How to identify a licensed money lender
As accidents or unexpected expenses tend to happen more often nowadays, people are starting to seek solutions for their immediate financial needs. One of the most reliable solutions, in this case, is to apply or take out a loan. But, going to any moneylender can be risky as there as some who are not licensed, which can cause a lot of problems in the future.
If you are in need of a licensed money lender, QV Credit is the place to go. The company have been servicing customers since 2000, and they have the knowledge and expertise needed to help you out with your needs. QV Credit offers both short-term loans as well as long-term loans for those who require more time to repay their debt.
While some of us want to ensure if the agency is licensed, here are some tips for identifying licensed moneylenders in your area.
They won’t ask for your personal information
A licensed moneylender will never ask for your personal information. Instead, they’ll require you to provide them with the necessary documents such as Identification Card or driver’s licenses and other government-issued ID cards before proceeding further.
They’re registered in a regulatory agency
A licensed moneylender will be registered with a regulatory agency. This means that they’re licensed and obligated to abide by the regulations set by the government as well as other laws in terms of their operations, lending requirements, interest rates, among others.
If there is any doubt whether an agency is licensed, verify if it has been registered with any regulatory agencies. You can also check their registration status by going to these agencies’ websites.
They’ll ask for collateral
A licensed loan provider will never give you a loan without asking for some form of collateral such as property or vehicle ownership documents. If someone offers you loans without this requirement, then it’s best not to get involved with them because there is no guarantee if your funds are safe and secure or even returnable at all.
Before taking out any financial product like a loan from any company, make sure first that they’re qualified and second check if they have been accredited already -whether locally or internationally.
They don’t use unclear wordings
A licensed money lender will take pride in their work and make sure they’re providing the best for you. So, expect that they’ll be clear with what the loan entails, such as its interest rates, fees, repayment terms, among other things, to avoid any confusion.
Encourage others who are in need of licensed moneylenders to do some research first before taking out loans from unlicensed lenders, which can cause more problems than solutions at all.
They have a license posted in their office
A licensed moneylender will have their license posted in the office for everyone to see. This is so they can prove that they’re registered, and qualified to do their job professionally and responsibly while satisfying all customer needs at the same time.
They won’t pressure you to take out a loan
A licensed moneylender won’t pressure you to take out a loan. They’ll only discuss the terms of your agreement, and at which point they’re willing to proceed further or not.
Additionally, some licensed lenders offer other products such as loans for those denied by banks or credit card companies before so that way customers can get their finances back on track without worrying about things like unnecessary interest rates or fees.
Tips on how to avoid unlicensed moneylenders
Prevention is the number one key to avoid experiencing any complications or further problems in the future, whatever the case. In terms of money lending or loaning, there are a lot of unlicensed agencies that can potentially scam their clients, and you wouldn’t want to be one of them. Here are some tips to avoid this from happening:
Ask to visit their physical office
An agency that offers financial products like loans should have a physical office you can visit. If they refuse your request or offer to meet with them at some other place, then it would be best not to get involved with them because there is no guarantee if your funds are safe and secure or even returnable at all.
Find out their license registration status
You may also want to ask the agency for their license registration number as well so you can verify whether they’re licensed by any regulatory bodies in terms of their operations, lending requirements, interest rates, among others. This way, you’ll know beforehand what these agencies require before proceeding further, such as collateral documents, which will make things easier for both parties involved.
Read the contract carefully
An unlicensed money lender will likely have some fine print or unclear wording in their contract, which can cause more problems than solutions at all. So, make sure you read the terms and conditions carefully before signing anything, whether electronically or on paper, to avoid any misunderstandings or confusion later on.
Ask for their debt collection method
You may also want to ask the agency how they’ll collect debts if you’re not able to repay your loan on time. Unlicensed agencies may resort to taking measures like contacting your family members, employer or even reporting it as a default with a credit bureau which can hurt your scores drastically and lead to further complications down the line.