When you sign the dotted line on any agreement, whether it’s for a loan or any other line of credit, we’re used to seeing pages full of ‘small print’. But how often do any of us even glance at those, let alone thoroughly read them? The answer is probably not very often. Sadly, this is where many logbook loan providers bury information on their hidden fees and charges that you ought to know.
The devil’s in the detail
It’s an everyday occurrence that we’re all familiar with: no one reads the small print. Whether you’re downloading the latest software update on your phone or entering into a legally binding loan agreement, we just gloss over it. But the small print is there to protect and inform us of any legalities that we, or the lender, are liable for.
So when it comes to logbook loans, it makes sense that you know all about any extra charges or fees that you might incur before you sign on the dotted line. The big problem is, that though they might be listed in the small print, the lender relies on you not reading it to make money and is under no obligation to tell you about them upfront. This is where many people can come unstuck.
Beware the stealth tactics
So, how do these hidden fees work? Well, quite simply, they’re additional costs that you incur during the course of your loan, over and above your agreed repayment terms. The main offender for a hidden charge are late or missed payment fees. Though these might go down as more obvious charges, they can still be hidden ones that a lender might not speak up about.
However, late and missed payment fees are fairly common. They’re incurred on all sorts of finance agreements and you’ll get a similar charge for missing payments on credit cards or virtually any other credit agreement. Though it’s common sense that you might get charged for missing payments, if no one tells you, it’s reasonable to think that there might not be one.
Often though, some lenders will use stealth tactics to sting you. These are the charges that will appear on your account that they definitely didn’t tell you about. For example, some lenders might charge you for contacting you by text message for a number of reasons. While you think this is quite helpful or personal, it’s just another hidden charge.
Phone calls and letters are also prime examples of hidden charges. All these methods of contact usually stem from a missed or late payment and you end up being charged for the privilege of receiving a call or a letter telling you so. All that on top of the missed or late payment charge itself.
Ask before you sign
The best way to avoid these hidden charges could be simplified by saying ‘just pay on time’. However, life is never quite that straightforward and it would be unrealistic to think otherwise. So your best option is to ask your lender directly, before you sign your agreement, if there are any hidden fees or charges that could apply to your loan. This is the point that you’ll discover what nasty surprises could be coming your way.
Before you undertake any loan arrangement, you should always have the best intentions of making your repayments regularly and on time. But with some lenders being coy on their hidden charges, asking them beforehand is your best line of defence. They may give you the minimum of detail, asking you to read your agreement in detail, but at least you’ll know before you sign your agreement. By finding out what charges you can expect if you miss a payment or fall into arrears, you’re forewarned of what it will cost.
Often, the hidden costs imposed are unfair and unjustified. As a borrower, you’re advised to steer well clear of these types of lender. We believe these high cost, hidden charges are unethical, which is why we don’t have them.
A chance to catch up
All and any charges that may be incurred with our logbook loans are made clear to you at the point of application. Car Cash Point provide a different way to borrow money, and we provide refreshingly simple and transparent logbook loans. We don’t impose any hidden fees or charges – this way, you know exactly how much you’ll be paying and when you’ll be paying it.
Car Cash Point is the only UK lender who caps their fees at £6 per weekly payment and £15 per monthly payment. So, should you make a late payment, you know exactly where you stand. One further benefit of borrowing with us is that any fees that are incurred only come into action four days after the payment is due.
We know that payments can be delayed for many different reasons – usually because you’re relying on someone else to pay you. With the fee only being processed after four days, it means, if you are late, there’s a chance for you to catch up and make your payment without being penalised, saving you stress and money.
At Car Cash Point, we’re authorised and regulated by the Financial Conduct Authority for the conduct of consumer credit. We’re also a proud member of the Consumer Credit Trade Association and therefore we conform to its ‘Code of Practice’.
We’re committed to ethical and responsible lending and to giving you the highest level of award-winning customer service. We believe the hallmark of a good, trustworthy lender is how they treat you when you need help at any point during your loan and not just when you first take it out.
Expert advice to help you
Call our trusted loan advisors today on 0333 220 4419 or apply online and take advantage of our transparent logbook loans to give you the financial help you need. No hidden fees – guaranteed!