How to check the credibility of a loan company and not be fooled?
Choosing the right online loan should never just be about choosing the right loan amount and repayment period. This is just one of many components that can lead to a final decision. In addition, attention should also be paid to the credibility of the institution that is to provide funding. The company’s stability, integrity and transparency are signs that we, as borrowers, are safe. Fortunately, there are a number of easily available instruments that will help determine the facts of the loan company we selected.
Is borrowing in a non-bank institution safe?
The non-bank financial market has been consistently developing in a pro-consumer direction for many years. In part, the development of competition has required the abolition of socially unacceptable practices and the introduction of more favorable conditions for customers. In addition, the supervision of the state administration over this type of institutions has also increased – in the past few years many legal fortifications have arisen that take care of the interests of borrowers.
The lender is therefore protected in two ways. On the one hand, this is legislation and numerous appeal and ancillary institutions. On the other – a loan company with a high reputation will not allow itself to any misconduct and abuse, so as not to lose its position and even the possibility of functioning on the market. It will be followed by smaller or new companies, which in order to earn their positive image are forced to equal the best. Of course, this only applies to companies that are geared to fair earnings, not fraud.
What is the characteristic of a dishonest company?
At first glance, it is difficult to distinguish between reliable and unreliable company. However, several common features can be distinguished. These are:
- Short time of operation on the market. This is not about the brand, but about the company as such. It should be remembered that most new brands are simply another products of one owner. For example, the Mivus and Saplo brands actually belong to one loan company. Ghost companies that are focused on extorting money rather than lending usually disappear as soon as they appear on the market.
- An unprofessional looking website. It can be a website devoid of elements such as: accurate company data, loan agreement templates, fee tables, loan calculator.
- Company contact numbers that resemble premium numbers. Whether such a number is highly paid can be checked on the website of the Office of Electronic Communications, which maintains a register of premium rate numbers available for everyone.
- The company does not appear in the loan comparator. Not listing such a company in a comparison website and rankings is not a punishment for its activities. Quite the opposite – the fraudulent company will not look for the attention of specialist loan services, so as not to be exposed before it manages to earn the amount it has set up. In addition, it also assumes that people using comparison websites have already acquired some loan awareness, and thus will be less susceptible to fraud. Instead, it prefers other forms of advertising, e.g. on popular classifieds websites, and even advertises on a stationary basis, on leaflets.
- It’s hard to look for opinions about the company in the forums. The same happens when an unreliable company has a Facebook fanpage. Very few comments appear there, only flattering, the possibility of evaluation is blocked, and signs of deleting comments often appear.
We blow cold – we check the legality of companies
The legality of a company’s operation can be verified by checking its proper data, such as NIP, REGON and KRS. Additional information that will confirm or deny the unfair practices of loan companies will be the list of public warnings issued by the Polish Financial Supervision Authority, often referred to as the black list. This register contains information about the activities of companies that may raise ethical or legal doubts, as well as the status of legal proceedings in the case of such a company (e.g. court judgments). The reverse register to the Polish Financial Supervision Authority is kept by UOKiK – it places such companies on the lists that have obtained approval of their activities.
Certificates and awards – it is worth paying attention to the stamps
You can meet with many certificates and awards, which in most cases do not matter much, and sometimes are badges awarded by various, related companies. However, several awards are of exceptional quality, and awarding them to a specific company will certainly mean the highest quality of service, reliability and care for the good of the client. The highest rank decorations are primarily:
- Loan Magazine award, promoting responsible and ethical borrowing, beneficial to clients and not exposing them to financial deterioration. You can be sure that the company awarded this award will comply with the Lender’s Code of Responsibility. Loan Magazine’s partners are, for example, Monego Now, LendUp or Mivus.
- Consumer Laurel, awarded in the annual nationwide plebiscite, in which Polish consumers selected by telephone take part. It has been awarded several times by Mivus and Silarum.
- The Customer Service Quality Star, also awarded by consumers through a special internet platform and mobile application. Tonga is one of the winners.
- Certificate Reliable Company issued by the National Debt Register. Companies awarded with this certificate must comply with the financial code of ethics, are characterized by clear rules and care to provide the customer with the best quality products.
- Financially Credible Company Certificate awarded by BIG InfoMonitor. This program involves, among others BetCredit.