At a first glance, short-term loans with a high-interest rate look like tricky and risky deals. However, every payday loan agreement comes with appropriate liability and security guarantees that are designed to protect the interests of both parties. In that way, one should not be afraid of taking a microcredit as there are numerous protocols that ensure the safety.
When a person borrows money, he or she signs an official document with the other party, a lender. The official document ensures that the deal between two parties has taken place. The contract specifies the terms and conditions of the deal. In other words, the contract is an instrumental document answering questions such as who? what? when? how? and how much?
The parties of the credit agreement confirm their intentions, liabilities, and responsibilities with a signature. In addition to simply specifying this information, the contract is useful when a party fails to perform its liabilities or in other situations when the things go wrong. The most applicable example is that contract can be used as an evidence in court. This way the contract serves as the most important instrument for this type of business relations.
How Accountability Is Guaranteed?
Accountability of parties is ensured because the contract includes information about their name, address, phone number, status, etc. For example, the liability of the borrower is always ensured because an individual who wants to borrow money always has to fill in the application form with his personal information, including first and last name, ID card, passport, driver’s license, place of employment, address, phone number.
In that way, it will always be easy for the law enforcement agencies and the lender to reach the borrower in case of a refusal to pay back the debt. The same applies to the lender. The details about the legal name of the lender, its address and telephone number are known. As a result, in the event of a misconduct under the contract, the lender would be held accountable.
How Secure Are Payday Loans?
At this point, you may rightfully start to believe that no party will be able to refuse to conduct its obligation under the contract without legal consequences. Now, let us shift your attention toward another significant issue that tends to bother the minds of many people. We are talking about security. With the rise of hacking, spying, and internet malware, security becomes a concern for all.
It is only natural that in these circumstances people worry about giving their paying details as well as personal and other sensitive information to even very credible websites, let alone the websites of some lenders. The websites dedicated to payday loan lending take the following measures to ensure security:
- Encrypt data about the clients’ bank accounts and other details;
- Use firewalls and antimalware software;
- Have antivirus installed;
- Use safe cloud storage.
Hopefully, this information will boost your confidence in payday loan lenders. However, as a matter of prudence, you can take active measures from your side to ensure even greater security. For example, you should never give away information about your passwords, email, date of birth, place of residence, bank account to anyone who is suspicious or is not credible enough. This is a good method for keeping yourself safe from hackers and scammers.