Maximum un-secured loan amount

robbedofmymoney

Hi,

i wonder if anyone can help me with a little bit of information.

i keep seeing that the maximum amount you are able to borrow on an un-secured loan is £25k.

is there regulation covering this, and if so please can someone point me in the right direction to the relevent paragraphs detailing this.

thanks in advance for your help

ILW

I believe it just general policy but perfectly legal. Why do you need to know?

jonesMUFCforever

It used to be the Consumer Credit Act although I'm fairly certain that the maximum has been removed with changes in legislation although most lenders have stuck to that amount.

ILW

jonesMUFCforever wrote: »

It used to be the Consumer Credit Act although I'm fairly certain that the maximum has been removed with changes in legislation although most lenders have stuck to that amount.

I think lenders could always lend as much as they wished, but loans over 25K were not covered by the CCA.

zppp

jonesMUFCforever wrote: »

It used to be the Consumer Credit Act although I'm fairly certain that the maximum has been removed with changes in legislation although most lenders have stuck to that amount.

The maximum was £25k but this was removed when the Conumer Credit Act 2006 was implemented.

I would say though, many institutions apply internally a £25k aggregate borrowing limit, with the exception of high worth or possibly business customers.

robbedofmymoney

ILW wrote: »

I believe it just general policy but perfectly legal. Why do you need to know?

if its not legislation thats fine, i was going to give lloyds some more grief if it was.

i have a loan for 25k with 6k ppi added on top making a personal loan of £31k,

i only have 2 more payments left then its clear,

but i still want to give lloyds grief if they had done something wrong.

cheers for the advice

robbedofmymoney

zppp wrote: »

The maximum was £25k but this was removed when the Conumer Credit Act 2006 was implemented.

I would say though, many institutions apply internally a £25k aggregate borrowing limit, with the exception of high worth or possibly business customers.

thanks for your answer
do you know what the consumer credit act replaced and was the £25k limit regulated in 2005

cheers

robbedofmymoney

ILW wrote: »

I think lenders could always lend as much as they wished, but loans over 25K were not covered by the CCA.

thats interesting as the loan agreement says its covered by the consumer credit act.

zppp

robbedofmymoney wrote: »

thats interesting as the loan agreement says its covered by the consumer credit act.

Doesn't matter. Most banks frontload interest and PPI onto the agreement as charges to agreement. I am afraid to say that they haven't done anything wrong here.

Have you tried reclaiming PPI if you feel it was missold?

ILW

robbedofmymoney wrote: »

if its not legislation thats fine, i was going to give lloyds some more grief if it was.

i have a loan for 25k with 6k ppi added on top making a personal loan of £31k,

i only have 2 more payments left then its clear,

but i still want to give lloyds grief if they had done something wrong.

cheers for the advice

Why do you want to give Lloyds grief. You asked to borrow money and they lent it to you. Why the vendetta?

robbedofmymoney

zppp wrote: »

Doesn't matter. Most banks frontload interest and PPI onto the agreement as charges to agreement. I am afraid to say that they haven't done anything wrong here.

Have you tried reclaiming PPI if you feel it was missold?

thanks for the info,
my ppi claim on this loan is still at the FOS. will probably take a while but i'll get it back in the end.

i will ask them about the total loan amount as this is how it is shown, (just to be a pain). this is backed up by the fact i cannot just cancel the ppi.