Are Trusted Quid Loans contacting you in relation to an outstanding loan? Do you feel like they are harassing you with calls, emails and/or text messages? Are you not able to make the repayments they are asking for? Are you being threatened with court action? Were you offered a loan and you did not have the means to pay it back? If you are experiencing problems with Trusted Quid Loans, you are not alone, and you should read this article to find out how to deal with such contact about an outstanding loan. 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.
Who are Trusted Quid Loans?
Trusted Quid offers short-term loans between £250 and £1,500 with a maximum repayment period of six months. The company has been in business since 2011 and offers a rewards program for first-time customers who repay their loans in full. Trusted Quid is registered in the UK.
Read what to do if you can’t pay back your debt.
Are loan companies lending to people who can’t afford it?
It can be easy to borrow money, even for people who can’t afford to pay it back. There are loads of companies that are happy to advance you cash within a few minutes; to approve you for a loan of up to £1,500 in just seconds; to advance you money instantly without any credit checks. Many offer loans to people who have a “Very Bad Credit” history or who are already having difficulty repaying loans.
What causes debt problems and what is the government doing?
Debt problems are quite common these days, and this is why the debt collection industry is so huge. Although it is better than it was previously, it is still a problem. The loan business ended up becoming uncontrollable, which is why the government had to step in. The loan market was worth over £2 billion at one point, and this was down to the high interest rates, and other fees which loan companies were charging.
The Financial Conduct Authority identified many companies who were using underhand tactics, and failing to follow the regulations, which resulted in some hefty fines being issued. One of the biggest loan companies, Wonga, were fined £220 million, and ended up being put out of business as a result. Other companies, including The Money Shop and Quickquid, also found themselves with fines, as a result of lending to people who were not able to pay back the loan, and the customers received a refund. Since the regulation, the number of lenders has dropped from 240 to 60, so the harsh treatment did end up working in the long run.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If First Direct Loans is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Loan interest and other charges – government cap
There is now a price cap which was introduced by Financial Conduct Authority and is designed to protect borrowers from facing excessive charges on their loans. These caps include:
- Cost cap – 0.8% per day on the value of the loan borrowed – including interest and fees.
- Default fees cap – £15 – after this period a default interest can be charged, but it cannot exceed the original rate of 0.8% per day.
- Complete cost cap of 100% – you should not be asked to pay more than 100% of the amount you have borrowed.
These limits are relevant to credit agreements with an interest rate of 100% or more per year and that are meant to be fully or substantially repaid within a year.
Other regulations came into force in May 2017. According to these, companies are required to provide details of their products using a price comparison website which has been authorised by the FCA and they must provide borrowers with a full summary of the costs, including any fees etc.
If First Direct Loans are failing to adhere to the regulations and are trying to charge you more than they should, your credit agreement becomes unenforceable and cannot force you to pay back the loan.
Find your best debt solution (in 1 minute!)
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
Can you trust First Direct Loans?
There are loan companies out there who are operating without any permission to do so. Without authorisation, they should not be making credit agreements, and they are not in a position to enforce any repayments. If you find out they are not authorised, you do not have to pay them any money, and if you are paying, you can stop, and they won’t be in a position to do anything about it.
You can check whether First Direct Loans is authorised by entering the name of the company on this Interim Permission Consumer Credit Register search page. You can also use the financial services register here. If there is no a valid up to date entry on these registers, you can just stop paying. They are not in a position to be able to enforce the debt.
Other signs that First Direct Loans may not be operating with authorisation include, limited information on the company website, information which is out of date and non-disclosure of true APR. If you are unsure whether they are authorised, you should always check, as you could end up making payments you do not have to pay.
How to complain about First Direct Loans
If you believe that First Direct Loans is in breach of the regulations and is treating you in any way unfairly, you have the right to complain formally, and if your dispute remains unresolved or is not dealt with within eight weeks, you can to escalate your complaint to the Financial Ombudsman.
You should collect together all the evidence you have including details of any phone calls. Write to First Direct Loans heading your letter with the word Complaint. The more detail you can provide, the better. You should also say how you would like the matter to be resolved.
If First Direct Loans fails to provide you with a satisfactory conclusion, you can take your complaint to the financial ombudsman. The best way of doing to is to contact them by phone on 0800 023 4567 or 0300 123 9123
If First Direct Loans has treated you unfairly, you may be entitled to a refund even if you have paid off the loan within the last six years. If so, you can expect to be refunded all the interest you have paid on the loan along with any additional charges. You should also receive 8% interest on these payments.
If your loan is considered to have been unaffordable you can insist that it is removed from your credit record and that the outstanding balance is cancelled.
The first step is to write to your lender stating your case and asking for compensation.
If you do not receive satisfaction within 8 weeks you can follow it up through the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
New rules regarding Continuous Payment Authority
Most loan companies will want you to repay the debt using a Continuous Payment Authority (CPA). This provides the company with permission to take any sum they wish from your bank at any time they want. They are supposed to inform you prior to debiting your bank account, but many of them fail to carry out this crucial step. The result is you don’t know the money has left your account until you see your next bank statement.
If you are struggling with important payments such as your rent, mortgage or utility bill, and the money is taken by First Direct Loans ahead of these bills, you could end up in serious trouble even putting your house at risk.
New regulations mean that if the CPA fails to be paid on two occasions, no further requests to your bank account are allowed.
There are also rules governing the amount of money they can take using a CPA. No longer are they allowed to take partial payments. If you don’t have enough money in your account to cover the full amount of the payment due, they can’t take anything. Only if you agree that they can take a partial payment, they are allowed to do so, but you must give your permission in advance for them to do so.
When they do make more than two requests or they take a partial payment without your explicit permission they are in breach of regulations. You can report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.
What to do if you simply can’t afford to repay the loan?
If First Direct Loans has operated legitimately but you simply can’t afford to repay the loan, there are some steps you can take to protect yourself.
If you are paying them by CPA, standing order or direct debit, you should contact your bank and cancel these. First Direct Loans will no longer be able to collect payments automatically and you will retain control of your bank account. Your bank may advise you to inform First Direct Loans that you have done this, but you are under no legal obligation to do so; they will be unable to collect any money from you until you give them explicit permission to do so.
Of course, you will still owe them money so you must deal with that directly; while you might be tempted to do so, don’t hide your head in the sand. Your first approach should be to contact First Direct Loans and talk to them about your problems. They are obliged to treat you fairly, so you should be able to come to an agreement to reschedule your repayments.
By law, lenders must:
- Indicate where you can obtain free independent debt advice
- Hold off debt recovery for a reasonable period while you develop a repayment plan possibly using a debt advisor
- Giving you reasonable time to repay possibly freezing interest and additional charges.
Don’t roll over your loan
First Direct Loans might suggest that you roll over the loan, but doing so is almost certainly a bad idea. You will be charged even more interest and additional charges leaving you in even deeper debt. By law loans can be rolled over no more than twice.
Getting debt help
There are several organisations that provide free independent advice on debt:
Are loan companies all sharks?
There is little doubt that loan companies receive a bad press. It can be argued that they also provide a valuable service by offering a credit line to people who would be unable to obtain credit from a bank or credit card. It is only when these companies place profits ahead of everything else and exploit their customers that they do real harm. While some sharks remain, the new regulations have made it much safer to use these companies. However, many people still get into debt problems.
If First Direct Loans are in breach of the regulations, then you are entitled not to pay them as the debt is unenforceable. If you simply can’t afford to pay, then contact one of the organisations we have listed above, they will provide the help and guidance you require.