Take out a loan despite debt collection – Is that possible?

Take out a loan despite debt collection?

Can I get a loan in Switzerland even though there are debt collection proceedings against me? To put it simply: no. The Federal Law on Consumer Credit (FLCC) states in Article 28 that the lender must check the consumer’s creditworthiness before concluding the contract. If a consumer has ongoing debt collection, he is not considered creditworthy. A bank will therefore always reject a credit request from a consumer against whom there are ongoing debt collection proceedings.

Where does the information come from?

In connection with the credit check, a financial institution makes inquiries about the consumer. For this research, it may request an extract from the debt collection register from the potential customer. In addition, banks can access the Central Office for Credit Information (ZEK, information here). This central office collects all credit information about consumers and assigns codes in case a consumer has not paid or paid late a credit or has made many credit inquiries within a short period of time. These codes lower the credit score even if one has no debt collection.

What can I do?

If you have ongoing debt collections, you cannot avoid paying them to be eligible for credit. So applying for a loan to pay off the debt collection is impossible. Since you cannot rely on a loan from banks, your only options are as follows:

• Pay for debt collection through your own funds (savings, profits, etc.)
• Request a loan from friends and family
• Request an advance on wages from your employer
• Negotiate with your creditors about the debt collection

Finished debt collection is also considered a bad sign for banks. For this reason, you should demand that the entries in the debt collection register be deleted even if the debt collection has been paid. The creditor can also withdraw a debt collection, which automatically deletes it. However, he will only do this if you comply with his demands as comprehensively as possible. It is therefore always best to end a debt collection as soon as possible!

Do you have a debt problem?

A debt collection does not always have to be due to huge debts. Even oversights and unjustified claims can lead to the initiation of debt collection. But if you are really in debt and don’t know what to do, you should get professional help as soon as possible! One provider of debt help is, for example, ratecredit.ch. This financial service provider has contacts with various counseling centers that can help you get back on track with a debt relief program. Such a program includes the following:

• Situation analysis: Your financial situation is comprehensively examined and evaluated.
• Budget planning: Based on the financial analysis, a counselor prepares a monthly budget for you. This includes how you will repay your debts.
• Negotiations: The debt advisor handles all your correspondence with creditors. He negotiates repayments and debt cuts.
• Costs: You pay the costs for the debt advisor through the monthly budget he creates for you!

Become debt free!

Contact an experienced debt counselor who will help you with debt collection. Many people with a debt problem are ashamed and hesitate to seek help. MultiCredit takes care of your request.