Globo Loans

Update: In October 2013, Globo BP Limited. They are no longer trading.

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

What are the Government caps on loans and interest?

As a consequence of the irresponsible lending, the Financial Conduct Authority had to introduce price caps which were designed to protect borrowers from being charged excessive amounts of money. The caps include:

  • A cost cap of 0.8% on the value of the loan borrowed each day which includes interest and fees
  • Default fees cap of £15. Interest can still be charged after a default, but lenders are not permitted to charge more than the original 0.8% rate per day.
  • 100% complete cost cap. You should not be asked to repay over 100% of the loan you have borrowed.

The limits are applicable to credit agreements with an interest rate of 100% or over per year, and that will be due to be fully or substantially repaid in a year.

There are other regulations which were enforced in May 2017. With these new regulations, lenders are required to provide details of any products on a price comparison website, which must be authorised by the FCA. Borrowers must also receive a summary with the cost of borrowing.

Is Globo Loans UK authorised to contact you?

Are you looking to check whether Globo Loans is authorised? You can simply enter the name of the company on this Interim Permission Consumer Credit Register search page, or alternatively, search the financial services register here.

Do you need to make a complaint about Globo Loans UK

Do you believe that Globo Loans UK are in breach of the regulations? In the first place, you should make a complaint directly to them about the behaviour. If they fail to resolve the issue within eight weeks, you have the right to escalate it to the Financial Ombudsman.

If you do not receive a conclusion which you are satisfied with, you may wish to take your complaint further, to the Financial Ombudsman. You can do this by contacting them on 0800 023 4567 or 0300 123 9123.

Continuous Payment Authority – what it is and the new rules

You may not be aware of this, but in most cases, loan companies will have you repaying your debt using a Continuous Payment Authority (CPA.) With a CPA, the company can take money from your account to pay off your loan.

Thankfully, new regulations have been introduced regarding CPA, which are designed to protect borrowers. With these regulations, loan companies must not try to take the payment on more than two occasions. If the second attempt fails, they must not try again.

Other rules are related to the amount of money they are permitted to take. They cannot take partial payments, it must be the full payment or nothing. If you do not have the funds in your account to cover the full sum of the debt, they cannot take anything. You can agree to make up the loan payment through partial payments, but you must give permission in advance. If they do this, they are in breach of the regulations.

Can’t afford to pay back the loan?

Lenders have a legal obligation to do the following if you’re struggling with loan repayments:

  • Provide information on where you can get access to free independent debt advice
  • Postpone debt recovery for a reasonable period of time while you devise a repayment plan, using a debt adviser if applicable
  • Give you a reasonable amount of time to repay and possibly freezing interest and any additional charges.

Getting debt help

Thankfully, there are a range of organisations who free independent advice on debt. These are some of them:

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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