16 Dec, 2020
Previously, we have discussed about financial intermediaries, and we have received a number of loan inquires online and on the phone, asking ‘What are illegal money lenders-only repaying interest?’, ‘Do illegal money lenders forbid customers from full repayment of loans anytime?’, ‘What is the loan interest for loan at illegal money lenders?’, ‘Will illegal money lenders harass my family?’, ‘Are illegal money lenders financial intermediaries?’, ‘What is the definition of illegal money lenders?’ and ‘Are illegal money lenders mafia?’.
Let’s discuss these questions in the following section!
For ‘Illegal money lenders means only repaying the loan interest’, our Customer Services Department has continuously received complaint calls and Facebook messages, claiming Cashing Pro is an illegal money lender.
Because of this, I would like to explain more detailedly in calculation of loan interest as well as misconceptions of ‘Repayment of loan interest only’ and ‘Full repayment of loan anytime is not allowed’.
As mentioned above, Illegal money lenders are known for only repaying loan interest and forbidding full loan repayment anytime, but why is Cashing Pro considered as illegal money lender as well?
Misconception 1: Loan Repayment SMS
Our customers will receive a loan repayment SMS a few days before the loan is due, showing the loan repayment amount of the month.
Actually, the amount only indicates the loan interest.
After the link of SMS is clicked, customer can check the way of repaying more, i.e. the loan amount.
The amount of loan interest in the following amount will be reduced if the customers have repaid more that the stated amount in the SMS. (The lower the remaining unrepaid loan amount, the less loan interest customers need to pay)
Misconception 2: Loan Repayment Reminder Calls
Our customers will receive loan repayment reminders with repayment amount through SMS and by calls a few days before the loan is due.
However, some customers are unfamiliar with such act (as most of loan companies and banks do not provide such service), leading to misunderstandings of Cashing Pro as illegal money lender.
Misconception 3: 60 monthly Loan Instalments
Cashing Pro’s loan agreements show 60 monthly loan instalments, but actually we allow customers repay loan flexibly, indicating that customers can fully repay their loans anytime instead of being forced to repay the loan throughout the period.
Apart from it, customers can repay more after taking their repayment ability into consideration, leading to Cashing Pro’s another selling point Flexible Loan Repayment.
Misconception 4: Higher Loan interest rate
Cashing Pro’s loan APR varies from 12% to 58%, which depends on applicants’ TransUnion record and monthly income.
After internal assessment grading, the applicants’ loan interest rate is then decided.
When some customers found out their loan interest rates were higher, e.g.48%-58%, they would be misled and believed they have applied loans from illegal money lenders.
If you are interested in knowing the validity of money lender licenses of Cashing Pro or other money lenders, you can check the latest money lender licensee list.
Cashing Pro’s Money Lender License No.: 1583/2020.
We will continue to discuss the frequently asked questions of illegal money lenders in the next section.
Warning: You have to repay your loans. Don’t pay any intermediaries.