Chapter 14: Providers of consumer credit

Question 1

Consumer credit providers in NL

Answer 1

• Finance companies
• Banks
• Mail-order companies
• Credit card organizations
• Municipal credit banks
• Fintech companies

Question 2

Finance companies

Answer 2

Raises money on capital markets or from parent company and lends it out in the form of consumer credit

Example: Car companies can have their own finance companies to finance their cars

Example: Klarna

Question 3

Banks

Answer 3

Provide credit in forms of consumer credit and mortgage credit using e.g. savings deposited into the bank

Uses non-revolving credit, current-account credit or credit card

Question 4

Mail order companies

Answer 4

Supply goods using revolving and non-revolving purchase financing

Only acts as an intermediary for credit facility

Question 5

Card-issuing institutions

Answer 5

Cardholder can pay for purchases by instalments

Question 6

Municipal credit banks

Answer 6

(GKBs)
Created to provide credit to low-income groups e,g, those with financial difficulties, provides debt assistance and support