My Jar Loans

Update: My Jar Limited went into administration in February 2016. The company is no longer taking on new business, but must still meet FCA regulations when dealing with customers.
Information correct as of 15/04/21 (FCA)

Are you worried about being able to make repayments to My Jar? Or are you considering taking a loan with them? Read our loan guide to find out all the information you need.

Who are My Jar Loans?

MyJar offers loans of up to £4,000 with a repayment period of up to 24 months. Customers can enjoy an easy online application with the option to repay a loan earlier.

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Recent changes to lending industry

Recently, there have been changes made to lending regulations in order to try and offer a higher degree of protection to borrowers.

As a result of the research conducted by the Financial Conduct Authority, some of the biggest and most widely recognised lenders ended up with fines. Wonga were one just company who faced a £220 million fine, and unsurprisingly, the firm is no longer operating. The changes to the regulations made a big difference and over the years, both the number of lenders and loans dropped substantially.

The changes to the government regulations

The changes to the regulations resulted in the Financial Conduct Authority introducing price caps to try and help protect borrowers.

These price caps include:

  • A 0.8% daily price cap on the amount of money you have borrowed – this includes interest and fees.
  • A default fee cap of £15 – interest may still be charged after a default, but it cannot be more than the original rate of 0.8% per day.
  • A complete cost cap of 100% – you should not be asked to pay more than 100% of the money you have borrowed.

The limits apply to credit agreements with an interest rate of 100% or over per year. These must be due to be repaid in a year, either fully or substantially.

Other regulations were put in place in 2017. These regulations mean that lenders have a responsibility to ensure that information on their products is available on FCA authorised price comparison websites. Additionally, borrowers must receive a summary with the total cost of what they have borrowed.

Continuous Payment Authority – the new legislation

A Continuous Payment Authority is a common way in which lenders ask you to repay your debt. Previously, this allowed lenders to take money from your account.

There have been significant changes made to the CPA.

The first change is that lenders cannot just continue to try and take payments. They must only make two attempts to recover the debt, and if there are insufficient funds, they cannot keep trying.

There are rules around the amount they can take too. Lenders can no longer take partial payments, without your prior agreement. If there is not enough money in your account to take the full amount, they would be unable to take any funds, until which time as you had enough. You can reach a mutual agreement to pay the debt back through partial payments, but this must be agreed prior to them doing so, otherwise they are in breach of the regulations.

Getting out of debt

If you want free independent advice to get out of debt, these are a few of the most popular organisations to try:

Good luck!

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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