Lawyer for credits and microloans (MFI)

Life is dynamic, sometimes situations arise when funds are urgently needed. In such cases, many people turn to microfinance organizations (MFIs) for a quick loan. However, the ease of obtaining such funds often turns into significant problems for borrowers due to sky-high interest rates and strict terms of contracts.

A large percentage for use is a feature of microloans

Unlike bank loans, where the interest rate can reach 20-30% per annum, MFIs offer loans with interest rates reaching 500-700% per annum. This means that in a short period of time the borrower can overpay an amount that significantly exceeds the loan itself.

What are the main difficulties that people have when lending in MFIs

Opaque contract terms:

• MFIs often use complex legal wording, obscuring the true lending conditions.
• Contracts may contain vague wording, ambiguous interpretations, and hidden fees.
• Borrowers do not always have enough time to carefully read all the terms of the contract before signing it.

Imposition of additional services:

• Unnecessary insurances, SMS notification services, legal consultations, etc. may be added to the basic package of services.
• These additional services significantly increase the total amount of debt, making it even more burdensome.
• It is often difficult for borrowers to refuse these services, because they are already included in the contract.

Penalties and penalties for late payment:

• MFIs apply strict penalties for late payments, which can reach 1-2% of the amount owed per day.
• Fines and penalties add up quickly, adding significantly to the total amount owed.
• Even minor arrears can lead to significant financial losses for the borrower.

Pressure from the collectors:

• In case of non-payment of debt, MFIs often resort to the services of collectors who use aggressive debt collection methods.
• Collectors can call the borrower and his relatives at night, threaten, blackmail, apply psychological pressure.
• Such actions of collectors can negatively affect the emotional state of the borrower, his reputation and relationships with others.

Possible consequences if problems are not solved?

Unfortunately, people often do not take the situation under control, as they do not have enough funds to pay all the accrued interest and fines for using and defaulting on the loan. This leads to the following consequences:

1. Foreclosure: MFIs can initiate lawsuits to collect debt, which can lead to the seizure of assets, accounts, and wages.
2. Deterioration of credit history: arrears and non-payment of loans negatively affect the borrower’s credit history, making it difficult to obtain loans in the future.
3. Stress and psychological pressure: Constant debt problems can lead to serious psychological problems, depression and even the destruction of relationships with loved ones.

Pay high interest and fines or use a lawyer?

Contacting a qualified lawyer on credit disputes and MFI can help:

1. Understand the terms of the contract. A lawyer will help you understand the complex legal wording of the MFI contract and explain your rights and obligations.
2. Appeal against the illegal actions of the MFI. A lawyer can help you appeal the fines, penalties and other illegal actions of the MFI.
3. Restructure the debt. In most cases, a lawyer can help you agree with the MFI on debt restructuring, which provides for more favorable repayment terms.
4. Protect your rights in court. If the case goes to court, a lawyer will represent your interests and protect your rights.

The advantages of our law firm in this matter

Our law firm has extensive experience in resolving disputes with financial institutions. We offer an individual approach: we carefully study each case and develop a personal strategy for protecting your rights.

Our lawyers have in-depth knowledge of legislation and experience working in courts. We offer fair prices for our services, which are usually well below the huge microloan interest rates that we help reduce. Remember that not all MFI decisions may be legal, and often you simply need the support of a qualified attorney to effectively and profitably resolve a complex matter. The company “Prykhodko and partners” will provide such support to each client.

If you need advice or want to know the price of a lawyer’s services for loans and microloans, fill out the form below.