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Text Loans

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Are Text Loans UK contacting you about an oustanding loan? Do you have loans and you are unable to pay them back? Are Text Loans UK threatening to take you to court, or threatening you in any other manner? Was the loan unaffordable, and you believe you should never have received it in the first place? These issues with Text Loans UK are common, and if you are facing the same issues, you are not alone. If you are having these or other problems, you should continue reading this article, as you may find some useful hints and tips about dealing with Text Loans UK. 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.

Text Loans Debt

Who are Text Loans?

Text Loans is a registered loan provider in the UK and is now part of Cashfloat. The company offers payday loans of up to £1,100 with flexible repayment periods. The company is trading as Western Circle Limited.

Were you looking for Text Loans Login Page?

Did you land on the wrong page, when you were actually looking for Text Loans Login page? This happens, but we are glad we found you!I’ve written an article below on the reasons why you shouldn’t pay Text Loans back. Read this before you go anywhere else, you won’t regret it!

How do loan companies tempt borrowers?

Some lenders are making it far too easy for borrowers to get access to funds. There is a wealth of companies out there who are tempting borrowers with ‘access to loans in minutes’, and ‘no credit checks’, and understandably, this is causing even greater debt problems for many people. Targeting those borrowers who have debt issues has been done for too long, and it has reached the point where the government have had to step in.

Why do you end up with debt problems and what is the government doing to help?

With lenders offering loans to those who can’t afford, it is hardly surprising that so many people have ended up facing debt problems with these organisations. Although the situation is still far from perfect, it is much better than it was in previous years. The loan business was getting out of control at one point, and this caused the government to step in, with new regulations being put into place. The loan market toppled £2 billion at one point, and this was found to be the result of extremely high and unaffordable interest rates, as well as irresponsible lending.

The Financial Conduct Authority took action, identifying unfair practices among some of the biggest names in the industry. Lending companies faced huge fines, including Wonga, who were given a £220 million fine, which put them out of business. The Money Shop and Quickquid also received fines, and some customers were given refunds too. Unsurprisingly, loans have dropped significantly, as have the number of lenders. The regulations worked, but unfair lending still exists and it is important to be aware of bad practices among lenders.

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

Loan interest and other charges – government caps

The Financial Conduct Authority put a price cap into place, in order to protect borrowers from facing excessive charges. These include:

  • A cost cap of 0.8% per day on the amount of money borrowed – this also includes both interest and all fees charged.
  • A cap on default fees of £15 – interest may be charged after a default has been put into place, but it mustn’t exceed the original rate of 0.8% per day.
  • A complete cost cap of 100% – you should not be asked to repay any more than 100% of the money you have borrowed.

These limits are relevant to all credit agreements with an interest rate of 100% or more a year and that will be fully or substantially repaid within a year.

There were other regulations which came into force in May 2017. According to these new regulations, lenders must now provide details of their products on a price comparison website, which must be authorised by the FCA. Borrowers are also entitled to receive a summary of the cost of borrowing.

If you find that Text Loans UK are failing to adhere to the regulations and they are trying to charge you more than they are permitted to, your credit agreement with them will no longer be valid and this means they will not be able to make you repay the loan.

Is Text Loans UK authorised to enforce payments?

Unfortunately, there are many ‘loan companies’ who are doing business and enforcing payments, when they are not authorised to do so. According to the law, only authorised businesses are able to make certain credit agreements. If you find that they are not authorised, they will not be able to enforce payments. In this case, you may just stop making payments, and there is nothing they can do.

If you want to check whether Text Loans UK is authorised, you can enter the name of the company on this Interim Permission Consumer Credit Register search page. You may also search via the financial services register here. If you do not find a valid up to date entry on either of these registers, you have the right to stop paying them. They will not be able to force you to pay the debt back.

There are some other signs that Text Loans UK are failing to operate legally, including a lack of information on the website, or information on the website which is out of date or the information being different on = the two directories. Non-disclosure of true APR is also a sign that Text Loans UK may not be operating legally.

Do you want to complain about Text Loans UK?

If Text Loans UK are not treating you fairly, they may be in breach of the regulations. If they are not adhering to the guidelines in any way, you have the right to make a formal complaint. You should make your complaint to Text Loans UK in the first instance, and if your dispute fails to be resolved or they do not respond within eight weeks, you have the right to escalate your complaint to the Financial Ombudsman. This is usually a last resort, but you have every right to do it.

To make a formal complaint, you must have evidence. This may include a list of phone calls, emails, letters or text messages. You should make your complaint in writing, and advise on what action you wish Text Loans UK to take. You may be seeking compensation or want the debt removed from your credit report. Make sure you outline this.

If Text Loans UK do not provide you with a satisfactory conclusion, you should escalate the complaint to the financial ombudsman. You can reach them by phone on 0800 023 4567 or 0300 123 9123.

Loan companies have an obligation to treat you fairly. If Text Loans UK are failing to do this, you might be entitled to a refund, even if the loan is fully paid off. If this is the case, you can also expect to receive a refund on all the interest you have paid on the loan, as well as additional charges. You may also be entitled to receive 8% interest on these payments.

If your loan is found to have been unaffordable at the time it was issued, you can get it removed from your credit record and the outstanding balance may also be cancelled.

You should write to your lender in the first instance, stating your case and asking for compensation.

If there is no satisfactory response within 8 weeks, you should speak to the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.

What you need to know about Continuous Payment Authority

Loan companies will often expect you to repay your debt using a Continuous Payment Authority (CPA). You may not even realise it, but this allows the company to take any money from your bank at any time to clear the debt. They should let you know before debiting your bank account, but unsurprisingly, view of them bother to carry out this step, and this is where problems arise. The end result of this is that you may not realise the money has been taken from your account.

If you are unable to take care of your important payments such as your rent, mortgage or utility bill, and the money is unexpectedly debited from your account by Text Loans UK before these bills come out, you may find yourself in serious trouble, which could be so serious that your home ends up being put at risk.

This is why new regulations had to be put into place regarding the CPA, including lenders being unable to attempt to take the payment on more than two occasions. If the payment fails, no further requests are permitted.

There are also rules which cover the amount of money which can be debited using a CPA. Lenders are not allowed to take partial payments. If there is not enough money in your account to cover the full amount of the payment due, they must not take anything. This is unless you agree to a partial payment being taken, but you must give them advance notice of this.

If they do attempt to take the money on more than two occasions or they take a partial payment and you have not given them explicit permission to do so, they will be in breach of regulations. If this is the case, you have the right to report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.

How to deal with your debt

If Text Loans UK are behaving legitimately and you have no reason to make a complaint, but you simply can’t afford to pay back the loan, there are some steps you may take.

If you have a CPA, standing order or direct debit set up, you can contact your bank and cancel these, if you are struggling to make the payments. Text Loans UK will not be able to take payments as a result, and you will have complete control of your bank account. Your bank may also advise you to speak to Text Loans UK and let them know you have cancelled the payments, but you are not under any legal obligation to do so; they will not be able to collect any money from you unless you provide them explicit permission to do so.

Of course, the debt will still exist, so you must deal with that directly with Text Loans UK. It is important that you don’t just bury your head, no matter how tempting it may be to do so. tempted to do so. You should contact Text Loans UK and discuss your financial situation with them. Regardless of where you are with your finances, they must treat you fairly, and should be willing to come to an arrangement to allow you to pay back the debt in installments.

Lenders have an obligation to:

  • Indicate what sources are available for free debt advice
  • Hold off debt recovery for a period of time, while giving you the chance to develop a repayment plan, which may include the use of a debt advisor.
  • Give you reasonable time to repay the loan, which could include freezing interest and additional charges.

Should you roll the loan over?

Text Loans UK may advise you to roll the loan over, but doing so is not a good idea. You will end up being charged even more interest and additional charges, which will leave you facing even deeper debt problems. By law, the loans cannot be rolled over more than twice. It is much more beneficial and cost effective to just set up a repayment plan to pay the loan back.

Getting free debt help and advice

These are some of the organisations who can offer free independent advice on debt:

Should you trust loan companies?

There is no doubt that loan companies receive a bad press. It could be argued that they also offer a valuable service to those who cannot obtain credit from a bank or credit card. Unfortunately, some lenders put profits before everything else and end up exploiting their customers, and this is where they cause a lot of harm to borrowers. Of course, some loan sharks remain, but the new regulations have helped and made it safer to use these companies. People still get into debt problems though, despite the new regulations.

If Text Loans UK are failing to adhere to the regulations, you do not need to to pay them as the debt has became unenforceable. If you are unable to pay, you should contact one of the organisations we have listed above, who will provide free advice and support.

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

Good luck,

Scott (MoneyNerd)

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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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