Update: Purple Loans (a trading name of GE Money Purple Loans Ltd) have gone out of business.
Information correct as of 21/04/21 (CompaniesHouse)
Have Purple Loans UK been reaching out to you about a loan you have outstanding and have failed to pay back? Read on.
Who are Purple Loans?
Purple Loans was a lender that offered loans to UK residents. The company offers secured and unsecured loans and it’s a good option for people who need a larger amount of money without taking out a mortgage.
Government cap introduction of interest on loans and charges
The Financial Conduct Authority designed to place price caps on interest and charges, to give borrowers extra protection from facing excess costs. These caps are:
- A 0.8% daily cost cap on the sum of money you have borrowed, this includes charges and interest.
- A £15 cap on any fees charges for defaults – the lender will be able to charge interest after a default, but they cannot charge any more than the daily cost cap.
- A 100% complete cost cap– you should never be in a position where you are being asked to repay over 100% of the amount of money you have borrowed.
The limits apply to credit agreements with interest rates of over 100% each year. These will be eligible to be repaid fully or substantially within one year.
Other regulations to be aware of relate to information on products. Lenders must ensure product details are visible on FCA authorised price comparison. In addition, borrowers should receive a summary of what they have borrowed. These have regulations have applied since 2017.
Are you looking to make a complaint about Purple Loans UK?
If Purple Loans UK has failed to follow the rules in relation to how they have treated you, you would be able to make a complaint. Purple Loans UK would have 8 weeks to resolve your complaint, after which time, you can escalate it to the Financial Ombudsman.
Continuous Payment Authority and the key facts
You may be repaying the debt via a Continuous Payment Authority. Lenders were taking advantage of the benefits they had with the CPA, and this is why the legislation around it was changed. As the CPA allowed them to take money at any time from the borrowers account.
The new regulations that have been put in place are designed to offer greater protection to borrowers. One of the new rules is that when a CPA fails twice, the lender is not permitted to try again. Twice is the maximum they can attempt the payment.
New regulations are also in place regarding the amount they are able to take via a CPA. Lenders cannot just take payments as and when they wish until the debt is cleared. They can only take the full amount of the debt. If there is not enough to cover the entirety of the debt, they should not take anything. If you would prefer they do this though, it can be agreed between both parties, in which case, it is perfectly acceptable.
Are you unable to repay the debt?
These are some regulations the lender must adhere to:
- Offer you advice on where you can obtain free independent debt advice
- Put a hold on debt recovery to give you the opportunity to develop a more suitable plan
- Give you ample time to repay the loan, freezing interest and any charges.
Get debt free
If you want to start taking care of your debt, you can get some help through these organisations: