Security of Payday Loans

Payday loans are becoming a commonly used way to replenish your home budget when we do not have other ways to get the money. They can be obtained quickly, also online, without leaving your home. However, you should be careful not to fall prey to cheaters when you take out such loans. So how to take care of your safety?

Is the lender a legal loan company?

Is the lender a legal loan company?

Registration of a company providing quick cash loans , i.e. so-called payday loans, currently requires the entrepreneur to set up a joint-stock company or limited liability company and enter it in the National Court Register. Such a company, and with it its partners, must have own contribution for the start-up of the undertaking, in the amount of at least € 200,000. This money should come from their own resources, not from any form of external financing. The origin of capital must be documented in the event of an inspection.

Pursuant to the provisions of the amended Act of 23 March 2017 on mortgage loans and on the supervision of mortgage brokers and agents, effective on the Polish market from 22 July 2017, loan companies must be entered into the Register of Loan Institutions. The register is kept by the Financial Supervision Authority, which makes paid entries to it. Until July 22, 2018, all legally operating loan companies must be compulsorily listed in this register. Their absence on the list proves that they conduct their activities illegally and as clients we should not use their services.

Security of the borrower on the network

Security of the borrower on the network

 

The loan taken on the internet is convenient for the client, but it should be ensured in such a case to protect your personal data against being intercepted by unauthorized third parties. The lender’s website should be securely secured using the SSL protocol. The user can check this: just see if there is a padlock symbol at the address bar or the address starts with https instead of http.

Another element that secures the lender and the borrower is verification of the customer’s identity by means of a transfer sent to the account of the loan company from a bank account registered for the customer’s data. The transfer should be made in a symbolic amount – 1 euro.

Reading a loan agreement

 

A non-bank loan granted for an amount of up to € 255.550 will be perceived as a consumer loan under the current regulations. Therefore, the process of granting it should correspond to the guidelines set out for such loans in the relevant act.

The loan agreement should specify in detail:

  • the total amount of the obligation,
  • the amount of total loan costs, including interest, commission and any additional fees,
  • repayment schedule,
  • table of fees and commissions,
  • the possibility of early repayment of the liability,
  • the possibility of withdrawing from the consumer credit agreement (within 14 days from the conclusion of the contract).

The borrower should read the contract, and if its provisions are unclear to him, he must report this fact to the lender and resolve the problem. If not, he should not sign such a loan agreement for his own safety.

The loan agreement should always be concluded in writing, provided that its amount exceeds € 500, in accordance with the provisions of the Civil Code. It will secure the interests of both parties that contain it.

 

Alternatives to Loans and Bank Loans

The bank did not give you a loan or credit? Banks are not the only way to get a financial injection. We invite you to check alternative methods for money for any purpose, when we can not or do not want to take a loan or a loan.

To be able to get a loan or a loan from a bank, we have to meet a number of special requirements. Banks most often offer money to people working on a contract of employment or having other regular income. We should also not have negative credit history recorded in various databases. Therefore, not all of us can get a loan or a bank loan.

When the bank refuses to give us money or we do not want to apply for a loan or credit in this institution, we have several other proposals ahead of us. What are the alternatives to loans and bank loans?

Non-bank loans

Non-bank loans

Currently, non-bank loans are very popular because they allow you to get money quickly and conveniently – also completely online. So we do not have to leave the house to repair our home budget when we need an additional sum for various expenses.

We can choose loans in the form of payday loans – offered for small amounts and for short terms, as well as installment loans, which are already granted for higher amounts with installment repayment in a few months or years.

Social loans

Social lending is one of the novelties – in this case, we do not borrow money from institutions, but from other people who are then called investors. Loans of this kind have become popular thanks to the Internet – thanks to this we can also get them very conveniently.

We apply for a social loan by creating a special loan auction – we indicate the amount in it, the repayment date, we offer interest rates. When our auction will arouse interest among investors, we will get a loan from them.

Loans secured

Loans of this kind are offered for various sums – when we need a large amount, we can pledge real estate, while smaller ones – movable property, for example car, jewelry, watch, home equipment.

Secured loans are offered by loan companies and by pawnshops. We must remember that in the event of default, we risk losing the subject of the pledge.

Private loans

These are loans granted by private individuals – we can receive them from family or friends, but also from people we did not know before. Offers can be found most often on advertising portals or online forums on borrowing.

Most often, loans of this kind are quite expensive, so it is better to avoid them. There are also cases where these loans are granted “pledged”, but in fact the contract contains information that the subject of the pledge is sold, for example, a house or flat. So it is better to be careful when we want to take such a loan.

In summary, when we need extra money, the bank is not the only way to get it!