Implications of Non Payment
Lenders follow their own principles and policies regarding fees and interest if you don’t pay on time. While most of them will contact you by phone or letter to rearrange payment, remember that non-payment can lead to extra charges and increased interest rate which eventually affects your credit score. It’s important that you read the lender’s website’s charges section before finalising the loan.
Lenders usually contact you by phone, email or letter to arrange payment as non-payment can lead to charges and higher interest rates affecting your credit score. There is the possibility of your debt being passed on to a collection agency and consequent further charges with continued non-payment.
Make sure you contact your lender well before your repayment date if you plan to renew your loan. You will most probably be charged the same rate of interest and fees for the next month on the entire loan amount. The loan renewal/extension is automatic and leads to more interest and charges to your account in the event of a non-payment.
FAQ Section Title
What is APR?
The APR or the Annual Percentage Rate is the yearly sum of interest and any additional fees you can expect to be charged for when borrowing the credit. This will be in addition to your loan repayments, and the sum is expressed as a percentage of the loan. As a lending broker, we operate a free to use service that introduces you to one of the lenders on our panel; we do not provide loans ourselves. Therefore, APR's and Representative APR's will vary from lender to lender. Please refer to your lender's website for all information regarding their APR.
For more information regarding APR and interest rates go to MoneySavingExpert.com
Are there any upfront fees?
There are no upfront fees when you apply for a loan via us here at Capital Cash because our loan matching service is completely free. Instead, we receive a commission from the lenders and brokers that we refer you to if you happen to enter into an agreement with that lender.
What is meant by providing a 'matching service'?
Our job at Cash Capital as a leading lending service is to introduce you to one of our panel of lenders or brokers to see if they are able to provide you with a loan. If you are matched successfully with one of our lenders, then you will be provided with the opportunity of entering a borrowing agreement with that lender. And that is what is meant by providing a matching service for our customers.
What are the consequences of making a late payment or missing a payment altogether?
We work with many lenders and brokers, all of which have their own different practices and distinct loan agreements terms and conditions. The consequences of non-payment will typically include:
- Making it harder for you to obtain any credit in the future.
- It could mean that you end up paying more for your loan, as by extending the term of the loan and therefore the period for which you pay interest.
- Occurring late payment penalties for not paying on time.
Reports being made to a credit reference agency, meaning your missed repayments will appear on your credit file.
Therefore, it is essential to read the terms outlined by the lender you have been matched with. If you feel that you are likely to miss or be late on a payment, you should contact your lender directly as soon as possible.
Warning - Late repayment can cause you serious money problems. For help go to MoneyAdviceService.org.uk
It is worth mentioning that short-term loans should only be used for essential borrowing needs and are not suitable for long-term or ongoing needs of credit. Instead, if you are looking for loans for long-term money problems, you should consider a long-term loan or an instalment loan, which may be more suitable for more substantial requirements that cannot be funded with alternative forms of credit.
What are short-term loans suitable for?
Short-term loans should only be used solely for short-term borrowing needs. If a short-term loan is unlikely to suit your needs, then alternatively longer-term loans or instalment loans may be more fitting to your needs that cannot be funded with alternative forms of credit. Short-term loans are not considered suitable for those facing long-term financial difficulties.
Do your lenders comply with responsible lending?
Yes, we work with over 30 lenders all who are contractually committed and dedicated to responsible lending. This means that all of our lenders will be sure to:
- To ensure that any loan they offer if specific to the borrowing needs of the customer.
- To access each customer individually to decide whether they are able to repay a loan.
- To provide clear and concise loan paperwork and agreements, as well as using clear lines of communication.
- To maintain high levels of customer service and satisfaction for all their customers.
Do you decide if I can renew my loan or not?
As we are a loan broking service we are not involved in the decision of whether you will be allowed to renew your loan. All of our lenders we work with have their own specific renewal policies which can vary. Therefore, we encourage you to read the loan agreement terms and conditions specified by your lender to determine whether you're likely to have your loan renewed. If you still have any questions regarding your loan or the possibility of renewal, please contact your lender directly.
Where am I able to gain free, independent advice before I get a loan?
If you feel that your financial situation warrants further advice before you make the decision to apply for a loan, you can get free, independent advice from the Citizen's Advice Bureau and the debt charity StepChange. These organisations have experienced advisors on hand to give you any advice or help that you require.
What happens if I cannot afford to repay the loan?
If you are unable to afford the repayments you have agreed with your lender, then you should contact them as quickly as you can. In the vast majority of cases, lenders will be happy to work with you to agree on a payment plan which is affordable to you.
Most lenders will contact you by phone, letter and/or email in order to rearrange payment. Non-payment may result in charges and/or raised interest and may affect your credit score. Continued non-payment may result in your debt being passed to a collection agency, which would add further charges.
You should never ignore the problem, as the lender will view this as an attempt to avoid repaying their loan, and they will take the necessary steps to recover their debt.
Warning - Failing to make repayments can cause you serious money problems. For help go to MoneyAdviceService.org.uk
Can I renew or extend my loan?
Most lenders are happy to renew a loan upon completion of your current loan as long as your account was kept up to date and repayments made on time. Some lenders will allow you to borrow more the second time, if you choose to take out more money, please ensure that you have the means to make the repayments.
In case of difficulties, you may be able to extend your loan over a more significant period of time. It's crucial that you talk to your lender at the earliest possible time so that they can work with you and help you overcome whatever issues you may have.
We strongly encourage everyone seeking a loan, to ensure that they have the means to pay back any agreed loan repayments in full and on time.
If you wish to renew your loan, you should contact your lender in advance of your repayment date. Most lenders will charge the same rate of interest and fees for another month on the entire amount owed. In the event of non-payment, a loan renewal/extension could be automatic, and further interest and/or charges may be added to your account.'