Loans to protesters and bad payers with fixed-term contracts are a rather difficult category of financing, since two obstacles to the approval by a credit institution or a financial company come into play: first of all, there is the question of reporting to the Crif archive for the failure to pay the installments of a previous loan, or to the Register of Protests for bank checks or promissory notes, an event which by its nature entails a restriction of access to credit since these databases are consulted by the operators present on the market to assess the creditworthiness of the customer. And then there is the problem of the type of contract, which entails with its time limit the additional restrictions related to the amortization plan. Let’s see what loans to protesters and bad payers with a fixed-term contract are then possible in this specific and delicate context, having clear that the opportunities are strong.
The assignment of the fifth and the type of contract
For employees of the public and private sectors, the salary assignment represents the convenient financing solution for protesters and bad payers disbursed without difficulty by the credit companies, by virtue of the direct deduction by the employer of the monthly repayment installment, having the certainty of the pay slip. However, banks tend to favor workers with permanent contracts, and not all of them accept to provide these loans even to those who have a fixed-term employment contract, considering also the role played by the TFR accrued as a guarantee. The condition for having loans for protested and bad payers with a fixed-term contract
is that the amortization plan to be agreed upon for the assignment of the fifth has a time limit similar to that of the work contract, for which the bank or financial company feels protected on the repayment of the capital until the date set for the termination of the professional service.
To make the terms of the question clearer with a trivial example, let’s say that to request the sale of the fifth is an employee of a private company that has a fixed-term contract expiring in three years : well, requesting a loan to the finance that provides the transfer of the fifth also to protesters and bad payers with this type of contract, it will not be possible to extract a plan to return the capital in excess of 36 monthly installments, so that the payable capital will therefore be limited to the possibility of salary of the applicant, since, we remember, the amount of the repayment installment cannot exceed one fifth of the total salary.
How to request the sale of the fifth
To apply for a fifth assignment, the applicant must go to the branch or attach the following documentation directly, if the chosen financial institution allows it:
- Copy of identity document
- Health card or tax code
- Last two payrolls
More possibly other additional documentation depending on the individual case. Given the time restriction due to the expiry of the employment contract, the sum obtainable as a loan to bad payers and protested in this context hardly exceeds the maximum amount of 10,000 euros.
Assignment of the fifth for temporary workers: who delivers them?
After having reminded in general what the fifth assignment is, what are the conditions for fixed-term workers and how to obtain them, we want to offer a general and certainly not exhaustive overview of the financial companies and credit institutions that accept loans to protesters and bad payers with fixed-term contracts : let’s see some examples.
Sale of the fifth IBL
Speaking of workers with a fixed-term contract, IBL Banca is among the companies that provide the fifth sale, which has very competitive interest rates, even for protesters and bad payers who can obviously count on the certainty given by the sale of the fifth: obviously the figures obtainable for these conditions are not very high, but for example
at 36 months you can get € 5,000 by paying a monthly repayment installment of € 149. Pushing the repayment dilation to the maximum, considering a contract of employment expiring at 48 months, with this time limit you can have 10,000 euros paying a monthly payment of 229 euros. With IBL both the TAN and the APR are fixed for the entire duration of the repayment period, fluctuating in the two cases provided between 4.45 and 4.60 per cent for the annual nominal rate, and between 4.72 and 4.82 percent for the Global Effective Annual Rate.
Unicredit transfer of the fifth
Protested workers and bad payers with a fixed-term contract can also turn to Unicredit for loans and dedicated loans, again with fairly modest figures considering the time limitation of the work contract. With Unicredit
interest rates are higher than in the previous example, with a Tan that sails between 5 and 8 per cent, and an APR that for this type of financing reaches an applicable maximum of 18.5 per cent up to 15,000 euro In the disbursement of capital, preliminary and tax expenses are envisaged, such as the substitute tax, plus brokerage fees.
These are just a few examples, for more information you can go to a bank and ask if it is possible to pay the fifth with a fixed-term contract, or rely on an expert consultant who will guide you towards the best solution.
The insurance issue
Being workers with a fixed-term contract, and moreover with reporting in the registers as protesters or bad payers, necessarily entails the obligation of an insurance policy to be signed together with the loan for the protection of the loan in the event of serious events such as life and risk risk employment, protecting both the financial company from the state of precarious employment of the client, but also the owner of the loan that will not burden his family in the future in the event of the occurrence of these events, being the reimbursement made out to the insurance company. What must be said is that this insurance
it involves an increase in the interest rates that will be higher than the market average, especially the APR which expresses all the costs connected to the financing beyond the mere interest on the capital. In some cases it may also happen that the insurance is counted separately from these costs and charges, and therefore is not included in the APR, representing an additional payment for the customer: before signing the contract it is suggested to inquire at your own bank so that the weight of the insurance cost is made clear and transparent, in order to evaluate even the most convenient estimates.
Fifth assignment for new hires
The question becomes enormously more complicated for the new hires who have been protested in the recent past: despite now having the certainty of an employment contract, being maybe a fixed term or an apprenticeship it becomes extremely complicated to obtain credit from a bank or financial, moreover not having set aside any TFR as a guarantee. You can still make an attempt maybe asking for modest amounts, but it is necessary that the available contract has a time limit of at least 24 months, the minimum amortization plan for a salary assignment.
What happens to redundant workers?
Another extreme situation concerns employees in layoffs, due to a crisis situation of the company they work for: this means having already a deduction on their payroll, and requesting loans for protesters and bad payers with contract to determined time implies at best the possibility of obtaining very modest amounts. Moreover
not having the certainty of returning to the previous working and economic conditions, but with the risk of entering unemployment, it is very likely that the APR will become higher, considering also what we have already described in detail in the chapter dedicated to the insurance to be combined to financing: the possibility of losing one’s job is higher, the policy premium will be increased to the item dedicated to employment risk.
Debt consolidation with the sale of the fifth
Employees bad payers or protesters have another chance to get credit, through a financial instrument known as debt consolidation : it is a type of loan for which
it is possible to merge all the previous debts into a single installment with longer amortization and a lighter installment, also having the possibility of obtaining additional liquidity. The purpose of this type of financing is to make reimbursement more sustainable by dealing with only one installment to be repaid to a single financial institution.
If this is a summary of the general definition of a loan with debt consolidation, it must be said that for the protesters and bad payers this loan can be provided exclusively through the sale of the fifth, therefore reserved for pensioners or employees. Can it also be activated by those who have a fixed-term contract? Assuming to find a financial company that accepts to disburse it, this loan has one of its peculiar traits in a long amortization, which is difficult to reconcile with the expiry of the contract, so theoretically it could be accepted only having to deal with modest amounts, but the convenience of an instrument created precisely to prevent excessive over-indebtedness would fail. For this reason we basically feel we should exclude it from the list of loan possibilities for bad payers and protested with a fixed-term contract.
We have seen how the obstacles to obtaining loans to protesters and bad payers with fixed-term contracts are different and varied, and it would be easy to say that it would be better to be at least in the condition to be removed from the register of the reported to have more opportunities to have credit. But when time plays against and the need for liquidity is imperative, all you have to do is try to ask for the sale of the fifth by turning to those credit institutions or financial companies that allow you to provide a capital even to those who do not have a contract to indefinite time, in any case remaining the strong limitation linked to the expiry of the term of your work contract, which does not allow you to deal with very high figures.
Although it has not been dealt with in detail in our analysis, we do not feel able to exclude from the list of possibilities a loan with guarantor, if its financial strengths are not sufficient to obtain the necessary amount of money, and the proposed depreciation plans too stringent: it is not an easy road to travel, but it must be kept in mind that unfortunately being protested or bad payers, and having a fixed-term employment contract, places the applicant in a condition of great disadvantage compared to those that are the minimum conditions required by a any credit institution to be protected from insolvency risk.