Lender in Focus 2.5: The Money Shop FAQ

The Money Shop FAQ

the-money-shop-faq

Before you apply for a loan, there might be questions that you would like answers to.

Many borrowers ask the same questions.

The Money Shop FAQ aims to answer some of the most common things that consumers will ask about their loans.

How much can I borrow from The Money Shop? For how long?

You can borrow between £100 and £2,000.

The debt must be paid back over between 3 and 12 months.

The largest loans need to be paid back over at least 5 instalments.

Loans up to £1,000 can be paid back over as little as 3 months.

Choosing a longer repayment term can help you to spread the cost. It makes your monthly repayments more manageable. But, it keeps you in debt for longer and may make the loan more expensive overall.

What is the APR of a loan from The Money Shop?

Short term loans from The Money Shop come with a representative APR of 450%.

As with any representative APR at least 51% of customers must be offered this APR.

What types of loan are available?

As well as offering instalment loans, The Money Shop can provide guarantor loans and pawnbroking services.

Pawnbroking services are usually secured loans with a representative APR is 148%.

Guarantor loan products require you to know someone that is happy to back your borrowing. The representative APR for a guarantor loan is 49.7%.

How can I apply for a loan from The Money Shop?

You can apply for an online loan.

To do this, simply visit The Money Shop’s website.

Most online loan applications are, according to loan reviews, “quick and easy”. A decision is usually almost instant.

You will need to provide personal details, as well as information about your income and expenditure.

You can also choose to visit one of more than 200 branches of The Money Shop. These physical stores are widely located across the UK and Ireland.

If you are applying for a loan in person, you will need to take proof of identity and address to the store.

Are there minimum requirements to meet?

Before you apply for short term loans from The Money Shop, you must make sure that you meet the minimum criteria.

If you do not, your application will not receive approval. You also risk leaving marks on your credit file unnecessarily.

To apply for a loan you must be over the age of 18.

This lender also requires that you have a UK bank account and credit card.

You will need to be in full-time employment, receiving a pension or in receipt of regular disability benefits. Your net income must be at least £417 per month.

Will The Money Shop run a credit check?

All responsible lenders will take steps to ensure that you can afford your loan repayments.

A credit check is an important part of this process. It shows that the lender is taking their responsibility seriously.

The Money Shop will run a credit check. You need to give permission for the lender to access your credit file. Without this access, your application cannot be processed.

The Money Shop may be able to approve your loan request even if your credit score is less than perfect.

This lender uses Experian and Callcredit for their credit checks.

Is The Money Shop a trustworthy lender?

The Money Shop has operated under the Dollar Financial Group since 1999.

The Dollar Financial Group is one of the world’s largest lenders.

The Money Shop is authorised and regulated by the Financial Conduct Authority. It can be found listed in the Financial Services Register.

The Money Shop reviews are also positive overall, with an Excellent score from TrustPilot in December 2016.

Genuine and impartial loan reviews are fairly positive overall. Most people are happy with the service that they receive.

How is loan interest added?

Interest on loans from The Money Shop is added by the day.

If you repay your loan early, you may save money.

the money shop FAQ - frequently asked questions

Why have I been asked to sign a new loan agreement?

Before you borrow money you should be given clear documentation.

This should include details about your total loan amount and the overall cost. It should also list your instalment amounts and your payment dates.

Since interest is usually added by the day, the details of your loan can change overnight.

If you have signed a loan agreement but do not receive the funds on the same day, you might need to sign again the following morning. This is because the cost of your loan may have changed.

How are repayments taken?

Repayments are taken from your bank account using a Continuous Payment Authority.

This allows the lender to take money from your account without requesting your permission each time.

You can withdraw Continuous Payment Authority at any time, but will still be liable for your loan. If you choose to withdraw this permission, you will have to arrange repayment separately.

All repayments should have been previously agreed upon. This means that you should have a record of all repayment dates and the amount of money that will be taken.

What happens if I cannot repay my loan?

If you are struggling with your debt then you should contact The Money Shop as soon as possible.

Lenders must be fair and responsible. They should help you to find a reasonable solution. They may offer a payment break. Alternatively, they could stop further interest from accruing and might offer reduced monthly payments.

Lenders do not have to reduce the amount of money that you owe. Also, they do not have to stop interest charges. But, they should help you to find a way to pay off your debt more comfortably.

How do I contact The Money Shop?

The most efficient way to contact The Money Shop is by phone. You can call them on 0800 009 3565.

You can also email The Money Shop. The email address for loan queries is account.services@themoneyshop.com.

Are there alternative lenders that offer the same as The Money Shop?

The Money Shop offers short term loans and instalment loans, over terms of up to 12 months. The maximum loan amount is £2,000.

These are an alternative to payday loans. They are more flexible. The maximum loan amount is higher because repayments can be spread over a full year.

MYJAR is another lender that offers a similar service. It offers short-term loans of up to £3,600. Again, these are provided over a maximum 12-month term.

Your credit score and MYJAR borrowing history have an impact on the maximum loan amount.

Borrowers with a good history may be able to borrow the full £3,600 for 12 months. A poor credit history might limit you to a smaller loan.

The MYJAR FAQ states that borrowers need to earn at least £400 per month. The criteria for borrowing is like the criteria that The Money Shop requires you to meet.

MyJAR and The Money Shop are by no means the only two lenders offering instalment loans. Lending Stream is another well-known lender with a similar offering.

It is helpful to shop around for a loan. This provides the opportunity to prepare prices and features so that you can see which will be the most suitable.

What other services are offered by The Money Shop?

As well as being a lender, The Money Shop offers foreign currency exchange and money transfer.

It also offers a cheque cashing service.

This is a way to immediately get money from a cheque that you have in your possession.

If you visit your bank, you may be waiting a few days for the cheque to clear. This service can be valuable if you do not need a loan, but need immediate access to money that you are due to receive.

Cheque cashing services are also available to people without UK bank accounts.

The Money Shop will take a percentage of the cheque value. This is usually between 6.99% and 7.99%.

Another product from The Money Shop is a prepaid card, which is an alternative to a bank account. It includes Direct Debit functionality but comes with a monthly fee of £5.95.

You can add cash to your card at any time, or have your wages paid onto it.

Is an instalment loan from The Money Shop right for me?

Before applying for a loan, review your personal budget. This will help you to decide if you can afford a loan from The Money Shop.

You can also use the loan calculator on the lender’s website, to get an idea of the potential cost of borrowing.

You might want to shop around of visit a short term loan broker, like Cash Lady, to see what your alternatives are.

The Money Shop is just one of several choices that are available even if you have a poor credit rating.

Curious about their refund options? Read the next chapter and if you found this helpful, please share.