Update 22/04/21: The Text Loans website appears not to be trading.
Are you considering a loan with Text Loans? Or perhaps you already have one, and you’re looking for further information about the company. Either way, we’ve compiled the most important, in-depth information about Text Loans for you in this loan guide.
About – 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.
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Did you land on the wrong page, when you were actually looking for the Text Loans page? This happens, but we are glad we found you! There’s lots of useful information on this page.
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.
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.
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.
How to deal with your debt
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.