Who Is A Direct Payday Lender?
A direct payday lender is a private individual or entity legal who issues a payday loan to another party of the agreement and has the right to require the pyment back.
In the legal regulations, the common concept of “lender” has a broader meaning than the relationship between the bank and the client. You can lend with a certain type of action – for example, the transfer of goods, the provision of services, the payment of money. Also, the obligation may consist in the exclusion of any action.
But there is another option, how to take out a payday loan, namely to use the aggregator sites (a kind of referral services). Aggregator of online loans – a service for comparing loans and payday loans offered by various organizations. Here you may fill in a short form to see the most favorable offers from different lending services:
Thanks to such services, you no longer need to browse hundreds of lenders issuing payday loans in search of ideal lending terms. Such services cooperate with dozens of different companies providing online loans to the card, including both small businesses engaged exclusively in online lending, and large banks, microfinance companies, etc.
Aggregator sites should not be confused with credit organizations, they never promise anything impossible, moreover, they inform about possible risks and those services that must be paid additionally. It is important to understand that the aggregator is not a guarantee of being approved for a loan, with its help you can choose the company that is ready to cooperate with a potential borrower, help him arrange a payday loan online, taking into account the data that he indicated in the questionnaire. The features of lending are also important, which include the presence of delays, the absence of a permanent place of work, student or retirement age.
Thanks to the use of special filters, those microfinance organizations that do not meet the stated requirements are screened out according to certain characteristics. Some companies do not give money to pensioners and students or do not work with large sums. Those who, in theory, can approve a loan always remain among the recommended ones. In fact, you can’t always get a loan from them – it all depends on the decision of the scoring system.
Let’s get back to the lenders that offer a direct deposit of funds borrowed.
Borrower’s obligations to the lender
The borrower’s obligation arises after signing the contract, which provides for:
- Validity period. Most often calculated in months;
- Demand for repayment of the amount of debt (loan body);
- Obligation to pay interest for the use of borrowed funds.
The term – credit debt – is also used. This is the buyer’s debt to the supplier for the goods or services received. And the supplier’s debt, in turn, is called accounts receivable.
When providing services, the bank charges a commission to the client and is also a lender until its full payment, which has the right to demand payment of this amount as well as any loan.
The lender may assign the rights under the loan agreement to a third party, while the consent of the debtor is not required for this procedure. But he must be notified of the transaction in writing in order to avoid paying the debt to the original creditor. Other rights of the lending party include:
- The claim to compensate for the damage caused;
- The requirement to pay a penalty and its interest;
- Involvement of bailiffs for debt collection;
- Request to ban the debtor from traveling abroad;
- Seizure of the debtor’s property for further sale on account of debt repayment;
- The requirement to repay the amount of debt ahead of schedule;
- Restructure the debt if the debtor is experiencing temporary difficulties in paying it;
- Filing a statement of claim in court.
What to choose: a direct lender or an aggregator site?
Having analyzed many details, we may conclude it is better to use an aggregator site as your request will be reviewed by numerous direct lenders at once. Let’s see some benefits such services have.
If a potential borrower visits the site and specifies the loan parameters necessary for him — the amount, the period of use, the preferred method of receipt, the conditions of issue, the system will issue an up-to-date list of companies that provide payday loans suitable for the request. All data is presented compactly and clearly, in a convenient format for comparison.
If you are interested in any offer, click the “More Details” button and get detailed information about the parameters (rate, methods of debt repayment, required documents, the possibility of early repayment). You can also ask a question about the work of the lending service, which will be promptly answered by an online consultant or a specialist on duty. Having decided on the company, you can immediately proceed to taking out a loan, quickly complete the process and get the right amount.
Such aggregators not only help to choose the optimal loan, but also provide information support. If you applied for a short-term small-dollar loan for the first time, the service will offer companies that provide lower interest loans to new customers.
Tags: finance, online lenders, payday loans