In truth, there is little competition between institutions specializing in the repurchase of loan of individuals and the banks of deposit. The reason is very simple, the latter are few to practice this type of operations and when they practice it is with a lot of restrictions.
A financial technique of iob
The purchase of loans for individuals is a financial technique that was initiated in France in the 1980s by intermediaries in banking operations from a very small number (they counted on the fingers of one hand) of pioneer establishments in the matter.
It was always these BIOs that developed it until the market became mature in the early 2000s and attracted other stakeholders.
Nevertheless, the major players in the financial restructuring of households are still counting on the fingers of the same hand! Other stakeholders are “generalists” who offer standard products that meet “scores” limiting the risk of “breakage” for them.
In order to benefit from a loan redemption at the best rate and under the best conditions, it is preferable to use a loan redemption calculator to define your eligibility but also to compare online offers.
Banks also offer repurchase of loan
Some banks offer a “homemade” product generally reserved for their “good customers” or even “VIPs”! It’s pretty antithetical with the profile of the candidates for a financial restructuring. Others offer the product developed by one of their subsidiaries. It’s still a standard product, ” ready-to-wear ” in a way.
They may be good or bad, but what is certain is that they are not suitable for all profiles and all situations and that their conditions of grant are rather restrictive. Do they benefit from the most competitive rates on the market? Not even. The buyout of loan remains marginal and has the taste of the risk that the big banks do not like too much to fight.
This is the reason why the BIOs remain the major players in the acquisition of loan in France.