Small Cash Loans

People who take out a loan must receive a copy

What Information Does a Lender Have to Provide Before Handing Out a Loan?

In a perfect market of competing sellers and buyers seeking to negotiate rationally, prices fluctuate according to market capacity. Payday lenders have no incentive to set competitive prices for their loans because fast cash loans cannot be patented. In other words, if a financial institution chooses to reduce the cost to borrowers to increase their share of the market, competing lenders will immediately do the same, canceling the effect. For this reason, among other things, all lenders on the payday market charge fees in an amount equal to or very close to the maximum fees and rates allowed by local law.

What information does the lender have to give a customer?

As soon as a person receives a cash advance, the lending institution must provide the consumer with documents that include the following:

The name of the business, including its mailing address and telephone number. This should also include their e-mail address and license number.

The lender's name, address and phone number

The amount of the loan

The date the amount is to be repaid to the financial institution

The term of our payday loans (14 days, 28 days, etc.)

The date the lender received the loan (including the exact time)

The annual percentage rate is another thing to consider. The maximum amount you may be charged is usually $15 for each $100 loan installment, but this varies from lender to lender.

A list of commissions, penalties, fees, interest or other amounts already billed or that will be related to the loan

Information about the termination of the loan and the customer’s cancellation rights

Forms that consumers can complete to notify the lender, in writing, that you wish to terminate the loan

An acknowledgment form used by the lender to indicate the amounts you paid or refunded if you decide to terminate the loan. People browsing can learn more about this.

Other things to keep in mind

People who take out a loan must receive a copy of the loan agreement when it is signed, and the lender must review the contract with the customer at the same time. The law explains the information to be included in the payday loan agreement. This information is intended to ensure that you fully understand your obligations before signing the contract.

Make sure you understand all the information in the loan agreement and know the amount you are borrowing, the fees associated with the loan and when you will have to repay. To learn more, visit today.