Are Cash Club Loans UK harassing you about an outstanding loan? Are you being asked to pay back loans when you don’t have the funds to pay them? Are Cash Club Loans UK threatening to take you to court, or threatening you with any other sanctions? Do you believe that you could never have afforded the loan, and you should not have received it in the first place? If these are the kinds of problems you are having with Cash Club Loans UK, then this article should help you. You might be able to cancel your loan and even obtain a refund.
Who are Cash Club Loan?
Quick Cash Club was established in 2012 and is a registered lender in the UK. They offer loans between £50 and £750 with flexible repayment periods of up to 24 months.
Did you stumble onto this page?
Are you at the wrong page? Many people land on this page when they are actually trying to find the Cash Club Loans Login page. Have you done the same? If so, I’m glad we have caught you! I’ve written an article below on the reasons why you shouldn’t pay Cash Club Loans back.
Is it too easy to borrow money from lenders?
It can be too easy to borrow money from lenders. The internet is crowded with companies that are more than willing to advance you cash within just a few minutes; to approve you for a loan of up to as much as £1,500 in a matter of seconds; to advance you money quickly without undertaking any credit checks. Many offer loans to people who can’t afford it, and have a “Very Bad Credit” history or who are already facing difficulties in repaying loans.
Why you might face debt problems and what the government is doing to deal with loan sharks
It is hardly surprising that there are so many people who are facing debt issues with these organisations. Although it’s still not great, the situation today is much better than it has been in the last few years. Prior to the new regulations coming into force, the loan business reached a stage where it was spiralling out of control, along side people’s debts. At one time the loan market reached over £2 billion, as a result of irresponsible lending and extremely high interest rates, some of which were not apparent to debtors at the time.
Unfair practices identified by the Financial Conduct Authority led to huge fines being imposed on many of the biggest players in the lending business. These include Wonga, who were fined £220 million; and others like The Money Shop who were collectively fined £15.4 million; plus a £1.7 million fine for Quickquid. Some of the lending companies even went out of business as a result. In some cases, money had been lent to people that should not have received a loan due to their “limited criteria” and this resulted in the customers receiving a refund. The medicine worked though, and many lending companies stopped their behaviour. Over the three years following regulation, the amount of loans being issued fell from 10 million to 1.8 million and the lenders also fell from 240 to 60.
Are you looking for a refund? Read through the next section in which we look at these new rules in some detail. If Cash Club Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Loan interest and other charges – the government cap
The Financial Conduct Authority had to start introducing a price cap to protect borrowers from being faced with excessive charges. These include:
- A cost cap of 0.8% per day on the amount of loan you have borrowed – this includes both interest and all fees charged.
- A cap on default fees of £15 – after a default, interest may still be charged, but it must not exceed the original rate of 0.8% per day.
- A complete cost cap of 100% – you should not be asked to repay more than 100% of the amount of money you have borrowed.
These limits apply to all credit agreements with an interest rate of 100% or more per year and that are due to be either fully or substantially repaid within a year.
There were also other regulations which came into force in May 2017. According to these, the lender must offer details of their products on a price comparison website, which should be authorised by the FCA and in addition, borrowers must be provided with a summary of the cost of borrowing.
If you feel that Cash Club Loans UK have breached these regulations and they are attempting to charge you more than they should, your credit agreement with them will become unenforceable and they will not be able to make you repay the loan.
Is Cash Club Loans UK an authorised business?
There is no doubt that there are many loan companies who are doing business when they are not authorised to do so. Only authorised businesses have a legal right to make certain credit agreements. If they are not authorised, they do not have the right to enforce payments. This means you can just stop paying them and they won’t be able to do anything about it.
To check whether Cash Club Loans UK is authorised, just enter the name of the company on this Interim Permission Consumer Credit Register search page. You can also search the financial services register here. If they do not have a valid up to date entry on at least one of these registers, simply stop paying them. They have no power to enforce the debt.
There are other indicators that Cash Club Loans UK may be operating illegally, including a lack of information on their company website, out of date information on their website or information which is different from the details which appear on the two directories. If the APR has not been disclosed on the website, this could be yet another sign they are not authorised.
How to complain about Cash Club Loans UK
If you feel that Cash Club Loans UK are failing to adhere to the required 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 they fail to deal with the complaint within eight weeks, you have the right to escalate your complaint to the Financial Ombudsman.
You should get all the evidence together to make your complaint, including details of any phone calls., letters or emails you have received. Write to Cash Club Loans UK with the word ‘complaint’ on the header. The more detail you are able to provide, the more likely your complaint will be dealt with quickly. You should also state how you would like the matter to be resolved, such as compensation etc.
If Cash Club Loans UK do not provide you with a satisfactory conclusion within the specific time period, you can escalate your complaint to the financial ombudsman. You can do this by contacting them by phone on 0800 023 4567 or 0300 123 9123
If Cash Club Loans UK has treated you unfairly, you may have the right to get a refund, even if the loan has been completely paid off the loan within the last six years. If so, you can also expect to be refunded all the interest you have paid on the loan, along with any additional charges you have accumulated. You should also receive 8% interest on these payments.
If the loan is considered to have been unaffordable at the time you received it, you can insist that they remove this from your credit record and additionally, the outstanding balance is cancelled.
Your first step is to write to your lender stating your case and requesting compensation.
If there is no satisfactory conclusion within 8 weeks, you may wish to follow it up through the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
Continuous Payment Authority – the new rules
Many loan companies will expect you to repay the debt using a Continuous Payment Authority (CPA). With a CPA, the company has permission to take any amount of money they wish from your bank, whenever they want. They should inform you prior to taking money from your bank account, but there are many of them who fail to carry out this necessary step. The result is that you may not even know the money has left your account until you see your next bank statement.
If you are already facing problems with paying essential bills such as your rent, mortgage or utility bill, and the money is suddenly debited by Cash Club Loans UK ahead of these bills, you may find yourself in serious trouble, and this may even put your house at risk.
There are new regulations which have been put in place, and these mean that if the CPA fails to be paid on two occasions, the lending company are not permitted to make any further requests to take money from your bank account.
There are also rules regarding the amount of money they can take using a CPA. They are no longer permitted to take partial payments. If there is insufficient funds in your account to cover the full amount of the payment due, they must not take any sum at all. You can of course agree that they take a partial payment, and in this case, they are allowed to do so, but you must give them advance permission to do this.
When they do try more than two requests or they take a partial payment when you have not given them explicit permission, they will be in breach of regulations. In this case, you may report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.
What are the next steps if you can’t afford to repay the loan?
If Cash Club Loans UK have been operating legitimately but you are not in a position to repay the loan, there are some ways you can protect yourself and deal with the situation.
If you are paying the lenders by CPA, standing order or direct debit, you should contact your bank and cancel these or you can do this online. As a result, Cash Club Loans UK will not be able to collect payments automatically and you will have control of your bank account. It is highly likely that the bank will advise that you to inform the Cash Club Loans UK that you have cancelled or you plan to cancel the payments, but you do not have any no legal obligation to do so. They will not have any right to take the payments, without your permission.
Of course, the debt still exists and you still owe them money, so it is important that you deal with that directly. Don’t be tempted to bury your head in the sand with your debt. Your first step should be to contact Cash Club Loans UK and advise them about your debt problems. They have a legal obligation to treat you fairly, so you should be able to come to a suitable agreement to reschedule your repayments.
By law, lenders must:
- Give you advice on where you can obtain free independent debt advice
- Pause the debt recovery for a reasonable period of time, while you get a repayment plan in place, using a debt advisor if necessary.
- Give you a reasonable amount of time to repay the loan, possibly freezing interest and additional charges.
Don’t roll the loan over
Cash Club Loans UK may say that you should roll over the loan, but this is definitely not a good idea. The reason for this is that you will be charged even more interest and additional charges, which will leave you in an even worse situation. It is better to speak to Cash Club Loans UK and devise a suitable repayment plan instead.
Getting debt help
These are some of the most widely recognised organisations that provide free independent advice on debt:
Are any loan companies trustworthy?
We know that loan companies mostly receive a bad press. It could also be argued that they also provide you with a valuable service by offering a credit line to people who are in a vulnerable situation, and would not be to obtain credit from the regular financial institutions, such as banks or credit cards. It is only when these companies put their profits ahead of everything else and exploit their customers, that they cause real harm. While some sharks are still very much operating, the new regulations have made it much safer to use these companies. Sadly, many people still face horrific problems with debt.
If Cash Club Loans UK are failing to follow the regulations, you have the right not to pay them as the debt is unenforceable. If you simply can’t afford to pay, you should consider contacting one of the organisations we have listed above, as they will provide the help and guidance you require.
If you can’t pay back your loan do check out my other article here.