Thursday, June 13, 2024

Is Your Internet Payday Loan Provider Legal?

Sometimes it’s difficult to take a loan from a bank – creditors’ claims become tougher day by day after all. But to take out a loan arranged over the internet is easy and available to anyone, be it a student, retiree or unemployed.

The advantages are obvious. To apply for a loan, a customer doesn’t have to travel to the company office or meet with an agent, which is pretty convenient. You can apply from home, during work or even a vacation. Only the internet access is needed, and the whole procedure of application and loan takes just 15 minutes. Consideration of the application usually over in a matter of seconds; borrower will get a reply almost instantly. No queues, lengthy collection of documents and other bureaucratic moments.

But not every payday loan provider working online is reliable like Burzi krediti online. In fact, many of lenders fail to meet their legal obligations.


How to check the reliability of the company?

Internet payday loans providers must follow the same set of rules, as their storefront counterparts. It’s very dangerous to borrow from a company, which provides have very scarce information about itself.

In past, the European Union investigations found that four out of five UK online payday loan companies couldn’t provide the basic information required by law. Companies which just want to make quick money and leave the market usually have no intentions to invest into infrastructure.

When looking for online companies, take note whether they have working call-center, as well as reliability and creditability ratings – a solid company is always rated.

Some sites are missing even very basic elements of regulations on payday lending: no mention of representative APRs, no contact details. And on top of that, the company might be a mere broker in disguise of a payday lender, simply introducing borrowers to lenders.

The company license might also be missing or expired long ago. It is impossible to check their credentials or authorizations.

But forewarned is forearmed, right? Users have to pay attention and realise all risks they’re about to take dealing with online payday lenders.

Things to keep in mind

Remember: if you apply for a loan online, you risk more.

Firstly: you may later be required to repay a loan at a higher rate than was announced, and you will have to prove your case in court.

Secondly: when applying, you have to provide your passport data, which may be used by fraudsters. For this reason, alone, you had better make sure the company is reliable and known.

Thirdly: Always read loan agreement and other documents, like “General rules for lending”, which must be present on every payday loan provider site without exceptions.

If you search on the internet for “payday loans” you will sure find many online companies which would gladly offer cash in a hurry to desperate borrowers. But many of them won’t provide you with cost and length of borrowing details, which is a violation of EU Consumer Credit Directive. Pay attention to their sites, and do your own investigation before you decide to borrow from them.



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