.
Faced with a difficult end of the month, and with the app in their pocket, students or young workers can thus easily access a few hundred additional euros. Problem: these mini-loans escape the more restrictive regulations of consumer credit, and are often billed at very high rates.
Complaint for deceptive marketing practices
According to UFC-Que Choisir, which filed a complaint last year against three of these players for deceptive commercial practices (Floa Bank, Bling, Cashper), considering that these companies concealed the practice of “ real interest rates » very high by assimilating them to the payment of a “service” (a commission) in order to overcome the legal limit of the rate of wear.
The ACPR’s warning is clearly in line with the consumer association, since the regulator specifies that ” the costs of all kinds paid by the subscribers of these loans to obtain the sums promised under the conditions announced, including in an “accelerated” way, must respect the limits set by the prohibition of usury. »