If you have taken out a loan with Uncle Buck Loans or you are unable to make the monthly payments, there is a chance that you might be due a refund. If you are have missed some of your payments or you’re facing other issues with your Uncle Buck loan, this article is just for you. Many of our readers have been able to cancel their loan or even get a refund!
Update as of 30/03/2020: Uncle Buck has brought in administrators and has stopped lending following an FCA audit. The FCA was concerned about the viability of the business. If you have a loan with Uncle Buck you still have to abide by the loan agreement and it will not be affected by them going into administration.
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.
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Who are Uncle Buck Loans?
Uncle Buck offers short-term loans to customers in the UK. The company offers unsecured loans to qualifying customers and same day loan funding is available as well.
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Uncle Buck Loans and the Regulations
The lending industry was worth over £2billion until recently. This excessive level of borrowing was a result of companies lending to the wrong people; this was widely viewed as irresponsible lending. It has been estimated there are up to 8.3 million people in the UK who are suffering from debt issues that they cannot afford to pay off, as well as not even being in a position to make payments to their household bills.
The Financial Conduct Authority came to a decision that they had to step in and take action. The first thing they looked at was the practices and irresponsible lending from many organisations. They then created a new set of regulations in order to protect borrowers.
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So, what are these regulations and how can they help you?
Read what to do if you can’t pay back your debt.
1) Regulations on affordability
The most disruptive regulation which was launched by the FCA is that there should be checks done to ensure affordability. This regulation put one of the biggest lenders, Wonga, out of business and it is also the one that has resulted in refunds for thousands of borrowers.
The regulation says that you should be in a position to be able to make your loan repayments as well as ensure other important bills are taken care of, including rent, bills, cards and food. If you believe that Uncle Buck Loans failed to carry out a sufficient affordability assessment on you when you took the loan out, you may be in a position to claim a refund. Check out my blog post on how to claim for a refund on your loan.
2) Regulation on interest and fees
Another point which was covered by the FCA was lenders charging excessive interest and fees to borrowers. They dealt with this by ensuring a cap on fees and interest. The limits were, (a) a 0.8% cost cap – which combines all interest and fees. (b) a £15 cap on default fees. (c) 100% complete cost cap, which states that you should not pay more than double what you borrowed.
Do you have a loan with Uncle Buck Loans? If you did and you believe that they are in breach of any of these regulations, you may want to consider requesting a refund.
3) Regulations regarding Continue Payment Authority
You will find that most lenders will ask that you make payments using a Continuous Payment Authority (CPA). They do this as it allows them to take any payment whenever they wish.
The unfortunate thing is that many lenders started abusing it by attempting multiple payments on the same day. This resulted in some borrowers being paid in the morning, only to find that minutes later, the money was completely removed.
The new regulation around CPA were divided into two parts. (a) if Uncle Buck Loans attempt to take money using the CPA twice and it fails, they are not permitted to try it again (b) they must only take the full value of the payment due. They are not permitted to take partial payments, unless you have specifically agreed this.
If Uncle Buck Loans have tried to take the payment on more than two occasions or they have taken a partial payment and you have not given them permission to do so, then you should consider claiming for a refund.
What if you are unable to make your payment?
If you believe that Uncle Buck Loans have breached the regulations, then you can still take steps to protect yourself, and your money. As a reminder, Uncle Buck Loans have an obligation to treat you fairly, and this means that they have a responsibility to work together with you to create a payment plan. Don’t hide away from your debt, as it won’t just disappear. Follow my guide here on what to do if you can’t pay back your loan.
Do you wish to make a claim?
If you have been reading this and you feel that Uncle Buck Loans have not behaved in a fair manner, you may betempted to make your own claim and if this is the case, you are not the only one. Statistics have revealed that during 2017 alone, the Financial Ombudsman Service received a total of 10,529 complaints which related to these loans.
If Uncle Buck Loans have treated you in an unfair way, there is every chance that you will be eligible for a refund. At the very least you may expect to get a refund interest that was paid throughout the term of your loan, as well as other additional charges you have received. In some cases, this could end up being a substantial amount of money.