Are you being hassled by Wellesley Bank Loans UK about an outstanding loan? Do you have loans and you are unable to pay them back? Are Wellesley Bank Loans UK threatening to take you to court or threatening to visit your home? Do you feel that the loan was unaffordable at the time you received it, and you should never been offered it in the first place? If these issues with Wellesley Bank Loans UK sound familiar, then this article should help you understand your position a bit better. 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 Wellesley Bank?
Headquartered in London, Wellesley Bank is one of the leading UK property finance providers with loans available between £2,000 and £20 million. The company was founded in 2013 and also offers peer-to-peer lending and property investment bonds.
Were you looking for Wellesley Bank Loans Login Page?
Lot’s of people land on this page looking for the Wellesley Bank Loans Login page, if you’ve done the same, I’m glad I’ve caught you! I’ve written an article below on the reasons why you shouldn’t pay Wellesley Bank Loans back.
Are companies making it too easy for borrowers to access funds?
It could be said that lenders are making it too easy to borrow money, especially for those who can’t afford to pay it back. The internet is bursting with companies that are happy to provide a cash advance within a few minutes, and offer access to loans of up to £1,500 in just seconds. They promise to provide funds to those who have poor credit scores, by providing loans without any credit checks. The result is that people who are in poor financial situations are getting loans that they simply cannot afford to pay back.
Why do people get into debt problems and are the government doing anything to help?
When you consider that loans are often being provided to those who can’t afford to pay them back, it is hardly surprising that so many people find themselves facing debt problems with loan companies. The situation today is bad, but it has greatly improved from where it was several years ago. Prior to the new regulations being introduced, the loan business was getting out of control, and debts were reaching a frightening level. At one point, the loan market reached as much as £2 billion, which was a combination of irresponsible lending and extremely high interest rates.
Unfair practices found through research by the Financial Conduct Authority resulted in huge fines being given to some of the biggest lending companies in the UK. These include Wonga, who were fined an astronomical £220 million; and others like The Money Shop who were collectively fined £15.4 million; plus £1.7 million which was given to Quickquid. Some lending companies, including Wonga were put out of business due to the high fines they received, and with Wonga being one of the most widely recognised brands in the lending sector, this came as quite a wake up call to many. If loan companies were found to be lending to people that should not have received a loan because of their “limited criteria” the customers were also due a refund. The high fines and compensation worked, with loans and lenders both falling dramatically following the new regulations.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Wellesley Bank Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Government cap on loan interest and other charges
As a result of irresponsible lending, the Financial Conduct Authority introduced a price cap which were designed to protect borrowers from excessive charges. These include:
- A cost cap of 0.8% per day on the amount of loan borrowed – this also includes both interest and all fees charged.
- A cap on default fees of £15 – lenders are still permitted to charge interest after a default is issued, but it should not be higher than the original rate of 0.8% per day.
- A complete cost cap of 100% – you should not be asked to repay more than 100% of the money you have borrowed.
The limits are relevant to all credit agreements with an interest rate of 100% or more a year and that are expected to be fully or substantially repaid within a year.
There are other regulations which came into force in May 2017. With these regulations, the lenders must provide details of their products on a price comparison website, which must be authorised by the FCA. Lenders must also provide borrowers with a summary of the cost of borrowing.
If Wellesley Bank Loans UK have not followed the regulations and they are trying to charge you more than they are permitted to, your credit agreement with them will become unenforceable and this means they will not be able to make you repay the loan.
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Should you trust Wellesley Bank Loans UK?
It is often not common knowledge, but some loan companies are actually doing business when they have no authorisation to do so. Companies are only allowed to make certain credit agreements if they are authorised, and many don’t have this. If you are worried about whether Wellesley Bank Loans UK are autorised to get payments from you, there are some things you can do.
You can check whether Wellesley Bank Loans UK is authorised, by simply entering their name onto this Interim Permission Consumer Credit Register search page. You are also able to search the financial services register here. If there is no valid up to date entry on either of these registers, you can stop paying them and they won’t be able to do anything. They cannot enforce the debt if not authorised.
There may be other indicators that Wellesley Bank Loans UK is not operating legally, including a lack of information on the company website, as well as information on the website that has not been updated. If the APR is not clear on the website, this could be another sign that Wellesley Bank Loans UK is not authorised to enforce the debt.
Do you need to make a complaint about Wellesley Bank Loans UK?
If you find that Wellesley Bank Loans UK have not acted according to the regulations and you feel they are treating you unfairly, you may be able to make a formal complaint about their behaviour. If the dispute stays unresolved or they do not deal with it within eight weeks, you will have the right to escalate the complaint to the Financial Ombudsman.
When you decide to make a complaint, you should get your evidence together to support the complaint, including a log of phone calls, if they have been calling you incessantly. It may be that you are unhappy with the content of emails, letters or emails, in which case, you should keep these as evidence. In the first instance, you can write to Wellesley Bank Loans UK, with the word ‘Complaint’ at the top. You should provide as much information as possible to support your complaint, as this will give you a better chance of a successful outcome.
If Wellesley Bank Loans have not provided you with a satisfactory conclusion, you may wish to escalate the complaint to the financial ombudsman. The best way of doing this is to contact them by phone on 0800 023 4567 or 0300 123 9123
If Wellesley Bank Loans UK are found to have treated you unfairly, you could be entitled to a refund even if you have already paid off the loan within the last six years. In this case, you can expect to receive a refund on all the interest you have paid on the loan, as well as any additional charges. You could also be entitled to receive 8% interest on the payments you have made.
If your loan is found to have been unaffordable, you may have the right to get it removed from your credit record and the outstanding balance could 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 have the right to follow it up through the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
Continuous Payment Authority – what you need to know
Although you may not be familiar with this, you should know that many loan companies will request that you repay the debt using a Continuous Payment Authority (CPA). This is used as it gives the lending company permission to take money from your account, whenever they wish. The lending companies are supposed to inform you before they attempt to debit your bank account, but unfortunately, many of them fail to carry out this necessary step. The outcome of this is that you are unaware that the money has left your account until you look in your account or check your bank statement.
This can obviously cause serious issues, especially if you are already struggling to meet important payments such as your rent, mortgage or utility bill. If the money is suddenly taken by Wellesley Bank Loans UK before these bills are due, you could obviously end up facing serious financial issues, including a loss of your home in the worst case scenario.
Thankfully, new regulations have been put in place, which mean that if the CPA fails to be paid on two occasions, the lending company are no longer permitted to make further requests to take the money from your bank account.
There are also new rules around the amount of money that they can take using a CPA. They are no longer permitted to take partial payments. If there is not enough money in your account to cover the full amount of the payment due, the lending company cannot take any anything. However, you can give them permission to do this, if you would like them to take partial payments to clear the debt.
If they do attempt to take the money with two requests or more, or they take a partial payment and you have not given them explicit permission to do so, 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 Wellesley Bank Loans UK have acted according to the guidelines, but you are unable to repay the loan, there are some actions you can take to deal with the situation.
If you already have a CPA, standing order or direct debit set up, you can contact your bank and get these cancelled. Wellesley Bank Loans UK will not be permitted to collect payments automatically from your account, and you will get control of your bank account. It is highly likely that your bank will advise you to inform Wellesley Bank Loans UK that you have cancelled the payments, but you are not under any legal obligation to do this. This means that they cannot take payments, unless you give them permission to do so.
Of course doing this will only delay the payments, you will still owe the money so you must take steps to deal with that directly with Wellesley Bank Loans UK. You may be tempted just to ignore the situation, but don’t bury your head in the sand as the situation will just get worse. Your first step should be to get in touch with Wellesley Bank Loans UK and discuss your financial situation with them. They should always treat you fairly and with respect, so you should be able to come up with a payment arrangement which suits your current situation.
The law states that lenders have a responsibility to:
- Indicate what options you have for receiving free debt advice.
- Always time for you to develop a repayment plan that works for your situation, and with a debt advisor, where necessary.
- Give you time to pay back the loan, freezing interest and charges if possible.
Why you shouldn’t roll the loan over
Wellesley Bank Loans UK may say that it’s a good idea to roll your loan over, but although this may be beneficial for them, it will not be beneficial for you! When you roll the loan over, it accumulates more and more interest and charges, which will worsen your debt situation. It is far better to try and devise a suitable repayment plan.
Getting debt help
If you are facing serious financial hardships, you should seek help. Thankfully, there are lots of organisations out there who offer free debt advice. These are just some of them:
Are loan companies all bad?
Unfortunately, all loan companies receive a bad press; they are firmly tarred with the same brush. In some cases though, they do provide a valuable service for those who are unable to obtain credit elsewhere. They can provide a lifeline to many, but the issues arise when they don’t consider the borrowers situation; instead, they are just out to make money.
When these companies think about profits ahead of their customers, and as a result, they exploit their customers, this is when they start to cause real harm. There are still, unfortunately, still many sharks around, but the new regulations have done a lot of good in reducing these. Debt problems are a big problem to this day, but they are not as significant as they have been in previous years.
If Wellesley Bank Loans UK are failing to adhere to the regulations, you would have the right not to pay them, and the debt would not be forceable. If you are struggling with your debt and you can’t afford to pay them, you should consider contacting one of the organisations listed above, and they will be able to provide the help and advice you need to take charge of your debt situation.
If you can’t pay back your loan do check out my other article here.