Internet loans. What are the rights of the borrower?

Sudden expense – this reason persuade most people not to look for solutions to their financial problems in a bank, but in a loan company dealing with providing instant payday loans. Such a loan seems to be a good solution to temporary problems, as long as it is well thought out and chosen wisely. This means that before you take out a loan, it is worth knowing your rights and obligations of loan companies.

How is the borrower protected?

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Fast online loans, both payday loans and installment loans are, in the sense of law, understood as consumer loans and are regulated by the 2011 Consumer Credit Act. It lists all rights and obligations regarding these entities, according to which loan agreements should be formulated. The Office of Competition and Consumer Protection and the Financial Ombudsman also guard their proper performance. In addition, each loan contract must comply with the letter of the Civil Code.

It sounds complicated, but it creates a good legal environment so that a client taking a payday loan can feel safe. You should refer to these documents if you encounter any problems with taking out or paying off the loan. In what areas can these problems occur?

Access to information

It is the absolute responsibility of the loan company to provide the customer not only with full but also reliable access to information. What is meant by that? It provides accurate and comprehensive information to the customer about:

Type of loan. Although this is quite obvious, the customer must be informed about the loan he is taking – whether it is an installment loan or a short-term loan, free or payable. If it is a loan based on promotional principles, such information must also appear, including the regulations of the promotion, which should not only be available on the lender’s website, but also made available at the client’s request.

The consumer’s right to withdraw from the contract

A consumer concluding a distance contract has the right to withdraw from it within 14 days. The legislator acknowledged that when making a distance transaction, the consumer cannot fully understand the product or service before purchasing it. Often, this is also called purchasing rationality consideration. He does not need to indicate any reason that caused such a decision. Moreover, when signing such a contract, the borrower must receive the appropriate withdrawal form – information about this privilege can never be implied. The customer must also be instructed how this right can be used. If the borrower decides to withdraw from such a contract, it does not necessarily mean an immediate return of the loan. The law allows a refund to be made within 30 days.