The dynamic development of the non-bank loans market has meant that as customers we are facing a difficult choice. How do you decide on this one among so many offers? Each lender will assure us that his product is the best. Therefore, we must be able to assess the situation ourselves and be able to defend ourselves against possible fraud. For this purpose, it is worth familiarizing yourself with the document of the KPF Good Practice Principles. has more details

Conference of Financial Companies (KPF)


One of the organizations aimed at creating a professional environment for financial institutions is the Conference of Financial Enterprises. As the name suggests, it connects not only representatives of loan companies, but also brokers, advisors and institutions dealing with economic information management. It was founded in 1999. Since then, hard work has earned the trust of both authorities and consumers and members. When deciding to choose a specific lender, we usually get acquainted with the content of their websites. In this way, we could find information on KPF membership. Why do non-bank institutions stress the fact of belonging to this organization? To join the KPF, you must go through a number of formalities that allow you to verify how you conduct business and decide whether to accept or reject a candidate.

If we decide to submit, we will be obliged to submit a declaration of compliance with the Principles of Good Practice, the Statute, as well as regulations and resolutions. In addition, before appointing an institution as a member, it must make its own self-assessment. The ethical pre-audit survey will help you with this. The form consists of five parts, and among them there were also questions about the issue of adapting the offer to its customers, the completeness of the information provided, as well as advertising and compliance with basic consumer rights. Only when the necessary documentation has been submitted and the entrepreneur has successfully passed the application process can the KPF security certificate be obtained.

KPF and the image of loan companies


The organization also plays a big role in rebuilding the positive image of the loan sector. It cannot be denied that before the changes were introduced and the application forms were transferred to the network, there were companies that abused consumer confidence. Most of us associate lending institutions only with payday loans that have negative associations. Currently, the situation has improved, and supervision exercised over the non-banking sector eliminates unfair activities. Despite this, companies still adhering to fraudulent practices. How not to be fooled? Knowledge of the Good Practice Principles will certainly be useful. However, you should also be aware of our rights. It is worth to familiarize yourself with the basic provisions of the Act on Consumer Rights ((Journal of Laws 2014 item 827)), the Act on combating unfair market practices (Journal of Laws 2007 No. 171 item 1206), as well as the Act on consumer credit (Journal of Laws Laws of 2011 No. 126 item 715). However, let’s focus on the code created by the Conference of Financial Enterprises.


KPF Good Practice Principles


If we want to verify that a particular company is trustworthy and its offer meets the standards set by combining legal regulations and ethical norms, it is worth familiarizing yourself with the information contained in the document KPF Good Practice Principles. Let us note, however, that they relate not only to loan institutions, but also to the debt collection department, business information bureaus, mortgage funds, financial intermediation, as well as online debt exchanges. As potential borrowers, we should first read the second book, which will not take too much time. Despite this, for people who want to quickly find the answer to the question of how not to be fooled, we have prepared a brief summary of relevant records.

Responsible borrowing


Let’s start by explaining the idea of ‚Äč‚Äčresponsible lending. The burden of the decision to take out financial support falls not only on the borrower, but also on the lender. Therefore, before making a commitment, he should subject his client to a credit assessment. It consists in checking the applicant’s data in the BIK and BIG databases and determining whether he has unpaid products or whether he has fulfilled his repayment obligation so far. In addition, in the form we will be asked to provide information on our financial situation. All this data will allow the lender to make the right decision. It is also worth mentioning the element of inference, which is identity verification. Each company providing credit products is obliged to check whether it actually grants a loan to the person whose data was entered in the application. An unjustified omission of one of these stages should be a warning signal for us.

Access to necessary information


KPF’s Good Practice Rules also set out the lender’s obligations to provide the customer with relevant information. Each potential borrower entering the company’s website should be able to familiarize themselves with the basic costs of the obligation. Please note whether after specifying the parameters we are interested in, we get the forecasted costs. In many cases, under basic information there is a link to the information form, in which we will find detailed data on fees and the conditions for using financial support.

We should also remember about the obligation to disclose the value of the APRC, i.e. the Actual Annual Interest Rate. This is the total cost of the commitment expressed as a percentage. Thanks to this, we can be sure that no information will be hidden from us. In addition, on the lender’s website we should find a representative example of a loan with information on: the amount of the liability, the loan period, APRC, interest rate, interest, non-interest costs, installment value and the final sum to be paid.

Advertising and KPF Good Practice Principles


Let’s also look at the ads. Many of us find a particular loan company because we heard about it on TV or saw an attractive banner. Therefore, it is worth emphasizing that the information contained in marketing materials should always correspond to reality. If the company guarantees an interest rate of 0%, and in fact it is 10%, we have the right to assert our rights. The advertisement must not mislead the customer. The same rules apply also to express transfer guarantees. No matter what, the customer should receive real information on this subject to avoid a bad decision. When, after going to the company’s website, we notice contradictions with what was presented in promotional materials, we should seriously consider whether we really want to take advantage of its offer.

How not to be fooled? It is best to use the lender’s offer belonging to the Conference of Financial Enterprises. One of its members is Aasa. You can apply for up to $ 10,000 for 24 months and be sure that everything goes not only according to the law, but also moral principles.