Do you feel like Bumblebee Loans UK about your loan? Do you have loans and you are unable to pay them back? Are Bumblebee Loans UK threatening to take you to court? Do you consider that the loan is unaffordable and you should never have been offered it in the first place? If you are having these issues or any other problems with Bumblebee Loans UK, this article is designed to help your situation. You might be able to cancel your loan and even obtain a refund.
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
Who are Bumblebee Loans?
Bumblebee Loans is a loan provider based in the UK and offers unsecured loans to a maximum of £15,000. The company is authorised by the Financial Conduct Authority and has been in businesses since 1985, previously known as East Anglian Finance Limited. Bumblebee Loans offer a product called the Honeycomb loan with a repayment period of up to five years.
Read what to do if you can’t pay back your debt.
Are loan companies making it too easy to borrow money?
It could be said that it is far too easy to borrow money these days. The web is internet has so many lending companies who are more than happy to give you a cash advance within few minutes, to approve a loan of up to £1,500 in just seconds or even to advance you money without even undertaking any credit checks. Many lending companies will even provide loans to people who have are known to have a ‘very poor credit history’ or who are already struggling to pay back other debts.
Why you might be facing debt problems and what the government is doing to support borrowers
With the abundance of irresponsible lending going on, it is not really surprising that people have found themselves facing debt problems with these organisations. Although there is still work to be done, the situation has greatly improved over the last few years. Prior to the new regulations being brought into force, the loan business was getting out of control, and debt issues were also spiralling. There was a time when the loan market was at £2 billion, and this was caused by irresponsible lending and extremely high interest rates.
There were unfair practices in the lending sector, which were determined by the Financial Conduct Authority and these led to huge fines being imposed on many of the biggest players in the lending industry. The lending companies which ended up with huge fines, include Wonga, who were fined £220 million; and others like The Money Shop were also collectively fined £15.4 million. Quickquid were also fined £1.7 million. If money had been lent to people that should not have been given a loan because of their “limited criteria” the customers ended up receiving a refund. The harsh treatment worked, and over the three years following the regulation, the number of loans being issued fell from 10 million to 1.8 million. The number of lenders also dropped from 240 to 60.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Bumblebee Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Government cap introduced to loan interest and other charges
The Financial Conduct Authority ended up introducing a price cap, which was designed to protect borrowers from receiving excessive charges. These include:
- A cost cap of 0.8% per day on the amount of money you have borrowed – this includes a combination of both interest and all fees charged.
- A cap on default fees of £15 – after a default, they can still charge, but it must not be over the original rate of 0.8% per day.
- A complete cost cap of 100% – you should never be asked to repay more than 100% of the money you have borrowed.
The limits apply are relevant to all credit agreements with an interest rate of 100% or more a year and that will be due to be fully or substantially repaid within a year.
There were also other regulations brought into force in May 2017. Lenders now have a responsibility to provide information on their products via a price comparison website, which should be authorised by the FCA . Borrowers should also receive a summary of the cost of borrowing.
If Bumblebee Loans UK are found to be in breach of these regulations and they are trying to charge you more than they should, your credit agreement would become unenforceable and this means they will not be able to make you repay the loan.
Find your best debt solution (in 1 minute!)
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
It is quite clear that there are many so-called loan companies who are doing business when they are not actually authorised to do so. According to the law, only authorised businesses are allowed to make certain credit agreements. If Bumblebee Loans UK are found to be unauthorised, then they are not able to enforce repayments. This means you can just stop paying them and they can do nothing about it.
If you wish to check whether Bumblebee Loans UK is authorised, you can enter the name of the company on this Interim Permission Consumer Credit Register search page. You also have the option of searching the financial services register here. If you cannot see any valid up to date entry on either of these registers, you can simply stop paying them. This means they will have no power to enforce the debt.
Other signs that Bumblebee Loans UK might not be operating legally, include a lack of information on the company website, out of date information on the website or information which is different on the two directories. Non-disclosure of true APR could be another sign that all is not quite right!
What if you want to make a complaint about Bumblebee Loans UK?
If you feel that Bumblebee Loans UK have been in breach of the regulations and they are treating you in an unfair way, you have the right to make a formal complaint, and if your dispute is not resolved or is not dealt with within eight weeks, you have the right to take your complaint to the Financial Ombudsman.
To make your complaint, you should collect evidence you can support your complaint, including details of any phone calls you have received from Bumblebee Loans UK, texts or emails. You should write to Bumblebee Loans UK and you can head up your letter with the word ‘Complaint.’ The more evidence you have to support your claim, the better. You should also advise what you want the company to do about your complaint.
If Bumblebee Loans UK do not provide you with a satisfactory conclusion, you have the right to take your complaint to the Financial Ombudsman. If you wish to do this, you can contact them by phone on 0800 023 4567 or 0300 123 9123
If Bumblebee Loans UK are found to be going against the guidelines, and have been treating you unfairly, you could be entitled to get a refund, even if the loan has been paid off within the last six years. If this is the case, you can expect to receive a refund on all the interest you have paid on the loan, together with any additional charges. You could also receive 8% interest on the payments you have made.
If your loan is considered to have been unaffordable you can request that it is removed from your credit record and in addition, the outstanding balance should be cancelled.
The first step is writing to your lender stating your case and requesting compensation.
If you don’t have any satisfactory response within 8 weeks, you may follow it up via the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
Continuous Payment Authority and the new rules
Most loan companies will request that you repay the debt using a Continuous Payment Authority (CPA). With the CPA, the company will have permission to take any amount of money they wish from your bank account at a time that suits them. They should always inform you before debiting your bank account, but unfortunately, so many of them fail to carry out this important step. The end result of this is that you don’t know the money has left your account until you look at your bank account.
If you are already finding it difficult to make important payments such as your rent, mortgage or utility bill, and Bumblebee Loans UK take a payment ahead of these bills, it could cause you to get into serious trouble and it may even put your home at risk.
Thankfully, there are now new regulations in place, which mean that if the CPA fails to be paid on two occasions, the company cannot make any further requests for payment.
There are other rules regarding the amount of money they can take using a CPA. They are no long permitted to take partial payments. If there is insufficient funds in your account to take care of the full amount of the payment due, they must not take anything. If you agree with them to take a partial payment, they may do so, but you must provide them with permission in advance for them to do so.
If you find that they have made more than two requests or they have taken a partial payment without your explicit permission, they will be in breach of regulations. In this case, you can report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.
I can’t afford to repay the loan – what now?
If Bumblebee Loans UK has operated legitimately but you are just not in a position to repay the loan, there are some ways you can protect yourself.
If you have been paying them by CPA, standing order or direct debit, you can contact your bank and cancel these. Bumblebee Loans UK will then not be able to collect payments automatically and you will have complete control of your bank account. It is likely that your bank will advise you to speak to Bumblebee Loans UK about your plans to do this, but you do not have a legal obligation to do it. They will not be able to collect any money from you unless you have provided them with explicit permission to do so.
Of course cancelling the payments is not enough, you will still owe the money and you will have responsibility to pay this, so you must deal with that directly with Bumblebee Loans UK. You may be tempted to just forget about the debt and hope they forget about it too, but they won’t – that much is guaranteed! The first thing you need to do is to get in touch with Bumblebee Loans UK and discuss your financial situation with them. They have an obligation to treat you fairly, and they should be able to come to an arrangement to reschedule your repayments.
According to the law, lenders must:
- Inform you of where you can obtain free independent debt advice
- Put a hold on debt recovery for a reasonable period of time, while you get a repayment plan developed, and this might be done using a debt advisor
- Allow you to have a reasonable time to repay the loan, possibly freezing interest and additional charges.
Why you should never roll the loan over
Bumblebee Loans UK may advise you to roll over the loan, but this is definitely not a good idea. If you do this, you will end up being charged even more interest and additional charges, which will leave you in even deeper debt. The law states that loans cannot be rolled over more than twice.
Do you need debt help?
There are several organisations that provide free independent advice on debt:
Can you trust loan companies?
It is widely known that loan companies have a bad reputation. It could also be said that they offer a valuable service by providing a credit line to those who may not be able to obtain credit from a bank or credit card. If these companies place their profits before anything else and end up exploiting their customers, they can cause real harm. Of course, there are sharks who still remain, but the new regulations have made the entire loan industry safer to use these companies. Unfortunately, many people still get into debt problems.
If Bumblebee Loans UK are found to be in breach of the regulations, you would be entitled not to pay them, as the debt would become unenforceable. If you are unable to afford to pay the debt, you should contact one of the organisations we have listed above. You will receive the help and guidance you require.
If you can’t pay back your loan do check out my other article here.