Do you want to take out a personal loan in New Mexico?
Here are some tips from a lawyer: the aggressive advertising campaign of companies offering loans at every turn makes the term ‘payday loans’ no longer a stranger to anyone. There are already real legends about these products, which in most cases have nothing to do with the truth. The law firms, which decided to take a closer look at the process of granting loans, also reacted to such a great popularity of “payday loans”. Here are some tips from an attorney.
Check the company’s credibility: personal loan rates New Mexico
Probably the most common advice when it comes to loans granted via the Internet. Before signing any document you should check how long the company has been operating on the market. The prospective non-bank financial services industry creates conditions for the coexistence of many institutions, a small part of which is aimed at deceiving the consumer. It is important not to hit them. Most information about loan companies can be found in the Central Register and Information on Business and in the National Court Register. Access to both is completely free, also possible via the Internet.
Best personal loan rates New Mexico
Few consumers are aware that before signing a contract, you can ask the lender to prepare such a project – its design should be completely free. The document prepared in such a way is worth to take home with you and analyze it in peace, marking all dubious issues. If the document is completely incomprehensible to the average consumer, it is better to look for a new lender. Some companies deliberately edit the content of the contract in such a way that the client had little knowledge about the mechanisms for granting and paying the liability.
How to get a personal loan in New Mexico?
Loan companies, although they operate on the basis of civil law, not banking law, can not edit contracts freely. They must comply with the minimum standards included in the Consumer Credit Act. According to this legal act, the contract should include, among other things, information about: duration of the contract, total loan amount, time, method of payment and repayment, interest rate and terms of its change, APRC, other costs, annual interest rate on overdue debt, conditions its changes and possibly other fees for arrears in loan repayment, the consequences of non-payment, the type of collateral required, conditions and the right to terminate the contract before the date and conditions and the right to repay the loan ahead of schedule.
Personal loans for people with bad credit New Mexico
The previous part of article about secured personal loans in New Mexico was primarily about the issue of contracts with the lender and its credibility on the market. Now, however, we will look at other issues, less publicized by the media, which, however, are quite important from the point of view of the client’s legal security. What are we talking about?
Security for the loan – best personal loan rates New Mexico
Quite a common practice among companies providing online loans – they must have some security in case of customer dishonesty. How does this work in practice? The lenders on the contract often contain a higher than the actual cost of the loan, eg: the client wants to borrow $2,000, but the contract amounts to $5,000. What happened to the other money? They constitute a loan repayment security.
Note: If the customer has notorious delays in repayment of installments, some loan companies will demand the return of the entire amount from the contract, not only the one that was actually paid out.
Blank promissory notes
To the issue of blank promissory notes, lawyers have been very skeptical for years. So the council can only be one: if someone asks you to sign a promissory note to secure a loan, do not sign it under any circumstances. Why? In the event of delay in payment of installments you will be required to pay not only capital and interest resulting from the loan, but most often also all other additional costs, saved so-called. “Small print”. The total amount can therefore be horrendously large, and if it is not paid, the lender will have a lot of room for justice. This is due to the so-called promissory notes in force in USA. The “prescriptive procedure”, according to which the possibilities of effective defense of the debtor’s rights are significantly limited.