Fast payment on non-pending credit
The lending facilities of each lender include the ability to transfer salaries, which usually requires approval by the borrower. A loan without a paycheck is unusual in the banking sector, as payroll allows the principal bank to independently collect the borrower’s income in the event of late payment.
This means that if the borrower, for some inexplicable reason, is no longer prepared to make the payments, the banks can collect them directly through the principal. The pledge is valid until full settlement of the claim against the house bank, therefore any fees and expenses from the interest charge on the garnishment income will be counted.
The figure for transferring the salary is in practice in practice in each loan agreement, an exception of which is very unusual, as otherwise the principal bank would have waived a major security. The unpaid loan is far more likely to be seen in the private sector, as it is very difficult for a private person to collect another person’s income.
In this case, the settlement is usually always judicially carried out, at least in Germany, so that an immediate confiscation by the lender, if he is a natural person, can not take place. Because a borrower, at least in the ideal case, signs a loan contract to repay it, the wages clause does not really matter to most applicants.
The situation is different again when a borrower wants to use another loan,
In a salary levy procedure has already been initiated by a creditor. If there is already an up-to-date assignment of wages and salaries, no further loan can be claimed without an assignment of wages, at least without guarantee. Potential investors must then automatically assume that the potential borrower without the additional burden of installments already has no overall view of his financial position.
If you want a loan, you should also be aware that the installments must be paid in full and on time, otherwise the house bank will be ready to collect the balance. In general, however, the client is not addressed directly and the income is not confiscated, because a default can actually be just a default – a warning in advance of the foreclosure.
In general, the lender wants to save the additional effort of a pledge, which is why a credit check reduces the risks by actually granting credit only to trusted borrowers, at least from the perspective of the banks.