Are Hitachi Loans UK driving you crazy with all the calls/emails? Are they saying they will take you to court? Did you get access to a loan you couldn’t afford? If you are having issues with Hitachi Loans UK, this article is for you. 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.
Who are Hitachi Loans?
Hitachi Loans offers short-term loans of up to £25,000 with a repayment period of up to 60 days. The company offers fixed repayments and a fast loan application process with payouts possible the same day. Hitachi Finance is a division of Hitachi, Ltd and was founded in 1994.
Loan companies are making it too easy for borrowers
The problem with loan companies and debt is that lenders are getting access to loans they can’t afford to pay back. There are also kinds of ‘tempting’ messages out there stating you can get a ‘loan in minutes’, ‘access to the funds you need quickly’, and other messages which make it difficult for borrowers to resist.
Read what to do if you can’t pay back your debt.
Is the government doing anything about loan companies?
The situation with irresponsible lending has continued to spiral out of control, and at one point it got so bad that it was worth over £2 billion. A combination of irresponsible lending and extortionate interest fees have led to a lot of people getting into debt, and then being chased by companies to pay back the loan. Quite often, loans they can’t afford to pay back.
The Financial Conduct Authority identified poor practices by a number of companies, which led to many borrowers facing financial hardship. Some of the biggest culprits ended up with fines, including Wonga and The Money Shop. It did work those, as the number of lenders dropped significantly. The fines also put some of the biggest loan companies out of business. You reap what you sow, as they say!
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Hitachi Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
The cap on loan interest and other loan charges
There is now a price cap which is designed to help borrowers from facing excessive charges. This was introduced by the Financial Conduct Authority. The price cap includes:
- Cost cap: 0.8% per day on the value of the loan borrowed – including interest and fees.
- Default fees: cap of £15. Default interest may be charged, but must not be more than 0.8% per day.
- Complete cost cap: 100% – you should not be asked to repay more than 100% of the money borrowed.
The limits are relevant to credit agreements with an interest rate 100% or more per year, which will be fully or substantially repaid within a year.
If Hitachi Loans UK are breaching these regulations, and they are attempting to charge you more than they are permitted to, your credit agreement become useless and they cannot make you pay back the loan.
Find your best debt solution (in 1 minute!)
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.
Are Hitachi Loans UK acting legally?
There are companies out there who fail to act legally, and it is important to know whether they are legitimate before you start making any payments.
You can check the authorisation of Hitachi Loans UK by searching the Interim Permission Consumer Credit Register search page. Otherwise, you can try the financial services register here. If there is no valid entry, you should stop paying the debt.
Other ways to check the legitimacy are by looking on the website to see what kind of information they have. If it is incorrect, out of date, or there is little information, you may want to find out a bit more before you make any payments.
Do you want to make a complaint about Hitachi Loans UK
If you feel that Hitachi Loans UK are not following the necessary regulations and they are treating you unfairly, you have the right to complain. You can complain to Hitachi Loans UK in the first instance, and if you don’t get any reasonable response, you make want to make your complaint to the Financial Ombudsman.
You can’t make a complaint without evidence, so you should collate this before you do so. This includes any letters, emails and a note of telephone calls – including when they took place, and the content.
If you are going as far as to make a complaint to the financial ombudsman. You can contact them by phone on 0800 023 4567 or 0300 123 9123
If it is deemed that Hitachi Loans UK have not treated you fairly, you might be due a refund, even if you have already paid the loan off. You should also be entitled to any interest you paid on this.
If there is enough information available to show that the loan was unaffordable to you, you may even be able to get it completely removed from your credit file.
You should write to the lender in the first instance, with your request for compensation and reasons for this claim.
You should give the lender 8 weeks to respond and if you are not satisfied with the response, or you don’t receive one, you should contact the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
What are the rules on Continuous Payment Authority?
You may be asked to repay the debt using a Continuous Payment Authority (CPA). It is important to be aware that this means the loan company company can keep attempting to make payments from your account, whenever they want. This can happen at random times, without your knowledge, so you may find that you have an unexpected debit on your account, which leaves you without any money!
It can be difficult enough to cope with debt, without being unable to pay bills too, so this is just an extra burden you don’t need!
With the new regulations though, companies can only attempt the CPA on two occasions. If it fails twice, they can’t make any further requests.
They are also only allowed to take full payments, so if you don’t have enough in your account, they can’t just take a partial payment. They can only do this if you give them permission to do so.
If they try more than twice or they end up taking a partial payment when you haven’t given them permission, they are failing to follow regulations. You may consider reporting them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.
I can’t afford to pay the loan back, what are the next steps?
If Hitachi Loans UK are contacting you legitimately, and you have no means to pay the loan back, these are some things you can do.
Contact Hitachi Loans UK and ask them to cancel any payment plan you have set up, including a direct debit or CPA.
If they do not do this, you can cut them off at the source – which means you can cancel the direct debit or CPA directly with your bank.
Regardless, you still owe the money though and you can contact Hitachi Loans UK and speak to them about your financial problems. They have a responsibility to deal with you in a fair and honest manner, and to help support you.
The law is there to protect you and lenders have a responsibility to:
- Give you information on where to find debt advice.
- Help you devise a suitable repayment plan which suits your situation.
- Giving you time to make payments, if you are struggling financially.
Don’t be tempted with a rollover
Hitachi Loans UK might say that an alternative to a repayment plan would be a rollover, but it is advisable not to go down this route. The reason being is that you will end up paying even more interest and charges. The chances are, you will get to the end of the rollover and still be unable to pay it.
Getting debt help
If you need free help and advice on getting out of debt, these are some organisations who can help.
Are loan companies all out to get you?
Loan companies are generally not out to get you, but many don’t follow the appropriate legislation. With tougher restrictions enforced by the government, these companies need to be aware of what they can and can’t do, as the law is on the side of the borrower.
If Hitachi Loans UK are failing to follow the law, the loan may become unenforceable. If you can’t pay your loan back, seek help with this via the free support organisations above.
If you can’t pay back your loan do check out my other article here.