We make all decisions with our customers in mind. This is why we don’t charge any fees for our service.
In spite of this, there are several different charges that can accompany a loan that you should be aware of.
What Potential Charges Could I Incur?
• Application fees
An application fee is a charge that may be requested of you by the lender to fill out their application form and obtain a loan. This will vary from lender to lender, but several lenders do not charge these types of fees.
• Card authorisation fees
Card authorisation fees, also known as an authorisation request fee is a fee that can be charged to you each time you use your credit card to attempt a payment. This, however, depends on your credit card provider.
• Default fees
Defaulting on your loan means that you have failed to meet the legal conditions of your loan contract. Therefore, default fees refer to a charge that you will incur if you do not repay your loan within the agreements set out in your contract.
• Arrears interest
An account is considered to be in arrears if your debt is outstanding and overdue after missing one or more repayments. Arrears interest, then, is the interest you accrue on those overdue payments.
• Interest rate
Interest rates refer to a percentage charged by the lender to the borrower for the use of its money. The majority of the time, we accrue interest on an annual basis, however, it can also be accrued on a daily or monthly basis.
• Early settlement fee
Early settlement fees, also known as early repayment fees, are applied when you pay some or all of your debt before you are contractually supposed to. These charges are not fixed and will vary depending on the lender.
What Are Your Payment Options?
- Continuous Payment Authority:
Also known as CPA, continuous payment authority is a recurring payment method that is used by several UK lenders which allow them to automatically take funds from the borrowers' bank account on their mutually agreed settlement date each month.
- Direct Debit Authorisation:
Direct Debit Authorisation is abbreviated as DDA and works in a similar way to an electronic cheque. In effect, it is an instruction of authorisation that is sent from you to your bank provider. By doing this, you are giving your lender permission to collect your repayments on their agreed due date. Authorisation is given by your completion of a direct debit mandate form, of which can be completed by paper form or online.
Some lenders may also accept a cheque as a form of repayment. They must be correctly addressed to the loan company and posted to the correct address so that they receive the payments on time.