Payday is nothing more than a civil law agreement
In Poland, there is no specific procedure that would verify the granting of “payday loans” by loan companies or by individuals. So payday is nothing more than a civil law agreement between the borrower and the lender, which specifies the transfer of ownership of a certain amount by the lender to the borrower. On the other hand, as everyone knows, payday loans are characterized by a very fast payment of funds, which we need at a given time, even on an ID card. Publicized by marketing, they have now become very fashionable.
Payday companies are not subject to the Banking Act
Behind everything is … money. Not only the ones we have taken out and we have committed to pay back according to the contract time, but also additional costs such as: very high interest rate. Because payday companies are not subject to the Banking Act, they are not required to comply with the Interest Act. Additional costs are bills of exchange signed when the payday loan is concluded, and so-called extensions, which are very expensive. Loan companies offer us extending the loan when the repayment deadline is approaching and we do not have the funds to repay the commitment. However, as in every situation, there is a way out of this problem. Aggregating costs force us to make another commitment to get rid of the first. However, we are again exposed to interest.
Amortization of the loan costs is only possible at the judicial stage when debt collection companies and then the bailiff will step in. Pursuant to the amendment to the Act, which shifts the court costs, which were previously covered by the debtor to the creditor. At the judicial stage, we are able to write off part of the penalty interest that has accrued due to our late payment.