In order to conclude a loan agreement with its client, the Payday Loan will follow specific legal instructions. These instructions are created in self-regulatory organizations, one of which should include every microfinance organization. The document of this program is published on the official website of the NMN Bank.
SRO issues requirements for the operation of all Payday Loans that are part of it. If an organization wants to remain a member, it fulfills the requirements. NMN Bank, in turn, monitors the correctness of the developed requirements.
The new program describes orders related to the interaction of Payday Loans and their borrowers, aimed at protecting the rights of the latter. First of all, the organization should provide the client with extended information about themselves – in addition to the name, an entry number must be published in the Payday Loan registry freely available. A complete list, which can be easily found on the website of the ZSA Bank. A reference to membership in a particular SRO and its standards relating to customer relations will be added to the registry number. Plus, the client should have free access to information about additional paid services, if any, and the potential risks of the borrower. And, of course, the user of the service must know where he can go in order to protect his rights in case he believes that they are violated.
Rules for further communication with the current client will also be written in the basic standards. The company must timely inform the client about all points that may affect the terms of service.
The evaluation of the credit history of the potential borrower will also be spelled out specific rules. It will clearly spell out how the Payday Loan can obtain information about the client, and from what sources. Loan before salary should be prolonged a certain number of times a year. This restriction should reduce the number of situations where a borrower takes a loan in order to pay off another loan. According to experts, this leads a person to even greater debts.
Promotional actions of companies, as well as the acceptance and processing of complaints from customers will also be spelled out in the basic standards.
New standards after the development and confirmation of the regulator will be mandatory and all microfinance organizations will have to work according to them.