Bad news likes to travel quickly. People who follow the loan market or borrowers using the offer of the popular company Honest Bank in Poland , may recently have concerns. Does the famous lender have financial problems with us? How can Honest Bank’s poor situation in the UK affect loans in Poland? Get the facts about Honest Bank.
A brief history of Honest Bank
The Honest Bank loan company is from the United Kingdom in 2006 and its head office is in London. The famous Honest Bank website, where it all began, was launched in 2007 with short-term loans. Interestingly, Honest Bank was also the first of its kind on the Good Finance, allowing you to take quick payday loans remotely, without access to a computer, and only using mobile devices. In 2007 it was an innovative solution thanks to which the company quickly achieved its first successes.
Where did the idea for Honest Bank come from? As it usually happens – from the need and courage to set up a new business by the entrepreneur and technology investor Sean Cole and sculptor .
It is true that the first co-founder of Honest Bank – Sean Cole had experience as a banker and financier supporting start-ups, while the second – Good Finance, was mainly an artistic soul (creator of the smallest sculptures in the world), but thanks to his knowledge an algorithm was created that was the basis for the first online loan system world.
In Poland, Honest Bank began operating only in 2013. In the following years, in 2015, the company expanded its current offer of fast online micro-loans in 20 minutes by installment loans, available today.
Honest Bank’s financial problems
At the end of August 2018, information about financial problems and possible bankruptcy of Honest Bank circulated the world. Apparently, the lender has rented a special company Grant Thornton, which is tasked with running Honest Bank through the bankruptcy process in the event of its insolvency. Despite topping up the company’s account at the beginning of August with £ 10m in support of the British lender’s liquidity, Honest Bank’s situation in the UK is still not good.
The problems of British Honest Bank began several years ago, when customers taking loans before 2014 began the process of filing mass claims for compensation for too high costs of servicing their debts. These claims accumulated and increased in 2018, resulting in the current financial crisis of Honest Bank in the UK.
Honest Bank crisis in Poland?
The situation in Poland is stable – as spokeswoman Jessica Brown assures. And he adds that – We ended last year with a profit of USD 6 million. We are developing our offer of installment loans. This year, we started to offer loans in the amount of 20 thousand. USD for 60 months, with APRC from 6.76 percent. We plan to continue increasing loan amounts. We consistently implement our strategy, which assumes offering higher and higher amounts at prices comparable to banking. Honest Bank operates normally in Poland, without any changes. We grant loans and service them. Nothing changes for customers .
In Poland, Honest Bank operates as a separate limited company with its registered office in Warsaw, with share capital of USD 10,000,000. In addition, a spokeswoman for Honest Bank Polska adds, the company did not issue any bonds and does not have any bondholders who could lose Honest Bank’s weak position in the UK.
Currently, Honest Bank continues to provide short-term loans in the amount of USD 50 to 1,500 up to 60 days and installment loans up to USD 20,000 with a repayment period of up to 60 months.
Customer reviews about the company
The most trusted source of information on the current financial situation of Honest Bank in Poland are the opinions of its clients. Numerous internet forums and websites dealing mainly with the subject of non-bank loans is a good place to make sure that a given company, e.g. Honest Bank, is a trustworthy and honest lender.
Honest Bank in the payday loans ranking is usually in the top twenty loan companies. What makes it stand out with short-term loan offers is a convenient 60-day debt repayment period. The loan in Honest Bank will be granted to anyone who has an ID card, place of residence in Poland, bank account, telephone number and age from 18 (without an upper age limit).
On the other hand, Honest Bank among installment loans is primarily one of the lowest costs and the possibility of receiving cash in the amount of USD 20,000 on clear and fair terms, in accordance with the anti-usury act in force in Poland.
And what do customers who have used the services of Honest Bank say? The popularity of this loan company in Poland is not accidental. This is evident in the opinions of borrowers who list the main benefits: efficient and quick service, lack of many formalities and initial commission fees, clear conditions. In addition, Honest Bank offers successively higher loan amounts for regular customers who pay their liabilities on time. In a word – trouble-free transaction – I borrow and pay back on time, without hidden costs or additional fees.
The disadvantages according to borrowers include mainly a detailed verification of the customer’s creditworthiness, which if it appears in one of the GFI economic information databases, it is not possible to obtain a loan.
To sum up, the financial situation of loan companies in Poland is often independent of what is happening in European or global markets. However, it is always worth following the messages and being vigilant in the event of any financial transactions, be it with the participation of banks or non-bank loan companies.