Many loan companies and banks have been strongly promoting loan offer offers for some time. Many people do not know what these statements are or use them in the wrong way, but it is a lot easier for consumers to wait for a long time.
What are statements?
A statement is a document in which the potential borrower determines the amount of his income and expenses. It substitutes, first and foremost, the income certificates issued by the employer, which are used in other credit options. The client is asked to provide the form of employment, place of work and income (of course, the bank also informs how this amount should be calculated for particular forms of employment.
Why are the statements convenient?
Many people did not want to go to the accountant in the company and ask for certificates. It is known today how the atmosphere prevails in many companies – it is best to sit quietly and not show their problems, and here you have to show the problem otherwise quite sensitive, because the lack of money. Statements can be filed electronically, if the bank’s application system is prepared for this, and this is a great deal easier, because it allows you to go through the whole credit procedure really online, while when submitting an electronic loan application based on certificates, these documents had to be carried anyway to the bank branch.
Where are the limits of freedom
Many people bend or ignore provisions related to statements by providing false data. Of course, the point is for the bank to receive such data from which it will calculate the borrower’s maximum creditworthiness. Where an estimate is acceptable (usually the average amount of three months is given and the bank allows some rounding), it can be a bit confused, but many borrowers are “mistaken” even several times. Difficulties can be of a different nature: first, calculating creditworthiness is not a pure maliciousness and the bank’s perception, the obligation to check it is imposed on banks by state institutions, whereas statements are only to simplify the whole procedure .The second case – the bank asks for the employer’s data and retains the right to verify the data, even by phone.
Of course, here there are some limitations in the form and content of questions that the bank may ask the employer, but if it turns out that the borrower deliberately introduced errors to the statement beyond the limits of ordinary rounding, the loan agreement may be terminated (then the entire amount must be returned immediately with interest), and also punish him with appropriate criminal sanctions, but here they can apply to the mere submission of false data or even the concealment of information in order to obtain a financial advantage. Both of these crimes are threatened with severe penalties including deprivation of liberty and it is not true that banks do not check their borrowers. It is a normal practice, for example, to verify the data provided by people whose history at BIK is not positive.
Statements – good or bad?
The possibility of replacing certificates with statements is a huge step forward in Polish credit regulations. The problem is that such solutions work primarily when both parties of the contract play fair. Abuses in statements are very frequent, and banks can not close their eyes to some of them, because it would mean supporting similar practices, which of course even for banks raises the risk of certain sanctions.