When we decide to get a loan in installments from one of the many non-bank financial institutions, we are often concerned about security issues. Unnecessarily, because the activity of loan companies is regulated just like the activity of banks. There are many registers in which you can verify the legality of each entity’s operations.
What else should you remember when applying for an online loan? What information to verify?
1. See the National Court Register and the KNF warning list
The first step to check any company that offers installment loans should be to verify it in the KRS database. The National Court Register is nothing more than a database of enterprises, associations, foundations, and even social and professional organizations. The obligation to have a KRS number is imposed on the entities mentioned by the Act of 20 August 1997 on the National Court Register.
Checking the company offering installment loans in the National Court Register will allow us to verify the legality of its operation, but it will not guarantee ethical and proper treatment of customers and compliance with the regulations. However, do not worry too much about it, because you can easily deal with this problem. It happens that the Polish Financial Supervision Authority has reservations about the way a particular entity operates, which it informs the public about. Among other things, it is worth having a look at the list of warnings kept by the Polish Financial Supervision Authority before signing the loan agreement. We will find there entities which the Polish Financial Supervision Authority has more or less serious doubts or objections. The presence of the loan company of interest to us on the list of warnings should therefore alarm us and make us reconsider the decision to use its offer.
In addition, you can check whether the lender we choose belongs to Lite Lender and whether the non-banking institution has recently carried out an ethical audit. Obtaining the Ethical Certificate is a confirmation of compliance with high ethical standards in line with the idea of responsible lending and respecting the Principles of Good Practice (ZDP), developed by ZPF. The ZDP document is a set of obligations for financial institutions that are based on moral standards and applicable legal provisions.
2. Check the Register of Loan Institutions
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The Consumer Credit Act of 22 July 2017 introduced an obligation for companies offering installment loans to be entered in the Register of Loan Institutions. It is kept, similarly to the list of public warnings by the Polish Financial Supervision Authority, and its occurrence requires the fulfillment of a number of formal conditions.
Considering the above, checking the company in the said register should be another element of verification of the lender. We should remember, however, that the mere presence of an entity in the register is not synonymous with its positive assessment by the PFSA, but only a confirmation of compliance with the obligations imposed by the legislator.
3. Verify opinions about the company offering installment loans
We will definitely learn more about the principles of the subject’s operation or his approach to the client’s needs and expectations, from people who had the opportunity to take advantage of his offer. If someone from our relatives applied for a loan at a given loan institution, be sure to ask them for opinions. What if we can’t count on such support from our friends? It is worth looking for recommendations on the Internet. There are many websites where individual loan entities are evaluated. Reviews are also available on financial online forms, so don’t forget to look there.
4. Carefully study the offer
A cash loan is a financial product with very simple operating principles. If, when analyzing the offer of the selected entity, we are not able to accurately verify the actual cost of financing, consider choosing another company. The installment loan offer, as well as all related costs, should be clearly and clearly described or explained by a company employee. If, despite in-depth study of the loan agreement and the table of fees and commissions, we are not able to understand the principles of calculating fees or the mechanism of the installment loan itself, let’s use the offer of another entity. Honest companies clearly communicate the amount of real financing costs, offer calculators to quickly calculate them, and avoid complicated and difficult to understand formulas and constructions in their loan agreements.