Contrary to appearances, getting a loan without any additional costs is not so easy. There are several reasons for this.
Free payday terms
The basic condition we must meet when applying for a free loan is being a new customer. This means that we have never used its services before.
This also applies to borrow a given non-bank company. The second requirement is the repayment. It must take place within no more than 30 days from the date of the contract with the lender. The exception is Extra Cash, which has a repayment period of 45 days for the first loan.
No timely repayment
If for a variety of reasons, we are unable to return a free loan within 30 or 45 days, it will cease to be a 0% payday loan. The lender treats our negligence as a breach of contract, and thus – automatically charges the repayment of the overdue loan with interest.
Their amount is the same as for payday pay, which normally requires payment of commission and interest costs. To this, he also adds the costs of debt collection activities, mainly reminders, which are in the form of SMSs, telephone contact, email or registered mail. The amount of fees for the remainder of exceeding the repayment deadline and the request for payment is determined individually in each loan company.
A telephone reminder will cost us 5 or 7 USD, but we will pay 19 USD for a letter prompt
The fee applies to every call received. In some cases, lenders set a limit on the cost of a given form of admonition to an unreliable customer, e.g. the cost of SMS prompts may not exceed USD 20.
In the event of problems with the timely delivery of a free loan, the alternative may be to decide to extend the repayment date. The option is paid, but it gives us additional days for us not to be subject to debt collection activities.