Know Your Rights with Lenders While Applying for a Loan

Taking loans and equally paying back isn’t a bad idea, but be very careful not to deal with the few bad lenders out there…

Bad lenders will want to put you through unnecessary pressure with phone calls, messages, or even one-on-one encounters prior to when your short loan settlement is due. Yes, all these to an extent seem necessary, but when it’s been done too often, it becomes really frustrating.

This kind of event is in no way normal and can only happen when you allow it; this is usually as a result of you not knowing your rights with lenders when applying for a cash advance loan offer.

To help you shun unnecessary disturbances from lenders, today’s article will help you know your right with lenders when applying for your next online payday loan.

Questions to Ask a Lender?

Before finalizing a deal with an instant payday loan lender, there are certain questions to ask them, and these include:

1. How long have you been in this business?

2. What do your previous customers say about you?

3. How often would you call me?

4. What would you do if I paid up slightly later than required?

These questions will give you a clearer view of who your lender is and what requirements your loan entails. It will also make your lender knows that you are enlightened on the certainties that go along with short-term loan deals.

You can also surf the net for your lender’s portal and read up some of their user reviews to get more information about them. If possible, seek advice from neighbors, family members, or friends who have taken loans from the same lender.

When Can a Lender Repossess a House?

In cases where you purchased a house via a mortgage loan, you may be threatened with repossession when not due. However, the Financial Conduct Authority holds Mortgage Conduct of Business rules that wouldn’t allow your lender to repossess your house when not due.

In fact, repossession of a house should be a lender’s last resort, so there’s no need to be scared, so long as you can pay up the loan offer.

However, lenders reserve the right to drag you to court if you fail to meet up with the terms and conditions of your loan and in such a case, ensure that you consult with a lawyer or any legal personnel to sort things out with you.

Furthermore, when you discover that you aren’t meeting up with your loan repayment, you don’t have to wait until your lender starts taking drastic actions… Meet up with your lender and talk things out politely.

Let them be duly informed about the financial difficulty that you’re going through and promise them of when next that you’ll be able to pay.

What Can a Lender Do if You Don’t Pay?

The last thing you’d want to do to a lender is borrowing money without the intent of ever paying it back!

You need to understand that lenders are legally obligated to take up some possible actions against you in cases where things get extremely out of hand.

On the earlier stage of your unwillingness of paying up your cash advance loan, a lender will intensify calls, messages, and letters. This is to make you aware of your loan and help you avoid further actions.

As things intense, your lender may give you unexpected visits and probably send out messages to your referees, relations, or close friends. With this, you’ll get closer to the fact that you can’t run away with their money.

If the above actions prove abortive, a lender reserves the right to repossess the house, car, or business you acquired with the loan. He may take you unawares or send you quit notices to get you informed. This however solely depends on the terms of repossession which are usually offered in the terms and conditions section of the loan document.

Can Lender Do Calls and Letters?

On first thought, yes, a lender can call as well as send letters across to you whenever it seems necessary. But this shouldn’t be so often so that you (the customer) don’t get too disturbed.

Most lenders only call their clients to remind them of their loan repayment but some will make it easier on you by reminding you through some indirect means. This could be by sending season’s greetings messages either on a festive day or even on your birthday. They know for sure that when you see a message from them, you will definitely remember your loan.

If you receive too many calls and messages from your lender and you’re getting disturbed, one thing you can do is to register your number on your country’s Do Not Call Registry. This way, you can decide to stop their calls or limit the number of calls and messages they’ll send across.

But please, only take this as a last option!

Can Lenders Charge You a Late Fee?

When dealing with loans, you have to be faithful and pay up on time. If you fail to pay on time, your lender may charge you what is known as a late fee, depending on what your loan terms and conditions entail.

A late fee is usually 3 to 6 percent of your loan, depending on your loan type and country’s policies. Before a late fee exists a lender must have given you a grace period at least for you to work things out.

However, your lender should be human and treat you fairly; this means, your lender should be able to relate with you personally and understand your inabilities.

But in some cases, lenders tend to oppress their clients, and in such cases, you can consult legal personnel to seek advice and probably sue your lender to court where needed. And again, this should be a last option.

Conclusion

Lenders who mount unnecessary pressure on their clients only do that when they know you’re ignorant of your rights. When you know you’re right, you will not only be able to shun them when they get at your neck, you can also sue them when things get worse.

However, when dealing with your lender, try as much as possible to be polite. This would save you the stress of having a case with them. Also, you will end up leaving a good reputation that can help you get easier loans in the future.

Finally, if you’re looking for a really good credible source for your online payday loan needs, we are always here to help!