Water Dispenser is a financial product offered by a number of parabanks. These are financial institutions not covered by the supervision of the Polish Financial Supervision Authority. However, the KNF monitors their activities by warning consumers about frauds.
The borrower should remember to carefully read the contract and the total cost of the loan . In this simple way you can avoid the traps set by dishonest parabanks.
Paid data verification
Before the transfer of funds by way of a loan, the company requires the applicant to make the so-called verification transfer. It is made before the loan is granted. It may therefore turn out that the loan will not be granted. The amount of the verification transfer is usually 1 PLN, but some paraffins require a transfer in the amount of PLN 1. In addition, the lending institution may require payment of a fee for verification in the KRD and BIG and for submitting an application for a payment. In practice, the verification in BIG or KRD may not be made at all – then cash is accessed from the consumer who is not aware of it.
The trap for the borrower can also be costly prompts. After the end of the repayment period, the borrower who is in default receives an SMS notification of the status of the debt, or letters of recommendation, which are in fact unnecessary. Charges can also be charged for telephone calls or electronic notifications. Notification about granting a loan can also be paid – these types of parabanks should be avoided by a wide arc.
Costs of debt collection proceedings
Check whether the loan institution charges you an additional fee for just handing over the case to a debt collection company. It can be from PLN 100 up. The upper limit is not given. The costs of proper debt collection will be added to this.
Avoiding the acceptance of repayment
Some parabanks require repayment of the loan at her facility. The network of branches is usually quite limited, which is associated with an additional cost of travel. An oversight can be very costly for the borrower – repayment of the loan by bank transfer to the company’s account will not be considered a repayment. After the expiration of the repayment deadline, you will be prompted and other procedures (eg debt collection proceedings).
The most dangerous trap related to payday loans is the spiral of debt. It is based on the fact that people incurring new loans for repayment of previous credits or loans are falling into increasing indebtedness.
In order to avoid the above-mentioned problems, one should carefully read the terms of repayment and the regulations of the selected parabank.