In addition to consumer loans, which in most cases are paid by bank transfer to the client’s bank account, there are also plenty of offers for cash loans paid directly to the hand. These loans have been in high demand in recent years because many people prefer this way of paying.
Especially those who have executions and cannot get money on account (because they would otherwise lose it), but often even those who are in a hurry and want to have money right away, or those who are desperate and want to a loan at any cost, no matter what conditions are associated with it. In this article, we have selected a few types of hand loan that you should definitely be careful of if you don’t want to be a victim of fraud or end up with even higher debts or executions. Therefore, you should pay particular attention to:
On offer fraudulent loans over the phone
Quite often a scam that means that the person interested in the loan must first call the designated phone number. But it is not a classic line, but a special number with increased tariff (usually up to 90 CZK per minute). The operator at the other end then deliberately stretches the call and in the finals the applicant calls thousands of crowns. Moreover, he will not get any loan and will be worse off instead of the promised money. Sometimes it may be a risk at first glance an ordinary number – you can then be redirected to another line that is already paid by a higher tariff. A simple defense is never to call anywhere for a hand loan because every serious company either calls you alone or handles everything over the Internet or over the phone.
For loans with a high fee in advance
Perhaps the most common scam, unfortunately, still find a lot of people who will be fooled. The person who offers the hand loan will inform the applicant that he has the application approved, will receive the money, but must first pay the fee – often up to thousands of crowns. Anyone interested in a loan will pay the fee and will not receive a crown and the credit is rejected. Again, the simple advice – never pay a fee in advance, the only exception is the so-called verification fees, which are only a symbolic one crown.
For unnecessarily overpriced loans
This applies in particular to non-bank loans, which are already huge. Some of them are extremely overpriced and cannot pay off, while there are many more advantageous alternatives. If you want to avoid an unnecessarily expensive loan, use the internet and compare more offers – for this purpose, you will find an independent internet loan comparator.
On loan for bill of exchange with unfavorable terms
Hand loans are often offered on a bill of exchange from private individuals – these loans are very risky and conditions are very disadvantageous. It is much better to borrow from a reliable non-bank company where you can be sure of fair dealing and at least somewhat acceptable conditions. You can find the best ones on the already mentioned loan comparison pages.
Loans with usury interest
This example also applies to natural persons – they often misuse the difficult financial situation they lend money to the hand with insane interest – for example, they lend you CZK 1,000, but they want to return CZK 2,000 in a month. Often, some socially weaker fellow citizens use these offers, but unfortunately their situation gets even worse.
For loans with an arbitration clause
Some non-bank companies have a so-called arbitration clause in their terms (which you must agree to as a client). If you repay the credit on time, it does not concern you, but in the case of late repayment, this clause may cause you considerable problems. Therefore, when choosing a suitable hand loan, it is a good idea to look at this and, if possible, prefer a business that does not use the item.