Revocation of car loans difficult

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The ghost of the “Revoked Joker” is among the Autobanks. The ghost has launched some law firms . The law firms see a gap in the revocation of car loan agreements of the auto banks. The gap, in their view, ensures that the 14-day withdrawal period for the consumer does not begin to run. If the courts recognize how the law firms proclaim it, that would mean that millions of loan agreements could be revoked.

District Courts: Autobanks are almost always right

In the meantime, there were already some legal disputes about the revocation of car loan agreements for exactly this reason. So far, different regional courts dealt with the cases. The autobanks have so far been able to win the majority of the cases and the judgments gave them mostly right.

By the example of the industry leader, the VW Financial Division VWFS so far 19 judgments have been made. Of these, 17 judgments were made in favor of VWFS. It gives the impression that the position of the car banks is almost unassailable. All judgments were made at regional courts . How a decision would fall to a higher authority, remains open.

So far, the judges are circling the reference to a special right of termination . Whether it is necessary or not has been the subject of judgments and is not uncontroversial among lawyers.

Compensation for compensation

For the revoking car buyers revocation alone does not bring any significant advantage. The use of the car results in a loss of value which the credit institutions claim as compensation . Only if a judgment recognizes this compensation as unlawful and dismisses the buyer without payment of the value replacement from the contract, there is a real advantage. So far, however, this was not the case in any of the convictions against the VW financial sector.

1.5 million car loan contracts revocable (judgment)

The district court Ravensburg has decided. With his judgment of 07.08.2018 ( file number 2 O 259/17 ), it was the driver of a Skoda Roomster right, who had financed his car purchase at the Volkswagen Bank . The buyer stated that he had been misinformed by the VW bank when signing the car loan contract. Therefore, he demanded from the VW Bank back all paid to the bank rates.

The buyer had covered the vehicle in the meantime a distance of 70,000 kilometers. He was unwilling to pay the bank compensation for the route he was using and he also refused payments for any damage to the car. The LG Ravensburg ruled in its judgment in favor of the buyer.

Revocation of car loan agreements and the compensation for use

The revocability of auto loan agreements has already been the subject of various judgments in which the respective courts decided in favor of the consumer and granted the revocation. New to the ruling of the LG Ravensburg is now that the credit institution denied the compensation for use for kilometers driven and for the resulting loss of value. The judgment could concern about 1.5 million car loan agreements of the VW bank and their daughters.

The reversal of the car purchase

Anyone who has bought and financed his car as the above-mentioned buyer and financed by car loan, will have to reverse both contracts (there are two: the contract of sale and the loan agreement ). How are the contracts reversed?

# 1 reversal of the purchase agreement

The reversal of the purchase contract is quite simple. The buyer will simply return the car to the financial institution after the revocation of the loan agreement.

# 2 Cancellation of the loan agreement

Again, it is pretty easy. The credit institution must reimburse all payments made on the loan during the repayment of the loan agreement . This includes all loan installments (interest and principal payments) as well as any down payment.

Another position would be the depreciation of the vehicle due to use by the buyer. For this the buyer does not have to make a replacement, as the LG Ravensburg has decided. Even for the distances already traveled by car, the buyer does not have to pay compensation to the bank.

# 3 How long can you revoke the car loan?

That is of course a legitimate question. Is the right of withdrawal only valid at the beginning? Or during the time of repayment of the loan, ie before full payment? No, the revocation is unlimited in time.

Private Debt Loans: Financing for the Mittelstand

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Private debt loans have been enjoying ever-increasing popularity since 2016, especially among SMEs.

Private Debt Credit vs. bank

The bank consultant is currently still the first point of contact for many SMEs when it comes to money. If the house bank used to be firmly in the saddle, then it has to expect head wind now, because there is competition. We are talking about private investors , who are becoming increasingly popular with medium-sized companies.

Loans from private investors

Money from private investors is more expensive than that from the house bank. We do not have to fool ourselves. But obviously the higher price is also offset by one or the other advantage, which allows medium-sized companies more and more to think about a private debt loan. As a result, it is increasingly common for private investors to supplant banks as corporate lenders and to enter into business with SMEs.

Institutional investors for growth capital and acquisitions

Financing through private investors – private debt is the technical term here – is a form of financing in which institutional investors lend money to entrepreneurs over the long term. Institutional investors, for example, are insurance companies or pension funds .

Private Debt Credit: Less regulation

Financing via private investors is usually handled by an investment company . The bank loan differs from a private debt loan by the possibility to negotiate the repayment individually. The entrepreneur can thus adjust the rates of repayment according to timing and scope exactly to the circumstances that result from his investment. This may also mean that he only repays the entire loan at the end of the term.

Private debt loans differ in another point from a bank loan. While bank loans currently cost about 2 to 3 percent interest , the interest rates of the former are up to 10 percent . This is the price of flexibility in repaying the private debt loan.

No banking license required for private debt loans

In 2016, the Federal Financial Supervisory Authority ( Bafin ) decided that providers of private debt loans do not have to have a banking license . This brought private investors out of the legal gray area . Previously, the granting of a loan by a private investor always involved the risk of being rated as a bank by Bafin. This would have meant accepting the standards of banking regulation .

Failure to comply with bank regulation in particular allows private investors to lend money that would not be worthwhile for a traditional bank. Overall, the market thus has more liquidity available.

For reasons of creditworthiness, SMEs think about private debt loans – or if they are looking for long-term loans, for example. Especially in the case of long-term loans, banks are no longer the first choice because they are becoming much more restrictive because of stricter regulatory requirements. The typical terms of the loans therefore differ.

  • Term Private Debt Credit : The term is usually between five and seven years.
  • Term bank loan : The term is usually between three and five years.

Total loss is threatening doner loans!

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Confirmed: The doner loan threatens total failure. As BaFin announces, filed for bankruptcy. Finance had received money as a subordinated loan from German investors willing to invest. Originally, the capital thus obtained was to be used to finance kebab restaurants in the United States.

The adventure started with . Later, it was renamed . BaFin has now published a mandatory report pursuant to ยง 11a (1) that filed for bankruptcy on 10.08.2018 .

The had the goal to open kebab restaurants in the USA. To finance its project, the current has issued two subordinated loans. In the years 2015 to 2017, German investors accepted tranches and invested capital.

High interest rate promise for subordinated loans

For the subordinated loans, praised high interest rates. The first subordinated loan from the end of 2015 promised investors an interest rate of 8%. The term of the loan should be three years. The second loan was issued at the same time. It had a longer term of five years and even promised 10% interest. It must be said that the prospectuses of both loans were previously audited and approved by BaFin.

Bankruptcy in the USA

The company’s filing for bankruptcy is related to the bankruptcy of its sister company in the United States. This is the Mediterranean , formerly known as Mediterranean Grill . Since the US sister can no longer make payments to the German , is no longer able to service the subordinated loans granted by the German investors with interest payments, let alone repay them.

BaFin stated that the Mediterranean has not generated any relevant sales in the US for months, nor does it raise additional equity or debt to pay its debts. Thus, the regular business operations of Mediterranean in the US is no longer possible.

No bankruptcy estate

As BaFin further informs, there is no bankruptcy estate at . As a result, all loans granted to will be canceled in full .

However, the liquidity bottlenecks of are not new and have been known for months. Already in December 2017, all payments by to its lenders – the German investors – were suspended. This concerned both interest payments and repayments. The public offer was also terminated at the beginning of December 2017.

Prepare these documents if you want a personal loan!

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Quick personal loans https://greendayonline.com/quick-personal-loans/ are becoming more and more popular. In 2017, more than HUF 305 billion worth of people took on such a non-collateralized loan, which is usually freely usable. This represents an increase of around 50 percent compared to 2016, but this year, this amount was over HUF 200 billion already this year, which means that the expansion is stagnating.

There are several reasons for this:

  • wages have risen over the last few years and interest rates have fallen significantly (there are banks that, under certain conditions, already offer promotional interest below 10 percent);
  • the administration has become simpler: in many cases, personal loans can already be claimed online – and even at some banks from a mobile phone app – they are quickly disbursed, do not ask for real estate cover, and do not need many documents.

But what documents do you need?

Although there may be minor variations, almost all banks usually require similar documents. Among other things, we have to prove that we have a job that generates so much revenue that we can repay the loan details. In other words, our income is ultimately the cover of credit. Accordingly, you usually need:

  • employer income certificate – mostly not older than 30 days, the bank’s own form;
  • bank account statement – usually for the last two or three months;
  • statement of income, debts;
  • personal documents – ID card, address card, tax card.

Of course, there may be differences. For example, if you take out a loan from your own account-keeping bank, you may not be required to file a bank statement because they see the account turnover. Some banks require a minimum of 3 months of continuous employment at a given workplace.

In the case of self-employed, self-employed or family workers, you must obtain a certificate of income for the previous year from the NAV and apply for an entrepreneurial certificate. Pensioners are also asked to provide proof of pension payments and pensioner IDs.

Of course, the conditions are not the same in all banks: they can ask for more or less paper, offer a loan with a lower or higher interest rate, so it’s worthwhile to find out. With the Credit Separator Personal Loan Calculator, you can easily find the most attractive offer for you.