Dishonest loan company – I took payday loans – they demand HUGE money?

I took payday loans for my mother, through “credit support”, who said that as much as I took, I would pay back, but when I called, it turned out that I had to pay $ 6,000 more in one installment and $ 10,000 in the other.

In addition, they took a commission of $ 5,000 from me for granting a loan and I fell into worse debts than I had at the beginning and I don’t know what to do now?

You have apparently fallen victim to a dishonest loan company whose business model is not to grant loans and earn interest, but to deceive borrowers and benefit from imaginary commissions and fees for the loan itself.

Unfortunately, such stories constantly go through this blog. Today, literally anyone can set up a loan company… nowadays, it is even difficult to assess the scale of operations of private loan companies!

Dishonest loan company – how to defend yourself?

Dishonest loan company - how to defend yourself?

Loan companies need absolutely no permits, licenses or capital to run this kind of business.

That is why there are so many private, microscopic loan companies operating in Poland, where from time to time someone with dishonest intentions will come to a future borrower.

Some loan companies create local branch networks, some focus on loans for home delivery, others offer private loans under a promissory note, and other loan companies operate only on the Internet, advertising on various classifieds websites, tempting the unconscious state things, future customer, just look at these ads:

As you can see, it is full of loan advertisements on classifieds websites. Of course, I am not saying that each of these loans is suspicious, but certainly when using such an offer, you should read the entire loan-to-board loan agreement carefully! I have already written about it many times.

As far as I know, the government is doing some work that will be aimed at civilizing the private loan market in Poland. Even UOKiK once issued a statement:

Last year, the office found that the loan companies violated the clients ’interests 26 times. We imposed financial penalties, we obliged entrepreneurs to change their practices, sometimes we found improvement or accepted commitments for voluntary actions – says expert

Unfortunately, until then, the clients of private loan companies have to count only on themselves…

The most vulnerable are always the elderly, those unfamiliar with the law, less educated or gullible people. And it is such people who most often become victims of dishonest private loan companies.

Very often, the signing of an unfavorable loan agreement is demonstrated by the rush when we are in a hurry, because the money was supposed to be “yesterday” – this is a huge mistake that can cost us our future and huge financial problems, as in your case.

Statutory interest, maximum interest, default interest

The year 2018 did not bring any changes in the amount of maximum interest. Their rates are still as follows:

  • statutory interest – 5% per annum,
  • maximum contractual interest – 10% per annum,
  • statutory interest for delay – 7% per annum,
  • maximum interest for delay – 14% per annum,
  • statutory interest for delay in commercial transactions – 9.5% per annum

Unfortunately, loan companies can freely decide on charging additional fees, which include, among others

  • initial payment,
  • preparation commission,
  • compulsory insurance,
  • or home service costs.

And an appeal for those who are just facing the choice of a loan company, for God’s sake, before you sign a loan agreement, check this company, for example in PZIP (Polish Association of Loan Institutions) – if there is no loan company in which you want to incur , do not decide to sign a loan agreement with her (for your own safety).

In addition, it is worth checking at least before signing the loan agreement:

  • APRC of the loan (total amount to be paid),
  • does the lender require any collateral for the loan,
  • whether the lender reserves the right to request such security in the future,
  • are they, and how much do they cost additional fees, e.g. for:
    • consideration of loan application,
    • issuing decision on granting a loan,
    • compulsory insurance,
    • representative’s visit at home, etc.

If you have any ambiguities and something arouses your curiosity and anxiety, you must not sign such a loan! Of course, you can ask an employee of a given loan company what this issue is about, and it is not about general explanations, but a detailed step-by-step explanation of the issue that bothers you.

Of course, you can also ask the loan company to make a copy of the loan agreement and take it home, then visit the consumer ombudsman and consult with him the obscure, doubtful provisions of the loan agreement.

What to do if you have already fallen victim to a dishonest loan company?

What to do if you have already fallen victim to a dishonest loan company?

You need to go to the municipal or poviat consumer ombudsman:

  • Consumer Federation,
  • Association of Polish Consumers.

In individual cases, consumers can obtain free legal assistance, among others. at municipal or poviat consumer ombudsmen. Their competences include:

1. providing free consumer advice and legal information on the protection of consumer interests ,

2. submitting applications for establishing and amending local laws regarding the protection of consumer interests,

3. addressing entrepreneurs in matters of protection of consumer rights and interests,

4. cooperation with the competent delegations of the Office of Competition and Consumer Protection, Trade Inspection authorities and consumer organizations,

5. bringing an action for consumers and joining, with their consent, pending proceedings in cases of protection of consumer interests.

So go to the consumer ombudsman, appropriate for your place of residence (you will find his address on the internet), take with you all the documents you have (regarding the loan agreement with a dishonest loan company).

The Consumer Ombudsman will guide you where and what to do next. Good luck fighting this dishonest loan company! and let this article be a warning to others…

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