How to know about lenders, business legality
Borrowing money is a very common activity in the modern world. From private to professional level, every person sometimes might need to borrow money for improvisation of his/her life. There are different types of money lending institutions which provide different kinds of programs for people. Normally a person tries to contact them and a representative from the company comes to him/her work out all terms and conditions of the contract. Now, we always want to borrow money from a trustworthy organization normally. But how can we determine about the legality of a money lending organization? There are some procedures to follow and these are-
- Normally licensed money lenders are allowed to advertise through some legal channels. These might be through social media or some kind of online media, they might have their own website regarding every detail of their offers or their advertisement might be displayed on the front end or the exterior end of their office or premises. These advertisements are normally trustworthy. We have to remember that legal money lending companies do not send anonymous emails or SMS in our cell phones. Either they are breaching their company policy or they are fake.
- Fake money lending organizations do abusive behaviors or they threaten people if someone refuses their offer or contract. A proper and legal money lending organization would never behave badly with a client. If a person falls into this kind of complication, he/she should immediately contact with a lawyer or legal authorities to get a solution.
- Fake money lending organizations normally come up with some kind of unsigned or blank contract to sign and they insist that this is their way of negotiating with people. They also offer some ridiculous bonuses and contract terms which might be hard to believe as a person. But greed is a very bad thing and sometimes people fall into these fake offers and brings harm over them.
- They also grant you a loan without proper credentials and incomplete contract forms. Sometimes they even do not provide any kind of documents related with the loan and confirms the loan only by an SMS or an email. Remember one thing that these loans usually takes quite a few amounts of time to process all the contracts and terms. A legal institution will always do a background check about your profession and your ability about paying the monthly bill which usually takes time.
- Fake organizations try to retain the personal identification cards, national id, passports to harm people in different ways. If you somehow provide them your personal information, you are in a lot of trouble. Always try to keep your confidential document with yourself in a safe place and if you are threatened somehow because of not providing your personal credentials, complain to legal authorities or police about this problem.
- A legal money lender organization will provide you all the documents related with your loan at the time of discussion. All the parameters of their offers will be in detailed format inside the document. They will make you understand each and every terms of that documents so that in the future, you don’t fall into any kind of confusion. For maintaining the proper understanding of the terms and conditions of a loan, consult with a lawyer for transparency.
- Legal money lending organization will never keep any kind of personal information related things of clients such as email ID, passwords, Facebook accounts etc. Never make any kind of contract with those organizations who try to know about your personal Facebook account, emails, passwords etc.
- An illegal money lending organization will try to make some kind of advanced payments over online banking or advanced cash payment via the bank account. They generally do it to skip the important paperwork to be done. A legal organization would never do such kind of thing. They will always try to provide loans by paperwork and face to face discussion with their representative in their office. So be careful about taking any kind of advanced payments from any unknown organization.
- A legal money lending organization will contact you from a registered land line number. Because, Government has made a strict policy towards the money lending companies that they must have a registered land line number. Illegal organizations normally contact people with unknown mobile phone numbers or fake numbers to advertise their offers. These fake numbers are generally numbers from other countries. You should be able to identify these fake numbers for avoiding further humiliation.
- You must do some research about the money lending company who made you some kind of offer. Firstly, you have to check they have a website or not. Then you should try to find their registered number and location of their offices. You can also try to get information via your friends or colleagues who took loan from that particular company. Because some illegal money lending organization mimics the name of a legal money lending organization and then offers false services to the people with the name of the real organization.
Now a day, governments of different countries provide various kinds of money lending programs for students or normal people which are legal and provides various kind of offers with insurance policies. Before taking loan from a private organization, people should try to follow these government programs because the risk of losing money over these programs is very low and a client won’t be bothered or tensed about the monthly payment because government provide a very smooth and reduced amount of per month payment. Nevertheless, you can follow the above mentioned policies to determine the legality of a money lending organization.