Card crisis came from the U.S. to Europe

Once experienced in the U.S. is booming credit card industry was now at risk. Although signs of improvements have already appeared, a high unemployment rate may well be the reason that the level of defaults on credit cards will remain high and the next year. And the wave is rolling on the side of the Atlantic to Europe. Earlier this week, some industry representatives have surprised experts by announcing a decline in July, the level of non-repayment of debt on credit cards, but the largest operator of MasterCard and Visa company Capital One has presented the growth rate of debt relief from 9,73 to 9,83%. On this basis analysts predict improvement in the overall situation, not earlier than the end of the year. Experts point out that the U.S. adopted new laws to protect consumers' interests will put pressure on profitability for a long period of time. "Business credit cards will have to painfully adjust to these changes and next year", - said Sterne Agee analyst Henry Coffey. For many years, the industry flourished. In the treatment was given 700 million cards, ie approximately 2.5 for every American. Now, in debt bondage on the cards were 44% of their holders. The problem with this was for the industry at a time when, during the economic recession, unemployment has overstepped 9%. Since the majority of operators to register steady growth of defaults on loans and the high level of write-downs, forcing them to become increasingly cautious in issuing credit cards. Despite the figures announced by Capital One, experts still believe that no later than the end of the year the situation for all operators discharged. In the end, for several consecutive months, the number of defaults on loans, which would have occurred immediately after the signing of the contract decreases. This kind of indicator that the quality of loans in the financial statements as a whole improves. In the future, new guidelines on consumer protection will hamper the sector's profitability. In particular, they prohibit the excessive increase in fees and penalty interest. Experts estimate that the revenues American Express and other operators until recently to grow at 20.5 billion dollars by masked in the contracts in small type of penalty fees and additional interest. Now, as experts believe, this figure should be the industry average half. Now managers who touched innovations, trying to find them and some positive moments. "Personally, I think that the new rules for the industry of credit cards are very useful," - said MasterCard CFO Martina Hund-Mejia in an interview with Handelsblatt, according to which, now the relationship between the consumer and the card issuing bank has become much more clearly regulated. "Even I understand that there is registered in small type, very difficult" - confessed Ms. Hund-Mejia. Implications of the United States new legislative directives already quite noticeable. Given that the possibility of using high penalty interest is limited, began to increase basic fees and interest. At the same time not as widespread as before, the practice of providing free maps associated with expensive credit card bonus programs. However, in the long-term renaissance of cash, which would be dangerous for operators of credit cards, Martina Hund-Mejia not believe. "I do not think that the number of credit cards will be less - she said. - People are too accustomed to comfort, they provide them.

Europe is waiting for a wave of defaults on consumer loans

Europe is waiting for a wave of defaults on consumer loans associated with financial losses, credit card holders in the United States, due to which U.S. banks have suffered billions of dollars in losses, writes today's newspaper RBC Daily. Experts do not rule out the pessimistic prediction that the losses by banks on credit cards to the European average will exceed 7%. According to International Monetary Fund (IMF), approximately 14% of U.S. consumer debt, amounting to 1.914 trillion dollars, will not be returned. The IMF predicts that Europe will lose 7% of total consumer debts amounting to 2.467 trillion dollars, and the most powerful blow will be the UK, which is the largest country in the region of borrowers with credit cards: credit cards where the indices of rating agency Moody "s show that the level of losses has increased from 6,4% of loans in May 2008 to 9.37% in May 2009. A British hotline for debtors National Debtline said that in May, took 41 thousand calls from consumers concerned about their outstanding debt on loans, credit cards and mortgages, compared with 20 thousand phone calls in May 2008. Judging by the statements of the service, even while no signs of reducing the number of requests. Experts point out that the United Kingdom, and other major European economies (although to a lesser extent) suffer primarily because of U.S. concerns. In the U.S., banks such as Citigroup, Bank of America, JP Morgan Chase and Wells Fargo, as well as credit card issuers such as American Express, have suffered losses in the billions of dollars in their portfolios of credit card and warned that they expect the new losses. "The concerns and fears of Europeans are quite understandable and justified, - the expert of the London School of Economics, Philip White." - "Bad" loans - a serious problem not only for banks. Instance, mortgage problems are already forced to take power in an unprecedented write-offs, which resulted a huge budget deficit. Therefore, U.S. banks going bankrupt, and dragging after him the rest of the world, and Europe is no exception. " Now the U.S. unemployment rate was the highest since 1983, reaching 9.4%, and, as predicted by the American Bankers Association, at the end of the year will be 10%, and early next year will pass this mark. "The only measures that could somehow have a positive impact on the current conjuncture - are measures to protect the common man, because the problem of non-payment primarily in the fact that people generally either jobless or have fallen under the substantial reduction in wages - the analyst Friedman Billings Ramsey Gary Townsend. - With regard to exactly what Great Britain was the most affected country in Europe, the case here in the affections of the economy of the United Kingdom to the United States. London depends on Washington's far more than Germany. "

In the Far East for recycling machines will pay half as much

Presidential Plenipotentiary in the Far East Viktor Ishayev proposed to increase premiums for avtometallolom for residents of the region from 50 to 80-90 thousand dollars. In his view, the Far East, compensation should be higher than for residents of other regions. It is reported by RIA Novosti. Under the program, developed Minpromtorg, from the middle of next year for delivery to scrap the old machine Russians will receive prize of 50 thousand dollars, you can use when buying a new car. Until the end of the year is planned to dispose of 200 thousand old cars, and the funding scheme allocated 10 billion dollars. However, earlier, some experts expressed doubts that the program would be viable, because in Russia there is no recycling plants for cars. In addition, domestic vehicles are not designed for recycling. Meanwhile, similar programs operating in Europe, USA and Japan, have led to an increase in new car sales in these countries. For example, in September in Germany, sales rose 21 percent in Japan - at 3.5 per cent in Britain - at 11.4 percent. In the United States in the same month sold 23 percent fewer vehicles than last year, but during the program was a sales decline at 12 percent. In Russia, currently in force other government programs supporting Russian auto plants - soft loans for the purchase of cars assembled in this country, part of the interest rates are subsidized by the state. As of Oct. 8, banks have already issued 40 thousand 887 car loans.

Banks promise to credit the rise by the end of the year

Market credit cards and car loans can become more active and get off at the normal volume for the winter 2009-2010. But on the resumption of the mortgage to wait before the summer just is not worth it: because banks do not know what will happen to property prices. By the fall of the banks have increased lending a bit. By the winter are projected to business loans for the purchase of automobiles, credit cards, and perhaps even potrebkreditovaniya should continue to gain momentum. While credit conditions at banks draconian, but the list finstruktur providing loans is increasing. Winter-spring population lent a total of five or six financial establishments, now - more than a dozen. Auto "steer" Today, one of the most accessible, if not take credit cards, a loan to buy a car. Get a loan for buying a car can be in 11 banks (six months ago there were only five). Average effective interest rate on auto loans in the beginning of September amounted to 24.82% per annum in dollars, the first payment - from 30% to 50% of the value of the car. At large banks interest rates higher than that of small ones. For example, one of the biggest financial establishments UkrSibbank offers credit for the purchase of imported or domestically produced vehicles by 30% per annum in domestic currency, the minimum down payment - 40% of the value of auto. Maximum loan term cars - five years, some models produced in China and all the cars, produced in Ukraine and CIS countries - three years. "Ukreximbank" grants loans for the purchase of any car under 26,75% annual in U.S. dollars (one-time commission - 1.8%), the first installment - 50% of the machine, crediting period - three years. Cheapest loans - a financial institution cooperating with the official dealers. For example, Index-Bank in collaboration with Renault Finance provides loans for the purchase of Renault and Dacia cars under 5.9% per annum for term loans of one year and the first payment on the loan 25% value of the car. If the credit period more than a year, then the second year the rate rises to 21,9% per annum, regardless of the amount of the first payment. In the crisis banks are trying not to lend to low-cost ( "Tavria", Vaz, "Niva") and very expensive cars (Jaguar, Porsche, Bentley), as both cheap and expensive cars in the low-liquid market, they are hard to sell. Mainly provides loans to buy cars mid-priced segment of the cost from $ 10-15 thousand to $ 40-50 thousand Projected administrator Vinnitsa branch of OTP Bank "Bogdan Ropotilova, the winter market car loans will become even more active and can enter the normal volume. - As well as credit card market - a fast market, which is rapidly rising or falling, to the same trend is understandable, - said the banker. - That there is a market forecast. Why not say, for example, on the mortgage. Inconsolable Mortgages However, several banks that are present in the city, offering mortgage loans today. However, the conditions leave much to be desired. There is evidence that some of these banks went to the issuance of such mortgages, that at least partially block the delay of the previously issued loans. But at the same time, if someone really badly wants to take advantage of such a loan - he has the right to do so. Thus, "Universalbank offers a mortgage loan, subject to 50% down payment, for up to 20 years at 23.95% in dollars. Mortgage loans in "Ukreximbank" are 28% per annum in U.S. dollars plus 1.2% of the loan one time commission, the loan granted for a maximum of 10 years, the first payment - at least 40% of the value of the object. Similar conditions in the bank "Forum". "Privatbank" on its website says that extends credit to purchase real estate for 20 years at 26.64% in dollars and subject to the availability of the first installment of 30% of the cost of housing. Bank "Kievan Rus" promises a mortgage of up to five years for a relatively small interest rate of 18% in dollars, but subject to an initial contribution from a potential contributor in 40%. According to Bogdan Ropotilova, some recovery in the mortgage market really is, but. - But, in this case, correct to speak about individual transactions, rather than on the market. Calling today's processes of "market" is still very early, - said the banker. - I think that the issuance of mortgage loans is activated in the best case in the summer of next year. There are many reasons, one of them - just do not understand what will happen to property prices further: whether they will fall or rise. Cash Loans Unsecured lending consumer needs not being disseminated in the banking market. In early September, such loans are only a few finorganizatsy. Maximum loan amount - 75 thousand dollars, a term loan - up to two years, the interest rate - 28-30% per annum plus a one-time commission of about 10% and 1-2% monthly. The effective interest rate on unsecured loans - 45-60% per annum. To obtain such a loan, the monthly official salary of the borrower must be at 120-130% higher than the payment on the loan. In addition, you want to bring one or two sureties and with a high official salaries. A small number of proposals unsecured consumer lending in the banking market due to the prohibition of the National Bank to provide loans without collateral, if the bank is unprofitable. Current trend In general, in the Vinnitsa region, January-July this year, received loans totaling $ 1,730.3 million. As the General Directorate of the economy in the Vinnitsa region, it is only 29% of the issuance of the corresponding period last year. However, the volume of credit investments, compared with the corresponding date last year, increased by 12% or 809 million dollars as at 01/08/2009 was $ 7,461.3 million. The share of credit investment banking institutions in the total amount of their assets on the balance sheet date amounted to 72%. Claims on credit, compared with the corresponding date last year, increased by 15%, or 1,028.4 million dollars, and as at 01/08/2009 was $ 7,769.2 million dollars, which is 71.6 million less - compared to 01.07.2009 year. At the same time, the total amount of overdue loans for the month increased by 24.3 million and as at 01/08/2009, stood at 486.5 million dollars, which is 354.0 million, or nearly four times the rate of 01.08. 2008.

Company of the week: Volkswagen Group

What can a few dozen disgruntled customers? Five regional dealer of Volkswagen concern almost lost because of their business: Novosibirsk Transit Service »(Skoda) and Prestige Auto» (Audi), Ufa Ak Motors »(Volkswagen), Kazan" Nur-auto »(Skoda and VW) and "Avantage Euro Motors» (Skoda) of Stary Oskol (Belgorod region.) delayed the payment of PTAs passed on to customers cars. Documents withheld importer - OOO Volkswagen Group Rus (FGR) is not received from dealers money for the client machines. Courts breaks dealership agreements, requests to pay extra for cars already paid several thousand dollars, the complaint FAS. This week, the FGR for the first year, that stretch of the proceedings, formally acknowledged that there are five concerns dealers, and promised to solve all the problems in the near future. The history of relations FGR, its dealers and disgruntled customers (the degree of anger man who paid 6.78 million rubles. For two cars and not received the documents, I think, do not describe) noisy, but not unique in Russia's automobile business. And the cause of conflict is the same. Even before the crisis avtoprodavtsy in informal conversations were told that automakers need representation from Russian dealers much more than their foreign counterparts: showroom to the highest standards and most popular route, service area - always with the latest technology. Do not want to build - will not get a quota on the machine. Do not execute a sales plan - if you like Welcome to the carpet in the office. Somewhere in Spain, no one will be surprised if in the same building dealer center adjoin two Germans from the Big Three. In Russia, I see this was not necessary. And dealers risked (believing that the market will grow without stops). Borrowed and built - who is the largest area in Europe, showroom, service center who is a fantastic posts. Someone put in a short construction loans. Sales have collapsed, and the term has come to give. In other loans and mortgages are long, but creditors are intractable. With the crisis of representation became more worried for the accurate planning of sales. And dealers - a relationship with customers. Both have to thank the dozens of angry customers dealers FGR for an object lesson.

It is taken and given credit for car

You need a car right now, and save it, you can not before a few month? You can try to resolve this issue with auto loan! This banking service is now receiving increasing development. According to car dealers now up to 25-30% of cars bought on credit.

You need a car right now, and save it, you can not before a few month? You can try to resolve this issue with auto loan! This banking service is now receiving increasing development. According to car dealers now up to 25-30% of cars bought on credit.

Apply for a loan can be either directly to the bank offering such a service, and in the auto show. Last easier. When making a loan through the lounge you can save time, since the application for credit and the necessary documents are submitted directly to the cabin. Often collaborating with one compartment, several banks, which offer various loan programs.

Banks themselves impose certain requirements on borrowers. In considering loan applications will ask your passport, driver's license and workbook. Loans are issued to citizens aged 18-23 to 60 years. Experience in the last place of work must be at least 3-12 months. Of course, an important role in deciding whether to grant a loan will take the income of your family. It must be such that the monthly payment on the loan amounted to no more than 40% of the total family income. Official confirmation of income does not require all banks. Moreover, if you can not provide information on income, the bank may require circumstantial evidence of your ability to pay, for example, certificates of ownership of any large property. In the absence of information on income credit will be given a higher percentage - by 1-3 percentage points more.
Application for the credit banks consider within 1-3 days. But sometimes this period may be delayed and up to 7-8 working days.

Loan period is from 6 months to 5 years. Interest rates on loans - 0.5-15% per annum in dollars. Most of all they depend on the term loan. Lending to purchase a used car would cost by 1-5 percentage points expensive. But to buy a used car "with the hands you a loan no bank will give - only through the auto show.

Car loans from banks can be in dollars or euros. Loans, like cars and machinery produced domestically. In this case, banks require that a portion of a borrower to pay the cost of the machine itself. Down payment may be 10-50%.

In addition to the borrower's waiting for additional costs. This commission of the bank for loans ($ 100-200), as well as monthly commission of the the loan account (0,2-2% of the loan amount).

The collateral for the loan is purchased vehicle, which becomes the property of the borrower, but shall be given in pledge to the bank until the full payment of the loan.

Program auto loans are constructed so that the borrower put out a loan and the interest in equal monthly installments. When signing the contract he gets on his hands full schedule of payments, where separately listed on the monthly payment amount for principal and interest. Borrower offer loan account, which he will make money. Some banks issue customers tied to the loan account card, which can be recharged at any convenient place, for example, through the ATM. In the scheduled day, the bank automatically debits the amount from its next payment. This saves customers from the queues, which often accumulate in the banks.

Alternatively, the transfer of contributions - through post offices. But it will have to pay an additional commission of the,5% of the amount of payment.

If specified in the schedule of payments per day funds in the account does not prove, the bank thinks it is delayed and will begin to charge penalty interest. The average fine is 0,5-5% of the amount of overdue payment per day. But some banks charge a fixed penalty, as a rule, it is measured in several hundreds of dollars. Fines imposed and for early repayment. After all, in this case the bank loses the interest which he could receive at extinction for the full term of the loan.

Many banks have set a time period during which prohibits fully repay the loan, and during this period will only accept the established schedule amount. Usually, its length is from 2 to 12 months. Often, banks are ahead of taking funds borrowed from them, but penalize borrowers. The average fine is 0,5-2% of the outstanding debt on the loan.

Since bought on credit machine remains in the mortgage from the bank, he needs to insure it against theft and damage. In this case the customer can choose the policy is not any insurance company, but only the specified bank. Most of the car is insured for the full value in favor of the bank. Price policy is normally 7-10% of the cost of the machine.

The entire procedure usually takes credit for two or three weeks. If we use the scheme of express crediting period can be shortened to two to three days. Bank is considering an application for the grant of express-credit as soon as possible: from half to two hours. On the same day the customer is a credit agreement.

Another "beauty" of this credit is a minimum set of documents that require the bank. It is limited to a passport and still one of the documents such as driver's license, passports, proof of registration with the tax authorities (TIN), pension insurance certificate. The bank does not even require the borrower inquiries about income.

Save time turns out to borrowers excess money spending. After all, express loans are typically more expensive than usual to 1.8 percentage points. Loan increased rate (by 1-5 percentage points more) issue and those who do not want or can not immediately pay a specified portion of the cost of the car.

Harrowing story of one credit

Having concluded a contract of pledge in October 2009 with the Bank "C", under which the subject of the pledge was my car, for which I paid 50% of its value, I signed a year's a hassle!

And it is this. The agreement was registered, a fixed amount, which I had to pay the bank, without any interest was because for hire% not charged.

After taking the car from the passenger compartment, I put it on record and as a bona fide client of the Bank brought PTAs at my car in the bank as collateral. The girl, who took PTAs, looked at the monitor and said: "And you that second time he delivers?" I have been standing mark the surrender of your TCP! I was strained, and I asked, not it happen that when I come to pick up, paid the Bank finally, you have to be a mark that you have already given it to me?

A week later, I went to pass it, was surprised when the traffic police officers told me that for passing state vehicle inspection do I need to bring PTAs, and that is the RF Government Decree № 880 on this, and that bank employees should know about it and prevent their clients about possible difficulties in this regard.

The next day, I get time off from work and went to the Bank for PTSom and was simply dumbfounded when I was offered in exchange for my PTAs to pay a security deposit of $ 6000 dollars! Not only that they were not warned that PTAs may be needed in traffic police, so more money and they let on. This, they say, a guarantee that you will bring it back to us! Okay, do nothing, paid $ 6000., Through the cashier, they discharged me the act of issuing PTAs, under which I shall not later than 10 days to bring him back. I was assured that the deposit amount will be returned to me when I get back PTAs.

Seven days later, I, again as a bona fide customer of the bank, brought back to PTAs, but refused to return the money to me, referring to the fact they did not work Cass! Then I reviewed the outrage. I wrote a statement that now that the Bank does not perform any of its conditions prescribed by him, I too, refuse to take the TCP, but in turn, promise to pay regularly the monthly payments. I stamped on a copy of my statement, the incoming number and I left.

For six months I have regularly paid, and paid its debts in full. When I arrived at the central office to the street. Rodchelskaya to close their installments, and asked me to make a final payment minus already paid by me before 6000, my senior manager of the CO said that, it turns out, they told me they had already returned, and no recalculation will not be! I asked him to sign my paper on this subject, but the manager said with downcast eyes, that once I was so clever, then no calculation at all and will not be retired for further instruction from higher authorities.

After 15 minutes she returned and said that my debt at the moment is not a lot of not a few 60 000 dollars, because every six months, I thought they were fine for nesdannykh time PTAs, $ 300 for each day of delay! So there! I wrote another statement with a brief description of what is happening, to the Chairman of the Board of "remarkable" the Bank "C", paid the last payment through ATM and left!

Then came the calls of a head of department on work with problem customers, Aleksei Mikhailovich, the threats that I will make to the database so that I could not go anywhere abroad, that I should give them money, in general, frank extortion! I threatened the prosecutor's office, the calls stopped.

And then came the letter with a facsimile chairman of the Bank, that no delay I have no money but I have them still be in the amount of $ 6000 paid by me earlier ... This is ridiculous, citizens ... I have vouchers for the full amount that I took in the bank, and they could not get enough ...

While in our banks will operate such careless financiers, nothing good to expect from the banking system as a whole, we do not have to!