The entry into force of the anti-usury law has imposed certain restrictions on non-bank companies to protect the interests of customers.

First of all, it is about abolishing high commissions for extending payday payday limits and limiting them to a minimum so as not to drive clients into a spiral of debt. Borrowers who have problems with timely repayment may use the loan refinancing service. Is this legal and how does it work?

Refinancing a loan – what is it?

Refinancing a loan - what is it?

There are various situations in life, and even a reasonable household budget can cause financial problems. It is difficult to meet the debt in a timely manner, which is why companies operating in the non-banking sector provide the opportunity to refinance the loan to avoid the unpleasant consequences of default.

Refinancing a loan is nothing more than incurring another debt with another company to cover your previous debt. In practice, this means that in the event of problems with repayment, you should contact your lender. He will propose the option of refinancing the loan, while providing contact to a friendly company with whom he works.

The loan granted in this way is entirely intended for repayment of the debt, and the new lender becomes the creditor of the debt. In this way, you can avoid the consequences of non-repayment on time and extend the loan period for another month.

Refinancing and extension

Refinancing and extension

Many people use these terms incorrectly, because although they are supposed to help repay the loan, they differ significantly. First of all, extending the loan involves postponing the repayment date by another period. This is associated with a lot of controversy, as the Anti-usury Act slightly limited this service.

It’s about the high commission costs charged by companies in exchange for the option of postponing the repayment date. Currently, fees are kept to a minimum, which is why many lenders have stopped offering this option because it is unprofitable for them.

Instead, they introduced a loan refinancing service that is perfectly legal and facilitates repayment. The most important difference is that refinancing is provided by another non-bank company, while the extension is made by the lender who granted payday loans.

Refund for payday extension


Thanks to the entry into force of the anti-usury act, many people managed to get out of the debt spiral. The abolition of high fees related to the extension of loans enabled borrowers to apply for a refund for refinancing payday loans . The courts were flooded with this type of case and many of them ended successfully with the debtor.

The necessity to pay monthly fees for the extension of payday payday meant that after a few months the entire debt was covered in full, and yet the borrower had to continue paying the commission. Therefore, courts remitted the need for further payments and established refunds from payday loans , which were unlawfully charged by lenders.

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