CESSION OF THE FIFTH
The salary assignment (or pension) is a personal loan with special repayment: the installments will be paid through a deduction on the pay slip (or on the pension slip) of the debtor, made directly by the employer (or by the social security institution).
Given the above, it is obvious that for the credit institution that provides the loan, this return method is to be preferred: the installment is in fact “debited” together with the payment of the salary. The worker will therefore receive his monthly remuneration, net of the salary installment, and the bank or financial company will therefore run lower risks.
However, precisely because of the involvement of the employer, very often the assignment of the fifth represents an undesirable solution to the applicant, who prefers to keep the confidentiality of his debts.
According to what is expected in Italy, the salary assignment is not operable if the amount of the installment is higher than the fifth of the net salary (for example, 200 euros on a salary of 1,000 euros). »However it is possible to turn on another loan, called” payment delegation “, committing a second fifth of the salary, for a total of two fifths of the monthly salary (400 euros on a salary of 1,000 euros).
In addition to the particular method of repayment of installments, the salary assignment is also characterized by the combination with certain mandatory insurance coverage. On the basis of these forms of protection, in the event of death or permanent disability of the debtor, the capital still to be repaid will be paid in full by the insurance company.
Who can ask
The salary assignment (or pension) is a method of repayment of a personal loan characterized by the payment of the installments (up to a maximum of one fifth of the net salary), directly on the pay slip or on the pension slip of the applicant.
The subjects who can ask a bank or a financial company for this particular loan are essentially employees (public and private) and pensioners.
In the event of a request by public employees, the salary assignment must be notified to the Public Administration to which the worker belongs, in order to allow the withholding of the installment when the salary is paid.
Ordinary and customary is also the assignment of the fifth for what concerns the pensioners, for which the notification of the financing (for the aforementioned purposes) will have to be carried out towards the pension institution that provides the pension benefit.
Less widespread, but certainly not difficult to find in the vast Italian banking and financial landscape, are the sales of the fifth in favor of private sector workers. Also in this case the notification must be made to the employer, who for the lenders will preferably be a large company.
Beyond the status of employee and pensioner, the salary assignment also provides for compliance with some registry requirements that, however, compared to ordinary personal loans will certainly be more flexible: in fact, there are plenty of financing proposals for pensioners up to 80, 85 or even 90 years!
Payment of installments
The salary assignment is a personal loan which provides for the repayment of the installments through the direct retention of the same on the pay packet or on the pension slip of the client of the bank or of the financial institution that has provided the loan.
The method of payment of the installments is one of the particular characteristics of this increasingly widespread and used loan in our country, especially with regard to pensioners and public administration workers.
This method also represents a strong guarantee for the bank or the financial company that provided the financing: just think, in fact, that the customer (who in this case holds the position of “transferor” of part of his salary) can no longer cancel the payment in favor of the creditor. The credit institution that collects the installments can therefore count on a rather safe form of repayment of the installments, which guarantees greater certainty with respect to the traditional debiting of the installments on the current account, or through payment of postal bills.
It should also be noted that the employer (or the pension fund, such as the INPS or the INPDAP, which pays the pension) is obliged to accept the request for a fifth assignment by an employee (or pensioner) ), not being able to oppose the question.
The employer will also have the obligation to withhold the monthly installment, but only in the event of termination of the employment relationship (eg dismissal, resignation) retain the amount accrued by way of severance pay by the employee, who will turn to the bank or finance company which, in turn, will use it to pay off the remaining debt.
As a rule, the time needed to pay a loan in the form of a salary or pension transfer is longer than for an ordinary personal loan. The reason for this lengthening of the time is to be found in the particular structure of this financing, which we briefly report:
a) it is necessary to provide documentation supporting the request for funding. Among the requested documents, also the declaration of the transferable quota issued by the Public Administration or by the Social Security Institution (INPS, INPDAP) to which one is registered;
b) it is necessary to present the documentation to the bank or finance company that will initiate the procedures for granting the personal loan;
c) the lending credit institution will contact the public administration, the social security institution or the private employer company, in order to notify the transfer of the salary or pension;
d) the institute will receive confirmation from the Administration or from the Social Security institution, with which it is declared that it is possible to start the withholding procedure of the installment on a pay slip or pension slip;
e) the financing will be stipulated, with payment of the requested amount.
Therefore, due to the intervention of a third party (the Administration or the Public Body, which is in addition to the applicant and the bank), the timing for the disbursement of the loan could be extended.
However, recourse to procedures that are now exclusively online allows the lender to streamline the above procedure, allowing the borrower to obtain the desired amount within a few days, although the average is around 3-4 weeks .