Consumer Protection

What you need to know when getting a payday loan

Recently, the media have been talking about the atrocities of the collectors every day, while mentioning online lenders in a negative context. Sometimes you even get the impression that this is some kind of terrible criminal syndicate. In fact, the lion’s share of such organizations operate absolutely legally, their activities are strictly regulated and they have no relation to any crime. And a person who has received a fast loan online also receives a set of rights protecting him or her as a consumer of financial services. At the same time, it should be noted that online lenders have fewer rights to “arbitrariness” in relation to the borrower than banks.

How your rights can be violated

• Microfinance organizations may under no circumstances change the interest rate specified in the agreement;
• They cannot prohibit early loan repayment;
• They are not authorized to impose penalties for such early repayment.

If any violation takes place, then feel free to contact both the consumer protection authorities and directly the regulatory body.

Compare this information with any bank loan agreement. In most cases, interest is tied to a key rate, sometimes there is a certain prepayment fee.

In conclusion, we note that, of course, a fast payday loan should be taken carefully and deliberately. All questions that arise, incl. and the full cost of the service, should be discussed immediately with the lender before signing an agreement. And, of course, the fulfillment of the obligations assumed is a condition for further successful cooperation with such an organization, and will also give an additional positive characteristic in your credit history.