The customer rarely reads and understands the contents of the loan agreement when applying for payday loans. He makes a huge mistake. He should get acquainted with the loan agreement at the stage of choosing a loan company, and at the latest when he decides to apply for financial assistance from a particular lender. Which contractual provisions should pay particular attention to and why? About this in this article.
A very important part of the loan agreement is the one about the possibility of withdrawing from it within 24 hours, several days or two weeks from its conclusion. Actually, every loan company operating in accordance with the law should have it in the content of the contract. It allows you to withdraw from the loan agreement and return the loan amount within the time limit acceptable for withdrawal, without having to pay any fees associated with its granting, such as commissions or interest. In practice, this point of the loan agreement gives you the opportunity to take advantage of free funds for a shorter period of time, which may be a good solution for many loan company clients.
The conditions of early repayment described in the loan agreement are also significant. It is worth looking for the most favorable records concerning them. For example, those regarding the redemption of part of the interest or commission on the occasion of early repayment of the loan. They are very important because they can significantly reduce the total cost of the loan if it is repaid ahead of schedule. It should be remembered that the lack of such records is tantamount to the fact that the loan company is operating unlawfully!
Each non-bank loan agreement should also contain provisions regarding the conditions and options for extending its repayment period. Their content may be particularly important for people with unstable financial situation who are not sure whether they will be able to pay back the loan on time. They will learn from it whether and how they can postpone the repayment date and how much it will cost. People who expect problems with repayment should also particularly intensively analyze the ways of collecting debts and the costs resulting from them. Reminders about unpaid loans, both in the form of an ordinary and registered mail, as well as e-mails and text messages are always payable and increase the total cost of the loan.
In the loan agreement, all provisions about its cost are also extremely important. The content of the loan agreement should include information on the total actual annual interest rate, including all interest, commissions and costs. Warning! Non-bank loan and payday loans agreements also contain provisions about additional fees charged in various situations for various reasons. It should be particularly looked at and considered their legitimacy before accepting the contractual terms.
Each loan contract must be read and analyzed. It is worth paying attention to the provisions related to withdrawal from the contract, earlier and later repayment and debt collection. It is also good to take a closer look at the fragments detailing the cost of the loan, which will clearly explain what, why and when the customer must pay.
Customers of companies providing short-term non-bank loans often have problems paying them back. They wake up with the proverbial hand in the potty when, on repayment days, they do not have sufficient funds to repay the loans. As a result, they don’t pay them back on time and wonder what to do next. We advise what awaits them and how they should act in such a situation.
Non-bank companies inform customers about outstanding loans on the next business days following the repayment dates. They usually send them e-mail notifications and SMS messages reminding them of the overdue payment deadline. They add the cost of shipping to the total amounts to be repaid. In such reminders, loan companies usually provide information about the possibility of extending loan repayment periods. It is not worth using them. Why? Because the costs of monthly debt collection with interest are lower than the fees for extending loans! So if you have temporary financial problems, it’s worth just to wait them out.
Intensive debt collection begins only when customers do not repay loans 30 days after their repayment dates. Then, on average, every three days, they are sent further paid reminders in the form of SMS and e-mail, and after about a month the first letters encouraging to pay the amounts due under the pain of submitting cases for external debt collection. Sixty days after the repayment deadlines, the clients of the loan companies are entered on the list of debtors in BIGs. People with financial problems should report to loan companies with amicable solutions before this crucial moment occurs. They can offer lenders new repayment terms, for example in installments. Often, their proposals are accepted, after all, all loan companies want the borrowed money to come back to them.
The worst happens when customers ignore letters and SMS notifications from lenders for a long time, as a consequence of which they eventually receive registered items from external debt collection companies. Not only are they entered in the same way in all registers of debtors, but also the sums of fees increase significantly, because they are connected with horrendous debt collection costs generated by companies collecting debts. However, even at this stage it is worth trying to get along, negotiate favorable terms of debt repayment. Thus, you can avoid the last resort, i.e. referring cases to court.
In summary, if you have not repaid the loan on time, do not worry too much and do not extend the repayment period. Wait 30 days and try to pay back the amount due, slightly increased by debt collection costs and statutory low interest. If you do not succeed, do not wait for more than a month with the desire to settle the matter amicably – when 60 days have passed since the loan repayment date, you will be entered on the list of debtors and your case will probably go to external debt collection. Either head up, you will definitely be able to somehow deal with the repayment of the commitment.