Update: In March 2020, Ladder Loans (a trading name of Instant Cash Loans Limited) went into liquidation. They are no longer engaging in lending activity, but any outstanding loans will remain subject to FCA regulations.
Information correct as of 21/04/21 (FCA)
Ladder Loans are a company in the UK, who may be contacting you about outstanding debt from a loan. If they are contacting you about the debt, you should speak to them and find out a bit more about the loan and where it originated.
Who are Ladder Loans?
Ladder loans offers personal short-term loans between £400 and £1,500 with a repayment period of up to 12 months. Applications can be done online and found can be paid at the same working day.
What does the government do about lending?
There has been new legislation regarding the lending industry.
The Financial Conduct Authority undertook a massive investigation, resulting in the following new rules.
Interest and charges cap
In line with the changes, The Financial Conduct Authority also have a price cap in place to protect borrowers from facing high charges. The caps include:
- 0.8% per day cost cap on the value of the loan borrowed – includes charges and fees.
- Default fees are capped at £15 – default interest is permitted, but it must not be more than original rate of 0.8% per day.
- Cost cap at 100% – you should not be asked to pay over 100% of the money you have borrowed.
The limits are relevant for all credit agreements with an interest rate of 100% or more a year and which are either due to be fully or substantially repaid in a year.
These additional regulations have been in force since May 2017.
Continuous Payment Authority – what are the new rules?
It is common for loan companies to want you to pay using a Continuous Payment Authority (CPA). This means they can take the money from your account, whenever it suits them.
The new regulations in place regarding CPA state that if the payment fails twice, they can’t try it again.
They are also forbidden to take out partial payments to clear the debt. If the full value is not in the account, they can’t take anything.
Do you need debt help?
These are some organisations who can provide you with completely free debt advice and help.