The Calculation of Anatocism: Excessive Interest on the Loan

The calculation of anatocism is an operation that can be used by a bank’s client to prove that it has suffered excessive interest on its loan or mortgage. This is what we talk about when discussing banking anatocism: the practice adopted by credit institutions to make the customer pay “interest on other interests”, through the compound capitalization calculation mechanism. We remind you that this operation constitutes a civil offense and is expressly prohibited by Italian law, also confirmed by some judicial decisions.

The calculation of interest

The calculation of interest

The calculation of interest and compound interest is carried out by law firms or consulting firms that assist their clients in any disputes with the bank. This is an operation that can become very complex: however, we will try to explain to you in a simple way how it works, so that you can be prepared in case you suspect you are paying undue interest.

The quarterly compound capitalization mechanism implies that instead of being calculated only on the loaned capital (simple interest), the interest also takes into account the interest that has already expired, ie relative to installments already paid by the customer. In this way, the basis on which the percentage expressing the interest rate is calculated tends to grow at each quarterly maturity and makes the payment of interest more expensive. In fact, the customer does not pay interest calculated at the end of the year on the capital, but on the sum of capital and interest that grows at each quarter.

Let us look at a simple example of the calculation of anatocism to explain this concept more clearly. Consider a loan of 1,000 euros, with a 10% interest rate. If the bank behaves correctly, the annual interest to be paid will be equal to 100 euros, then 25 euros each quarter. Through compound capitalization, however, the bank could calculate the payment of the second installment on the sum of the loaned capital and the interest already paid with the first: instead of paying 25 euros, with the second payment if they would pay 25.625. By performing the same operation at each quarter, the weight of interest would grow more and more. This is precisely the danger of anatocism.

We must therefore pay attention to the amount of interest that is paid. If you then turn to a professional who intends to carry out the calculation of compound interest precisely, it will be a good idea to present yourself with all the documentation relating to your relationship with the bank.

Where Will We Get a Loan for PLN 0?


Loan companies are trying to attract new clients as effectively as possible. And you can safely say that in this respect they are real masters. Namely, loan companies have been offering a promotional financial product for a long time, which is a payday for PLN 0. This means that loans are granted without additional costs. But the condition for granting them is to be a new customer. Criticism at

Individual loan companies offer specific loan limits. Namely, we can borrow the most as new customers at Hypocredit. This loan company is able to give us a refund of PLN 1,600. However, one of the lower loans will be obtained at GlobeLoan. There, we will be able to borrow no more than 600 zlotys.

The condition to receive a free loan

The condition to receive a free loan

The loan will not be charged any additional costs provided that we repay the entire amount on time. If we start to delay the regulation of debt for one day, loan companies will start to charge us with interest penalties. We will also be required to pay a fairly high amount for postponing the repayment date. Another month for repayment will be combined with fees amounting to as much as 25 percent of the debt incurred.

Quick payday loan!

szukanie odpowiedniej pozyczki

Payday Loan, or a cash loan owed its name not only to the fact that it is granted only for a moment. But we can also expect that the money borrowed very quickly will be on our account. However, in order for it to actually happen, we have to fulfill some basic conditions.

First of all, our verification should go completely smoothly. Therefore, we can not demonstrate the lack of identity card, permanent residence in Poland or the lack of regular income. Our surname should not appear in the databases. In this way, we are checked if we do not have any outstanding debts. What, unfortunately, could contribute to a negative decision.

The last factor is having a bank account that is preferred by a specific loan company. Then, with all favorable factors, we are able to receive money even within 15 minutes of approval of our application. And if we receive a positive answer, but we will have a personal account in another bank, then we will be able to wait until the next business day on the transfer. For people who are waiting for a quick injection of cash, this information can unfortunately be uncomfortable.

Do We Have a Chance for Cheap Loans?

The financial sector in the sale of non-cash loans is becoming increasingly problematic. Such a result was not accidental. Because payday loans are much easier to get now than loans in traditional banks. First and foremost, customers do not have the hard credit rating they need to show, and many companies do not check the financial situation of the customer in the Credit Information Bureau.

However, loan companies, although at the beginning of their activity, independently set the rules of the game, have been under greater control of the Polish Financial Supervision Authority for some time. In addition, the Office of Competition and Consumer Protection is responsible for them. The more payday payments are given, the more interest the listed offices show. As a consequence, regular changes have been introduced for some time.

Lower payday costs

Lower payday costs

Until some time, the payday loans from banks were different mainly because customers did not know exactly what costs they would incur as loans. I guess you do not have to guess for too long that the talk is really very high amounts. Therefore, the Polish Financial Supervision Authority has introduced a provision regulating the interest rate. At the moment, it can not exceed four times the Lombard rate of the National Bank of Poland.

In addition, there is still a plan to cut costs charged outside interest rates. And here such a move would have a very strong impact on non-bank companies themselves. Namely, smaller companies, managing much smaller capital and at the same time focused on pure profit from borrowing costs, would disappear entirely from the financial market. But not only. The leading companies in Poland will also see a drop in profits. These include, among others, Express Cash Register or Tongabank. Could this mean the end of a career for almost 1/3 of loan companies?

The project of cost reduction

The plans include mainly the provision for non-interest costs. They should not exceed 25 percent of the total loan. At the same time, we can expect that in each subsequent year we will only be credited with 30 percent of the full payout taken.

Another suggestion is to add all costs of a payday in a period of 120 days, or 4 months. Therefore, if the client extends the loan repayment period, it will continue to be in force as in the case of repayment. It is not to be concealed that currently it is the highest non-bank revenue ratio for the time being. Some of them even amount to 50 to 200 zlotys for sending a reminder with a reminder of repayment of the loan. And after the project comes into effect, it will be a decidedly high amount.

According to the planned laws, consumers will be protected. But unfortunately, many non-bank companies in this respect will most likely have to close their operations. So far, no final decision has been made whether the project will come into force or only stay at the planning stage.

Office of Competition and Consumer Protection

Office of Competition and Consumer Protection

Dunkor is beginning to become more and more interested in what costs are charged by non-bank loans. For the time being, the activity of this institution was limited to contacts between companies and consumers who could not resolve disputes on their own. But there are many indications that it will soon be in charge of all matters related to loan companies. In this way, the Financial Supervision Authority could make up for its arrears.