What is a straw credit?

Brokerage credits arise when a person with sufficiently good creditworthiness takes out a loan for a third party. This third party usually does not have the option to receive a loan. This often happens in families or in the circle of friends. The monthly payments are then passed on among each other and internal agreements are made. However, there are some problems with this type of loan, which must be considered in advance. After all, there is a good reason why a person is turned down for a loan. Thus, the problems only shift instead of being solved. An alternative would be a loan without Schufa over the foreign country.

Problems with a straw credit

In fact, a bankruptcy loan, even if it has been officially closed at a bank, can be illegal. For this reason, many now lend the loans to the conditions that the borrower is also the owner or principal owner of the thing. For example, in car loans or mortgages. Finally, if another person is registered who has nothing to do with the loan, it could lead to a breach of contract.

Likewise illegal are in the same course straw purchases. They then come into existence when a full-age person buys high-per-cent alcohol for minors.

Is the straw man responsible for the credit

Of course, the loan agreement does not speak of a third person and, as a rule, the intentions of the loan are not mentioned. For the lender who does not know that he is dealing with a straw man, the contractor is also responsible for the repayment. After all, his credit ratings and income are checked and not the “borrower”. Of course, there is no legal objection to a straw credit, it is therefore permissible to take out a loan for somebody else out of courtesy. Even in the private sector, it often happens when a friend has a bad credit rating. If the straw man has a larger credit rating, the friend can still get the money. For the repayment of the loan to the bank alone the straw man is responsible. If there are problems, it has to bear the consequences. Also the Schufa of the straw man is charged and not that of the actually responsible one.

Can you protect yourself as a straw man?

Actually, it is the risk of the straw man alone to conclude a loan in his name for someone else. Internally, of course, he can secure himself, for example by concluding a separate contract with him. Thus, the one who needs the money can confess as a debtor or make a repayment agreement. Also additional interest or further agreements could be held in a contract. The extent to which these agreements are then enforced in court is not the responsibility of the bank.