Peachy Loans

Update: Peachy Loans are a trading name of Cash on Go Limited. As of March 2020, Cash on Go Ltd (and therefore Peachy Loans) went into administration. There will therefore be now new lending activity, but existing loans will remain subject to the agreed terms.
Information correct as of 20/04/21 (FCA)

Are you considering a loan with Peachy 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 Peachy’s loan for you in this loan guide.

Who are Peachy Loans?

Peachy Loans offers loans of up to £1,000 with a repayment period of 12 months. Peachy was founded in 2010 and processed more than three million applications before going into administration. The company was a direct lender and offered applications 24 hours a day. Peachy trades under Cash On Go Ltd and is registered in the UK.

Find your best debt solution

This 4 question debt calculator will tell you if you’re eligible.

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The caps on loan interest and other charges – introduced by the government

The Financial Conduct Authority recently put lending price caps in place to protect borrowers from facing excessive charges.

These price caps include:

  • A daily cost cap of 0.8%, including interest and fees.
  • Default fees cap of £15. Interest may be charged after a default, but it cannot be more than the daily cost cap.
  • Complete cost cap at 100%. You shouldn’t be asked to repay over 100% of the amount you have borrowed.

The limits are relevant to credit agreements with interest rates of 100% or more per year, that will either be fully or substantially paid back in a year.

Other regulations to be aware of relate to the lenders products. Lenders have a responsibility to ensure their products are featured on a price comparison website, which must be FCA authorised. Borrowers should always receive a cost of their borrowings too. This regulation has been in place since 2017.

Continuous Payment Authority and the new rules

In most cases, you will be paying the loan through a CPA (Continuous Payment Authority.) Previously, this was allowing companies to take money from your account to pay off the debt.

There are new regulations in place to offer greater protection to borrowers. These include the lender being unable to attempt to take the payment on more than two occasions. If the payment fails after the second attempt, there are no further attempts permitted.

There are also rules surrounding the amount of money that may be taken using a CPA. Partial payments are no longer permitted. If there are insufficient funds in your account to cover the whole payment, nothing can be taken. This is, of course, unless you allow them to take a partial payment. They cannot do this without your prior permission. It is not acceptable for them to take partial payments, if you have not asked them to.

I can’t afford to repay the loan – what next?

Lenders must help you if you report to them that you’re struggling with repayments.

According to the law, lenders have a responsibility to:

  • Offer information on where you will be able to get free debt advice.
  • Give you appropriate time to develop a suitable repayment plan, while holding off debt recovery. This may involve using a debt advisor.
  • Allow you reasonable time to repay the money, possibly also freezing the interest and charges.

Getting debt help

These are some of the organisations that will be able to provide you with free debt help and advice.

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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