Only a few years ago, the operation of non-bank loan institutions was not strictly regulated by law, which opened the way for dishonest companies and gave rise to a lot of fraud and financial scams. Due to the existence of unreliable entrepreneurs who used hidden fees and pulled clients into expensive loans, the non-banking sector did not enjoy much trust.
At present, lenders’ activities are already subject to necessary regulations and you do not have to worry about using their services. What’s more, because payday loans themselves are consumer credit within the meaning of the Act, you can be sure that your interests are well protected. However, try to use only well-known and proven companies, and before each signing of the contract carefully read its content and all attachments. Make sure you can pay the time commitment.
How does the law protect the borrower?
The Consumer Credit Act imposes numerous information obligations on banks and loan companies, and gives you many useful rights. First of all, the lender must clearly and legibly present you with all the costs of the loan and, if necessary, clarify any doubts as to the operation of the product. He is also obliged to comply with the limits regarding the maximum interest rate on the loan or the amount of its non-interest costs.
The Act also gives you the option to terminate the contract within 14 days from the time of signing it. So if you hastily decide to take out payday loans on unfavorable conditions, then without having to argue your decision, you can give it up and free yourself from unwanted commitment.
How do you check the payday company?
There are already several dozen companies offering payday loans in the non-banking sector. Although each of them is subject to restrictive legal regulations and control of the Polish Financial Supervision Authority, offers with unclear provisions and unfair additional fees still hit. In order to be able to borrow money advantageously and safely, you must not only analyze the details of the loan agreement, but also check the credibility of the loan company.
Verify that the lender has an entry in the Register of Loan Institutions kept by the PFSA. It is good if he is also a member of the Polish Association of Loan Institutions, which includes only entities applying the highest ethical and business standards. The reliability and integrity of a given company will also help you assess the comments and opinions posted on the web by its existing customers.
Good protection of interests and thorough checking of the lender do not guarantee you full financial security. Remember that a secure loan is one that does not exceed your financial capabilities. Always apply for payday loan in such amount and with such repayment date that will ensure you a smooth settlement of your liability.
Do you take payday loans online? – remember to stay safe
When taking a payday loan via the Internet, remember to be vigilant and careful. Before entering any data on the lender’s website, check whether the connection is encrypted (this will be indicated by a green padlock symbol on the bar with the website address). Also remember to set a difficult password to log in to the borrower’s account and it’s best not to apply for a loan through public Wi-Fi networks – especially those available in cafes or shopping centers.