Sunny Loans

Update: Sunny Loans is owned by Elevate Credit International which went into administration in 2016. Sunny Loans has been dissolved.
Information correct as of 15/04/21 (FCA)

Are you considering taking out a loan with Sunny Loans? If so, this article will be a great tool for you. Find out who Sunny Loans are, how to assess their loans, and more about the company details. Read Sunny Loans reviews below.

About – Who are Sunny Loans?

Sunny Loans offers loans between £100 and £2500. The company is a registered lender in the UK and has lent in excess of one million loans to customers in the UK in its lifetime. The company is owned by Elevate Credit International. They were established in

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Sunny Loans – the new laws

The Financial Conduct Authority has assessed the lending situation in recent years, and as a consequence, there are new laws.

Law #1: the loan should be affordable

This law has resulted in many readers receiving refunds, as this was a common error made by lending companies. According to this law, lenders must always ensure you have been properly assessed before they provide you with a loan. They must carry out a creditworthiness assessment, which provides them with information on whether you can afford to repay the loan. This has, unfortunately, been something that many lenders have failed to do.

According to the law, any repayments should be sustainable. In other words, you should be able to meet the loan payments, while also paying your other commitments, such as your rent, food and bills. You should not need to take out more loans to be able to afford your day to day expenses.

Law #2: interest and charges – know your limits

This law states that there is now a price cap on interest and charges. This has been introduced to help ensure that borrowers are protected from facing excessive charges. These caps include:

  • A daily cost cap of 0.8% on the value of the loan you have borrowed – including both interest and fees.
  • A default fees caps of £15. Interest may still be charged after a default, but it cannot be more the the 0.8% daily rates.
  • A complete cost cap of 100%. This states that you should not need to repay more than 100% of the total value of the money you have borrowed.

The limits are relevant to credit agreements with an interest rate at 100% or more. These should either be fully or substantially paid back within a year.

Other laws were enforced in May 2017. These laws meant that lenders were required to provide details of products on a price comparison website, which must be authorised by the FCA. Borrowers are also required to provide a summary of the total cost of what they have borrowed.

Law #3: continuous payment authority – what you need to know)

You will usually be required to repay the debt via a Continuous Payment Authority (CPA.)

New regulations have been put in place in relation to the CPA. The lender is no longer permitted to make more than two requests for payment. If the payment fails twice, they cannot make any further attempts to take money.

Other rules concern the amount of money they are able to take via a CPA. They cannot take partial payments to make up the debt, they must take the entire payment or nothing at all. If you’d prefer them to take partial payments, you can do this, but you must have given them prior permission.

Company Information

Sunny Loans is a trading name of Elevate Credit International which is in administration. Find details about this below.

Date of incorporation: 12 February 2004
Company status: In Administration
Company number: 05041905
Company type: Private limited Company
Address: C/O KPMG LLP, 15 Canada Square Canary Wharf, London, E14 5GL

Information correct as of 01/04/21 (Companies House)

FCA registration:

The Financial Conduct Authority (FCA) is the conduct regulator for financial services firms and financial markets in the UK. Sunny Loans, which is owned by Elevate Credit International, must still adhere to FCA regulations while the company is in administration.  

FCA regulated: Yes
FCA status: Authorised – In Administration
FCA reference number: 673771
Trading names: Elevate Credit International Limited, Sunny
Place of business: C/O KPMG LLP, 15 Canada Square Canary Wharf, London, E14 5GL

Information correct as of 01/04/21 (FCA)

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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