Credit & Administration fees
Regardless of whether you submit a personal loan application to a broker or a bank, the latter is required to spend time constituting a file in which certain mandatory documents cost a given sum to obtain.
So who pays these administration fees? The broker, the bank or the customer?
And how are these administration fees billed?
Administration fees charged to the customer
The costs of all documents required to produce a file such as extracts from the court proceedings registry, Post Office-certified ID documents, certifications of originals and other, more specific official documents requested on a case-by-case basis are assumed by the customer.
However, these costs are never directly billed to the customer! So how are these hidden fees charged to the customer?
With a Bank, the fees are reflected in the rate
Originally, the banks themselves procure the documents, and regardless of whether your loan application is refused or accepted, no fee is directly invoiced to you!
Nonetheless, they are indirectly invoiced as they are reflected in the interest rates!
For the Migros bank (in french), if you apply for a loan online, your rate is 5.9%, but in exchange, you have to take the necessary steps to obtain the extract from the court proceedings registry, etc., which you therefore pay for directly out of your own pocket. However, if you go through a branch, the rate rises to 7.9% as you are utilising staff.
With a broker, no extra administration fees!
Banks pay business providers by redistributing part of their profit. Consequently, by using a broker, you will not pay any extra administration fees.
- Categories: Elements for your file