With the new legislation, the same conditions apply to non-bank lenders as to banks. This means that borrowing from a non-bank company licensed from the Bankate is as safe as a bank, often under even more favorable conditions, for example, without collateral. The Bankate has 15 months to grant the given license, which authorizes the activity. But how do you know now who is a solid lender? And what to watch out for?
The new law turns the market upside down
In 2016, when the lending was still governed by Act No. 145/2010 Coll., On consumer credit, the Czech Trade Inspection Authority conducted 194 inspections. In 39 cases, violations of this Act were found, with fines for more than CZK 5.5 million. Other 103 inspections violated generally binding legal regulations. Although there was an improvement of 20.6% compared to 2015, many fraudulent companies still operate on the market. Therefore, an amendment to the Act was introduced due to the implementation of EU directives aiming at greater consumer protection, which also entails stricter lending conditions, as well as greater supervision of lenders and lenders.
We have already informed you about the conditions that non-bank companies have to meet. The main change is the transition from the supervision of the Czech Trade Inspection Authority to the Bankate. Now, after the license application deadline expires, we may provide you with new details. Of the more than 60,000 lenders and credit intermediaries, only 108 companies, 353 intermediaries and approximately 22,000 tied agents have applied for it.
The Bankate, as a financial market regulator, publishes lists of regulated and registered financial market entities, primarily with the aim of providing the lay and professional public with the opportunity to verify whether entities with which they are able to meet on the Czech financial market are authorized to offer and provide financial services. Therefore, you can find loan providers who have permission to do so on their site. Lloyd Penty is on the list of CNB applicants.
How to recognize a safe loan?
As stated in the introduction, the Bankate has 15 months to assess the application and license. In the meantime, consumers still have doubts about whether they borrow from a trusted and solid provider. The following advice, what to look out for and what to look out for, can help them with these concerns.
First of all, we would advise you not to borrow through an intermediary, but rather directly with the provider. You will be more secure, safer and cheaper. Another criterion that should show you the honesty of a company is whether it verifies your ability to repay the loan. Almost a third of companies have provided loans to clients at risk during the February test. At the same time, looking at debtors’ registers and verifying creditworthiness should be the guiding principle for the provision of secure loans. At the same time, working with registries can affect whether a company gets a license or not.
Loan providers’ unfair practices include the concealment of total costs, the need to sign an arbitration clause, the granting of loans under the Civil Code, and not the new Consumer Credit Act No. 257/2016 Coll. possible early repayment. Be sure to pay on the pay-line or so-called high-rate color lines that can deprive you of money before you say “loan”.
Do we meet the conditions for secure loans, too?
All year 2016 we were preparing for the changes. Now we are proud to say that we have successfully filed your application for a license of the Bankate within the set deadline. We can continue to provide our loans to help you solve financial difficulties since 2004.
By looking at the individual criteria for getting to know a safe loan, you can be sure of the right choice. We always provide loans under fully transparent conditions, without any arbitration clause and without property liability. You will always receive a repayment schedule from us, where you can see all the loan repayment details, including legibly and unabridged written information about the APR and any penalties for late repayment. The calendar also describes how the loan can be repaid. You can choose from four options – by bank transfer, cash deposit to an account specified in the payment schedule, postal order or in cash directly at our Prague branch. As far as telephone lines are concerned, we provide our clients with all information via a toll-free line at 800 187 187. There are no charges for incoming or outgoing calls.
If you want a loan from a proven, solid and mainly Czech company, do not hesitate to use our Easy Loan, where you do not have to worry about hidden fees or sanctions for early repayment. On the contrary, we offer you a safe solution to financial difficulties, including the possibility of refinancing your loan.
Our main goal, which we are aiming for and which we are gradually fulfilling, is to provide secure loans that will be your first choice if you fail in a bank. And all this without the amendment to the Consumer Credit Act No. 257/2016 Coll. it mattered.