Online cash loan – Consumer rights

For a long time now, the popularity of loans and loans granted online has been increasing. It can be assumed that this trend will continue also in the coming years.

This is favored by the continuous increase in the popularity of the Internet and an increasing number of slightly older Internet users. Banks can be satisfied with the “internalization” of their credit offer, which allows them to limit employment in branches.

The question arises as to whether loans and bank loans are taken online provide some additional benefits to their owners (other than convenience and the ability to quickly receive funds). Sean Coles comparison experts looked at this issue in legal and financial terms.

You can withdraw from the online loan agreement for 14 days …

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Regulations related to online loans and credits can be found in the Act of May 12, 2011, on consumer credit (Journal of Laws of 2011, No. 126, item 715). It is worth remembering that this act, apart from loans granted by banks and credit unions, also applies to the offer of loan companies.

The aforementioned Act contains provisions regarding credit agreements concluded at a distance (e.g. via the Internet or telephone).

Article 58 of the Consumer Credit Act indicates that the same rules apply to online and telephone contracts as to traditional and credit contracts (e.g. at a bank, credit unions or square loan agent).

The withdrawal period of 14 days is provided

This situation differentiates consumer loans and loans from insurance. It is worth knowing that the conclusion of an insurance contract online gives the customer a much wider possibility of canceling the policy (for the first 30 days).

In the case of consumer loans and online loans, a withdrawal period of 14 days is provided, which is much shorter than for policies purchased online.

However, it is worth paying attention to two principles that improve the situation of the online borrower. First, to comply with the fourteen-day withdrawal period (calculated from the date of the contract), it is sufficient to send an appropriate statement by post to the lender/creditor.

Secondly, the regulations indicate that the lack of appropriate elements of the loan or loan agreement results in the extension of the withdrawal period. This deadline is calculated only from the date of receipt of the amended contract by the consumer and is still 14 days.

It is worth remembering that within fourteen days of withdrawal from the contract, the consumer has the right to resign from credit or loan without giving a reason and incurring other costs than the interest due for the period of the actual use of the measure. in.

Banks, credit unions or loan companies may independently enter longer withdrawal periods from a loan/credit agreement (including online ones).

In practice, there have already been such promotions related to the extension of the deadline, e.g. to 21 days. They can be used because each action for the benefit of the consumer is not prohibited by GFIC and applicable regulations.

Sometimes online credit can be more attractive

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National banks treat the subject of loans and loans granted online in a differentiated manner. Some such institutions have not yet decided to completely transfer the credit procedure to the Internet.

In turn, other banks intensively promote the sale of credit products via the Internet (as an alternative to visiting a branch). In the case of institutions belonging to the latter group, sometimes you can expect preferential conditions for borrowing funds over the Internet.

The above table presents three proposals for cash loans and loans, which are characterized by special conditions for Internet users. We are talking about a Loan for Friday for any purpose offered by GFIC and the popular cash loan Good Finance.

Three proposals for cash loans and loans

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It seems that the first of these banks to offer the greatest financial preferences for Internet users. It is worth knowing that a Loan for a Friday with a value of up to USD 20,000 will have a zero preparation commission if it is incurred online.

Such an attractive promotion is provided for people who as of 31 August 2018 did not have loans or consolidation loans at Good Finance. Each holder of a Friday loan can count on a low-interest rate of 5.00%.

A special internet offer will also be prepared by Good Finance. The lion bank offers a preparatory commission reduced by one percentage point to those who are its regular customers or have submitted an online loan application.

GFIC also has an interesting offer for Internet users. Special conditions for an online loan are provided for new customers of this bank. This Good Finance loan in online mode provides up to 3 months of credit vacation and can be paid on the day of applying online.

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