Your Rights When You Borrow Money in 2018

Borrowing money and living with debt isn’t a great life. It means dedicating a portion of your income to paying back debt and paying a high interest as well. Lenders usually don’t tell their customers anything in terms of what they are entitled to once they borrow money. Instead, defaulters are usually verbally harassed, discredited, or physically assaulted in a bid to recover money.

With financial technology taking over the lending world, customers are finding it increasingly easy to borrow money and with a lot more ease in the transactions. If you need any loans from an online lender, you can check out for further information and details.

A lot of people don’t know much about borrowers rights, but, borrowing money doesn’t leave you at a disadvantage. You need to know what they are.

Your rights when you borrow

When you agree to borrow money, you will be asked to sign a contract. Under the Consumer Credit Act, there are certain rights that the borrower has. To begin with, you need to know if the money you borrow is covered under the Consumer Credit Act. If you don’t sign a legally binding contract with your lender, then, you lose any credibility as well as rights in case there is a legal issue later on.

Here’s what you need to keep an eye on:

  • Check what information is being shared before and after the agreement is signed
  • How an agreement can be canceled
  • What happens when you pay it back early

What Protection Do You Have?

  • When you borrow from a legitimate enterprise, you have a regulated agreement that comes under the ambit of the law
  • You must get a copy of the agreement
  • If you need an extension on a secured loan (except a mortgage) you can get a court order for this

There are a number of loans that aren’t covered by the Consumer Credit Act and it is imperative that the lender give you this information as well as details about your loan. However, if the information is not forthcoming, you know that you’ve probably landed a sketchy deal. So, be wary of lenders like that and know that you can get assistance on your borrowing as long as you borrow from a legitimate source.

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