Diddy Loans

Update: Diddy Loans UK used to be a trading name of Nouveau Finance Ltd. In March 2020, Nouveau Finance stopped trading under Diddy Loans. The website is no longer in operation.

Information correct as of 22/04/21 (FCA)

Who are Diddy Loans?

Diddy Loans used to be a trading name of Nouveau Finance Limited. In 2020 they ceased trading under this name.

Government price caps

The Financial Conduct Authority introduced price caps, which were designed to protect borrowers. The price caps included:

  • A cost cap – 0.8% per day on the amount of money borrowed – including interest and all fees.
  • A default fees cap – £15
  • A complete cost cap – 100%

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

What do the new rules on Continuous Payment Authority mean?

You might not realise this, but the majority of loan companies will set you up to pay via a Continuous Payment Authority (CPA). This means that the lender can take payments from your account.

There are new regulations in place regarding Continuous Payment Authority, which mean that lenders can only make two attempts to take the money, and if it fails, they cannot try again. They must also only debit the full amount, they are not allowed to just take partial payments to make up the value of the loan.

When you can’t repay the loan?

The law for debt collectors states that:

  • They must provide you with guidance on where to obtain free independent debt advice
  • They must hold off debt recovery, and give you ample time to make repayments.
  • Freezing interest and additional charges where necessary.

Are you interesting in getting help with your debt?

There are organisations out there who offer completely free advice on getting help with your debt. These include:

References

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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