When consumers are in a bind for money they often worry about the risks associated with installment loans online, but they shouldn’t be because the government has taken the necessary measurements to protect them. Installment loans have actually become a useful way to borrow money when your credit stops you from getting a credit card or personal bank loan, and you don’t have to worry about getting scammed or in financial stress if you can pay back the loan on the terms you agreed to. Here are a few things that should make you feel secure about taking out an online personal loan that you pay back in installments online.
Late Post-Maturity Fees are Minimal
Canadian law has set the rate for post-maturity loan late fees at 90 cents for the first 13 weeks after the loan due date, and then only 50 cents after that for each $100.00 that is borrowed. This makes paying the loan off even if you had to default more manageable, and you won’t have to worry about getting sunk by fees quickly if something comes up and you can’t pay off the loan right away. This means the interest rate doesn’t double or triple if you miss a payment.
Collection Laws are in Place
If you default on an online loan in Canada, it’s illegal for the company to try to take your wages, or to pursue you with threatening behavior. The lender will not threaten criminal action against the person that borrowed money, and will not attempt to intimidate the borrower in an attempt to collect the money that is owed. This way you aren’t bothered at your place of employment if you miss a payment or there is confusion, and you aren’t harassed in any way.
Collateral Isn’t Tolerated
A member of the loan company is not able to offer or threaten to take collateral as a method of payment for the loan that you acquire. This means they cannot take the title to your vehicle or home, and they cannot offer to take anything else of value to void the debt that you have. Only money to pay back the amount that is owed will be accepted.
If you are in need of funds and you haven’t taken out an online loan because you are worried about online lenders, know that all licensed members follow strict rules to ensure you get a legal and straightforward lending experience. You can borrow the money you need stress free because the government protect you.