Each borrower should take care of his financial security when he decides to enter into a commitment in a non-bank institution. This is particularly true of on-line funds. How to protect yourself against dishonest loan companies that can extort money from us?
Legal regulations in the loan industry
At the outset, it should be emphasized that the non-bank loan market is subject to legal regulations. All entities operating on it – as long as they are fair entities – should be entered in the register kept by the Polish Financial Supervision Authority from July 2017. Without this entry, none of them can start a legal activity.
The second important legal regulation is the so-called Anti-usury Act, which entered into force on August 25, 2015. Earlier, the Civil Code was applied in the area of granting non-bank loans, the provisions of which did not protect consumers against disproportionately high costs of granting a loan. The Anti-usury Act introduced clear restrictions here, which included the maximum amount of non-interest charges, capital interest and late payment interest.
Despite these regulations imposed on parabanks, fraud in the loan industry is still occurring. Unfair entities usually avoid the obligation to register with the Polish Financial Supervision Authority and do not comply with the provisions of the Anti-usury Act. Knowing the practices that the dishonest company uses will help you to protect yourself against phishing or phishing.
Misseling – extorting money for unnecessary services
One of the practices used by dishonest loan companies is misseling. Literally translated from English, this is a mistake. How does it look in practice? Borrowers are sold additional products or services related to the loan that they do not need at all. A good example is the sale of unemployment loan to a retired person. The borrower is not aware of what type of service he is choosing and therefore incurs additional, unnecessary costs.
Unclear loan costs
There are dishonest companies on the non-bank loan market that grant loans on conditions that are not allowed by law. This applies to the cost of loans that exceed the values set in the Anti-usury Act. They can do it explicitly – that is, provide the actual cost of granting the loan, but not in accordance with applicable law.
They can also consciously hide this information – not communicate it clearly, marginalize records so that it is difficult to see them. Therefore, you must always read the terms and conditions of the loan and contract. Honest entities place a specimen agreement and regulations in a prominent place. In addition, these are documents that clearly show the borrower’s costs.
Phishing small amounts or personal data
Phishing does not have to involve high amounts. There are fraudulent companies in the network that will not even give us the funds they offer. Most often they create websites that look like the websites of famous entities. At the stage of registering the loan application, the customer is asked to send funds to the indicated account or a financially charged text message. The amounts range from a dozen to several dozen USD. We lose money and we do not receive loans. In the same way, phishing can occur, which is much more dangerous.