UFC-Que Choisir filed three complaints for "deceptive commercial practices" against three mini-credit organizations.

These instant loans of small sums, to be repaid within three months, actually practice "hallucinating" interest rates, denounces the president of the consumer association, Alain Bazot. 

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The consumer association UFC-Que Choisir filed three complaints on Thursday for "deceptive commercial practices" and is tackling the "uncontrolled wave" of mini-credits on the Internet.

Three of these organizations are targeted: Bling, Cashper and Floabank.

The association denounces the opacity of tariffs and real interest rates, which can turn out to be a hundred times higher than usury rates.

"These organizations are there like vultures", denounces Alain Bazot, president of UFC Que Choisir, on Europe 1. "Obviously they help you out, but at a price of gold. It is the abuse of the state of necessity which is shocking. "

"Mind-blowing" interest rates

Mini-credits are instant loans of small amounts, up to 1,000 euros, with repayments on short notice, less than three months.

"They say that this credit makes it possible to preserve its financial health when in reality, it will come down to the budget given the cost which is extremely high", explains Alain Bazot, who denounces "an exploitation of intolerable misery" for " hard-pressed customers ".

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"They need small sums very quickly. And if you ask for the money right away, all the rhetoric around the tempting offer vanishes and you have completely mind-boggling interest rates," he adds. he.

The Cashper organization, for example, charges an interest rate of 2.234% for its "express formula".

Another expense item: the express money transfer, once the mini-credit has been obtained, is most of the time a paying option, which can go up to 30 euros fixed per file.

No supervision

According to the president of UFC-Que Choisir, these microcredit companies are surfing the economic difficulties made worse by the health crisis.

And if it is still too early to see delinquencies jump, he knows that the lawsuits will multiply in the future.

"People who really can not pay, especially that the interest will lead to them, will find themselves [the target] of harassment practices, firms specializing in debt collection which are without faith or law," he deplores. he.

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The association denounces a legal vacuum. Below 200 euros, these loans are considered as cash and cash flow facilities. They thus escape the rules on consumer credit. "We want these loans to be subject to the same rules as conventional credit, with information, a framed usury rate," said Alain Bazot. The UFC-Que Choisir wants a European law to "clean up the sector" and recommends that customers be cautious before any subscription.