Our Lending Product
What is the Representative Example?
The representative example is a specific way we inform you about the terms of our typical loan and in particular cost of credit in accordance with The Consumer Credit (Advertisements) Regulations 2010.
The Representative Example is:
||Amount of each repayment
|Annual Interest Rate: 427.9%(Fixed)
||1st repayment: £68
|Total amount of credit: £200
||2nd repayment: £108
|Representative APR: 1272%
||3rd repayment: £94
|Duration of agreement: 6 months
||4th repayment: £81
|Total amount payable: £472
||5th repayment: £67
|Total charge of credit: £272
||6th repayment: £54
continuous payment authority and how is it relevant to me?
In entering into your loan agreement, you give us the right to automatically withdraw amounts you owe under the loan agreement from your debit card that is nominated by you at the time of entering in to the agreement. The process of us automatically initiating these withdraw attempts is referred to as “auto-withdraw” or “continuous payment authority”. The repayment amounts, the repayment dates, and the number of attempts at collection we may make through auto-withdraw or continuous payment authority are described in detail in the loan explanation and in the loan agreement. By entering into the loan agreement you agree that we may make collection attempts as described therein. Please make sure that the repayment amounts are available in your account on the repayment dates to avoid default fees and charges. You may also incur bank charges and other default fees if your account goes overdrawn or you miss other payments. You have the right to cancel the use of continuous payment authority by calling us or writing or emailing to us or by contacting your bank, however this does not relieve you from the obligation to pay us the amounts owed and you will have to specify an alternative payment method when exercising your right to cancel continuous payment authority.
What is a
cycle in reference to the agreement?
All of our loans are approximately six months in duration, with variations being a function of your paydates relative to when your loan is taken out.
We design cycles, or periods between payment dates, in an attempt to match your loan repayment dates to your paydates such that the loan payments are due on your paydays.
If you are paid on a monthly basis, your loan will have six cycles and six payment dates. Each cycle is approximately a month in duration; however, your first payment cycle may be more or less than a month depending on the date of your next payday. In all cases the first cycle will be a minimum of 8 days and maximum of 42 days. The cycles and repayment dates are clearly laid out in your loan agreement, information sheet and SECCI. Cycles are the basis on which interest charges are accrued. The interest rate on a monthly loan is 34% per cycle. However, we conduct promotional pricing campaigns from time to time and the interest rate per cycle on your loan may be lower than 34% per cycle. The exact interest rate per cycle will be specified in the explanation sheet, SECCI and loan agreement. Interest is accrued to your loan on the origination date for the first cycle and on the second day of the subsequent cycles.
If you are paid on a bi-weekly or weekly basis, your loan will have twenty four cycles and twenty four payment dates. Each cycle is approximately one week in duration; provided that your first payment cycle may be more or less than one week, depending on the date of your next payday. In all cases the first cycle will be a minimum of 4 and maximum of 10 days. The cycles and repayment dates are clearly laid out in your loan agreement, adequate explanation and SECCI. Cycles are the basis on which interest charges are accrued. The interest rate on a weekly loan is 8.9% per cycle. However, we conduct promotional pricing campaigns from time to time and the interest rate per cycle on your loan may be lower than 8.9% per cycle. The exact interest rate per cycle will be specified in the explanation sheet, SECCI and loan agreement. Interest is charged to your loan on the origination date for the first cycle and on the second day of the subsequent cycles.
How does Prepayment Work?
If you prepay your loan during the first payment cycle, or anytime on or after the second day of a subsequent payment cycle other than the final payment cycle, you will incur interest for the entirety of the cycle during which you prepay, but you will not be charged interest for what would have been the remainder of the loan term. Thus, prepaying your loan in full prior to the start of the final cycle will result in savings on interest that otherwise would have been owed for future cycles. Additionally, the amount required to prepay your loan will be reduced by any rebate for your early repayment calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004.
What are the fees potentially involved with my loan?
With Lending Stream, the fee structure is very transparent. We do not charge any additional fees apart from those which have been notified to you during the loan application process. You will not incur any fees if you stick on to the repayment schedule as mentioned in your agreement. The following charges apply;
|Type of Fees
|Arrears Fee (applicable when payment is not made on the due date)
|Default Fee (when the account remains in default 34 days after the relevant due date)
|Termination Fee (if your account is in default and Lending Stream and you do not reasonably agree to a repayment plan or you do not honour a repayment plan agreed to and we refer your account to a debt collection agency)
What are some of the risks I should be aware of?
You should be aware that lending of this type is an expensive form of credit that may be appropriate for short term financial needs but which is not appropriate for longer term borrowing or if you are in financial difficulty. The operation of “automatic-withdraw” or “continuous payment authority” and a list of the fees you will incur if you are delinquent are both explained below as well as in even greater detail in the explanation sheet, SECCI and loan agreement. You will also have to pay additional charges we incur if we have to trace you or to enforce our debt and interest for the period you are in default at the contractual rate. Missing payments will require you to pay more than the amounts set out in the agreement and can make it more difficult/expensive for you to obtain credit in future as your default is reported to Credit Reference Agencies. It may also result in legal proceedings.
What happens if I am unable to pay back the loan?
If you are facing difficulties in making payments on time, it is important that you immediately get in touch with us. We are a responsible lender and will be able to discuss payment alternatives with you. If you do not contact us our automated system will attempt to collect repayment and if there are insufficient funds this will send your account into arrears and you will be charged a late fee. So please get in touch with us at 0203 564 7028# so that we can discuss payment options with you.
Do you run a credit check and will that impact my credit score?
Should you encounter any problems or have any questions regarding your loan, you may use the following sources to resolve your problem:
- Visit the FAQ section on Lending Stream’s website. It contains frequently asked questions and hence would be a convenient resource to get most of your questions answered.
- Logging into the account section. It provides the latest information on your loans with Lending Stream – both current and past and is a convenient way to understand the latest status of your loan(s).
- Finally, of course, our customer care team is ever ready to help out in case you still have an unresolved query. You can reach them by:
- Emailing them: email@example.com
- Calling them on: 0203 564 7028#
How can I register a complaint?
Each of our customers is important to us, and we believe you have the right to a fair, swift and courteous service at all times. If you feel you haven’t been fairly dealt with, and would like to register a complaint, you can do so by following complaints handling procedure from the following link: complaint handling procedure
Who else can I contact if I’m having problems repaying my loan?
There are many organisations offering advice but be aware that some may charge for their services. The ones listed below all offer free advice:
- Citizens Advice Bureau – a network of local offices offering free, confidential independent advice.www.citizensadvice.org.uk (England, Wales and Northern Ireland), or www.cas.org.uk (Scotland)
- Consumer Credit Counselling Service – free, confidential advice and support – www.cccs.co.uk or tel 0800 138 1111
- National Debtline – a free, confidential and independent telephone helpline for debt problems. www.nationaldebtline.co.uk or tel 0808 808 4000 (England, Wales, and Scotland)
- Money Advice Service – www.moneyadviceservice.org.uk or tel 0300 500 5000