The sector of non-bank lenders is relatively confusing given the number of companies operating in this area. So far, the state is not in a hurry to put into effect the appropriate legislative measures.
We do not yet have a register of licensed providers, in this respect we are far behind other countries. You will have to rely on other clues to ensure you are not mistaken. So how do you recognize verified non-bank lenders?
The first thing you can rely on is the Association of Non-bank Credit Providers, which brings together micro-credit providers, which means small short-term loans. On its website, it clearly distances itself from the practices of some institutions that are able to lend to those whose credit history suggests that another financial commitment will be beyond their power. On the other hand, you can be classified as a problem client in the bank due to relatively strict rules and because you have forgotten to pay a few hundred dollars inadvertently, for example, by telephone invoice.
The Association therefore advises on how to recognize users. Which are people who can resort to methods that are definitely illegal! Although at first glance such a loan will look like a great product when you get the money you need for virtually nothing, you should definitely avoid it at all times. If it lends you, especially when you’re already tied to other institutions where you have debt, it may seem like a way out of your problems, but believe it isn’t.
In addition, you always get a loan from a proven provider under clear terms that you know. This means there are no hidden charges and the like. It is absolutely inadmissible to try to use the applicant’s difficult financial situation in any way. On the contrary, the principles of so-called responsible lending come first. Do not be afraid of words like “free” because indeed some institutions offer the first loan for free, ie without any increase and there is no catch.