Are Mate Loans UK contacting you about an outstanding debt? Are they threatening to take action against you? If you can’t afford to pay your debt or you don’t know how to deal with debt collectors, this article will help ensure you know what to do. 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 My Mate Loans?
MyMate Loans was founded in 2013 and of up to £2,500 with a repayment period of six months. These are short term loans. Loans are processed on weekdays and weekends, with an easy application process. MyMate Loans has changed to Different Money.
Read what to do if you can’t pay back your debt.
How easy is it to borrow money?
There are many lenders out there who are lending money to those who need it, and some will give you access to funds within just a few minutes. You could potentially be accepted for a loan of up to £1,500 in seconds, and you may be able to get this without credit checks. There are many lenders who even offer loans to those who have a very bad credit history.
What causes debt issues?
Many people get into debt because they simply can’t afford to pay the money back. If you are in this situation, you are one of very many. Thankfully, there are now regulations in place, but prior to this, the loan market was worth over £2 billion, and interest rates were sky high. The loan business ended up getting out of hand, which is why the government had to step in.
The Financial Conduct Authority identified practices which were unfair, and as a result many ended up with huge fines. The fines were handed out to some of the most well-known debt collection agencies in the UK, including Wonga, The Money Shop and Quickquid. It was definitely a wake up call for debt collectors to take stock of their practices. It came to light that some debt collection agencies were lending to people who could not afford to pay it back, and this has resulted in a reduction of loans issued dropping from 240 to 60.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If My Mate Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Government legislation on loans and interest
There is now a price cap on loans, which has been introduced by the Financial Conduct Authority. This is to prevent debt collection agencies from charging excessive interest rates. This includes@
- 0.8% cap per day on the value of the loan borrowed – including interest and fee charges.
- Default fees capped at £15 – a default interest can be charged, but it cannot exceed the original rate of 0.8% per day.
- Total cost cap of 100% – you cannot be asked to repay more than 100% of the money you have borrowed.
These caps will apply to all credit agreements, off 100% or more a year which are due to be paid or partly repaid within a year.
There are also other regulations which have applied to debt collectors since May 2017. Debt collectors must provide product details on price comparison websites which have been authorised by the FCA. Borrowers are entitled to receive a summary of the total cost of the money they have borrowed.
If My Mate Loans UK has breached the regulations, and they are trying to charge you more than they are entitled to, the credit agreement will be viewed as unenforceable, which means they cannot force you to 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.
Do My Mate Loans UK have the right to contact you?
If you have never heard of My Mate Loans UK, of course you are going to be concerned about who they are, and whether they are legitimate. If you want confirmation about My Mate UK Loans and whether they have the right to contact you, you can find out more by putting their name into this Interim Permission Consumer Credit Register search page, as well as the financial services register here. If you cannot see a valid entry which is up to date, you can stop paying the debt and they won’t be able to enforce it.
Another indicator is if you look on their website and there is not much information or it is out of date. If something doesn’t look right, it usually isn’t!
Can I Make a Complaint about My Mate Loans UK?
If you feel that you would like to make a complaint about My Mate Loans UK because they are breaching the regulations or you are not being treated fairly, you can do this formally. If they fail to deal with your complaint, you can contact the Financial Ombudsman, who will take care of it for you.
In order to make a complaint, you would need to get evidence together with anything related to the complaint. For example, a list of phone calls, emails, letters etc. It is important to supply as much information as possible related to your complaint – together with the actual you expect to be taken.
If your complaint is not being taken seriously by My Mate Loans UK, you should phone the Financial Ombudsman on 0800 023 4567 or 0300 123 9123
In some cases, you may be entitled to a refund for unfair treatment, even if the loan has already been paid.
Make sure you write to your lender with details of the case, and information about the compensation you expect.
There should a response within 8 weeks, but if not, call the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
Continuous Payment Authority – what you need to know
You may be asked by the loan company to pay your debt via a CPA (Continuous Payment Authority.) This means that the debt collection agency can take money out your account at any time, without notice. They should let you know if they plan to do this, but many don’t, which can mean you end up with nothing in your account.
In many cases, this has left debtors without much needed funds for essential bills, including mortgage payments, and utility bills. Although this is still permitted, there is new legislation which states that this can only be done twice, and if the payment fails, the debt collection company may not attempt it again.
They are also not allowed to take part payments using a CPA. They can only attempt to take the full amount due or partial payments, if you have agreed to this. If they don’t seek permission, they are breaching the legislation, and you can report them to the Financial Ombudsman on 0800 023 4567 or 0300 123 9123.
I can’t afford to repay it – what now?
If My Mate Loans UK are contacting you legitimately, and you can’t afford to pay the debt back, there are some ways you can deal with this situation.
If you have set up a standing order or direct debit, or you are in a CPA with them, you can cancel this via the bank. This means they won’t be able to keep trying to collect payments. You do not need to inform My Mate Loans UK, but it can be a good idea to do this. Otherwise, they are likely to contact you, as they will be blocked from taking payments.
Regardless, you still owe the money and you must speak to them about the debt, and reach some arrangement. It is better to face these situations head on, that try to run away from your debt problems – as they will just follow you. Don’t worry though, they have a legal obligation to treat you fairly about your debt, and if they are not doing this, you can report them.
These are some points of the legislation that lenders must adhere to:
- Provide you with information on where you can get free independent debt advice.
- Do not continue to pressure you about the debt after you have made contact and reached an agreement.
- Allow you time to pay the back, while also possibly freezing interest and additional charges.
Is it a good idea to roll the loan over?
My Mate Loans UK may advise that you roll the loan over, but this is definitely not a good idea. In doing this, you will end up with more interest and other charges, which will make your debt situation worse.
Do you need debt help
These are just a few of the organisations who offer free independent advice on debt:
- Contact Citizens Advice for free debt advice and support.
- Contact StepChange Debt Charity who will help advise on getting out of debt.
- Contact National Debtline for free debt advice and support.
Can you trust loan companies?
Loan companies are not looked at very favourably, but they also provide a service that many need. They can offer a lifeline to those who are in serious financial hardship and can’t get credit via other means, such as the bank or using a credit card. There are not so many ‘sharks’ out there, as it’s more difficult for loan companies to get around the regulations.
However, if you feel that My Mate Loans UK are in breach of the regulations, you do not have to pay them. Instead, contact one of the organisations listed above for some impartial, free advice.
If you can’t pay back your loan do check out my other article here.