11Onze Recommends: Monthly Return, 22% in 2 years

We continue to expand the savings options for the community. After the good reception of Litigation Funding, the same provider proposes Monthly Return, how to make your savings generate an income every month.

A few months ago, 11Onze Recommends offered a savings product from a British provider, Litigation Funding. With an initial contribution of 10,000 euros, you could earn 9% at the end of the contract, i.e. 1 or 2 years depending on the case and the amount.

Since then, the community has demanded a product that would provide a monthly income from savings and, for this reason, we have worked on a new product exclusively for the 11Onze community. This is Monthly Return, designed for large savers and companies that contribute a minimum of 100,000 euros. Customers will see their savings grow by 22.5% over the duration of the contract (24 months). However, it is important to bear in mind that the monthly income begins to arrive after the seventh month.

Farhaan Mir, 11Onze’s Chief Financial Officer, says: “We listened to our community and tried to bring in what fits their needs. People had asked for monthly returns, so we talked to our supplier to get them on board”.

In this sense, the 11Onze Recommends slogan will have to be updated. Until now, we used to say If it doesn’t exist, we create it. If it exists, 11Onze Recommends. In this case, 11Onze has asked for this exclusive product to be created for our community.

So, in a context where banking remunerates savings very poorly and where inflation continues to depreciate money, Monthly Return is shaping up as an excellent option for those who want to make their savings profitable. And the returns are very high, 22.5% accumulated in 2 years is a figure unparalleled in the market. According to Mir, “As far as I know, there is no other product that offers these returns, combining security and liquidity”. All this while remembering that the initial capital is covered by insurance, so it is a low-risk product.

How is it possible?

For more information about Monthly Return you can visit the 11Onze Recommends webpage and if you are interested, you can contact the provider. To receive all the information you need to complete the self-certification as a qualified investor. It should be noted that completing the self-certification does not commit you to carry out the operation, as explained in this article.

Savings for all pockets

With this new 11Onze Recommends product, 11Onze offers saving products for all budgets. From 3,000 euros you can participate in Gold Seed or Gold Patrimony, from 10,000 euros with Litigation Funding and now Monthly Return is aimed at savers and businesses with capital from 100,000 euros. As we at 11Onze have been warning for some time, all to avoid losing purchasing power in a context of inflation that has become structural.

If you want to find out how to get returns on your savings with a social justice product, 11Onze recommends Litigation Funding.

Households have drawn on savings and consumer loans to go on holiday and offset inflation, while banks have made short-term loans as expensive as credit cards.

Households’ financial situation has improved, with a gradual recovery of the purchasing power progressive recovery of lost purchasing power since 2021. Even so, more and more families are taking out quick loans to go on holiday or to finance fixed monthly expenses. The increase in consumption and the rise in prices due to inflation are eroding the savings accumulated by households during the pandemic.

The Bank of Spain’s (BdE) report on data from the end of July shows that financing through consumer loans has increased significantly between June and July. Specifically, it has increased by 2,000 million euros, reaching an all-time high not seen since 2009.

In this context, the banking sector expects that the end of the summer will lead many families to request more financing, among other things, due to the return to school, colleges and universities, further boosting the consumer loan business. And all this despite the fact that this type of financing has become significantly more expensive in recent months.

Banks continue to make consumer loans more expensive

The contractionary monetary policy applied in recent months by banks aims to reduce inflationary pressures in the economy. This translates into higher mortgages and credit to companies, but also affects credit to households, which are affected by the rise in interest rates on consumer loans.

Despite the sharp fall in mortgage lending – between January and June 2023, 14% fewer home loans were signed than in the same period last year – banks have granted loans worth 15,289 million euros in the first half of the year, making consumer loans the golden goose of the credit business.

The Association of Financial Users, Asufin, warned that consumer loans are not slowing down and are becoming more expensive in Spain with an average increase in interest rates that exceeded 13% in July. This type of financing has become much more expensive in recent months, reaching an average interest rate on short-term loans of 17.42% in August. However, the popularity of consumer loans is following a similar trend to that of the past, also due to high inflation.

If you want to find out how to get returns on your savings with a social justice product, 11Onze recommends Litigation Funding.

One of the advantages that many clients find in certain fintechs is the freedom to choose IBAN, which allows diversifying risks and deciding which Central Bank you want to supervise your accounts. In a controversial decision, Revolut has announced to its users in Spain that they will not be able to continue using the Lithuanian IBAN as before and that they will have to switch to the Spanish IBAN.

Revolut is an English-based neobank, driven by Russian managers and offering accounts with Lithuanian IBANs. But on May 9, 2023, the BOE announced the registration of the entity in the Registry of Credit Institutions of the Bank of Spain. This means that they can start offering accounts with Spanish IBANs, which will be under the supervision of the Bank of Spain. Two and a half months later, Revolut has got down to business.

The entity has sent a message to its users in Spain advising them that they will have to change their account in the Spanish IBAN or close it. They are therefore not given the option of keeping the Lithuanian account. A few years ago, another reference entity, N26, also began to offer the Spanish IBAN but, in this case, they allowed users who wished to keep their German IBAN.

Revolut no, take it or leave it. Either you accept the Spanish IBAN or close the account. This can be a problem for many people, because IBAN diversity is a way to diversify risks in terms of savings. The measure does not mean, in a practical way, any tangible improvement for users because Revolut has confirmed that depositors’ funds will be guaranteed not by the guarantee fund of the Bank of Spain but by the Central Bank of Lithuania, which is where the parent bank is based. The only possible point in favor is avoiding IBAN discrimination, that is, that in Spain you cannot domicile payments with an IBAN from another country, something controversial because it contravenes SEPA regulations and can be denounced.

The advantages of the Bulgarian IBAN

For this reason, it is expected that some users will look for new options to transfer their savings to accounts with an IBAN that is not Spanish. In this sense, 11Onze offers IBAN of Bulgaria, mainly due to its solvency and because it allows normal operations in the SEPA area. From El Canut de 11Onze you can make instant transfers, manage various accounts of other entities, request debit cards and access all the services and content offered by La Plaça. From the purchase of gold to insurance, through information and training content. Everything can be done from El Canut.

The Bank of Spain warns that 1.6 million households are unable to meet essential expenses. Rising commodity prices, inflation and rising interest rates are increasing the proportion of families in a vulnerable situation.

Almost one in ten Spanish families could not cover essential expenses with their gross income in 2022, up from 7% two years ago. Pressured by rising commodity prices, high inflation and the effect that the ECB’s interest rate hike has had on mortgages. This is one of the main findings of the report on the financial situation of households and businesses published by the Bank of Spain last Thursday.

The state supervisory body notes that inflation is the main cause behind the accumulated loss of purchasing power of 4.5% and that the increase in interest rates directly affects households with variable-rate loans. “Households with these types of debts, regardless of income level, are more vulnerable. This is not only because they spend a higher percentage of their income on essential expenses, but also because their liquid assets cover a smaller proportion of this expenditure”.

The report also notes that the increase in financing costs has led to a reduction in household credit demand in recent months, which was already seen at the end of 2022 and has been accentuated during the first three months of this year, with a particular impact on loans for house purchases. According to the banks, this development is the result of rising interest rates and a decline in consumer confidence. As for the second quarter, banks expect a further fall in household credit applications.

Access to credit has not only deteriorated for households, businesses, especially SMEs, are finding it more difficult to obtain credit, and when they do get it, it is on more unfavourable terms. The Bank of Spain warns that although businesses’ turnover continued to rise significantly and their indebtedness has continued to fall, the average cost of debt “is beginning to slow the increase in profits after interest”.

Saving is increasing and household debt is falling

It is not all bad news. The report’s data indicate that the household savings rate has rebounded, mainly due to the contraction in consumption, which is below its historical average and leaves behind the downward trend observed after the pandemic.

On the other hand, the Bank of Spain clarifies that the savings rate trend seen over the last few years is compatible with the accumulation of liquid assets by households. Similarly, it explains that, in real terms, wealth recovered at the end of 2022, after the dwindling rates of previous quarters, thanks to the moderation of inflation. Although the slowdown in house prices meant that the real estate component contributed to the increase in nominal wealth.

The household debt ratio has also declined significantly, reaching levels at the beginning of 2023 not seen since 2003. This reduction is mainly due to the increase in nominal income – driven by job creation and rising wages – and partly linked to the pick-up in inflation.

If you want to know how to get returns on your savings with a social justice product, 11Onze Recommends Litigation Funding. So that next summer, your holidays are paid for!

Summer is here and Catalans will spend an average of 1,203 euros on holidays. What if we told you that with Litigation Funding, which 11Onze Recommends, you can get enough returns to pay for a great holiday next year?

With summer comes the long-awaited holidays and, according to a recent study, Catalans will splash out when it comes to having a good time. Each one of us is expected to spend an average of 1,203 euros on our summer holidays. In other words, you’re about to spend your hard-earned money.

And you don’t mind, because after working for a whole year, you’ve earned a well-deserved break. But why not put your money to work too, so it can give you a holiday? How would you like to be able to go on holiday without spending your savings?

Get the most out of your savings

Litigation Funding, which 11Onze Recommends, offers you the chance to get a return of between 9 and 11% on your money by financing the legal costs of law firms that pursue claims from citizens who have been mistreated by banks or the administration. With your money 100% insured and with a success rate of more than 90% of litigation, you have no excuse for leaving your savings at a standstill!

If you want to know how to get returns on your savings with a social justice product, 11Onze Recommends Litigation Funding. So that next summer, your holidays are paid for!

The American investor warns once again that the US is in danger of a financial collapse because too much debt is being generated and there is a shortage of buyers. He also points out that inflation, low-interest rates and political fragmentation will worsen the situation.

Ray Dalio, the renowned investor and founder of the investment fund Bridgewater Associates, has been warning of the danger of a financial collapse for months. During the negotiations on the debt ceiling to avoid a default of the US administration, Dalio explained in a post on LinkedIn that it was not enough to agree on a new debt limit unless there was an agreement on how to contain or reduce spending and that “raising the debt limit the way Congress and presidents have repeatedly done will ultimately lead to a disastrous financial collapse”.

Indeed, you don’t have to be a financial guru to know that spending more than you earn and financing it with debt is the perfect recipe for economic disaster. This, however, is not necessarily always true if you have the ability to print money without consequences. The hegemony of the dollar as the world’s reserve currency and the assured demand for this currency thanks to the recycling of petrodollars gives the US a de facto “free credit card” that allows it to spend money without too much worry.

When debtors and creditors cannot be satisfied

But the Bridgewater founder points out that this is not sustainable in the long run, because increasing the debt assets and liabilities faster than generated income eventually makes it impossible to pay an interest rate that satisfies what creditors and debtors can afford. In other words, interest rates have to be high enough for the creditor to get a good return on his money, but not to the point where the debtor cannot repay his debt.

He also argues that this scenario could lead to panic and create a debt crisis similar to the bank run that precedes banking crises, but in this case against the central bank and with government bonds. A situation he describes as disastrous that “will cause financial disaster and social disruption”.

In this context, the investor believes that we are approaching this tipping point where the amount of debt issued by the government will outstrip demand, which would force a massive printing of money and a sale of government bonds that would put the central bank in an untenable position. In other words, creditors will either not lend more money and sell their debt assets – causing interest rates to rise – or force the central bank to print more money and buy debt in an attempt to keep interest rates low, thus creating inflation and causing economic activity to contract.

How to avoid or prepare yourself for the collapse

“I think you have to reform the system and have an expeditious response with intelligent bipartisanship,” Dalio notes in a Bloomberg interview. He adds, “If we continue down this path, in terms of what’s likely in the next five and ten years, it would get to a point where this balancing act becomes very difficult”.

In any case, these measures or paradigm shift depends mainly on politicians, over whom the population does not have much influence regardless of electoral results. We should bear in mind that the interests of the banks and the powers that be take precedence over those of the general public. In the face of a financial crisis, only a select minority has access to privileged information that allows them to assess the seriousness of the situation to protect their savings.

So how can we protect our finances in the face of an economic disaster that seems more than likely? Ray Dalio is clear, although he admits to owning a “little bit” of bitcoin, he prefers gold, which he describes as “universal and timeless”, adding “I don’t understand why people are more inclined towards bitcoin than gold. If you look internationally, gold is, for central banks, the third reserve asset”. In this economic context, buying gold is one of the few options that banks and people have to safeguard their money.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

Cryptocurrencies come to La Plaça from the hand of the leading exchange house in the Netherlands. An easy and secure proposal with a €20 gift for 11Onze people to start getting into the world of the crypto-economy.

Cryptocurrencies are a very interesting alternative to regulated currencies, whether they are the current fiat currencies or the CBDCs that several countries are starting to implement. They are primarily a space for freedom in the digital world. And, despite often trying to fuel the idea that anonymity facilitates criminality, cryptocurrencies are much more traceable than physical money. They are, therefore, becoming a real and attractive alternative as a store of value and as a digital currency.

Bitvavo in La Plaça

You can already find all the information about Bitvavo at 11Onze Recommends. It is an exchange house registered with the Central Bank of the Netherlands and offers an easy and intuitive platform. There are more than 190 currencies available and the process is very simple: register on the platform via the 11Onze Recommends link.

“Our goal is that everyone can access cryptocurrencies,” explains Oriol Blanch, affiliate manager for the Spanish and French markets at Bitvavo. Oriol acknowledges that young people are more interested in crypto economics, but that they have tried to make the platform accessible to everyone. “My parents use it,” Oriol confirms. However, no one hides the volatility of cryptocurrencies.

At a time when the sector is maturing, there are cases of coins that gain a lot of value very quickly, but which are not really solid. In this sense, Oriol recommends being informed and buying reliable cryptocurrencies: “Bitcoin, because it is the first and because of the way it is mined, and Ethereum, because of what it provides with smart contracts, are probably the most reliable. For the rest, you have to be informed and look at what is behind them”.

Online exchange house

Bitvavo allows you to exchange euros for any other digital currency. And it is cybercrime-proof because users’ money is kept in “cold wallets”. “This means,” Oriol explains, “that what you deposit is stored in a physical device that is disconnected from the network. Therefore, in the event of an attack by cybercriminals, Bitvavo could restore the deposits. Moreover, in the event that a user is impersonated and funds are lost, being registered with the Dutch Central Bank offers access to the Deposit Guarantee Fund, so that up to €100,000 could be recovered. It represents a very safe option in an environment that sometimes creates a sense of insecurity for users.

Will cryptocurrencies end up being a substitute for current currencies? We asked Oriol Blanch and he is convinced that “they will be a very important alternative”. They will be if users want them to be. An alternative to the central banks’ digital currencies (CBDC), which will make it possible to monitor and manipulate the economy according to the interests of regulators. “Cryptocurrencies and CBDCs will coexist,” says Blanch, “because there is no doubt that states will force us to use CBDCs and they have the power to do so. But there will also be cryptocurrencies. We will have to see how regulation progresses”.

In the meantime, you can find out more about cryptocurrencies and Bitvavo at 11Onze Recommends and by listening to this conversation with Bitvavo’s representative in our country.

11Onze Recommends Bitvavo, cryptocurrency trading made easy, safe and at a good value.

The cycle of financial crises in recent decades has highlighted the limitations of the current models of banking supervision in ensuring the solvency of banks, the stability of the economy and confidence in the financial system.

Banks play a fundamental role in the economy, therefore good banking supervision is a critical element in maintaining the soundness and integrity of a country’s financial system. Yet, time and again, we see how regulators are unable to prevent the mismanagement of these institutions from having disastrous consequences for the economy.

Essentially, banking supervision involves the regulation and monitoring of banks’ activities by the competent authorities. These supervisory bodies have to ensure that banks comply with regulations and adequately manage the risks inherent in their operations to ensure their solvency.

Yet the promiscuous relationship between the banking and political classes has facilitated deregulation and ineffective supervision of the financial sector, leading to risky and irresponsible practices by the monopolies that control the market. This reveals an unwillingness to serve the public interest that often results in economic devastation that taxpayers end up paying for by bailing out banks with public money.

When banking supervisors fail to do their job

The 2008 financial crisis originated from the 2006 housing bubble in the United States. A credit boom was accompanied by excessive leverage built up by the banking sector fuelled by cheap credit and lax regulation.

Financial institutions offered subprime mortgage loans to people with questionable financial solvency, granting credit to customers with low incomes or without adequate verification of their ability to pay. At the same time, financial derivatives played a key role in amplifying the crisis. These investments were initially considered safe and low-risk, as credit rating agencies gave them a good rating.

The report of a commission of enquiry set up to investigate the crisis’s causes highlighted banks’ excessive risk-taking and negligence by financial regulators. In particular, it criticised the reduction and failure of financial regulation by the Federal Reserve during Alan Greenspan’s tenure.

Deregulation and lack of oversight, however, were not new, as it was the cornerstone of “Reaganomics” during the 1980s. President Reagan’s administration had laid the foundations that inspired the policies put in place by his successors and that culminated in the 2008 financial crisis.

Auditors call ECB banking supervision into question

The collapse of Credit Suisse, accompanied by the failure of Silicon Valley Bank and Signature Bank, raised the spectre of Lehman Brothers and triggered panic in the markets. Governments and regulatory agencies assured us that we did not have to worry about the safety of our savings and the stability of the financial sector because, despite appearances, they had done their job.

Well, it turns out that no, they haven’t done their job this time either. A report published by the European Court of Auditors has called into question the ECB’s banking supervision, warning that the capital requirements for the riskiest banks are insufficient and that supervision was not stepped up for banks with persistent credit management problems. The report notes that the ECB “does not use its supervisory tools and powers effectively to ensure that identified risks are fully covered”.

As with Lehman Brothers, Credit Suisse was given a clean bill of health by regulators and rating agencies shortly before the collapse. In fact, DBRS Morningstar was the first global rating agency to cut Credit Suisse’s credit rating, less than a day after the Swiss central bank was forced to bail out the financial institution. In short, yet another failure on the part of the supervisors and rating agencies that are supposed to look after our interests.

Once again, it seems that the interests of the banks and a select minority have priority over the will to serve the public interest and that the so-called supervisors simply serve to perpetuate the usury of the powers that be that justify their existence. We have all heard Albert Einstein’s famous phrase: “Insanity is doing the same thing over and over again expecting different results”, all, except those in charge of banking supervision, apparently.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

The Spanish state will create a new body to manage complaints between customers and providers of all kinds of financial products that will be financed by the entities in proportion to the complaints received.

The law was approved on 18 May 2023 by the Plenary of the Congreso de los Diputados with 186 votes in favour from PSOE, Unidas Podemos, ERC, PDeCat, Ciudadanos, PNB, EH, Bildu and Más País, 47 votes against from Vox and 95 abstentions from PP and Junts. The legislative initiative was referred to the Senate and is awaiting final approval.

The new supervisory authority will centralise the complaints services of the Banco de España, the Comisión Nacional del Mercado de Valores (CNMV) and the Dirección General de Seguros y Fondos de Pensiones, with the aim of “resolving complaints against breaches of the rules of conduct, good practices and financial uses or the abusive nature of contractual clauses”.

This new ombudsman for financial clients includes in its protective function “users of the entities and operators of the so-called Fintech sector, as well as the provision of crypto-asset services, in the terms envisaged in the future Regulation of the European Parliament and of the Council on Crypto-asset Markets”.

To prevent financial exclusion, the regulation guarantees basic bank accounts and offers special protection not only to the elderly but also to other vulnerable groups such as migrants or the disabled. In this sense, when complaints do not have a financial content, the body will be able to impose compensations in favour of customers for amounts between 100 and 2,000 euros.

Decisions will be binding

Citizens’ complaints will be free of charge and will have to be resolved within a maximum of three months, but, unlike the current regulation, the decisions of the supervisory authority in cases of conduct and abusive clauses will be binding, provided that the amounts involved are less than 20,000 euros. These decisions may be appealed before the civil courts, although the filing of a lawsuit will not have suspensive effects.

As until now, affected citizens will have to present their claim to the financial institution’s customer services department in the first instance, and if this is not favourably dealt with, they can turn to the “Autoridad de Defensa del Cliente Financiero”, which “may agree to return the amounts unduly charged by the financial institution, plus the legal interest”.

The new body will also be able to impose sanctions of between €500,000 and €2 million for non-compliance with binding resolutions. It will also be able to impose fines of up to €1 million on the directors of financial institutions responsible for the most serious cases of misconduct. These measures should help to prevent financial institutions from continuing to abuse the system to delay payments in favourable cases.

Financial entities will bear the cost of claims

The 250 euro fee per complaint that was intended to finance the new authority was finally not approved during the negotiations. Even so, claims will be free of charge and 40% of the cost of running the institution will be distributed proportionally according to the number of complaints from each institution, while the remaining 60% will be distributed proportionally according to the number of favourable rulings for complainants from each institution, thus penalising those with the worst results.

Even so, customers who make repeated complaints to banks within a year and without grounds may be fined if bad faith in making the complaints is observed. They will be fined between 50 and 250 euros, or up to 1,000 euros if there is a repeat offence. These fines can be appealed through administrative channels or in the courts.

The new fees and penalties should help to reduce bad practices by financial entities and prevent disputes between these companies and their customers from being as unbalanced as they are now. That said, it remains to be seen whether this funding will be sufficient to provide this body with the necessary means to fulfil its purpose and whether the amount of the fines will be sufficiently dissuasive to change the bad habits that characterise the banking sector.

Fund lawsuits against banks. Do justice and get returns on your savings above inflation thanks to the compensation the banks will have to pay. All the information about Litigation Funding can be found at 11Onze Recommends.

The opening commission clause charged by banks when we ask for a loan can be considered abusive if certain transparency requirements are not met. Several courts have ruled on their nullity as they consider that they do not correspond to any effective service provided by the bank.

On 16 March, the Court of Justice of the European Union overturned the approach of Spanish jurisprudence and opened the door to the opening commission of a loan or mortgage being considered an unfair term. The CJEU ruling establishes that the opening fee for a loan or mortgage does not constitute a part of the main object of the contract, having an “ancillary” nature and, therefore, can be an unfair fee.

The European court was responding to the case between CaixaBank and a customer after a court forced the bank to return 845 euros that it had charged him as the opening commission on a mortgage-backed loan, considering this fee to be abusive.

After unsuccessfully pursuing the matter, CaixaBank decided to take the case to the Supreme Court, which asked the CJEU to rule on a specific Spanish law, which considers that the opening commission regulates an essential element of the contract and cannot be considered abusive if it is drafted in a clear and comprehensible manner. 

Even so, for the CJEU it is a non-essential obligation of the contract, or in other words, it considers that it is an invention of the bank in order to make money, which does not really obey any specific service or expense differentiated from the activity of the loan itself.

On the nullity of the opening commission

Firstly, it should be borne in mind that an opening commission will not always be declared abusive. The nullity of this fee will be determined after investigating whether the bank duly accredited, prior to the signing of the contract, that it carried out a risk study of both the client and the financial operation, and once the judge has assessed whether there is a significant imbalance between the rights and obligations of the two parties, evaluating whether the client was informed in a clear and comprehensible manner.

That said, to date, several courts have already ruled that some of these commissions are null and void, considering that they do not correspond to any service provided or justified expenses, and forced banks to refund the amount of these fees plus interest since the initial fee was paid. Therefore, banks could face a new wave of legal claims as happened after the European court also overturned the “ground clauses” and the IAJD.

In the event that you consider that the opening commission for your mortgage may be abusive, you can complain directly to the customer service department of your bank to demand that they refund the fee you have been charged. On the other hand, you can contact a legal advisor to contract the services of a lawyer who can advise you on your particular case and defend your rights.

Fund lawsuits against banks. Do justice and get returns on your savings above inflation thanks to the compensation the banks will have to pay. All the information about Litigation Funding can be found at 11Onze Recommends.