Bright Sky Loans

Update: In October 2016 Bright Sky Loans was dissolved. They are no longer trading or accepting loan applications.

Information correct as of 22/04/21 (Companies House)

Who are Bright Sky Loans UK?

Bright Sky Loans was a loan company in the UK. They were based in Glasgow and were established in 2014.

The introduction of caps on loan interest and other charges

As a result of the research conducted into lenders and their behaviour, the Financial Conduct Authority had to introduce price caps, which were designed to protect borrowers from over the top charges. The caps included:

  • 0.8% daily cost cap on the amount you have borrowed – including both interest and all fees charged.
  • default fees cap of £15 – default interest may still be charged after this, but it cannot be more than the original rate of 0.8% per day.
  • complete cost cap of 100% – you should not be asked to pay more than 100% of the money you have borrowed.

The limits are relevant to credit agreements with an interest rate of 100% or more per year and that will be either fully or substantially repaid in a year,

There are other regulations which came into force in May 2017. These meant that lenders must now provide details of all their products on a price comparison website which is authorised by the FCA and they must also provide borrowers with a summary of the total cost of borrowing.

Continuous Payment Authority – changes you need to know

In most cases, your debt repayment will be set up using a Continuous Payment Authority (CPA.) Which means that the lending company can take payments from your account.

There are new regulations which have been put in place, which mean that if the CPA has been attempted twice without success, there can be no further attempts from Bright Sky Loans UK.

Other changes to the rules stipulate that only the full amount of the debt can be taken, the lending company are not permitted to take partial payments anymore, unless you give them express permission to do so. If you give them permission to take partial payments to clear the debt, this would be allowed. If they are breaching these regulations though, you have the right to make a complaint against them.

What if you set up a repayment plan, but can’t afford to pay it?

The law is there to protect you, and it states that:

  • Lenders must inform you of places to get debt advice.
  • They must hold off debt recovery for a period of time which allows you to get your finances back on track.
  • They should freeze interest and additional charges, where applicable.

Where to get free debt help

Many people struggle to pay their debt, and luckily, there are organisations out there who provide free advice and support on clearing your debt. These include:

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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