The discussion on high disbursement interest continues to gain in attention and seems to be increasingly perceived by the general public as well. We had already published our survey here last month on high interest rates . The result was clear! Almost all respondents considered the required interest rates to be too high and the vast majority even endorsed legal regulations on interest rates. And indeed, the actors in politics now seem to be taking on the topic more intensively.
The fact that MRP interest rates are significantly higher than the standard rate installment is not a new development in itself. However, the parameters at which European banks raise money have changed. Only 0.75 percent asks the European Central Bank of the banks for borrowing. Thus, the banks in this country as cheap as never before to provide fresh money.
In addition, the banks lend themselves to each other money at very low interest rates, which are at about 0.49 percent for half a year. However, consumers have not yet benefited from these low interest rates, which must continue to pay high disbursement interest rates at the banks. And so bank customers have to expect on average about 12 percent interest on the overdraft of the bank account. Anyone who additionally exceeds his discretion must immediately pay even higher interest. An installment loan, consumer credit or low-income loan can provide liquidity in an emergency.
The call for regulations
Consumer advocates, in particular, have taken on the issue of high interest rates. At the same time, discretionary interest of at least under 9 percent is required. This would immediately equal a cap with an interest ceiling. However, corresponding demands are also made at ministerial level.
At the political level, at least, there seems to be consensus that interest rates on overdrafts are too high. However, there is no consensus on possible responses to improve this situation. Thus, Minister of Finance or the Consumer Protection Minister argue for legal rules. In contrast, the Union and the FDP seem to be skeptical, especially regarding a legal cap.
Already this Friday, the political discussion in the next round. In this context, the initiative will be discussed, in which an upper limit on interest rates is considered as a possible regulatory instrument. The application is currently supported by the federal states of Baden-Württemberg, Brandenburg, Hamburg, North Rhine-Westphalia, Rhineland-Palatinate and Schleswig-Holstein.