In fact, the banks no one deceive customers. Because otherwise the borrower could apply for a credit institution to court and get your money back and still get the payment from the bank. Therefore, banks have much more cunning. Using some of the techniques, it turns out that the borrower deceived himself and the bank as it turns out not to blame. However, in order to save their money and not spend too much, do not necessarily have a degree in law, or to know the ins and outs of banks from the inside. Generally, all banks use the same methods of trapping the borrower, knowing that is very easy to recognize deception, and not to yield to it.
One of those ways – it is an advertisement. Often, in its promotional materials indicate banks surprisingly favorable interest rates. In this case, the most important, as is always the case, most states in small print. Usually in such cases in the promotional material indicated monthly rate, this, by itself, is twelve times less than the annual. As a result, it turns out that the interest rate in the bank, despite the apparent benefit in the brochure, it will be much higher than in other credit institutions.
Moreover, sometimes the banks indicate in their promotional materials that the loan they generally will be free. Some people are happy to believe in it and apply to the bank, and then wonder why they are so much need. Banks with a clear conscience indicate an interest rate of 0% the largest font, and the smallest write that this special offer, which operates the first month, and then the rate will rise, and significantly. Sometimes grace period can last a few months, but all the rest of the time your debt rate can increase by up to 60% -80%. Thus, despite the early months, when the loan will be really free, overpayment in all other months will be so great that ultimately it was better to go to another bank.
Another common way of deception – is to increase the interest rate. Almost every borrower knows or intuitively realizes that increasing the interest rate unilaterally bank has no right. This is true, but there may also be some tweaks. Let’s say you took out a loan at 17% per annum, and a year rate increased to 19%. How is this possible? It’s very simple. A year ago, the bank operated action, the rate was reduced, and a year has passed and the event rate increased to normal values. It is absolutely legitimate, given the conditions stated in the contract, so technically it is not an interest rate, on the contrary, it is a discount as just ended.
Sometimes banks may require you to repay the loan ahead of schedule. It is illegal, but in some cases, banks are going to such a step, if the borrower incomes decline. However, if the borrower would violate the terms of the loan agreement, the bank may require it to pay off the loan early. In the event that you will repay the loan without fail, then the bank will not be able to reduce the time, but he will be able to reduce the issuance of debt at the stage of the loan. This happens for the standard scheme. Suppose you arrange the loan for a certain amount, which counts on, but you get a smaller amount. This occurs because the bank takes the issued amount of the various commissions, fees for insurance and so on. As a result of these actions credit becomes much more expensive, because you get a much smaller amount, and pay as if were a lot more. The preparation of documents for this to be watched very closely, and if this time you are not very clear, it is necessary to clarify it for assistance.
Another way to cheat the borrower – is to charge for services that are required by law to be free of charge. For example, information on bank debt should be free, but some lenders require borrower money every time he wants to know how much he still has to. If you are in this situation, it is necessary to protect their rights. Under this provision, the borrower has the right to know the amount of his debt to the bank, the amount of interest paid, pending charges. The implementation of the rights of the consumer cannot be named due to the payment of any compensation.
All of these disorders will seem insignificant compared to the antics that make some of the banks in the event of serious delinquency. The thing is that sometimes, when the debtor does not pay for a long time, the bank draws on his other loan, through which extinguishes the debt first. Needless, ultimately the borrower’s debt from growing further;
Also, it also happens that the borrower himself is guilty of an arising problem. For example, when repayment of the loan payments and the bank client cannot be matched, resulting in the borrower will be sure that he did not have to, but the bank will know for sure that’s not all. But once it’s on the credit institution will let you know. It can take quite a bit of time in which the amount of your debt will increase many times before you turn to the bank’s employees to demand it back. In this case, will have to return much more that the amount that was originally;
To avoid falling into such a situation, it is necessary to require a bank certificate stating that the loan is fully repaid. Well to avoid other problems, you need to pay special attention to the accrual of interest, when conditions change, what happens if you fail to pay on time, for whatever scheme the bank will work on your debt in case of delay.
Jennifer John writes regularly on business-related topics for various websites and blogs. She performed deep review and research in fast loan. Her tips and experience on finance is therefore very much useful to get a settlement loan today.