History – Credit Cluster
The history of credit consolidation is closely linked to the history and evolution of consumer credit.
From consumer credit to credit consolidation
Everything starts after the first world war, to allow homes to buy the first cars and increase their production, car manufacturers set up credit financing. In 1940, this type of credit financing accounted for nearly 25% of automobile acquisitions.
After the Second World War, consumer credit has a very bad reputation especially because of its interest rate deemed very high. In the early 1950s, reconstruction was completed. The main objective of the authorities and industrialists is to boost economic activity, productivity and consumption.
Conscious of the very low purchasing power of the French, the industrialists in partnership with the banks create credit organizations supposed to finance on credit the current and necessary expenses of the households.
The authorities are promoting this type of financing to make this credit the main means of reviving industrial production, consumption and finally growth. Thus, consumer credit in all its forms is growing rapidly to reach a good majority of French households. Faced with growing demand and the total lack of regulation, “black” credit flourishes and in turn affects a large majority of French households “it is the beginning of over-indebtedness”.
However, the 1960s saw the birth of revolving credit and the consumer society. Full employment is almost assured, all homes want to own a car, equip themselves with the latest innovations in home appliances and other consumer goods.
Thus, revolving credit is appearing in major retailers and mail order companies. This type of credit will also be offered by banks in the form of a permanent amount. The French are regularly asked to go into debt. Whether for shopping, going on vacation, buying a car, credit offers are more and more personalized, targeted and accessible.
At the end of the 1970s, the growing indebtedness of households due to the accumulation of consumer credit became a worrying phenomenon. Thus the redemption of credit made its appearance in the 1980s.
German banks are the first banks to offer indebted individuals bundling offers.
In France, it is not these large banks that have developed the credit pool, but intermediaries in bank operations.
The philosophy of the traditional banks was not to replace one credit by another, especially at a lower rate, they had no suitable offers. Nevertheless, they quickly understood the need to rely on BIOs.
By mandating the deposit banks quickly increased their number of clients without having to solicit them. As a result, different loan consolidation offers have emerged.
Subsequently, the credit consolidation remained very little sought and unknown to the general public until the 2000s. From 2003 to 2007, the credit consolidation was highly sought after and experienced strong growth. But like all financial products, the credit consolidation was impacted by the economic and financial crisis that began in 2007. During the crisis years, interest rates on loans increased sharply and this was felt at the level of the grouping. credit.