Last updated: 15 May 2021
For providing you with a platform that enables you to lend or borrow money, we will be paid a commission to administer the loans and from time to time may levy other charges.
The commission payable to us by a Lender is 0% (nil) of what the Lender earns. The charges taken by us are taken before the interest is paid to the Lender.
The commission payable to us by the Borrower, will be clearly set out at the point that each Borrower makes their offer to borrow. The length of time a Loan is borrowed and the Risk Rating determines a variable commission payable. Commission is payable for the duration of the Loan and is calculated daily and deducted before interest is paid to the Lender.
There is an arrangement fee payable by the Borrower upon Unsecured and Guarantor Loan completions and added to the total charge for credit. The fee payable is determined by the Borrowers Risk Grade.
| Risk Grade G1 | Risk Grades A1, A2, A3 | Risk Grades B1, B2, B3 |
|---|---|---|
| 3.00% of the loan amount | 2.50% of the loan amount | 3.25% of the loan amount |
There is a Legal Fee payable by the Borrower upon Secured Loan completions and added to the total charge for credit. The fee payable is determined by the Borrowers Risk Grade.
| Risk Grades F1, F2, F3, F4, F5, F6 | Risk Grade S1 | Risk Grade S2 | Risk Grade S3 |
|---|---|---|---|
| £995.00 | £995.00 | £795.00 | £595.00 |
All charges and fees due, will be paid to the relevant recipients from the Protected Client Call Account. If a Borrower does not make the contracted payments, then JustUs will not be paid a commission.
| Description | Charge |
|---|---|
| Late Payment Charge | £25.00 |
| Statutory Default Notice | £25.00 |
| Broken Promise to Pay | £25.00 |
| Unpaid Standing Order | £30.00 |
| Returned Payment Cheque | £30.00 |
| Collection Visit | £40.00 |
| External Agent Collection Visit | £150.00 |
| Legal Preparation (enforcement) | £50.00 |
In the event that a Borrower fails to make a payment when due or defaults in meeting any material obligations of each Peer to Peer Micro-Loan Agreement, we will undertake to ensure the payments are made up to date on behalf of the Lender. Where payments are not made up to date we will serve notices on behalf of the Lenders.
Where the borrower falls into arrears or defaults, we will publish the loan status information in the downloadable copy of the loan book.
Where the borrower falls into arrears there is a documented process and timetable that will be followed as illustrated below.
| Stage | Timescale | Action |
|---|---|---|
| S1 | Day 1 | Telephone discussion with debtor |
| Day 2 | Further telephone contact with debtor | |
| Day 3 | Debtor informed of enforcement action that will be taken if arrears are not discharged immediately | |
| Day 6* | FCA information sheet and inform borrower of:
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| Day 6-11 | Guarantor Loans Only - Guarantor informed in writing of the arrears on the account | |
| *In the event of the death of a single borrower Stage 1 can be extended by up to 30 days to provide a 'breathing space' for the estate. | ||
| S2 | Commences 2 days from end of stage 1 | |
| Day 1 | Combined telephone contact with debtor (and guarantor where applicable) | |
| Day 2&3 | Further telephone contact with debtor (and guarantor where applicable) | |
| Day 4 | Consider legal action to demand full payment before the end of the agreement, if so and when, issue a 'Default Notice' to debtor (and copy to guarantor where applicable) | |
| Day 22 | (Non-compliance Default Notice) - 7 day formal notice of proceedings to debtor. | |
| Day 31 | External solicitors instructed to issue proceedings for full balance on agreement together with charges and interest. | |
| S3 | Applicable when the following conditions are satisfied: 1. Arrears equivalent to the amount of 2 contractual instalments 2. Before a judgment has been obtained in relation to amount owing on the agreement |
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| Within 14 days of stage 3(1) - Notice of Sums in Arrears (First Notice) to be served on debtor. | ||
Second and subsequent Notice of Sums in Arrears to be served on debtor within 6 months of previous notice whilst either of the following conditions are satisfied:
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| S4 | Post Judgment Interest - Unsecured/Guarantor Loans | |
| Applicable when the following conditions are satisfied: 1. County Court Judgment obtained on an amount owing on the agreement 2. Judgment remains outstanding, either in part or in full (a) First Post judgment Notice to be served on debtor within 7 days of obtaining judgment (b) Second and subsequent Notice of Post Judgment Interest served within 6 months of the First Notice at Stage 4 (1) and then every six months thereafter whilst the Judgment remains outstanding. |
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| Default Notice - Secured collections only | ||
The default notice contains:
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| S5 | Secured Collections Only - Application to Court for a Possession Order | |
| If the arrears have not been settled by the date set out in the Default Notice, or another alternative agreement made, our legal representatives will submit the application to the local county court setting out reasons why the judge should give us possession of the property. | ||
| S6 | Secured Collections Only - Pre hearing notification | |
| Once a hearing date has been set, inform the borrower of the date, time and venue of the hearing Immediately (not more than 5 days) inform the borrower's local council that court repossession proceeding are scheduled, so they are aware the borrower may become homeless. | ||
| S7 | Secured Collections Only - Court Hearing | |
| Our Legal representative will attend the hearing and we shall enact the decision of the court. |
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED AGAINST IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU WILL REPAY.