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Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 7062
Experience:  Solicitor
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I have just found out that my 28000 pound business loan is

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I have just found out that my 28000 pound business loan is an unregulated loan and never understood there was any difference. I have asked for and received a copy but it does not show anywhere on the agreement the amount borrowed the interest rate or the total amount to be paid back what should i do

Hello my name is ***** ***** I will help you,

What is it you want to know about this?

Customer: replied 6 months ago.
Should i have in this agreement somewhere the amount i borrowed also the interest rate that im being charged as i took out the loan on 17/03/17 for £28,000 and earlier this week i asked for a settlement figure and it has come back at £44,867 i have made payments of £10,338 in there agreement it states that the monthly payments will be £1317.20 pm inc vat they have been taking a direct debit amount of £1417.00 pm inc vat at the moment i have know idea what interest rate im on and feel trapped and conned.
I am a sole trader new business and did not fully understand what i was getting into as it also says that the agreement is unregulated help
Customer: replied 6 months ago.
Sorry but are you still there

Sorry I had to go offline. You signed this loan for your business?

Customer: replied 6 months ago.
for my business, but they have not given any paperwork relating to the amount i borrowed or showing the interest rate i am paying i did call them this morning and the broker said there eas not room on the form, realy

Then it wont be regulated if its for your business. You are not a consumer, you are a business.

As such as a business owner, you are expected to read and understand documents. If you do not, then you should get advice.

You are held to a higher standard than a consumer, because you are a businessman.

As this was a business loan, then it wont be regulated in any event, as it is outside the meaning of the Consumer Credit Act 1974.

But you can still complain to the Financial Ombudsman if they go outside the terms and conditions.

I am sorry if this is not the answer you want, nor the one I want to give you, but I have a duty to be honest.

Can I clarify anything for you about this today please?

Customer: replied 6 months ago.
Does this suggest that they do not have to disclose the amount of interest and amount borrowed under the agreement

The requirements are different for a non regulated loan.

Does that clarify?

Customer: replied 6 months ago.
sort off it is a hire agreement-unregulated £12000 for the purchase of my truck which they paid direct £10000 as cash flow and the rest for other business related such as financial standing insurance etc, does this still sound correct as i do not understand how you hire cash flow

Its a financial loan by the sound of it. Working capital. Which is something you can loan.

Does that clarify?

Customer: replied 6 months ago.
thank you looks like i made a bad choice then borrowed 28000 and paying 52000 back by the looks of it does not look fare to me

Indeed and I am sorry. All the best. If this answers your question could I invite you to rate my answer, 5 stars the happy face on the page before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance!

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