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If you are planning to borrow money for the first time outside a bank, you are certainly asking yourself a lot of questions about their legal basis. We answer the 3 most important. see for more notes

Loan agreement – what to look for?

Loan agreement - what to look for?

According to the law, with each liability whose amount exceeds 1 thous. dollars, the parties should write the contract. As a borrower, you should pay special attention to the following points:
– loan size and total amount to be repaid;
– interest rate;
– information about whether it is fixed or variable (in the second case the lender should also provide possible reasons for the change);
– information about any commission – determining its amount and method of collection (payment in advance or including in the amount of the liability);
– a representative example, from which you will find out what amount you will eventually pay back to the lender – in the case of short-term loans it is much more reliable than the APRC;
– the amount of subsequent installments and the method of their payment;
– the date of signing the contract and transfer of borrowed funds;
– terms of any changes to the contract;
– information about penalty fees and the course of the debt recovery procedure in the absence of timely repayment.

Traditional and online contract – how do they differ?

cash loan

Polish law says that the contract is a mutual declaration of intent of both parties, prepared so that it can be interpreted without any doubt. However, the regulations do not specify what form it should take. This means that in their light a paper contract is as important as an electronic one. Despite this, many of us are still reluctant to conclude an e-contract. In this case, you can print the PDF file and send it back to the lender or go to a stationary outlet – if the company has it. It is also possible to deliver a paper contract from the lender by courier.
This is not necessary, however, because the contract is valid from the time it is confirmed electronically. Remember, however, that it is only valid when both parties can easily open it. So if the lender sends you as a file with an unknown extension, ask for a PDF that opens the same way on all platforms.

Late repayment of the loan – what are your threats?

Late repayment of the loan - what are your threats?

When planning a loan, you should make sure that you can pay it back on time. Otherwise, the consequences can be really serious. The debt collection procedure may consist of three stages:
1. internal debt collection: involves sending phone, SMS, email or letter reminders. Each of them is paid and costs increase the amount of your debt;
2. External debt collection: If these actions fail, your debt is usually resold to a debt collection company. Every day it also increases with penalty interest. At this stage, you can expect a pre-trial payment order, visits by debt collectors to your place of residence, and telephone or email reminders;
3. bailiff enforcement: if, despite this, your commitment remains unregulated, the case goes to court and then to the bailiff. Bailiff enforcement is associated with additional, significant costs (up to 15 percent of the amount of the liability) and unnecessary stress – so it’s worth doing everything to avoid it