The functioning of the credit market really raises many doubts among customers. The average borrower usually has no idea what rights they can exercise. In fact, the borrower has great rights, especially in terms of information.

Credit security in retail banks

Credit security in retail banks

 

However, it is necessary to distinguish between taking out cash loans for more and less risky ones. Retail banks are, of course, the least risky institutions. Retail banks operate on the basis of banking law and the Consumer Credit Act. It can be said that banks have a legal obligation to inform borrowers of all costs and other special features of signing a contract. For this reason, even an unaware customer reporting to a retail bank cannot be deliberately misled. If you think you have been cheated after signing the loan agreement, you don’t have to worry about anything. You have fourteen days to terminate the contract without any formal consequences. Before taking a cash loan, it is very good to study the above-mentioned legal acts, i.e. banking law, as well as the Consumer Credit Act. This way you will see on which debt instruments retail banks base their offer.

And what are parabanks so special?

And what are parabanks so special?

 

On the other hand, parabanks operate on the basis of a standard civil code. The customer may or may not receive full cost information. Parabanks offer more flexible cash loans, but quite risky from a long-term perspective. Even the smallest mistake when repaying liabilities in a parabank results in a debt collection aspect and formal problems. Of course, everything depends on the parabank and its reputation in the industry. However, parabanks are not regulated from above. They are simply classic business activities serving clients in the financial industry.

The credit market awareness is extremely profitable

Each borrower should know exactly which institution they use to take out a long-term cash loan. Knowledge about the credit market is useful to avoid negative consequences. Will you approach the topic of cash loans more seriously?