Responsible Lending

1. Who we are and what this policy covers

1.1. Payday UK is a trading name of Payday Loans Ltd, registered in England and Wales under company number 12430457.

1.2. Payday Loans Ltd is an appointed representative of Flux Funding Limited. Flux Funding Limited is authorised and regulated by the Financial Conduct Authority under firm reference number 806333.

1.3. We are a credit broker, not a lender.

1.4. We never lend you money ourselves.

1.5. Your credit agreement is with the lender, not with us.

1.6. The lender sets the interest rate, the term and the repayment schedule.

1.7. We don't charge you a fee for our broking service.

1.8. The lender we introduce you to may pay us a commission.

1.9. We don't cover any interest, fees or charges the lender applies under your credit agreement.

1.10. This policy applies to every application made through this website.

1.11. We are registered with the Information Commissioner's Office under registration number ZA654345.

1.12. Our registered office is Payday Loans Ltd, The Charter Building, Charter Place, Uxbridge, UB8 1JG.

2. How your application works

2.1. We collect the information you give us on this website.

2.2. We match it against the lending criteria published by the lenders on our panel.

2.3. We never run a credit check on you.

2.4. Lenders run a soft credit search when they give you a quote.

2.5. A soft search does not affect your credit rating.

2.6. If you go on to make a full application, the lender may run a hard credit search.

2.7. A hard search is recorded on your credit file.

2.8. We don't assess whether a loan is affordable for you.

2.9. The lender checks your creditworthiness and affordability, as FCA rules require.

2.10. We can't promise that any lender will accept you.

2.11. Not everyone who applies is offered credit.

3. Affordability and creditworthiness

3.1. The lender must check your creditworthiness before lending to you, under FCA rules.

3.2. That check looks at whether you can repay without falling into financial hardship.

3.3. Only apply for an amount you can repay from your normal income.

3.4. Read the whole credit agreement before you sign it.

3.5. Look at the total amount you will repay, not just the monthly payment.

3.6. Don't borrow to keep up with existing debts you can't afford.

3.7. If that is your situation, get free debt advice (see section 5) instead of applying again.

4. Cost of credit

4.1. We introduce you to lenders for loans from £50 to £5000.

4.2. Repayment terms run from 3 to 36 months.

4.3. Rates run from 9.3% APR to 1292.1% APR. The lender sets your rate based on your circumstances.

4.4. Our representative APR is 91% APR.

4.5. If your loan is high-cost short-term credit, the FCA price cap applies.

4.6. Under the cap, interest and charges can't be more than 0.8% of the amount borrowed per day.

4.7. Under the cap, you will never repay more than twice the amount you borrowed.

4.8. You can't be asked to pay any charge above the limits in 4.5 to 4.7.

5. If you are in financial difficulty

5.1. Tell the lender as soon as you think you might miss a payment.

5.2. The lender must treat you with forbearance and due consideration, under FCA rules.

5.3. Get free, independent debt advice.

5.4. You can get it from MoneyHelper at https://moneyhelper.org.uk, StepChange, National Debtline or Citizens Advice.

5.5. You never need to pay for debt advice, because these services are free.

5.6. We can't change your credit agreement, because we are not the lender.

5.7. You can contact us at customerservice@paydayuk.co.uk or on 0800 302 9409, and we will point you to the right help.

5.8. Calls to that number are free from UK landlines and mobiles.

6. Late payment and default

6.1. Contact the lender before your payment is due, not after.

6.2. If your loan is high-cost short-term credit, a default charge can't be more than £15.

6.3. For other credit, the lender charges what your credit agreement sets out.

6.4. The lender will report missed payments to the credit reference agencies.

6.5. Those reports may make it harder for you to borrow in future.

6.6. If the account stays unpaid, the lender may pass it to a collections agency.

6.7. Even then, the lender must still show forbearance, as set out in 5.2.

7. Continuous payment authority

7.1. The lender may collect repayments from your debit card using a continuous payment authority.

7.2. The lender must get your consent before setting one up.

7.3. You can cancel a continuous payment authority at any time.

7.4. To cancel, tell the lender or your bank.

7.5. Once your bank is told, it must stop the payments. This is your right under the Payment Services Regulations.

7.6. Cancelling the authority doesn't cancel the debt.

7.7. If you cancel it, set up another way to pay.

8. Renewal, refinancing and rollover

8.1. Your loan is never renewed automatically.

8.2. The lender must get your agreement before renewing or refinancing any loan.

8.3. If your loan is high-cost short-term credit, the lender can refinance it no more than twice, under FCA rules.

8.4. Before refinancing, the lender must give you the FCA's information sheet about free debt advice.

8.5. Refinancing increases the total amount you repay.

8.6. Don't refinance if you can't meet your existing repayments.

8.7. If that is your situation, get free debt advice (see section 5) instead of refinancing.

9. Debt consolidation

9.1. A consolidation loan may have a higher interest rate and a longer term.

9.2. A longer term increases the total you repay, even if the monthly payment goes down.

9.3. Before you sign, check whether the loan is secured on your home.

9.4. If you default on a secured loan, the lender can take possession of what it is secured on.

9.5. We only introduce you to lenders of unsecured loans.

10. If your circumstances make things harder

10.1. Tell us about anything that affects your ability to manage your application.

10.2. That includes ill health, bereavement, caring responsibilities and a big change in income.

10.3. We will record what you tell us.

10.4. We will only share it with the lender if you agree.

10.5. We follow the FCA's Consumer Duty, which means giving you support that meets your needs.

11. Automated decisions

11.1. The lender may decide your application automatically, without a person involved.

11.2. You can ask for a person to review an automated decision. This is your right under UK data protection law.

11.3. Send that request to the lender.

11.4. The lender's privacy notice explains how its automated decisions are made.

12. Complaints

12.1. To complain about us, email complaints@paydayuk.co.uk or call 0800 302 9409.

12.2. We will acknowledge your complaint within 5 business days.

12.3. We will send you a final response within 8 weeks.

12.4. If you are unhappy with our final response, you can refer your complaint to the Financial Ombudsman Service. You have 6 months to do this.

12.5. Send complaints about your credit agreement to the lender.

12.6. The Financial Ombudsman Service is free to use.

13. Reviews and status of this policy

13.1. We review this policy at least once a year.

13.2. The date of the latest review is shown at the bottom of this page.

13.3. This policy is not part of your credit agreement with the lender.

13.4. If this policy and your credit agreement disagree, the credit agreement applies.

13.5. As far as the law allows, we are not responsible for anything the lender does or fails to do.

13.6. Nothing in this policy limits your rights under the Consumer Credit Act 1974, the Consumer Rights Act 2015 or FCA rules.