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?
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
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.