Obeying the law
One of the priority principles that guide the responsible lender is compliance with the law. In Poland, all provisions related to granting cash loans are regulated by the Consumer Credit Act and the Civil Code. Ethical conduct is also associated with acting in accordance with the provisions relating to the protection of consumer rights. Therefore, the lender should provide the customer with comprehensive and comprehensible information about the products offered and the contract, as well as the consequences of failure to comply with its provisions (e.g. late repayment). In addition, it should allow contact before, during and after the transaction. It is important to inform about the possibility of withdrawing from the contract, making a complaint or making an earlier repayment. It is the duty to choose the loan amount and repayment period to suit the client’s actual capabilities, so that the financing does not lead to a debt spiral.
Individual approach to client
The list of obligations of a company operating according to the idea of responsible lending also includes an individual approach to each client. This issue concerns, among others scrupulous checking of the creditworthiness of the person applying for a loan (verification in economic information bureaus, etc.) and seeking solutions satisfying both parties in a situation where the borrower has problems paying back the debt. If it is necessary to take debt collection measures, they should be carried out in accordance with the law.
Running a responsible business applies to all means of advertising a loan company services – they must not in any way mislead the recipient and contain so-called “Hooks”. In addition, they must include information about the APRC, i.e. the actual annual interest rate.
It is worth emphasizing that the responsibility for the contracted obligation lies not only with the loan company, but also with the person using its services. In practice, this means that from the moment there is a need to obtain external financing by receiving money after paying off the debt, the customer should act in a common sense.