Polish Association of Loan Institutions – what is it?

Polish Association of Loan Institutions – what is it?

As we read in the PZIP statute, the Polish Association of Loan Institutions is an organization whose mission is to promote and enforce the high standards of the non-bank loans industry via the Internet. PZIP is a union of loan companies and employers who aim to introduce, control and maintain the highest business and ethical standards in the online loans industry. The Polish Association of Loan Institutions can be found on the pzip.pl website. On the website, we can read the statute of the PZIP employers’ association, industry events and news from the world of the fintech industry regarding exactly Internet loans.

Polish Association of Loan Institutions – Mission

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What is the mission of the Polish Association of Loan Institutions? PZIP aims primarily at self-regulation of the online non-bank loans market by promoting and providing high quality products and services through many factors. PIZP wants to inform about all changes in the online loans industry, spread knowledge about non-bank financial products and focus on the transparency of the offer of companies providing quick online loans.

After all, it is mainly the lenders that form the PZIP association, so they want to build customer awareness of installment loans based on trust and ethics. In addition, the Polish Association of Loan Institutions feels obliged to appear in public debate and talk to politicians for the purpose of enacting relevant legal regulations. PZIP is also an industry platform that strives to improve the qualifications of employees related to the online loans industry and develop high ethical and business standards in this type of companies. The last pillar on which PZIP’s activities are based are activities aimed at raising customer awareness in the field of responsible borrowing of money and the use of financial services.

Recent PZIP projects

Recent PZIP projects implemented should include:

  • Creation of the industry Register of Loan Companies (on July 22, 2017 it replaced the central register launched at the PFSA);
  • Creating a book of good practices and a list of prohibited practices;
  • Monitoring the online loan industry;
  • Publication of reports on the non-bank loan companies industry;
  • Cyclical educational campaigns conducted for consumers in cooperation with the media;
  • Publishing current analyzes and comparisons of offers;
  • Legal support and mediation in contentious situations;
  • Running a free consumer helpline in matters related to loans and credits.

It should be mentioned that the Ethics Council and the Program Committee operate within the organization of PZIP. It is also not easy to get into the organization, because obtaining PZIP membership is preceded by an interview, media monitoring, consumer opinion report, a mystery shopper’s activity, or an industry interview. Each company belonging to PZIP must meet a number of restrictive requirements and thoroughly examine the customer’s creditworthiness. Borrowers must be checked in BIG or BIK databases. In addition, companies associated in PZIP should be characterized by the transparency of the offer, transparent conditions regarding the cost of the loan and services, as well as clear guidelines for applying for a loan.

Good lending practices

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Good lending practices also include preventing situations where a company charges a commission from a customer for considering an application. This situation cannot occur. It is worth mentioning at this point, of course, the absolute prohibition of any hidden fees. An additional collateral and, paradoxically, a pro-consumer activity, which all loan companies should remember, is not to grant a loan to a person who will not pay the previous financial liability. On one hand, the client will not be too happy with such actions, on the other hand, the lender’s behavior will allow him to avoid the spiral of debt. At least when it comes to non-bank loans online.

Branch Information Polish Association of Loan Institutions

 The Polish Association of Loan Institutions puts current information on the online non-bank loans industry on its website. Each user can also receive an electronic quarterly ProMeritum. ProMeritum is a free online magazine covering topics related to the non-banking market of online loans. So let’s use the free knowledge provided by professionals from the online loan industry. In addition, as you can learn from our article, the portal belonging to the Polish Association of Loan Institutions will be useful not only for employees of the non-bank loans industry via the Internet, but above all for the consumer who, thanks to the activities and publications of the PZIP organization, will expand knowledge about the product, which is online loan and check companies that are trusted in the market.