Are Danske Bank Loans UK hassling you about a loan you haven’t paid? Are you unable to pay the loans back? Are the lending company threatening court action? Should you never have been lent the money in the first place? If these problems sound familiar, this article may be able to help. You can find out more about Danske Bank Loans UK and how to deal with their contact in the best possible way. 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.
Are loan companies making it too easy to borrow money?
It is often far too easy to borrow money. There is an abundance of companies on the internet who offer to give you ‘cash in minutes’, and ‘loans without credit checks.’ This has resulted in many people gaining access to loans that they can’t afford to pay back. If you have been given a loan that you could not have realistically afforded to pay back, you may be able to get a refund on your loan.
What causes debt problems and what is the government doing to help?
With many lenders offering loans to people who weren’t able to pay it back, it is no surprise that so many found themselves facing major debt issues. Although the situation has greatly improved, it reached a point where it was getting out of control, as a result of irresponsible lending, together with excessive interest rates. It was time for the situation to change, and this is where the Financial Conduct Authority stepped in.
The FCA found unfair practices among lenders which results in some huge fines being issues. Wonga were one such company who ended up being fined an astronomical £220 million. Others such as Quickquid and The Money Shop were also fined. These fines resulted in many of the most well-known lending companies being put of business. This new tightening of regulations worked though and loans dropped from 10 million to 1.8 million. The amount of lenders also dropped from 240 to 60. Unfair practices are still widespread, but they have improved since the legislation changed.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Danske Bank Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Loan interest and other charges – government cap
There are also price caps which the Financial Conduct Authority have introduced to protect borrowers from being subject to excessive charges. These include:
- A cost cap of 0.8% per day – this cap is on the amount borrowed, and includes interest and fees.
- A cap on default fees of £15 – interest may still be charged after the default interest, but it should not be more than the 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 apply are relevant to credit agreements which have an interest rate of 100% or more each year and these must be due to either be fully or substantially repaid within a year.
Other regulations came into force in May 2017. According to these other regulations, lenders should give details of their products on a price comparison site, which should be authorised by the FCA. Borrowers should receive the total summary of the cost of borrowing.
If Danske Bank Loans UK are found to be in breach of these regulations and they are attempting to charge you more than what they are permitted to, your credit agreement will become unenforceable and this means that they will not be able to make you repay the loan.
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If Danske Bank Loans UK are contacting you, it is important that you check whether they are authorised, as you should be making payments to an unauthorised company. It is only those companies which are authorised that have the legal right to make credit agreements. If they do not have authorisation, you should not pay them. They are unable to do anything if you decide not to pay.
It is quick and easy to check whether Danske Bank Loans UK is authorised. You can simply check their name on the Interim Permission Consumer Credit Register or otherwise, you can also look on the financial services register. If you cannot find any up-to-date entry on the registers, you can stop paying the loan. In which case they cannot enforce the debt.
There are also other signs that Danske Bank Loans UK might not be acting legally, including a website with little information or information which is out-of-date. If the APR is unclear on the website, this is another sign that all may not be as it seems.
What to do if you wish to make a complaint about Danske Bank Loans UK?
If you feel that Danske Bank Loans UK have not adhered to the regulations, and they are treating you in a way which could be deemed unfair, you can make a formal complaint. Danske Bank Loans UK should deal with the complaint within eight weeks, and if they don’t, you can make a complaint to the Financial Ombudsman.
You must have evidence to support your complaint and the more you have the better. Some typical types of evidence include letters, emails and even a call log. For instance, if they have called you incessantly, you could use this as evidence. You should write to Danske Bank Loans UK with the word ‘Complaint’ on the header of your letter.
If there is no satisfactory conclusion from Danske Bank Loans UK, you may wish to escalate the complaint to the Financial Ombudsman. You can reach them easily by calling 0800 023 4567 or 0300 123 9123.
If Danske Bank Loans UK are found to have treated you unfairly you might be able to get a refund on what you have paid on your loan. In this case, you will also be eligible to receive the interest you have paid, as well as other charges. You may receive 8% interest on your payments.
You can get the loan removed from your credit record, if it has been found to have been unaffordable. The outstanding balance may be cancelled too.
You should write to your lender stating your case and requesting compensation from them.
If you fail to receive a response within 8 weeks, or you are unhappy with the response, you may wish to follow it up through the Financial Ombudsman by contacting them on 0800 023 4567 or 0300 123 9123.
Continuous Payment Authority – The New Rules
In most cases, loan companies will request that you repay your debt using the Continuous Payment Authority. You may not even be aware of this, but it means that the lending company can take payment from you without permission at any time. Of course, it would be best if they informed you first, but many of them do not take this vital step. This results in payments being taken out of your account, without your knowledge, which can leave you in a difficult situation.
If you are already unable to pay your bills, such as your rent or mortgage, and they take a payment from your account, this will obviously leave you in an even worse situation. A situation that, in the worst case scenario, could put your home at risk.
There are new regulations regarding the CPA which have been introduced, which state that the lending company can’t attempt to take the payment on more than two occasions.
Other rules around the CPA state that the lender must only take the full payment. If there is not enough money to cover the full payment, they are not permitted to take anything. If you agree that they can take a partial payment, they will be permitted to do so, but you must give them permission.
If they do try more than two attempts at the transaction or they take a partial payment from your account, and you have not given them permission, they would be in breach of the regulations. In this case, you have the right to report them to the financial ombudsman, who are available on 0800 023 4567 or 0300 123 9123.
I Can’t Afford to Pay the Loan Back – What Now?
If Danske Bank Loans UK have acted in a legitimate way, but you are unable to pay back the loan, there are some actions you can take. If you have already set up repayments and you can’t afford them, these are some things you can do.
In cases were you are already paying Danske Bank Loans UK via a CPA, direct debit or standing order, you have the right to cancel directly via your bank. This means that you will be in better control of your bank account, and Danske Bank Loans UK will not be able to keep taking payments. It is a good idea to let them know your plans to cancel the payments, as this will stop them from contacting you. You don’t have any obligation to do this though.
Just because you have cancelled the payment, it doesn’t mean you no longer owe the money, you will still owe it, so don’t be tempted to bury your head in the sand. You should contact Danske Bank Loans UK and let them know your financial situation. They should be willing to come to an arrangement with you, and treat you fairly. If you need to reschedule or defer your payments, they should be willing to do this for you.
These are some rules that lenders must adhere to:
- Provide details to debtors on where they can obtain free debt help and advice.
- Allow time for a repayment plan to be reached, and hold of chasing payments for a period of time.
- Allow a reasonable time to pay back the dept, freezing interest and additional charges where possible.
You should never roll your loan over
Danske Bank Loans UK may say that the best thing to do to deal with the situation is to roll your loan over. You should not do this though, as the debt will just accumulate due to interest and charges. If they suggest this, you should refuse and ask to set up a repayment plan.
How to Get Debt Help
If you want help with your debt issues, there are organisations who offer free independent advice. These are some of the most popular organisations.
Should you trust loan companies?
Loan companies generally receive a bad press, but there is no denying that they can offer a valuable service. They can provide a lifeline to those who badly need it, and can’t get credit elsewhere, such as from the bank or credit card companies. Sometimes these companies put profits first, which is exploiting customers and this can cause real harm. The new regulations have made things safer, but these companies still exist. Many people still find themselves facing debt problems.
If Danske Bank Loans UK are failing to follow the regulations, then you nay not need to pay them as the debt would become unenforceable. If you are not able to pay, then you can contact one of the organisations which are listed above for free advice. They will help you get your finances together and manage your debt.
If you can’t pay back your loan do check out my other article here.
John (Money Nerd)