1.) You can Pay your Loan in Advance
Your thinking of paying your instalments earlier than what you have agreed for with your lender, would this be possible? The answer is Yes, for short-term loans. You can make repayments in advance as per Consumer Credit (Early Settlement) Regulations of 2004. Lenders have the power to charge interest up to 58 days on early settlements but most of them will only charge borrowers with interest with the period borrowed. Before applying for, it would be best that you checkout the lender’s Early Settlement Policy first so you will know what you’re in for if you decide to pay in advance.
2.) Never Miss Your Payments
It is imperative that you make every repayment on time to avoid incurring penalties but sometimes life just happens and there are instances wherein we are just completely helpless with our finances. So you will know the possible consequences you will have to face once you miss a repayment, it is worth learning the lender’s terms and conditions for such an event.
You also might want to learn when the lender will try to retrieve payment again once you default from the agreed period of repayment. Normally, though, the penalties for late repayments are relatively high and it is important that you do everything in your power to prevent this from happening.
3.) Know the Corresponding Methods of Repayment
Short term loans commonly employ what is called the Continuous Payment Authority (CPA) which allows lenders to automatically collect repayments from their clients by taking them directly from their bank accounts, mostly via debit card. Lenders can also make automatic repayment collections through direct debit arrangements. The most important thing to remember is that you have a clear understanding on the method of your repayments, all the specific dates and amounts, before you agree to take on a loan.
4.) Regulations for Short Term Loans Online
If you believe that opting for a quick, short term loan online, is the ideal solution to your current financial situation, then you might want to know some of the leading authorities responsible for regulating this type of credit. This way, you will have valuable knowledge on how to protect your rights as a borrower.
• The Financial Conduct Authority – If you want to know the legal and proper standards involved on these type of loans then the FCA or Financial Conduct Authority is the name that you will want to seek out. This leading authority in the regulation of the consumer credit industry, promotes the common welfare and protection of borrowers.
• Alternate Dispute Resolution – If you have filed a complaint against a lender but has yet come to a resolution that meets your satisfaction, you can seek the aid of an Independent Resolution Service known as ADR or Alternative Dispute Resolution). All information about the service can be accessed in the HYPERLINK “http://www.financial-ombudsman.org.uk/” Financial Ombudsman Service (FOS).
• The Good Practice Customer Charter – If you have applied for a loan from a lender who belongs to the four main credit trade associations, then this is the right place for you. This costumer charter governs and guides all parties involved and aims on providing even more rights and leverage to consumers than what is currently being given by the law. All the information that you need about the Good Practice Costumer Charter can be found at the Consumer Credit Trade Association (CCTA).
5.) Advice and Help on Debt is Available for You
Finally, always remember that when you are facing financial struggles in your life, there are a few non-profit and government-based services readily available to offer you free advice and support. From ushering you towards effective means of consolidating your debt, to helping you in coming up with a viable plan to manage your money much more efficiently, these groups will help and guide you to the best financial solutions to your current problems.
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
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Rates from 45.3% APR to 1575% APR – we provide a no obligation quote, your APR will be based on your personal circumstances