Published on March 2nd, 2017 | by FinanceLoophole0
Cant Pay UK Credit Loan
Established in 2010, UK Credit Loans are guarantor loans provided by a direct lender UK Credit Limited, a company registered in England and Wales.
Guarantors can be anyone from friends, family, even a colleague, who can act as back up if you’re unable to make your repayments – whether they are a homeowner or a tenant. The loans are unsecured and not tied to any security, such as property.
UK Credit Limited offer a variety of APRs (Annual Percentage Rates) starting at 37.9%, depending on whether your guarantor is a homeowner or tenant. Once agreed, the rate of interest is fixed throughout the term of your loan helping you to budget for your future repayments.
By providing a guarantor UK Credit Limited can consider approving loans, subject to affordability, to people who for one reason or another might otherwise struggle to get a loan.
UK Credit Ltd pride themselves on providing excellent customer service, so if you are experiencing financial difficulties and meeting your repayments and you contact them straight away they will want to see what they can do to help.
Problems Paying Your UK Credit Loan
Whilst you are making repayments UK Credit Loans will not contact your guarantor.
However, if you fail to make a payment resulting in arrears then they will contact your guarantor – who is jointly liable for the repayments under the terms of the loan agreement. They will usually do this after 48 hours, though in some instances will contact your guarantor after only 24 hours of non-payment.
! But they say they will also only do this if they have exhausted all options with you. So it is imperative that you contact them as soon as you know you are going to struggle to make your next repayment.
If they are unable to come to an agreement with you or your guarantor to pay any arrears then UK Credit Loans may consider taking legal action. This means that they could instruct their solicitors, which may lead to further action against you and your guarantor and in the worst case a County Court Judgement (CCJ) being applied for through the Courts. If you or your guarantor are a homeowner then a charging order may be registered on your property with the Land Registry.
UK Credit Loans will add any recovery costs for taking further action to your account, and in doing so increase your debt.
Your credit rating would also be affected as any out of order accounts which are in default will show on your credit profile for 6 years, which could make obtaining further credit in the future all the more difficult and expensive.
What Should I Do If I Can’t Pay My UK Credit Loan?
Act quickly and take control, especially as you also have a guarantor to consider!
First of all do you know the real position of your financial situation and how much can really afford to repay at this time? If you haven’t already done one complete a budget planner to look at what’s left/surplus after all of your typical monthly costs. (Check out the internet to find examples of budget planners, there’s plenty to choose from). Consider making some cut backs, but make sure you prioritise to pay the important debts called ‘priority debts’ such as any rent, gas, electricity, fines or tax.
Then contact UK Credit Loans to discuss your situation and see if they will consider an interim more affordable repayment. Also ask can they freeze any additional interest or charges. They may have their own Income and Expenditure form (budget planner) for you to complete to assist their decision. That’s fine you should have already thought this through.
If you don’t have any success talking to them direct then, because they will be contacting your guarantor, seek some free debt advice immediately for further advice and guidance. Mention this to UK Loans Limited so that they are aware you will be seeking specialist debt advice and can have it noted on their system. This way they will know you are taking action and not just burying your head in the sand!
A debt advice service may also be able to try to help get any interest or charges, (which are being, or may be added to your account) frozen so that your debt isn’t increasing. There are a lot of people now with money problems, you are not alone! Free debt advice can give you the specialist help for you to take control.
There are a few free debt specialists you can refer to, for example: Citizens Advice Bureau have specialist debt teams to help on a face to face basis. You’ll need to make an appointment to see them. There’s also Step Change, a free debt advice telephone service, where they discuss your situation and provide help over the phone and by post. These are just two routes to consider, but as time is of the essence it may be better to get straight on the telephone for immediate guidance. Make sure you have your loan agreement to hand.
If your debts are complicated and/or numerous you may want a Debt Management Company to manage the process and repayments going fotward to make it easier for you. We have had good reports about the debt management services offered by BrightDebt – just fill in this form with your details and they will get back to you
Taking control, doesn’t magic away your debt(s) for you, but what most people find is that by taking control they are more on top of the situation and their worrying is reduced – because they’ve taken action. So don’t delay, especially as you also have a guarantor’s position to consider.
Making A Complaint About UK Credit Loans
UK Credit Limited is Authorised and regulated by the Financial Conduct Authority and as such has a formal complaints procedure to follow. But they do hope that you will have brought any concerns to the attention of their staff who will be happy to investigate before it leads to you making a formal complaint.
UK Credit Loans will try to resolve your complaint within 3 working days and issue you with a letter of confirmation that the complaint is now closed. If they need more time to investigate they will send you a letter acknowledging your complaint within 5 working days.
They will have a total of 8 weeks to resolve the complaint internally since receipt of your complaint. If after 8 weeks you are still not happy with the progress, or any decision they have made then you can refer your complaint to the Financial Ombudsman Service. The Financial Ombudsman Service can be contacted at:
Financial Ombudsman Service
London E14 9SR
Telephone: 0800 023 4567 or 0300 123 9123