Shady: the instant loan scam

Legitimate loans cannot be instant loans. Source: iStock / Wara1982

They promise quick help in tight situations: so-called "instant loans" and "quick loans". In truth, these are empty promises – used as a scam to attract new customers.

Pursuant to a self regulation agreement of the credit sector that took effect on 1 January 2016, it is explicitly forbidden to advertise instant loans because this is is a form of aggressive and misleading advertising that might lure consumers into the debt trap.

If you are looking for a trustworthy personal loan, you must know that this is never paid out immediately. This means that companies advertising such a deal actually promise something they are not allowed to give.



Why is there no personal loan at the push of a button?

Because the Consumer Credit Act (KKG) clearly stipulates that a personal loan may only be disbursed after fourteen days, i.e. not immediately. The purpose of this law is to make borrowers consider carefully whether to take out a loan instead of rashly incurring debts.

The only exception to this waiting period to date applies to loans that are not subject to the Consumer Credit Act:

  • If the loan amount is more than 80,000 francs, it may be disbursed immediately.
  • If the loan term is less than three months.

Offering an instant loan is dubious as there are, in fact, no instant loans due to the statutory waiting period. However, customers do have the possibility to hasten up their credit assessment and get an answer as quickly as possible, usually on the very same day. Comparis users can request this service through the loan specialists at credaris*.



*credaris is a sister company of and a product brand of iii AG