Update: It appears that the my mate website is no longer operating.
Information correct as of 22/04/21
Are you considering a loan with My Mate 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 My Mate’s loan for you in this loan guide.
Who are My Mate Loans?
MyMate Loans was founded in 2013. They offer loans with an easy application process.
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.
Do My Mate Loans UK have the right to contact you?
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.
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 by contacting the company directly. If they fail to deal with your complaint, you can contact the Financial Ombudsman.
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 company can take money out your account for the loan repayments.
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.
I can’t afford to repay it – what now?
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.
Do you need debt help
These are just a few of the organisations who offer free independent advice on debt: