Borrowing money is really easy today, especially when it comes to less money. In addition to banks, non-banking companies offer loans on the market, which you can simply apply for online from the comfort of your home. The online loan replaces the inflexible and slow system of banks, where you can have money in your account just minutes after applying.
The online loan application will take a few moments. All you have to do is choose the amount, fill in some personal information and attach your ID card. With regard to responsible lending, most companies require proof of employment income. This protects not only yourself but also you so that you will not be in a situation where you will not be able to fulfill your obligations.
Apply for a loan only with your own account!
The final step in approving the application is to verify the account holder, which is required by law when concluding a remote loan and if the funds are paid to a bank account. This increases the risk of fraud and misuse of your personal information (for example, in the event of the loss of your identity card) and ensures that the intermediary is sending money directly to your hands.
There are several ways to verify your account owner. Most often you can meet the condition of sending a verification 1 CZK with the required variable symbol to the creditor's bank account.
Of course, the verification payment is completely secure and without any risk of misuse of your account. Another way, though less convenient, to prove that you are the account owner is to send the company a statement of your account with all its particulars or confirmation of the right of disposal of the account. But beware, not all companies accept this method.
How is it abroad?
Interesting is the legal regulation of client identification in other countries. Indeed, the statutory verification payment is not quite common and similar legislation as the Czech Republic has only neighboring Austria.
It should be noted, however, that other EU countries have made good progress towards the so-called digital economy, while the Czech Republic is only in the preparatory phase, and in the vast majority of these strategies have only remained on paper. Since 2018 citizens have been issued electronic identity cards with a chip, but their usability is still minimal, and video identification is almost unknown in our country.
It's different, but you pay extra
As mentioned above, the Account Holder Verification Regulation only applies to cashless payments. If you apply for an online loan that will be paid out in cash, there is no need to verify your bank account. The request proceeds as described above without sending a verification payment, but may take up to 48 hours to process. Cash loans also have their drawbacks elsewhere. Their big disadvantage is to pick up the finances themselves, where you can use only two options. You can pick up the money directly from your broker or at the points of sale (eg petrol station). Individual installments are then sent by bank transfer. If you do not have the opportunity to collect the money in person, you can use the "delivery" service.In this case, a sales representative visits you and gives you the money directly at your home. Payments are sent either by bank transfer or through a sales representative who will regularly pay for them. Cash loans are usually subject to additional fees due to higher administration and therefore lose out in competition with non-cash loans.
The complexity of identifying an account holder slows down the entire loan application process and may discourage some new clients. The possibility of identification (though difficult) at a distance was nevertheless a big step forward, as identification was carried out only in the physical presence of clients into the new legislation. Lawmakers are aware of this unsatisfactory situation and, following the example of Germany, the United Kingdom and other states, deal with a possible amendment of the law.
We at Good Lender are also guided by the responsibility imposed on us by the Czech National Bank. Although we know that account holder verification is holding us back, this investment of time is a small tax on the security of our clients. We always try to find the easiest way to maintain the maximum comfort when applying for our loan.