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The fees we charge to borrowers & lenders


General Principles

FEES - GENERAL PRINCIPLES

  • To charge appropriately in relation to the cost of the service or people time costs involved
  • To keep fees as low as possible consistent with making a reasonable profit
  • Automate as much as possible to reduce the people costs consistent with providing a good personal service
  • To apportion charges fairly between borrowers and lenders
  • To present charges as clearly as possible and explain how they work
  • Offer a range of services from basic, through advanced to optional, users only pay for what they want
  • To adjust the prices as we go, in line with these policies

Borrowers' Fees

BORROWERS' FEES

Borrower Membership Fee

For a Borrower Membership, FREE for ever!
This covers the cost of account creation, ID verification, credit reference checking and risk determination

Loan Success Fees

The Once-off Loan Success Flat Fee is £70.00
This once-off flat rate fee covers the site's cost of setting up the loan transaction account.
This cost does not vary with the duration or amount of the Loan.

The once-off refundable Compensation Scheme Fund (CSF) contribution is based on the borrower's credit rating, and is as follows:-

Borrowers' Credit Stars Percentage  of Loan Amount
13 to 15 0.4%
10 to 12 0.7%
7 to 9 1.0%
4 to 6 1.6%
1 to 3 2.0%

The CSF contribution is refundable to the borrower when the loan is fully repaid, subject to the loan not having had any late or missed repayments.

For more information on the working of the Compensation Scheme please refer to this explanation.

The Loan Success Percentage Fee is a once-off fee of 1% of the Loan amount.
This fee covers the costs of administering the loan and its transactions, which increase with the size of the Loan.
Thie three above fees/contributions are deducted from the Loan when disbursed to the Borrower

Optional Services Fees

Change in Instalment Plan
If the Borrower wishes to Change the Instalment Plan (CIP), or indeed fully repay the loan early, then there is the optional CIP membership

CIP membership £1.95 and compensation to Lenders: Flat Fee £2.95, Percent fee 0.08%
Here are some examples of CIP fees:-

Outstanding
Loan Amount

Membership

Compensation
to Lenders

Borrower
Total Cost

£1,000 £1.95 £3.75 £5.70
£1,500 £1.95 £4.15 £6.10
£2,500 £1.95 £4.95 £6.90
£5,000 £1.95 £6.95 £8.90
£7,500 £1.95 £8.95 £10.90
£10,000 £1.95 £10.95 £12.90
£15,000 £1.95 £14.95 £16.90
£20,000 £1.95 £18.95 £20.90
£25,000 £1.95 £22.95 £24.90

For more information on the working of CIP please refer to this explanation.

Arrears & Default Fees

Fee for a Late (more than 5 days) scheduled Instalment Repayment is £10.00.
If the loan is in arrears or default we pass the debt on to a reputable professional debt collection agency for collection.
The debt collection agency will charge the borrower fees (over which we have no control) for the work they do in attempting to collect the repayments. Currently these fees are £25+VAT administration fee plus 20% commission on any recovery but this may vary according to the debt collection agency appointed.
For more information on Arrears and Default on a Loan please refer to this explanation.

SOME BORROWING FEES EXAMPLES
Borrower Membership: FREE for ever!

Loan Amount Flat Rate Fee Percentage  Fee CSF Contribution* Total Fee
£1000 £70 £10 £10 £90
£3000 £70 £30 £30 £130
£5000 £70 £50 £50 £170
£7000 £70 £70 £70 £210
£10,000 £70 £100 £100 £270
£15,000 £70 £150 £150 £370
£25,000 £70 £250 £250 £570

* Assuming Credit Stars (7 to 9)


Lenders' Fees

LENDERS' FEES

Lender Membership Fee

For a Lender Membership, FREE for ever!
This fee covers the cost of account creation, ID verification and anti money laundering checks.

Lending Success Fees

When a Lender wins a Loan, Bid or has a Match made, a once-off flat fee of £0.02 is deducted from the Lender's account - yes that's only 2p!
This covers the site's costs of setting up the successful lending transaction account on the loan.

The Lending Success Percentage Fee is 0.5% of the amount being lent out per annum.
It is calculated on a daily basis but paid monthly by deduction from the lender's account.
Percentage fees cover the site's costs of administering the loan & all its transactions, which increase with the amount of the loan.

Premium Service Fees

Advanced Lender, £2.95, provides up to five portfolios for automated lending via AutoLend, and ARBU, our unique "Automated Response to Bumped-off Underbid".
For more information on the working of the AutoLend and ARBU systems please refer to the Matching Market explanation.

Optional Service Fees

Secondary Market transactions, selling or buying loan parts
The seller of a loan pays a flat fee of £1.25 plus 1.25% of the outstanding loan amount.
Example: On the sale of a loan with £100 outstanding the seller fees will be (flat) £1.25 + (percent) £1.25 = £2.50
The buyer of the loan pays a flat fee of £0.20 plus 0.20% of the outstanding loan amount.
Example: On the purchase of a loan with £100 outstanding the buyer fees will be (flat) £0.20 + (percent) £0.20 = £0.40


For the Lender, the Compensation Scheme is optional, with the membership subscription £4.95
The Compensation Scheme is designed to reimburse lenders who might suffer loss through borrower late or missed repayments, arrears or default. For more information on the working of the Compensation Scheme please refer to this explanation.
The monthly fee to lenders for the Compensation Scheme is based on the credit ratings of the borrowers to whom the lender lends money, and is as follows:-

Credit Stars of Borrower % of Loan Amount per Annum paid Monthly 
13 to 15 0.2%
10 to 12 0.3%
7 to 9 0.4%
4 to 6 0.8%
1 to 3 1.0%

Arrears & Default Fees

If the loan is in arrears or default we will pass the debt to a reputable debt collection agency for collection on behalf of the lenders.
Relevant fees are paid by the borrower & any money recovered will be passed to the lenders pro-rata. However the lender should understand that the full amount owed on the loan may not be recovered.
For more information on Arrears and Default on a Loan please refer to this explanation.
The optional lenders' Compensation Scheme is designed to protect lenders from the effects of borrowers' late and missed payments, arrears and default.
For more information on the Compensation Scheme refer to this explanation.

SOME LENDING FEES EXAMPLES
Lender Membership: FREE!
Flat Rate Once-Off Fee per Successful Lending Bid or Match Transaction: £0.02 - yes, only 2p!
The percentage fee per month will be as follows:-

Amount Lent Percentage  Fee Per Month
£10 FREE
£20 1p
£30 1p
£50 2p
£100 4p
£500 21p
£1,000 42p
£5,000 £2.08

 

THERE ARE NO OTHER FEES & NO HIDDEN CHARGES!
We reserve the right to change any of the above fees, in line with our stated general principles, on 7 days notice posted here