Italian Delegazione di Pagamento is a subsidiary financing compared to Cessione del Quinto. Both, in fact, both are addressed to the same categories of workers and in both cases the loan is repaid through monthly instalments directly deducted from the payroll. The specific characteristic of Delegazione di Pagamento is the possibility to extend the funding to those who already have a Cessione del Quinto, while guaranteeing the same benefits.
The loan through Delegazione di Pagamento allows engaging up to 40% of the monthly salary. It is a type of financing which is part of the consumer credit and its name comes from to the loan repayment method. The debtor, in fact, delegates his employer to repay the obtained loan by withholding from his salary a fixed amount for a specific period provided for in the loan agreement.
The transaction involves the intervention of four subjects:
1- The supplying company which, pursuant to the Presidential Decree 180 of 5 January 1950 (law 180/50) and to the local regulations on banking, can be only a bank, an insurance company or a financial intermediary registered into the list of the Bank of Italy.
2- The customer, defined as the transferor or the borrower, who signs the loan agreement, benefits from the financing and, simultaneously, transfers to the supplying company one fifth of his monthly salary.
3- Employer, is the public or private employer where the transferor works, which will be required, after the contract notification, to pay for the monthly allowances, deducted from the transferor salary. The employer, while playing an active role in this operation, does not intervene in the contract, which remains solely bilateral between the Bank / Financial intermediary and the customer, if not by signing the documents required for the preliminary inquiry.
4- The insurance company that guarantees the operation. The legislation provides the funding to be guaranteed by an insurance policy covering the risk of death of the transferor or the loss of employment, either by resignation or dismissal.
- The range of people who can access to this kind of consumer credit is:
- State / public workers
- Employees of private companies
- Atypical workers