About

PaydayLoansRainbow.com is a website operated by Rainbow (UK) Ltd, a lead generation company. PayDayLoans Rainbow is a USA loan broker.

Loan interest and charges – government caps

A price cap was brought into place by the Financial Conduct Authority as a consequence of the poor practices, such as high costs and charges. These are some of the caps which were introduced:

  • 0.8% daily cost cap on the total amount of loan you have borrowed – including both interest and charges.
  • £15 default fees cap – you may still be charged interest after a default is placed on your account, but it cannot be higher than the original rate of 0.8% per day.
  • A complete cost cap of 100% – there should never be a time when you are asked to pay over 100% of the money you have borrowed.

The limits which have been set are applicable for each credit agreements, with an interest rate of 100% or more per year, and that will be repaid within a year – either fully or substantially.

You should also be aware of the regulations which were brought into place in 2017. The details of these regulations included the importance of lenders provided any details of their products on price comparison sites. These sites must always be FCA authorised. Borrowers should also be given a summary of the cost of what they have borrowed.

Are Rainbow Loans UK an authorised company?

It is easy to check the authorisation of Rainbow Loans UK. You can simply just enter the name of the company on this Interim Permission Consumer Credit Register search page. There is another option of searching on the financial services register here. If there is no legitimate entry, you can stop paying, and they would not be able to enforce it.

What if you wish to complain about Rainbow Loans UK?

You can only make a complaint about Rainbow Loans UK, if they have been in breach of the regulations, or you feel they are treating you unfairly.

If you would like to make a complaint, you will need to compile your evidence and contact the company directly.

If they fail to provide you with a valid response within 8 weeks, you should follow up your complaint with the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.

Continuous Payment Authority – The Facts

You may have never heard of a Continuous Payment Authority (CPA), but this allows companies to take money from your account for repayments.

New regulations have been brought in regarding the CPA, which mean that if they fail twice, the company cannot make any further requests.

There are also changes with regards to how much they can take. They are no longer allowed to take partial payments. If the full sum isn’t in your account, they can’t take anything. Of course, you can reach an agreement where they can take partial payments, but only if you do this, can they take less than the full value. If they do this, they would be failing to adhere to the regulations, and you can report them.

Dealing with your debt if you can’t meet your payment arrangement

According to the law, if you can’t meet your payments, lenders have a responsibility to:

  • Provide you with details on where to get independent debt advice
  • Stop debt recovery for a period of time while you devise a suitable repayment plan. This may involve using a debt advisor
  • They should also give you time to repay the debt, while freezing interest and other charges.

Getting debt help

There are some of the organisations who can provide you with free debt help and advice:

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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