A column or bulletin board loan is just for adrenaline lovers. You can look forward to unnecessary charges, involuntary foreclosures or muscular enforcers. What kind of sneakers have you prepared for you?
Are you in financial distress? We have a quick solution for you, call, write, reveal. You’ll get the money today. This is a typical ad hanging on every corner. Most people reject such strange offers. And he does well. But, as the Czech Banking Association’s survey revealed, there is a significant group that does not worry about borrowing from dubious companies.
I’ll borrow from anyone
Every eighth Czech doesn’t care who he borrows from. 12% of Czechs take money from risky companies and strangers. “Incorrect choice of a lender from often predatory companies on a non-banking market can often have a fatal impact on a person, including falling into a debt trap, seizure of property and, in worst cases, personal bankruptcy,” explains Libor Dupal of the Czech Consumers Association.
1) Deposit on broker commission
A classic trick of solid societies. You are attracted to unique interest and record low installments. Eventually, however, you will learn that in order to get the money you have to pay a loan fee . An advantageous offer suddenly becomes an unexpectedly expensive loan. In the worst case, nobody will ever hear from you after paying the deposit. Customers of CM Company, for example, know about it. The company lured hundreds of thousands of crowns from lending clients.
2) Paid Customer Line
Especially hard-hitting lenders will shave you even during an ordinary call to the contact line. You can pay tens of crowns per minute of talk. Due to the fact that you will not close the loan in a short time, you can climb up to several hundred crowns with your phone bill.
3) You will not receive the Contract for inspection
Before you take out a loan, read the contract and credit terms carefully. If you don’t find them on the website, have them sent home. This is a warning sign when the loan provider starts to twist and does not want to give you a contract in advance.
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4) No APR
Don’t choose monthly installments when choosing. The cost of borrowing varies and you can pay thousands more for keeping a credit account or simply granting a loan. All the fees associated with the loan will be revealed by the APR or the annual percentage rate of charge. The lower its value, the less you pay for the loan. Unfortunately, scammers in front of you will keep the APR secret.
5) Hard to meet conditions
The mendicants are not afraid of anything. In some treaties, you will find conditions that you cannot fulfill even in good will. For example, the customer must personally document selected documents in the municipality on the other side of the country. The aim of such nonsensical demands is the only one. Pull a fine from the customer for non-compliance with the agreed terms.
6) Dare to be late with the installment
While in a bank or a solid non-bank company you can relatively quickly agree to change the repayment schedule, it is not possible for fraudsters. When you are late for a single day, expect threatening calls and extra penalties.
7) They use legal loopholes and loopholes
Do you want to put your car or your house in pledge? Beware, selected non-bank companies use the collateral transfer of property or car ownership rights instead of pledge agreements. When you get into repayment problems, it’s easier for you to move out of the house. The expert marveled, the layman wonders.