Online payday loan in their current shape are a fairly new product, although it must be admitted that they have gained considerable, exceeding expectations. The rules for applying for payday loans are simple and transparent, thanks to which even the biggest layman has no problem with understanding the mechanism of their operation and receiving money to their bank account on the same day. At the same time, it is also worth getting to know the “housewife” payday, which is what the law requires from both parties and what they mean for the borrower in a practical way.
Creditworthiness check – necessary or not?
People interested in payday loans are often worried that they do not have sufficient income to receive funding (or do not have it at all). For this reason, they most often choose non-bank loans – because there is a common belief that everyone will receive a payday loan. This is not exactly the case. The Consumer Credit Act of 2011 imposes on the lender the obligation to examine the creditworthiness of applicants: based on an income statement, checking in the BIK and BIG databases and on the basis of own registers. This is intended to exclude those who are unlikely to be able to repay the loan and will lead to excessive debt. So you should not count on the fact that the lender will not check your income, or that he will not ask about it at all. On the other hand, the hope for borrowers in financial difficulties is that the lender has almost no discretion in determining the so-called “Capacity threshold” – he can grant a loan to anyone he wants and does it at his own risk. So sometimes loans are available to people who make a living from benefits, and even to the unemployed.
Information obligation – what does the borrower need to know about?
The lender’s primary duty is to inform his client about the conditions for granting the loan. It is good to know that first of all it must be clear and legible, and this information must absolutely be included in the loan agreement. This obligation applies primarily to information such as: commission and interest rate on the loan, total funding, APRC, the duration of the contract, the amount of each individual installment (if we borrow in installments). The borrower must also be familiar with the so-called an information form containing data on the lender, loan amount and repayment method, as well as information on the consequences of non-repayment on time.
Early repayment of the loan
Early repayment of the loan is one of the basic rights of the borrower using the consumer loan (which is also payday loan). We have already written about the earlier repayment procedure and the possible costs resulting from it in the article “Deferral of installment repayment – how, where, for how much?”, However, it is worth knowing what other obligations the lender has in this connection. First of all, he must inform the lender about this possibility and place an appropriate entry in the loan agreement. Importantly, failure to include it in this important document does not preclude you from being able to give back your money in advance and claim a refund of part of the costs. The lender has the right to do so “top-down”, by virtue of a law that is higher in the hierarchy than the internal regulations of a loan company, and for such action the lender may be subject to a severe financial penalty.
Withdrawal from the loan agreement
Equally important and functioning regardless of the lender’s policy, the borrower’s right is to withdraw from the loan within 14 days of the conclusion of the contract. As in the case of an earlier repayment, the lender must inform the borrower of this fact, explain in detail the whole procedure of withdrawal from the contract, as well as indicate how it can be done (e.g. by e-mail or letter) and attach the withdrawal form. However, it is worth remembering that the form attached by the loan company is not the only legally binding form. Withdrawal can also be written by yourself, on your own template, as long as it is legible, i.e. the word “withdrawal” appears and contains all the necessary elements (i.e. your and the lender’s details, contract number) – the lender is obliged to accept it.
What to do if the lender breaks my rights?
Of course, the lender also has other obligations not mentioned in the Consumer Credit Act, which he must fulfill. This is, inter alia, the payment of the loan within the prescribed period, enabling the borrower to repay the loan undisturbed, as well as determining the complaint path in accordance with the law.
According to the law, prohibited provisions that will appear in the contract or the lender’s failure to fulfill certain obligations (e.g. failure to inform the customer about the cost of the loan) are not binding. An appeal has been provided for such cases. In the first instance, however, amicable measures must be taken. To this end, it is worth going to the Consumer Ombudsman (see: “UOKiK Ombudsman for borrowers – how and when can he help?”). The next step may be to contact the Financial Ombudsman, who has the right to request and mediate in mediation. The last step is a civil action.
The borrower is not released from his obligations
Failure to comply with the lender’s obligations unfortunately does not absolve the borrower from settling the obligation. In any case, even if there has been serious negligence, the loan should be repaid and at the same time an investigation should be conducted. However, in such situations, the borrower may be entitled to compensation, but its investigation will be both long and tedious. So it is better to check the lender before taking out the loan and – above all – read the loan agreement carefully and confront it with the criteria that the lender must meet.