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  • FIRST POST
    • badwithmoneyman
    • By badwithmoneyman 15th Nov 17, 11:42 PM
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    badwithmoneyman
    Took out loan 16 days ago, still don't have details about loan, can I still cancel?
    • #1
    • 15th Nov 17, 11:42 PM
    Took out loan 16 days ago, still don't have details about loan, can I still cancel? 15th Nov 17 at 11:42 PM
    So I took a rather ill informed loan, I needed money and used a loan company. I asked constantly for the full details of the loan over the phone (which I recorded) and via email maybe 6 times. Still the details never, I signed the contract and only had time for a brief scim read the documents and then signed.

    16 days ago the funds were put into my account. I was over and over told that I would get a welcome pack and that I couldn't get the details in writing until the loan went through as they were generated by the system.

    I now have enough money to pay off the loan, via my parents.

    The interest rate is 15% with £200 to pay for each 6 months you have the loan out if you pay off early.

    I have emailed and called but the person I dealt with is "away without a date" from an automatic response.

    Bottom line, I needed money and panicked, I would do things differently. I know that in the UK you legally have 14 days to back out, I have missed this date. I still have not received confirmation of the loan other than actually having the money in my account.

    I feel stupid, but maybe somebody here has an idea?

    Cheers guys and sorry for the questions.
Page 2
    • badwithmoneyman
    • By badwithmoneyman 28th Nov 17, 9:47 AM
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    badwithmoneyman
    Right makes sense then.

    It also says in documents I've now received, "this is not cancellable". So I wonder, does that mean I can't end early? Or can you always settle early?
    • StopIt
    • By StopIt 28th Nov 17, 9:58 AM
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    StopIt
    Right makes sense then.

    It also says in documents I've now received, "this is not cancellable". So I wonder, does that mean I can't end early? Or can you always settle early?
    Originally posted by badwithmoneyman

    With CCA regulated debts, you can settle early.


    Unregulated ones? It's down to the terms you signed.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • badwithmoneyman
    • By badwithmoneyman 28th Nov 17, 10:09 AM
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    badwithmoneyman
    ouch.

    Is cancelling the same as settling, I am almost certain they are 2 very separate things. But why would you ever put you can't cancel this contract on a document? I would have thought that is obvious.

    Am I able to post the terms online? From a legal perspective.
    Last edited by badwithmoneyman; 28-11-2017 at 10:22 AM.
    • StopIt
    • By StopIt 28th Nov 17, 12:24 PM
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    StopIt
    ouch.

    Is cancelling the same as settling, I am almost certain they are 2 very separate things. But why would you ever put you can't cancel this contract on a document? I would have thought that is obvious.

    Am I able to post the terms online? From a legal perspective.
    Originally posted by badwithmoneyman

    No, they're different concepts but I was addressing a different point, but apologies for the confusion.


    I'd be wary of posting entire documents online, but feel free to look through it for any references to settlements etc.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • redux
    • By redux 28th Nov 17, 12:49 PM
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    redux
    If this is a broker, can you approach the lender direct, or is that unknown, or doesn't want contact?
    • badwithmoneyman
    • By badwithmoneyman 28th Nov 17, 12:52 PM
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    badwithmoneyman
    I know who it is as the money has their name on my bank statement. Interesting idea, I imagined that the contract I have is with the broker and not the lender?
    • badwithmoneyman
    • By badwithmoneyman 28th Nov 17, 7:17 PM
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    badwithmoneyman
    So it appears you cannot leave early without paying the full interest either, I've had a settlement offer of 30k, for the original 18k loan. I have paid one month off already.

    Also with them not supplying me the documents I originally signed I can't actually see effing. But I imagine this is water tight and there is no way out other than an expensive lesson? ��
    • badwithmoneyman
    • By badwithmoneyman 29th Nov 17, 2:04 PM
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    badwithmoneyman
    "THIS AGRRMENT IS NOT CANCELLABLE
    Charges will be payable by you as follows:-
    Lost of charges
    MISSING MAYMENTS"

    Its worth mentioning I was told that the effective interest rate of the loan was actually 3.9% APR, if I claimed these outgoings as an expense in my limited company?

    So this, I imagine means that I am completely locked in for the duration and there is no option to pay off early without paying the full interest rate of 49%, correct?
    Last edited by badwithmoneyman; 29-11-2017 at 2:11 PM.
    • bazzyb
    • By bazzyb 29th Nov 17, 4:35 PM
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    bazzyb
    Is there actually an interest rate stated? So far you have said 15%, 4.2%, 50%, 3.9% and 49%.

    You also mention APR interchangeably but it would be very unusual for an APR to be quoted or used on this type of unregulated agreement and it would likely be a different type of interest rate/calculation used.
    • badwithmoneyman
    • By badwithmoneyman 29th Nov 17, 4:45 PM
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    badwithmoneyman
    There is no interest stated. As you have stated, I do not known the final APR (or similar charge). On the phone to the sales person, he was the one that mentioned the 3.9/4.2 (low) percentage for the APR. As a direct selling point. I record all of my phone calls with an app called ACR on android. But I doubt this could be used or help me in anyway.

    But just to be clear, from my point of view, they lent me £18k, I owed them as soon as I signed it £32k with no way of opting out early?
    • Sacarsium
    • By Sacarsium 29th Nov 17, 6:30 PM
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    • 1 Thanks
    Sacarsium
    There is no interest stated. As you have stated, I do not known the final APR (or similar charge). On the phone to the sales person, he was the one that mentioned the 3.9/4.2 (low) percentage for the APR. As a direct selling point. I record all of my phone calls with an app called ACR on android. But I doubt this could be used or help me in anyway.

    But just to be clear, from my point of view, they lent me £18k, I owed them as soon as I signed it £32k with no way of opting out early?
    Originally posted by badwithmoneyman
    With personal loans and small business loans (unsecured lending) the interest is normally added up front so the balance at the start is the total you will pay them back. With flexible business loans and commercial mortgages the balance runs as what you've borrowed and then they add the interest monthly.
    The rate for the loan itself may well be small but because of the extra fees the actual apr would be a lot more.
    There are some small business loans that are CCA regulated and they enclose the same clauses about right to withdraw within 14 days of signing the agreement. They also say you can repay early or in part at anytime. It doesn't sound like this is 1 of those loans though so unless you can make a complaint or raise it with the Financial Ombudsman Service I think you may be stuck. (The clause re FOS in CCA agreements states that if you are not happy with the way we have dealt with your complaint you may be able to refer it the the FOS. Meaning you need them to at least attept to deal with it first. I don't think it's the broker though that you can go through it has to be the loan company itself as they're the one that is overseen by the FOS)
    • badwithmoneyman
    • By badwithmoneyman 4th Dec 17, 4:57 PM
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    badwithmoneyman
    As always thank you guys.

    I've written to him twice now, but this week I will email every day asking for him about the details which would make the loan come out at 4% APR.

    I imagine if this turns out to not be the case I could take him to court as it would be falsely advertised?
    • badwithmoneyman
    • By badwithmoneyman 5th Dec 17, 4:09 PM
    • 15 Posts
    • 0 Thanks
    badwithmoneyman
    So this is apparently how it keeps the interest down to 4%....
    The VAT Schedule that was sent out will be what you need to reclaim your VAT
    I am sceptical to say the least, but lets wait for the post.
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