Consumer protection: More complaints about manipulation in online loans

The consumer advice centers are getting more and more complaints about fraud or manipulation in online loans. According to the Federal Association of Consumer Centers (VZBV), the number of complaints on consumer loans in the first half of this year was more than a quarter (almost 26 percent) higher than in the same period last year. The symptoms of consumer loans, which were displaced online, have also increased significantly.

Accordingly, in the first half of last year, people complained about irregularities in online loans in 273 cases. In the first half of this year, according to VZBV, there were 476 complaints for loans expelled online.

Contract conclusion without your own knowledge

The main complaint for consumer loans that have been offered online are so -called submitted contracts – i.e. contracts that someone concludes without their knowledge or express consent, for example by deception or misleading statements.

From the association’s point of view, the figures are an argument against a legal change that is planned in the course of the implementation of the EU Consumer Protection Directive in National Law. A draft from the Federal Ministry of Justice stipulates that the text form should meet the text form instead of the written form for the conclusion of general consumer loan contracts and other financing aids. This means that a signature is no longer necessary. The Ministry of Justice sees this as a contribution to reducing unnecessary bureaucratic hurdles.

Only valid with a signature?

The Federal Association of Consumer Centers looks different. “If only one box has to be clicked on to take out a loan, fraudsters have a slight game,” warns VZBV director Ramona Pop. It advocates maintaining the signature as a prerequisite for the conclusion of a loan contract.

According to the Federal Association, the problem cases in which people were looking for advice at the consumer advice centers is the case of a consumer who came into contact with a whatsApp address with a supposed bank. This had claimed various costs for the payment of a loan of 20,000 euros and finally stopped contact after several deposits of 1,300 euros.

Fraudulent trading platforms

Consumers reported several times to the information from employees of fraudulent trading platforms or supposed financial service providers who wanted to move them to carry out a video identification procedure. Instead of confirming an account, paying out an account, paying out a profit or paying out an allegedly secured capital, the fraudsters took out or opened accounts on behalf of the affected loans through which their victims have no control.