Is it worth using a loan company via the Internet?
October 20, 2019
Loan companies are multiplying and more and more of them are advertised in the media . What is behind their offer? Offers of such companies are characterized by speed and lack of formalities, but you have to pay for it. Are bank loans not so attractive anymore?
If something is fast and easy, then the financial market is at least suspicious. In this case, it is the cost of the loan . While the interest rate on the amount borrowed may not be a dizzying amount, the case looks different in the case of additional fees such as insurance (no one is likely to inform you about it), preparation fees or service costs (for example in the case of receiving payments at the customer’s home).
Including all costs, it turns out that the loan is quite expensive
Do you have to give up right away?
The answer seems to be unambiguous, but it is not, because it depends. If we need money for a short period of time, such as a few to a dozen or so days, we can exercise our right to withdraw from a distance contract.
The condition for such a withdrawal is the conclusion of a contract outside the premises, the premises in which the company operates. In the case of loan companies, usually a contract is signed at the customer’s home through a representative or adviser of such a company. In this case, we have the option of withdrawing from the contract within 14 days of its conclusion without giving a reason.
It is enough to provide the lender with a declaration of withdrawal from the contract
In this case, we only give the borrowed amount without any interest or costs. It is worth paying attention to the provisions of the contract. It may happen that after submitting the statement, the lender gives us additional time to return the amount received. When deciding on such a move before signing the contract, we should be sure that after withdrawing from it within 14 days we will have a loan amount to be able to return it.
Failure to return can have serious consequences. If, however, we do not withdraw from the contract within 14 days, we are left to repay the loan together with all the costs under the terms of the contract.