Update: In October 2019, 247 Loans (a trading name of Active Securities Limited) went into administration. They are no longer engaging in lending activity, but any outstanding loans will remain subject to FCA regulations.
Information correct as of 20/04/21 (FCA)
Are you considering a loan with 247 Loans (also known as 247MoneyBox)? Or perhaps you already have one, and you’re looking for further information about the company. Either way, we’ve compiled the most important, in-depth information about 247 Loans for you in this loan guide.
Who are 247 Loans?
247 Loans, also known as 247Moneybox, offers loans. The company was established in 2009 and was regulated by the Financial Conduct Authority. 247Moneybox is a registered principal lender.
Loan interest and other charges – government caps
The Financial Conduct Authority introduced price caps which protect borrowers from being charged excessive charges. These include:
- A cost cap of 0.8% per day on the value you have borrowed – this includes interest and fees
- A cap on default fees of £15 – interest may still be charged after a default, but it cannot be more than the original rate of 0.8% per day.
- A complete cost cap of 100% – you should not be asked to pay more than 100% of the money borrowed.
The limits on these apply to all credit agreements with an interest rate of 100% or more per year and that will either be fully or substantially paid back within a year.
There were other regulations which came into force in May 2017. According to these, lenders must give details of all products on a price comparison website, which must be authorised by the FCA. Borrowers must also be provided with a summary, showing the cost of borrowing.
Continuous Payment Authority – what are the new rules?
You might not be aware but loan companies usually set up repayments on a Continuous Repayment Plan (or CPA.) With a CPA, the loan company can take payments from your account.
If you are not able to pay your essential bills, such your rent or mortgage, and this money is taken without your knowledge, it could lead to your home being put at risk.
Thankfully, there have been new regulations brought in regarding CPA, which are designed to protect borrowers from being left without any funds in their account.
These new regulations state that loan companies must not take partial payments from the borrower. If the full amount is not available, they must not take any money at all. You can speak to the lending company and ask them to take partial payments, but they cannot do this without your express permission. If they do take partial payments, they are in breach of the regulations.
According to the legislation, loan companies must not attempt to take the payment on more than two occasions. If they do this, they are also in breach of the regulations.
What to do if you are unable to pay the loan back?
These are some rules that lenders must adhere to if you’re struggling to pay the loan back:
- Indicate where debtors can obtain free independent debt advice
- Ensure debt recovery is held off for time before while a repayment plan is devised
- Allow you time to repay the money, freezing interest and charges, wherever applicable.
How to get debt help
There are a range of organisations out there who provide free independent advice on your debt situation. These are just a few of them: