The consolidation of payday loans is the most difficult and time-consuming process our clients deal with. The number of significant factors that have an impact on effective debt relief from non-bank products is much higher than when consolidating bank liabilities. Today’s entry begins a series devoted solely to the issue of payday loans and non-bank loans – and how to free yourself from them.
Banks and payday loans
Unfortunately, the low flexibility and slow response of banks are the biggest obstacles to getting rid of expensive loans. Whether you like it or not – loan companies have flooded the Polish financial market. Despite various legal regulations introduced by the State, the banking sector is extremely slow in this respect.
Many banks still do not allow consolidation of payday loans, and those that allow such a possibility – finally and so often very often because of the non-banking history – refuse to grant a loan. Adding to this the prevailing mess, continuous employee turnover and the lack of didactic training for them – very often the borrower in debt is left alone.
Payday loan and BIK- a complicated topic that definitely requires a broader description. What is important – over 90% of companies report their loans to BIK and they are visible in downloaded reports after submitting a credit inquiry. This is usually the most important reason for refusing a loan.
However, there are banks for which having payday loans is not a problem. For some, however, it is important whether they are revolving loans, i.e. granted for 1 month, or installment loans, i.e. they will be repaid in a minimum of 3 installments.
We will also describe this aspect in more detail in subsequent entries. The number of credit inquiries that can be generated by people looking for financing in one day is huge. These days it is a huge obstacle to getting a bank loan – we will also write more about it in our cycle.
Cooperation with payday loans
The payday consolidation process – requires proper preparation – not only in terms of documentation, but also aspects related to the report in BIK.
Many inaccuracies in relevant data are the most common reason for a much longer application processing procedure. The most common of them are:
- incompatibility of the data contained in the contract and those forwarded to BIK (date of conclusion of the contract, loan amount, etc.)
- reporting to BIK much longer delays than the actual borrower’s
- a lengthy procedure of issuing certificates by the loan companies regarding their debt
- a discrepancy of information provided by email and telephone
We often encounter these obstacles in our work. However, we are able to deal with them effectively. For an inexperienced person, this will be a path through torture, which usually ends in failure.
These are just some of the problems we try to overcome together with our clients. Each case is different, but thanks to our experience we are able to help in unusual situations. If you are in a similar situation, please contact us.
We invite you to follow our next posts related to the consolidation of payday loans. The knowledge you acquire will allow you to face the problem once and for all.