Update: In October 2019, 247 MoneyBox Loans (a trading name of Active Securities Limited) went into administration. They are no longer engaging in lending activity, but any outstanding loans will remain subject to FCA regulations.
Information correct as of 20/04/21 (FCA)
Are you considering a loan with MoneyBox Loans (also known as 247 Loans)? Or perhaps you already have one, and you’re looking for further information about the company. Either way, we’ve compiled the most important, in-depth information about 247 MoneyBox Loans for you in this loan guide.
About – Who are Money Box Loans?
MoneyBox Loans offered loans to UK residents. The company is a trading name of Active Securities Limited and was a registered lender in the UK, established in 2009.
Interest and charges – the government caps
The Financial Conduct Authority has introduced price caps to try and offer some more protection for borrowers. These caps were designed to ensure borrowers were not facing excessive charges.
These caps are:
- A 0.8% cost cap per day on the total loan amount – including fees and interest
- A £15 cap on defaults – interest can be charged following a default, but it must never exceed the original 0.8% daily price cap.
- A complete cost cap of 100% – the lender is not permitted to charge over 100% of the amount of money you have borrowed.
The price caps on the interest and charges will apply to all credit agreements that have an interest rate of 100% or more per year and they should be due to be either fully or substantially repaid in one year.
There were other regulations which have applied since 2017. According to these new regulations, lenders have a responsibility to provide details of their products through an FCA authorised price comparison website. Borrowers are also eligible to receive a summary of the total cost of the amount they have borrowed.
You Can Make a Complaint about Money Box Loans UK
If they fail to provide a response you are satisfied with within the required 8 weeks, you will be able to take it further by escalating it to the Financial Ombudsman. They are available to speak to on 0800 023 4567 or 0300 123 9123.
New rules relating to Continuous Payment Authority
Most loan companies will expect you to repay the debt through a Continuous Payment Authority (CPA). With a CPA, the lending company will have the right to take money from your bank account.
There are new rules in place regarding CPA, which are designed to help provide borrowers with protection. The new regulations mean that if the CPA fails twice, the lending company will not be allowed to make any further attempts.
There are also rules around the value of the loan the lender can debit through a CPA. They are no longer allowed to take any less than the full value of the debt. This means that if you have insufficient funds in your account to cover the full value of the payment that is due, they cannot any payment at all. You can allow them to take a partial payment, but they must have prior permission in advance to be able to do this.
What to do if you can’t afford to make the payments?
These are some of the legal obligations that lenders must adhere to:
- They have a responsibility to give debtors information on where they will be able to find free debt advice
- They must be willing to hold off debt recovery for a reasonable time which will allow you to develop a repayment plan, which could include a debt advisor, if necessary
- They must allow you ample time to repay the debt, including freezing interest and charges, where possible.
Getting free debt advice
These are just a few of the organisations who are able to offer free debt advice and support.