What to Look for When Choosing a Lender
Many people turn to different quick loans in the uk for relief. While there is nothing wrong with that, you still need to be cautious when dealing with lenders. Ideally, you should think that loans are safe and have no extra cost attached to them. However, there are lenders that overly charge.
It is your responsibility to research. Keep in mind that due diligence goes a long way. To help you get settled, here are things to look for when choosing a lender:
Default and post-maturity interest charges
You need to check the default as well as the post-maturity interest charges. If the lender belongs to an association, they should comply with the regulations stipulated. One stipulation is not charging borrowers with a penalty or returned item fees, which is more than the amount agreed by the association.
The lender should not take the title of assets or chattels of customers as a form of security or collateral in the event that the payday loan is not paid.
A lender should put in place a system that restrains a borrower from applying for multiple payday loans especially if it exceeds the amount you were approved to initially borrow.
You need to check the collection practices of the lender. Ideally, they should collect the outstanding amount in a lawful and fair manner. With this, the lender will not succumb to kinds of harassment or intimidation to accumulate the outstanding amount.
Right to rescind
As a borrower, you should know that you have the right to withdraw your payday loan at no extra cost on or before the stipulated time period. This is your right to rescind. A good lender will honor this. At the onset, you should inquire about this or similar provision.
More importantly, you should know about the lender’s privacy protection. As a borrower, it is your right to know what the lender plans on doing with your details. You should look for a lender that will not sell or rent your confidential and personal information to third-party companies without your permission
There are certain situations that will force you to come up with urgent cash. When this happens, you can rely on quick or payday loans but you have to ensure that you can afford to pay it. If you cannot pay it on time, you will surely land in a heap of trouble.