If the user envisages
cash flow problems, it advisable to use the formula of an agreed overdraft facility
in current account, which consists in negotiating with the banking entity the
authorisation of an overdraft (if this is produced) for a determined amount
which will avoid the risk of non-payment for lack of cash and the unpleasantness
of being in the red
Let us see an
example of how current account overdraft costs are calculated
The overdraft
was produced in the following way
|
Dates
|
|
3/1/2000
|
100.000
|
2
|
137.-
|
|
5/1/2000
|
80.000
|
4
|
220.-
|
|
9/1/2000
|
20.000
|
7
|
96.-
|
|
16/1/2000
|
-------
|
------
|
------
|
|
Period
3/1/2000 - 16/1/2000
|
453.-
|
|
Commission
on overdraft 2.000.-
|
|
Commission
(1%) on the highest value owed 1.000.-
|
|
Total
3.453.-
|
The account was
100.000 pesetas overdrawn between the 3rd and 5th, 80.000 pesetas between the
5th and 9th and 20.000 pesetas between the 9th
And the16th. The calculation made by the bank is based on the formula:
|
C.r.t
|
|
A
=
|
-----------
|
|
365
|
Where C is the
capital that is overdrawn, r the interest rate applicable, t the time overdrawn
and 365 the number of days in a year. So that when applied to our example, the
overdraft between 3/1/2000 and 5/1/2000 is calculated as follows:
|
|
1000.000
. 0,25 . 2
|
|
|
A
=
|
--------------------------
|
=
136,9
|
|
|
365
|
|
Since the overdraft
has been 100.000 pesetas at 25% interest for 2 days. For the rest of the days
the calculation will be performed in the same way, to obtain a total of 453
pesetas, to which it is necessary to add a fixed commission for the overdraft
(in this case 2.000 pesetas), and a percentage of the highest total overdrawn
(the 1% in the example). In both cases each entity applies its own rates, which
can vary greatly, such as the interest rate applicable may oscillate between
25 y el 35%, despite the drop in interest rates and that the Consumer Credit
law recognises that interest for overdrafts can not exceed 2.5 times the legal
value of the currency
Leasing
A leasing system
is one which for the periodical payment during a determined period, a consumer
may use and enjoy full benefits of good(s). This offers the user the possibility
of purchase either during the period of the contract's validity or once this
has concluded. When for whatever reason the user does not acquire the good(s)
in question, the lessor could pass the good(s) to a new user
The law stipulates
that the payments in the financial leasing must be expressed in the respective
contracts clearly distinguishing the part corresponding to the recovery of the
cost of the good(s) by the leasing company, excluding the value of the purchase
option, and the financial charge demanded, without prejudicing the application
of the corresponding indirect taxation
Although this
is usually a formula fundamentally applied in the business world, this is sometimes
used as a form of consumer credit, and especially in car purchase. It is not
the ideal formula for the average user. If in the end the consumer opts for
this, it is necessary to check all documents carefully, ask for clarification
of confusing sections and to report abusive clauses
