A Helpful Loan is a loan company that has become widely known recently. Is the Help Loan a parabank or is it illegal?
Read the facts and myths about the Helpful Loan
Recently, an uproar arose over the next parabank after Amber Silver, which is pulling its clients. It got loud about the Help Loan, which the client, according to Gazeta, committed suicide after falling into a spiral of debt.
The media is teeming with information about this company, some are inaccurate and some are even incorrect. How to distinguish facts from myths?
A helpful loan is not a para bank
The first misinformation is to call the Help Loan a parabank. According to the literature, parabank is an institution operating as a bank, which is not legally. An example of a parabank was, of course, Amber Silver, which accepted money from customers and later granted loans from them.
Companies that grant loans from their own funds are not parabanks. This concept is often confused and incorrectly throws all loan companies into one bag of illegally operating parabanks.
Allegations of a helpful loan
The main objection to the Helpful Loan is that they charge a handling fee before granting the loan. This is a non-returnable fee, so in the event of a refusal to grant a loan to the client, no money was returned. We consider such a procedure to be particularly unethical and corrupting the image of the industry and loan companies that use simple and clear procedures.
No less surprised by the sudden interest in the Help Loan, formerly known as PKF. It is interesting, however, that the prosecutor’s office has been dealing with this company for years, trying to find evidence that the company has committed a crime. He has been doing this unsuccessfully for a long time. Why? Because Polish law does not prohibit such practices.
The collection of a handling fee according to the law is no different from the collection of an advance payment, e.g. when selling a flat or a car. If the customer does not comply with the conditions, the advance is forfeited. This is also the case with the Helpful Loan – if the customer does not have the ability to take out the loan, he does not meet the conditions of the contract, so he will not get it and the handling fee will be forfeited.
It’s a hole in Polish law, but it’s legal now
The only penalty that the Helpful Loan got, then called the Treasury, was a 1.2 million penalty imposed by AVB for incorrectly providing the cost of the loan. Considering the fines awarded by the AVB to the financial institution, much larger amounts have already been awarded.
We do not support Helping Loan activities that take advantage of clients’ need and ignorance. However, it should be emphasized once again that you always have to read the signed contract. The culprit of the situation is the leaking law regarding financial institutions which, instead of safeguarding the interests of Poles, allows for such actions. There have been and will not be such companies on our portal or our ranking, because each loan institution located here is checked and recommended by us.