Who wants to borrow a smaller amount of money, but really does not want to have the slightest entry in the registers, can use the offer of some non-bank companies that provide the product loan without a registry . It is a lending process that is not reflected in the registers – these non-banknotes are not members of any of the registers. However, their products are even more risky and more expensive. They can also enter the debt trap for the client. That is why it is always necessary to rethink their taking and plan the installments consistently.
The obligation to register in registers is not given by law
Credit companies have a number of basic obligations related to lending given by the Consumer Credit Act. For example, it is the duty to find out the applicant’s creditworthiness, the obligation to keep the same conditions offered to the applicant for two weeks (the applicant has 2 weeks to decide on the offered loan), explain to the applicant everything so that he is able to understand the service offered, including all its terms .
But the obligation to register the applicant (then the debtor) in the debtors register is no longer strictly given in the law. The law does not force non-bank credit companies to become members of one of the registers. Therefore, some credit companies do not work with registries at all, even when assessing and applying for a loan.
In the case of a loan without a register, let’s count on lower amounts
Given that a loan that is not viewed and not entered in the debtors register is a relatively large risk for the credit company, it must be assumed that it will be provided to a very limited amount. And at a relatively high price.
The provider of this type of loan, which is often also available online and very quickly, basically, must somehow insure its profit. And because of the high probability that not all borrowers will properly repay, these companies will ensure sufficient income just by the high price of their services.
They know that people who are in some disadvantageous situation will be able to take out the loan without having to view or register in the registers. Therefore, they will be willing to pay a higher price for the loan. Despite this, loans without registers can sometimes come in handy. Especially in situations where the client needs to conceal the credit. For example, because he is liable for credit to a relative, but he himself has gotten into a situation where he needs money.
What is not in the registry, does it exist?
Can loans without registers be taken as essentially non-existent? That the borrower does not have to return the money when his debt is not written anywhere? Not. It is a classic loan when a contract between two parties was concluded. Therefore, this loan is as valid as any other written in the registry.
The only difference is that if a client goes to another loan for another company, no one will see the previous loan without a register, it will not come to her when the client does not admit it. But beware, these forms of credit can easily become a big burden. Especially when the client loses track of them and gets over. Then they will be penalized for delays and defaults, which can trigger a dangerous debt spiral.