On Monday 26th November starts the social campaign “Don’t be cheated. Check before you sign”. It’s aimed at attracting public attention to the risks involved in entering into financial agreements, with an emphasis on taking short-term loans at high rates, the so-called payday loans (pl. chwilówki), and using financial services which are not subject to the  special state control.

More information:
www.zanim-podpiszesz.pl

This social event is co-hosted by seven public institutions: Bank Guarantee Fund (pl. BFG), Polish Financial Supervision Authority (pl. KNF), Ministry of Finance (pl. MF), Ministry of Justice (pl. MS), National Bank of Poland (pl. NBP), Police and the Office of Competition and Consumer Protection (UOKiK).

Every citizen should be aware of risks involved in careless entering into loan agreements and have sufficient knowledge to make a reliable assessment of such offers. Pre-Christmas time is coming up – a time of agressive advertising campaigns encouraging to use payday loans (only ID required, no security needed). Clients to companies offering this type of financial services frequently do not realize that the annual rate of “easy money” may be in fact as high as several dozen thousand percent. Potential borrowers are tempted by the concept of “fast cash” and are not aware of consequences of signing a seemingly not complicated loan agreement. Unfortunately, in extreme cases this may even result in losing their lifetime possessions.

 ‘The research conducted this year by commission of UOKiK clearly shows that 20% of consumers do not read loan agreements before signing at all. Insufficient knowledge of consumer rights and contract terms (the basis for paying off the debt) may expose weak market participants to serious financial consequences. For this reason the Office of Competition and Consumer Protection, along with other institutions involved in the campaign, will encourage consumers to follow contract terms carefully and check the contractor who provides services. We believe that thanks to these jointly undertaken initiatives, consumers will make fully informed decisions to serve their welfare’- says Małgorzata Krasnodębska-Tomkiel, President of the Office of Competition and Consumer Protection.

Almost everyone can indentify themselves with characters of the campaign. A good example is Krystyna, who was considering borrowing for Christmas a loan amounting to PLN four thousand. Eventually, she will not take it, but at the campaign website www.zanim-podpiszesz.pl consumers may follow how each day her debt would increase along with the stress and frustration caused by it.

Furthermore, this website provides basic information on the safety on financial market, lays down four golden rules for borrowing loans safely, gives instructions to financial calculators and applying of dangerous loopholes in agreements as well as how to gain access to the essential legal acts.

Within this campaign, TV and radio stations will broadcast information spots converted into sign language, with clear captions to make them accessible to broad audiences. Moreover, millions of Poles will be sent information and educational brochures containing the basic information on the personal finance. All these materials contain recommended actions – the so-called four golden safety rules which are worth noting before taking a loan or making  money investments. Added to that, via the free of charge infoline (800 290 479) consumers may obtain information which entities are subject to financial supervision.

The initiative is supported by public and catholic media. Also the commercial media and many social parners, e.g. Episcopate, Social Insurance Institution (ZUS), Polish State Railways (PKP) and Polish Pharmaceutical Chamber, were asked to join the campaign by disseminating information and educational materials. Teachers of economic subjects (e.g. basics of entrepreneurship) will achieve scenarios for conducting classes to students of junior high schools and high schools as regards the issue raised within the campaign.

Any persons concerned are asked to support the social campaign ‘Don’t be cheated. Check before you sign’.

Four golden rules for borrowing loans safely:

1.   Check the company’s credibility

2.   Calculate the total loan cost

3.   Read the agreement carefully

4.   Don’t sign unless you understand

Read more: www.zanim-podpiszesz.pl

 

Contact:

BFG – Krzysztof Gacek, e-mail: [SCODE]a3J6eXN6dG9mLmdhY2VrQGJmZy5wbA==[ECODE], tel. +48 22 583 05 45, kom. +48 601 380 080

KNF – Katarzyna Mazurkiewicz, e-mail: [SCODE]a2F0YXJ6eW5hLm1henVya2lld2ljekBrbmYuZ292LnBs[ECODE]; tel. +48 601 218 070

MF – Wiesława Dróżdż, e-mail: [SCODE]d2llc2xhd2EuZHJvemR6QG1vZm5ldC5nb3YucGw=[ECODE], tel. +48 502 850 049

MS – Joanna Dębek, e-mail: [SCODE]bWVkaWFAbXMuZ292LnBs[ECODE];  tel. +48 500 166 870

NBP – Przemysław Kuk, e-mail: [SCODE]cHJ6ZW15c2xhdy5rdWtAbmJwLnBs[ECODE]; tel. +48 669 535 105

Police – Mariusz Sokołowski, e-mail: [SCODE]cnplY3puaWtrZ3BAcG9saWNqYS5nb3YucGw=[ECODE], tel. +48 22 601 30 07

UOKIK – Małgorzata Cieloch, e-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE], tel. +48 22 827 28 92