Took out loan 16 days ago, still don't have details about loan, can I still cancel?

StopIt

badwithmoneyman wrote: »

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?

With CCA regulated debts, you can settle early.


Unregulated ones? It's down to the terms you signed.

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.

StopIt

badwithmoneyman wrote: »

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.

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.

redux

If this is a broker, can you approach the lender direct, or is that unknown, or doesn't want contact?

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

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

"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?

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

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

badwithmoneyman wrote: »

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?

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)