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Piggy Loans

Are Piggy Loans UK contacting you about an outstanding loan? Do you have loans you can’t afford to pay back? Are Piggy Loans UK threatening to take you to court? Was the loan unaffordable to you, and you should never have received it in the first place? If you are experiencing issues with Piggy Loans UK, this article is designed to help you. 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.

Piggy Loans Debt

Who are Piggy Loans?

PiggyBank is a direct lender based in the UK. The company offers loans up to £1,000 with up to five months to repay. They offer customers a variety of short-term loans such as payday loans and unsecured loans. PiggyBank is trading under DJS and is registered in England.

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Did you land on the wrong Piggy Loans Loans Page?

Many people land on this page when they are actually looking for the Piggy Loans Loans Login page. If you’ve made the same mistake, I’m glad we have found you just in time. Take a look at our article on why you shouldn’t pay Piggy Loans Loans back.

It may be too easy to borrow money?

There are a lot of lenders out there, and with so many vying for business, some have resorted to offering loans for those who often couldn’t have afforded to pay them back. There are all sorts of tempting phrases like ‘loans for very bad credit’ and ‘get your money in minutes’, which has resulted in many borrowers receiving money with no means of repaying it. In many ways, it has become too easy to borrow money.

Why are debt problems so common?

Not only have lenders been lending money to people who can’t afford it, they have also been charging exceptionally high interest rates, which has plunged borrowers further into debt. The loan market was, at one time, toppling £2 billion, which is why new regulations were introduced to protect borrowers, and ensure loan companies were acting in a legitimate way.

The Financial Conduct identified unfair practices, which then ended with huge fines for some of the biggest lending companies, including Wonga, who were fined a staggering £220 million, and unsurpringly, ended up being put out of business. Other lending companies who received major fines were Quickquid and The Money Shop. The hefty fines seemed to work though, as the number of lenders fell from 240 to 60. Loan companies are a lot stricter about who they lend to, as if they are found to be lending to people who can’t afford it, they could be in for some fines – or even put out of business.

Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Piggy Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.

Loan interest and other charges

The Financial Conduct Authority went a step further by introducing price caps to protect borrowers from being faced with high charges. The caps which were introduced include:

  • A cost cap of 0.8% per day on the value of the loan borrowed– a combination of interest and all fees charged.
  • A cap on default fees of £15 – a default interest may still be charged, 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 by the lender to repay more than 100% of the amount you have borrowed.

The limits are applicable for credit agreements with an interest rate of 100% or more per year and that will be fully or substantially repaid within a year.

There are other regulations which came into force in May 2017. Lenders must be willing to provide information on their products on a price comparison website, which must be authorised by the FCA and they must also provide borrowers with a summary of the total cost of borrowing.

If Piggy Loans UK is found to be in breach of the regulations and they are trying to charge you more than they should, your credit agreement will become unenforceable and they will cannot make you pay back the loan.

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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.

Is Piggy Loans UK an authorised business?

You should be careful when dealing with lending companies, as many claim to be authorised, when in reality, they have no right to be making credit agreements. If they do not have authorisation, this means they are unable to enforce payments, and if you stop paying them, there is nothing they can do. You should always check authorisation before you start making payments.

If you want to check if Piggy Loans UK is authorised, you can do this quickly and easily by searching on the Interim Permission Consumer Credit Register or alternatively, take a look at the financial services register. If they do not have a valid entry on these, you can stop paying and they won’t be able to enforce the payments.

There are other indicators that Piggy Loans UK may not be operating legally, and these include a lack of information available on their website, as well as out-of-date information, or a non disclosure of APR.

Making a complaint about Piggy Loans UK

As is the case with all other loan companies Piggy Loans UK do not have the right to treat you unfairly, or try to harass/embarrass you into making payments. If you feel that this is the case, you can make a formal complaint about their behaviour, and if they fail to resolve it, you may want to consider escalating the complaint to the Financial Ombudsman.

Making a complaint is a simple process, but you must have evidence to support the complaint. For example, you may have evidence that they have been repeatedly calling you throughout the day, or they may have sent you threatening emails or letters. The more evidence you have to support your claim, the better. Write to Piggy Loans UK with the header Complaint, and inform them of what your complaint is and how you want them to resolve it.

If they fail to provide you with a response you are happy with, you may want to speak to the Financial Ombudsman, who you can reach on 0800 023 4567 or 0300 123 9123.

If Piggy Loans UK are found to have treated you unfairly, you may end up getting a refund on the loan you hvae paid off. In this case, you would also receive a refund on interest and potentially, any charges you have accrued. This is why it is important to follow up on any complaints.

Your loan may have been given to you when you clearly could not afford to pay it back. In this case, you might be able to get it removed from your credit record, with the outstanding balance also cancelled.

You should write to the lender in the first instance, stating the case and requesting compensation.

If you do not receive a satisfactory response within 8 weeks, you can speak to the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.

Continuous Payment Authority – what you need to know

You may not be aware of this, but most loan companies will set you up to repay the outstanding debt using a CPA or Continuous Payment Authority. This means that they can take money from your account to pay off the debt, as and when they wish. They should inform you of this prior to do it, but many don’t, which can obviously leave people in dire situations. One minute they have a full bank account, and the next they have nothing, which is not a good situation to place people in.

If you cannot pay your rent, mortgage or bills as a result of Piggy Loans UK taking an unexpected payment, it could lead you to facing eviction. No one wants to be put in this situation, and loan companies should not be doing this.

There have been new regulations introduced which allow for a bit of extra control over the CPA. These mean that if the CPA fails on two occasions, the lending company may not make any further requests.

Lending companies are no longer permitted to take partial payments from your account, unless you give them express permission to do so. The new regulations mean that if the full amount is not in your account, they are not permitted to take anything. If you give them permission, this is totally different, but they must not just take the payment in parts without you saying they can.

If you have found that they have attempted two requests or they have taken a partial payment when you have not requested them to do so, they are breaching the regulations. In this case, it is advisable to contact the Financial Ombudsman on 0800 023 4567 or 0300 123 9123 to let them know.

When you can’t pay back the loan

Not everyone is in a position where they can afford to pay back a loan they have been given, but this doesn’t stop Piggy Loans UK contacting you.

If you have set up a payment plan, for instance via CPA, standing order or direct debit, and they are refusing to cancel it, you can do this yourself by cancelling via your bank. It is a good idea to let them know your plans, but you don’t have an obligation to do this, it is your decision. When you have cancelled, they will not be able to take further payments from you, unless you advise them to do so.

Cancelling the payments doesn’t mean you no longer owe them, you will still be required to pay up and you should speak to Piggy Loans UK and let them know your financial situation. They have an obligation to treat you fairly, and if they fail to do so, they are in breach of the regulations. The law is there to protect you, and if they are found to be breaking the legislation, you can seek advice.

The law in place for lenders state that they must:

  • Provide debtors with information on where they may be able to obtain free independent debt advice.
  • Allow the debtor a reasonable period of time to repay the loan, based on their circumstances.
  • Freeze interest and additional charges, where applicable.

Is it worth rolling your loan over?

Piggy Loans UK may say that you should roll the loan over, rather than setting up in a repayment plan, but this is just because they can make more money this way. You should not do this though, as you will end up in further debt. It makes more sense to pay it back in installments, if you can’t manage the full payment.

Seeking help to pay off your debt

If you want help with your debt problems there is free advice and support available. These are some organisations to contact:

  • Contact Citizens Advice – a well known organisation who provide advice on all kinds of personal issues, including debt problems
  • Contact StepChange Debt Charity – a charity who will provide you with free debt advice, and help you get back on your feet.
  • Contact National Debtline – an organisation who provide free debt advice and support.

Should you be wary of loan companies?

Loan companies tend to receive a bad press, but they provide a good service to those who need the money and perhaps, are unable to get access to funds elsewhere. In some cases though, they put profits before the welfare of others, and exploit customers as a result. New regulations have helped put borrowers in a better place, but these companies still exist, and they can make it difficult for those who need it most.

If Piggy Loans UK are not following the regulations, you can not be expected to pay the debt. You should report them instead. If you are unable to pay the debt, but Piggy Loans UK are following the guidelines, you can contact one of the organisations mentioned above.

If you can’t pay back your loan do check out my other article here.

Good luck,

Money Nerd

References

CONC 2.1 Application

CONC 5.2A Creditworthiness assessment

CONC 13.1 Application

Read More…

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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