This is no longer a new kind of financial business, many people still have some doubts. In world practice, as in many other areas, payday loans occupy a specific niche, have accurate, legally approved and supported by the population characteristics. Therefore, the question in foreign developed countries are dangerous whether payday loans no one there. In our country, they are just beginning to gain momentum, and more and more people are turning to this service. But it will not be enough time until absolutely all Russians trust this type of lending. To speed up this time you need to dispel some fears of the Payday Loan.
So, as the financial literacy of the population in our country grows stronger every day, then the level of information on loans and credit institutions is also growing. Today, potential borrowers can appreciate a particular service, as well as the company that provides it. Therefore, in this article we will highlight the most common questions that people most often ask.
Personal data security
Everyone is likely to know the main feature of payday loans – quick receipt of funds. This is achieved, as a rule, due to the fact that the client fills in his personal data in the form on the company’s website. Having received as much information as possible from the borrower, the Payday Loan is able to quickly evaluate the candidate and make a decision. But not everyone is ready to enter the data of their bank card, passport and other documents on the Internet.
It is important to distinguish the company’s website and the Internet as a whole. If you sent your passport and phone number on the organization’s website, only employees of that organization will see them. Therefore, if you trust a company whose service you are going to use, then there is no danger. It remains only to determine this very trust in the company. Each credit organization, whether it be a bank, a Payday Loan or another, should be under the supervision of the FMG Bank. Therefore, the first thing to do if you are going to take a payday loan is to check the organization in the official register of Payday Loans, which is publicly available on the FMG Bank website. To do this, find out the official name of the organization, in parallel with the documents that confirm the activities of the company, as a lender. For example, the list of documents of the company Money to the House can be seen on the page “About the Company”.
Require money that did not receive
When a person is interested in the question of whether “payday loans are dangerous,” he, most often, will want to read reviews and get acquainted with the real situations that experienced borrowers describe. One of the rather rare, but at the same time, disturbing problems that can be found on the Internet – Payday Loans need to return the money, plus interest for a loan that has never been issued.
If suddenly, you get into a similar situation – do not despair, in most cases, this is a technical issue. First of all, you need to contact the microfinance organization to clarify the situation. If you really did not accept money from the company and did not sign the contract, most likely, the problem will be solved even without your presence at the company office. If the conversation is about transferring funds to your bank card, then any cardholder can easily prove that he did not receive money by ordering a bank statement. Therefore, one should not consider such situations as a type of fraud and even more so, one should not run to a company with a prepared amount of money.
Payday Loan requests property or documents as collateral
Every citizen of our country should know that your personal documents are not entitled to be kept by any commercial organization. You can never agree to leave a pledge or passport as a pledge while you use this or that service. Moreover, you should not take a passport from a little familiar person for storage. If he submits a statement to the police that you took the document from him, it will be very difficult for you to prove that it was a mutual act. Therefore, the requirement or request to leave in the pledge the original documents for a payday loan is a violation of the law.
As for the property on bail – here is a slightly different picture. If you want to take a loan for 100 thousand rubles. and more likely, you need to prepare for a similar request from an Payday Loan. Of course, such conditions should be specified in the relevant documents and spelled out in the contract. Your property will be assessed and the conditions under which you can use the service will depend on this assessment. There are special organizations on the market that specialize in secured loans, on their website and in the office, most likely, all the necessary information will be listed.
Are payday loans or their “huge interest rates” dangerous?
If you compare the rates on payday loans with the rates that banks offer, the first thing people pay attention to is numbers at times, or even ten times more. But it is important not to forget about the main difference between a bank loan and a loan in an Payday Loan. On the websites of micro-credit companies you will almost always see the rate “per day”, and not “per year”. This is done not so much in order not to frighten customers ahead of time, but to make it easier to calculate how much you will eventually have to pay for the service.
A payday loan, for the most part, is issued for a short time and in a smaller amount than a loan. Most often – it is 5.000 – 15.000 rubles for two – four weeks. So, if a borrower borrowed 7.000 rubles for two weeks at a rate of 2% per day, then he will need to return 8960 rubles.