- APR/Annual Percentage Rate
- Cooling Off Period
- County Court Judgements
- Credit
- Credit Agreement
- Credit Reference Agencies
- Credit Scoring
- Credit Search
- Data Protection Act
- Direct Debit/Direct Debit Mandate
- Direct Debit Guarantee
- Early Settlement
- Early Settlement Figure/Sum
- Early Settlement Figure Statement
- Express Next Working Day Transfer
- Financial Associate
- Financial Ombudsman Service
- Formal Reminder
- Guarantor
- Guarantee and Indemnity
- Home Owner Loan
- Joint Applications
- Late Payment Charge
- Late Payments
- Loan Agreement
- Loan Agreement Pack
- Loan Application
- Loan/Personal Loan
- Loan Term/Loan Period
- Monthly Repayments
- Overpayments
- Payment Holidays
- Pre Contract Information
- Repayments
- Secured Loan
- Security Check
- Sickness Cover
- Tenant Loan
- Total Amount Payable
- Unsecured Loan
APR/Annual Percentage Rate
The Annual Percentage Rate (APR) is the percentage of interest charged against your loan each year. It takes into account the value of the loan from the start of the loan period to the end of the loan period. As with anything you buy, there are charges, and the APR rate is a way of comparing prices of loans from one company to the next, to get the best value for money. If the typical APR is 7% on a loan of £1000 for example, you will pay 7% of the total loan amount each year of the repayment, as interest and charges, which will automatically be part of your repayments.
Cooling Off Period
The law states that every lender must allow a cooling off period of at least 10 days during which a borrower can cancel their loan and repay the balance without a penalty charge. At FLM you can cancel your agreement by writing to us within 14 days, starting on the day after we grant the loan.
County Court Judgements
Like all loan companies FLM loans will use legal methods to ensure that every repayment is made as agreed. If you are unable to meet your repayments you may face a County Court Judgement (CCJ) which will charge you with the amount owed and give you one month in which to pay the full amount. If you do not pay the full amount within one month your CCJ will be registered with the Register of County Court Judgements and Credit Reference Agencies will note this on your file. This may make it difficult for you to obtain credit, loans or mortgages in the future. Some employers and landlords now also credit meaning that having a CCJ against your name may harm your chances of getting work or renting a home. FLM do not use court action lightly and will always try other methods before going to court to reclaim money owed.
Credit
Credit is a term that describes the lending of money from a financial institution to an individual or company. If you apply for an FLM loan from FLM, you are effectively applying for credit.
Credit Agreement
The document that lays down the agreement under which your FLM Loan is arranged. The Credit Agreement is normally a blue form and will probably be the first document that you would receive from us. Your FLM Loans Credit Agreement will contain information on your FLM loan as well as details about how your personal information will be kept and used by FLM. Also included are any Direct debit Mandates.
Credit Reference Agencies
These are agencies which collect information about you from the electoral roll, County Court Judgements (CCJs), and information supplied by other lenders. This can include information such as if you have ever fallen behind with payments for previous loans, how many cheques you have had bounced, your bill-paying history, the number and type of accounts you have, collection actions, outstanding debt, and the age of your accounts.
FLM loans submit details on how you manage your loan to credit reference agencies and other potential lenders may view this information. If FLM loans are forced to issue a CCJ against you or your guarantor the CCJ will be recorded for six years from the date of the judgement - unless the judgement was paid in full within one month of judgement being given, when the court can remove the record if you contact them.
If a CCJ is paid after more than one month, it can be marked as 'Satisfied'. When you apply for credit (credit card, loan, mortgage), a lender will check your credit score and use this information in its own Credit Scoring process.
Credit Scoring
Credit scoring is a system creditors use to help decide whether to give you credit. When you apply for a loan you give information about yourself - your age, occupation, and your financial history - your bank accounts, details of your mortgage provider, and any previous loans you may have had. Your information is then statistically compared to the credit performance of consumers with similar profiles. In other words, they try to predict how big a risk it is taking by allowing you to borrow up to a certain amount. If your total score reaches a certain level, then you 'pass' the credit score. If you don't score enough points, they may turn down your application, or, offer to lend you a smaller amount than you were hoping for.
FLM loans are different, whilst we do also consider these points a decision is always made by a human being based on their experience and judgement. We never allow a computer to make a decision on whether we will lend to somebody.
Credit Search
This is a search that FLM loans make on your name and address with a Credit Reference Agency in order to assess your credit history. Our search will then be noted against your records. This will inform other institutions that FLM have requested information about you. If we have asked for a guarantor for your case we will also conduct a credit search on their details. The credit reference agency will never be informed of the decision that FLM have made as a result.
Data Protection Act
The Data Protection Act (DPA) was passed in 1998 and was designed to protect the rights of individuals’ information and regulate the use of your information in financial, and other institutions. The Act covers all personal data (information) about you processed by us and other institutions which will have information about you.
With this in mind, information about you has to be dealt with fairly and lawfully, must be accurate and up to date, and not transferred to other parties without your prior consent. This is why FLM Loans perform a Security Check when you call, so we can be sure information about you and your financial history does not fall into the wrong hands.
Direct Debit/Direct Debit Mandate
Direct Debit is a safe and quick way to pay back instalments of your loan from your bank account. Once you have purchased your loan you give the lender (FLM Loans) a mandate to take the agreed repayments from your account on the same date of every month until the FLM loan is completely repaid.
Direct Debit Guarantee
Your Direct Debit Guarantee will be at the bottom of your Pre-Contract Information Document which will be sent to you along with your Credit Agreement. The Direct Debit Guarantee ensures that FLM treat you fairly when using Direct Debit to take monthly repayments on your FLM loan from your bank account.
Early Settlement
If you decide to settle your FLM loan early you have the option to pay the outstanding balance in one go as an Early Settlement. Once you have repaid the remaining FLM loan amount in full you will no longer have to pay the monthly repayments. We will provide you with an Early Settlement Figure which will provide you with details of any rebate owed to you and any administration costs incurred in settling early.
Early Settlement Figure/Sum
If you decide to settle your FLM loan early we will provide you with an Early Settlement Figure. This figure will be the total amount due to be repaid to FLM and will include any administration charges or details of any rebate due to you. We will send a copy of our 'Early Settlement' leaflet in your FLM Loan Agreement Pack when you apply for a loan.
Early Settlement Figure Statement
If you decide to settle your FLM loan early we will provide you with an Early Settlement Figure Statement. This statement will detail your FLM loan amount, number of repayments made and present you with the final Early Settlement Figure still owed to FLM Loans. This figure will be the total amount due to be repaid and will include any administration charges or details of any rebate due to you. FLM Loans will send a copy of our 'Early Settlement' leaflet in your FLM Loan Agreement Pack when you apply for an FLM loan.
Express Next Working Day Transfer
Once we have received your documentation saying you agree to take out your FLM loan and you have given us bank details, we will arrange for the loan to be paid out within 1 working day if you have selected the Express Next Working Day Transfer. If you have not selected the Express Next Working Day Transfer the amount will be paid out usually within 2 working days. A charge applies to the Express Next Working Day Transfer.
Financial Associate
Whenever you hold or apply for a joint financial product with another person, you become financially 'associated' with that person on the files of the Credit Reference Agencies. This means that your credit records are linked with the other person’s. If you apply for credit in the future, the lender will carry out a Credit Search that may include details held on anyone with whom you are financially associated.
Financial Ombudsman Service
The Financial Ombudsman Service is a free service provided by the Government and set up by our financial regulator, the Financial Services Authority (FSA). The service is a means through which you can seek advice if you have a complaint about any financial product or service that has been provided to you. If you have been unable to resolve the dispute with FLM Loans within eight weeks of your first complaint you may then pass the complaint to the Financial Ombudsman Service, who will deal with your complaint and assess whether you have been treated fairly.
Formal Reminder
If you are late in meeting the repayments of your loan we will send you a first reminder letter, and then a formal reminder letter to make your repayment. A Late Payment Charge of £20 comes with the Formal Reminder letter.
Guarantor
A guarantor is a person who is willing to guarantee the repayment of a loan agreement. Your FLM Loan Guarantor could be a friend or family member and must be in full time employment with a good credit history. Although FLM do sometimes accept guarantors who are self employed, Tenants or living with parents credit checking and income requirements may be more stringent in these circumstances.
Guarantee and Indemnity
This document that lays down the agreement under which a person can stand as Guarantor for a FLM Loans credit agreement. The Guarantee and Indemnity document is normally a pink form and will probably be contained in the ‘application pack’ that you receive from us. Your FLM Loans Guarantee and Indemnity Form will contain information on the loan agreement as well as details about how your personal information will be kept and used by us, and a Direct debit Mandate which may be used to collect repayments in the event that the applicant fails to meet their commitments under the Credit Agreement.
Home Owner Loan
With most Unsecured Loans you can typically borrow up to £10,000 with a maximum repayment period from 5 to 10 years. When a loan is unsecured it means there is no absolute guarantee the loan will be repaid. A Home Owner Loan is different because it is secured on your home. This works like a mortgage, so the loan amount can be larger and the repayment period can be longer. The APR is also a lot less on a Home Owner Loan, which makes a cheaper, more secure finance solution for the long term. You can borrow up to 125% of the value of your property subject to status over a timescale ranging from 3 to 30 years.
Joint Applications
A joint application is an application made by two people, normally the main applicant and their spouse. A second applicant is not the same as a Guarantor. Even if your application is a Joint Application you may still require a guarantor depending on your credit score.
Late Payment Charge
If you fall behind on your repayments FLM Loans will send you a reminder letter to let you know you have missed a payment. A Late Payment Charge of £20 comes with the Formal Reminder letter.
Late Payments
If you fall behind with your FLM loan repayments this is called a Late Payment. If your payment is late FLM Loans will send you a reminder, and then a Formal Reminder, which will incur a charge of £20. If you make the payment, or contact us and let us know any reasons why you have not paid and any cover you may have i.e. critical illness or involuntary unemployment, FLM will not take the matter any further. However if you still do not make the payment we may have to seek a County Court Judgement, which could affect your Credit Rating.
Loan Agreement
Your loan agreement is the formal contract you are given which states the terms of the loan, the repayment period, APR and loan amount. The agreement is a binding contract that says that you agree to the terms and conditions of the loan and that we agree to lend you the full amount. You should keep your customer copy of the Loan Agreement for reference purposes.
Loan Agreement Pack
Your Loan Agreement Pack will come in the post shortly after you have applied and been accepted for your FLM loan. The pack will include all of the relevant information you need to know about your FLM loan, including the APR, agreement terms, length of your loan and monthly repayments. The pack will also include a form of your FLM Loan Agreement for you to sign and a customer copy of the un-executed copy of the FLM Loan Agreement for you to keep. Upon signing and returning the FLM Loan Agreement to us you will enter into a binding contract that confirms you want the loan and you are willing to make the monthly repayments. Once FLM Loans have received the signed FLM loan Agreement we will send your loan funds to you.
Loan Application
Your FLM Loan Application is usually the first contact we have from you to say that you would like a loan. As we work mainly with brokers your Loan Application may have been passed to us by your broker. Once we have looked at your details we will issue an offer in the form of a Credit Agreement Form. This may also be accompanied by a Guarantee and Indemnity Form for your Guarantor to complete. Once FLM Loans receive these forms along with any other documentation that we require we will then perform a Credit Search with one or more of the Credit Reference Agencies and we will make a decision on your application taking in to account your full financial details and those of your Guarantor (if applicable).
Loan/Personal Loan
A Personal Loan is a way of borrowing a large sum of money. Personal loans can be either secured or unsecured. The loan is usually given in a lump sum, and will be repaid by you in Monthly Repayments. FLM Loans specialise in Loans of between £500 and £3,000 for people who have been refused by their Bank or other financial institutions. FLM Personal Loans are generally for a fixed term and FLM will allow early repayment at any time with no penalty. With FLM Loans all you pay is interest for the number of days that the money has been borrowed for.
Loan Term/Loan Period
The loan term or period is the amount of time you agree to pay back the amount you have borrowed with your FLM loan. The term/period exists from the start date of your loan to the end date of your loan. That is, from the date you receive your loan to the date you make your final repayment. On your FLM Loans Credit Agreement you will find the Loan Period on the Key Financial Information section under ‘Estimated Term’.
Monthly Repayments
Once you have agreed to the amount of your loan, you will agree to pay back your FLM loan in monthly instalments. This is to avoid having to pay the loan back in one lump sum. These monthly repayments are a manageable amount, and will be of the same amount every month The monthly repayments will come out of your bank account each month by Direct Debit unless otherwise agreed. On your FLM Loans Credit Agreement you will find the Loan Period on the Key Financial Information section under ‘Monthly Repayments’.
Overpayments
Overpayments are where you pay more than your monthly repayment each month on your FLM loan. As FLM Loans are completely flexible you may make an overpayment at any time. Simply contact your our Collections Department for more details.
Payment Holidays
As the name suggests, a payment holiday is a period of time where you do not have to make your regular monthly repayment. This feature is not available with FLM Loans, so you will make your repayments each month until the loan is paid off.
Pre Contract Information
Your Pre Contract Information document will be sent to you with your Credit Agreement. The document includes details of the length of your loan, the amount you have borrowed, the APR, the amount and date of each monthly repayment. You should keep your Pre Contract Information document for reference purposes along with the Terms and Conditions document.
Repayments
Once you have agreed to take out your loan you will be liable to repay it in manageable monthly repayments for as long as your Loan Period. A Direct Debit Mandate will be set up with your bank to make automatic safe monthly repayments from your bank account. Once the loan has been completely repaid, you will no longer need to make any repayments.
Secured Loan
A Secured Loan is any loan that has a provision for the return or collection of an asset when payments are not made. Secured loans are usually made for cars and houses. This means that if you take out a secured loan on your house, and you fail to make the repayments, the value of the loan will be collected from you, which means you may lose your house if you do not make your monthly repayments.
Security Check
If, for any reason, you need to contact us at FLM Loans during the period of your loan, we will need to perform a Security Check, to make sure we are talking to the right person (you). This complies with the Data Protection Act (DPA). Sensitive information about your address and financial dealings could put you at risk if it is revealed to the wrong person. So for your security, when you call us, we will ask you a number of questions that confirm your identity. This could be your address, your date of birth, or some information about your loan, for example how much it was for and how much you pay back each month.
Sickness Cover
If you take out a Loan Payment Protection Plan that covers critical illness when you take out your loan, your payments will be covered if you develop a critical illness during the period of your loan. Your loan will be repaid in full if you have been diagnosed by a specialist as suffering from a serious medical condition. You can claim critical illness if you fail to make your loan repayments because you can no longer work. If you are merely sick and you have to take some time off work to recover, your loan repayments will not be covered under the Critical Illness Cover and you will still be liable for repayments.
Tenant Loan
A Tenant Loan is another term for an Unsecured Loan. Tenant loans are aimed specifically at people who do not own any property. Tenant loans are a way for people who rent their accommodation from the council, private landlords or who live with parents to apply for a loan. FLM specialise in Tenant Loans.
Total Amount Payable
Once FLM have decided on your Loan Amount and Loan Period we will calculate the Total Amount Payable, which will include the original amount you have borrowed, and the total amount you will have paid once all of the repayments have been met on time. The amount will include your APR and will not include any charges made for Late Payments. This information will be sent to you on the Pre-Contract Information Document and on your Credit Agreement.
Unsecured Loan
When a loan is unsecured it means there is no provision for the return or collection of the loan when payments are not made. For this reason the APR’s tend to be a little higher than a Secured Loan, and the repayment period is shorter. Unsecured Loans are also referred to as Tenant Loans. FLM specialise in Unsecured Loans.
