How to detect unfair loan?

It is becoming easier to choose a non-bank loan. You have comparators with enough information, internet credit calculators or reviews. In addition, consumers are now protected by the new consumer credit act, which has made the orientation among non-banking companies even easier. However, you may still come across lenders who will try to earn you. Don’t give them a chance and find out how to expose them.

How to uncover unfair loans?

Discover rogue lenders

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The offer on the non-bank financial market is becoming clearer. The new consumer credit act not only protects borrowers but also controls their providers more. They now need a license from the Czech private bank to operate. Only qualified and trustworthy companies will receive this. Thanks to the law, it is also much easier, for example, to repay the loan early and to accommodate clients in difficult life situations. It seems that the rogue has been eradicated from the consumer credit and mortgage sector. Unfortunately, this is not entirely true. You still need to be cautious about setting up a loan.

Honest lenders are interested in getting the money from the borrower. They want to build a long-term cooperation and they are glad when a satisfied client returns to them if necessary. However, some companies still, despite the limitations of the law, prefer to profit from default penalties, fees, and distraints. So how do you know a non-solid society?

Explore the non-banking company website

Explore the non-banking company website

Search the company’s website for slight hints that may indicate that everything is not right. Your website should include contact information, including email, phone, and business location. At the same time, the website should be clear and everything must be easy to find.

Ideally, the company also has a credit calculator on its site to tell you what your loan might look like. Certainly, draft contracts or other documents must also be consulted.

Find out how much the loan will cost you

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You should be able to get an idea of ​​the price of the loan ideally before contacting someone from the company. Of course, the interest rate always depends on the specific situation. However, if you can easily find a credit calculator, price list, or list of fees on the web, you can make a big difference with that non-banking company.

Also pay attention to penalties for delays, defaults or reminders. Although the amount of fines for consumer and mortgage loans is regulated by law, it is still true that if you choose the right company, you can save up to thousands of crowns.

The annual percentage rate will indicate the total cost of the loan much better than the interest rate itself. The annual percentage rate of charge also takes into account other charges, such as the loan handling fee or administrative charges.

Companies must disclose all costs associated with the loan to customers. If you are looking for an annual percentage rate on your site and you can’t track it, be sharp.

Hands away from loans for everyone

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Once a financial company offers loans to everyone, something is wrong. A solid provider lends only to those who do not overburden the monthly financial budget. In addition, companies are required by law to check the client’s ability to repay. To do so, they can use the so-called creditworthiness, which is checked by debtors’ registers or they are interested in what your monthly income is.

However, the consumer credit act is often circumvented in this respect. Companies can lend you a trade license. Therefore, they are not obliged to control your ability to repay. At the same time, they can set you much higher default penalties and get you into a debt spiral after several unpaid installments.

Interested in the reputation of the provider


Find out where you can about the company. Search the Internet, read reviews and feel free to check it in the business register. Certainly, a non-banking company providing mortgage and consumer loans must be licensed by the Czech private bank, but it can also be a member of various associations and associations. This can be a guide to a reliable lender.

You may find our review of Non-bank Loans Review helpful in finding reviews.

Finally, you can find information about the company on the website of non-bank loan comparators.

Do you understand the loan agreement?

A contract is often a stumbling block when dealing with a loan. Many companies still use outdated contracts and force you to read endless quantities of text that you do not understand. However, other companies try to accommodate their customers and gradually contract and make contracts more transparent.

If you are unsure about something in the contract, your company staff should advise you and explain everything. You can also contact a lawyer to help you explain the loopholes in the contract. However, this should not be necessary for a good non-banking company.

Be aware of how the non-banking company communicates with you

Be aware of how the non-banking company communicates with you

See how your business responds to your questions. You should receive answers quickly, understandably and clearly. If financial company employees are unable to respond to your wishes or are pushing you, be sure to bet on another company.

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