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Cobra Loans

Are Cobra Loans UK contacting you about an outstanding loan? Are you worried about paying the loan back as you can’t afford it? Are the loan company threatening court action on you? If you are having these kinds of issues, this article should be able to help give you some direction for dealing with these issues. 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.

Cobra Loans Debt

Who are Cobra Loans?

Cobra Loans is a loan broker registered in the UK. They offer short-term loans of up to £2000 with a very easy online application process. They are open for applications 365 days a year and have a panel of more than 20 members they work with. Cobra Loans offer repayment periods of up to 24 months and more, depending on the type of loan and applicant requires.

Read what to do if you can’t pay back your debt.

Write off some of your debt

This 4 question debt calculator will tell you if you’re eligible.

What is the total amount of your debt?

Is it becoming too easy to borrow money?

It is much easier than it should be to borrow money through lenders. There are a range of companies who make promises about loans, which are too tempting for some people to resist. The promises include ‘get access to loans in minutes’, ‘no credit check.’ The problem is that many people are taking out loans that they can’t afford, which leads them to get into further debt.

What causes debt problems?

When you consider that loan companies are lending to people who can’t afford to pay them back, it is no surprise that many are finding themselves in a never ending spiral of debt. The issue with lending got so out of control, that the government had to step in. The loan market reached up to £2 billion at one point, and this was down to lending to those who couldn’t afford it and charging excessive interest rates.

As a result of this, the Financial Conduct Authority looked into the unfair practices of lenders and ended up imposing fines on many of the biggest loan companies around, including Wonga and The Money Shop. The fines amounted to over £200 million in some cases! As you can imagine, this put many out of business and the number of loans which were issued from the three years after the regulation dropped from 10 million to 1.8 million.

Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Cobra Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.

Loan interest and other charges

Price caps were finally introduced by the Financial Conduct Authority to keep loan companies in check and prevent them from charging excessive fees to borrowers. These include:

  • 0.8% cost cap per day on the value of the loan borrowed – including interest and fees.
  • £15 default fees cap
  • Complete cost cap 100%

These limits are applicable to credit agreements with an interest rate of 100% or more a year and that will be fully or substantially repaid within a year.

In May 2017 there were additional regulations enforced. Lenders must now give details of the products they supply on a price comparison website which is authorised by the FCA and they must provide borrowers summary of the cost of borrowing.

If Cobra Loans UK are breaching the regulations and are trying to charge you more than they are legally permitted to, your credit agreement with them will become unenforceable and they won’t be able to make you pay the loan back.

Find your best debt solution (in 1 minute!)

debt solution

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.

Should you pay Cobra Loans UK?

You should not pay Cobra Loans UK unless they are authorised, and you owe the money. You can do this via the Interim Permission Consumer Credit Register search page or the financial services register. If the entry is not up-to-date, you should not be liable to make payments. If Cobra Loans UK do not have information on their website, or it is not valid, you should not make payments.

Do you need to make a complaint about Cobra Loans UK?

If Cobra Loans UK are in breach of the regulations, you can make a complaint to them in the first instance. If you don’t get anywhere with your complaint, you can to escalate it to the Financial Ombudsman.

In order to make a complaint, you will need to have evidence to support it, including any emails, telephone conversations which support it.

Cobra Loans UK should take steps to deal with your complaint, but if they feel to do this, or you are unhappy with the response, you should speak to the Financial Ombudsman on 0800 023 4567 or 0300 123 9123

If Cobra Loans UK are found to have treated you unfairly, you may be able to get a refund, even if the loan has been paid off. You may also be entitled to receive any interest or additional fees you have paid.

There is also the ability to get the loan completely removed from your credit report, if it ia deemed to have been unaffordable.

You should write to the lender in the first instance, and request compensation. If you don’t get a response within 8 weeks, you can contact the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.

Continuous Payment Authority and the Legislation

In most cases, you will have been set up on a Continuous Payment Authority (CPA). This might not be something you are familiar with, but you should know that this means the loan company can take payments from your account, whenever they wish.

The decent thing would be to let the borrower know before debiting their account, but unfortunately, many lenders have failed to do this, which has left borrowers in excruciating positions, such as not being able to pay their day to day bills. The money could be in your account one day, and gone within seconds when the loan company takes it.

Thankfully, there are new regulations in place which help protect borrowers. These regulations mean that lenders cannot try to take the payment if the CPA fails on two occasions. They can also not take partial payments, only full payments, unless given permission to do so.

If the loan company are breaching these regulations, you have the right to report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.

What if you can’t pay back the loan?

If Cobra Loans UK are contacting you and they are doing it legitimately, but you can’t afford to pay it back, there are some steps you can take.

You should contact them in the first instance to discuss your financial situation, and let them know you can’t pay it back. If you already have a CPA or standing order set up, you can cancel it via your bank. You will still owe it though, so you should set up a repayment plan. Cobra Loans UK have a responsibility to treat you fairly, and with respect, and if they are not doing this, you can make a complaint.

The law states that lenders have a responsibility to:

  • Provide information on the best places to get free debt advice.
  • Allow you to develop a repayment plan, which suits your financial situation.
  • Freeze interest and charges where relevant.

Should you roll the loan over?

Cobra Loans UK may advise you to roll the loan over, rather than set up a repayment plan. This is not a good idea though, as the loan will gather more interest and charges.

Get help with your debt

These are some of the organisations who provide free debt help:

Are loan companies worth avoiding?

Loan companies have a bad reputation, but they are not all the same. Some loan companies who act legitimately, offer a great service to those who need the financial help.

If Cobra Loans UK or any other loan company are acting in a way which breaches the legislation, you should make a complaint.

If you can’t pay back your loan do check out my other article here.

Good luck!


CONC 2.1 Application

CONC 5.2A Creditworthiness assessment

CONC 13.1 Application

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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