Implications of Non Payment
Lenders follow their own principles and policies regarding fees and interest if you don’t pay on time. While most of them will contact you by phone or letter to rearrange payment, remember that non-payment can lead to extra charges and increased interest rate which eventually affects your credit score. It’s important that you read the lender’s website’s charges section before finalising the loan.
Lenders usually contact you by phone, email or letter to arrange payment as non-payment can lead to charges and higher interest rates affecting your credit score. There is the possibility of your debt being passed on to a collection agency and consequent further charges with continued non-payment.
Make sure you contact your lender well before your repayment date if you plan to renew your loan. You will most probably be charged the same rate of interest and fees for the next month on the entire loan amount. The loan renewal/extension is automatic and leads to more interest and charges to your account in the event of a non-payment.
Frequently Asked Questions
What types of loans do you provide?
We provide short-term loans from £100 up to £5,000 for periods between 1 and 24 months to help customers secure regulated and prompt credit in order to cover emergency situations, providing an option to those who may not be able to obtain credit by other means.
How do I know if this loan is right for me?
Our loans are designed to help customers in need of short-term finance; therefore, these loans are not intended to be used for extended or prolonged periods of time. In order to be eligible for a loan with us you should ensure that you are the following:
- A UK resident
- Over 18 years of age
- In full-time employment
- With a valid UK bank account*
Alternatively, you can refer to our guides for all the information you need to know about the loan products that we provide, including suitability and eligibility.
(*) If you are eligible and wish to receive loan your loan as soon as possible, you will need to ensure that you have a bank account that supports fast payments and will, therefore, be able to process your transaction quickly.
When will I receive the money?
This will vary depending on the time of your application, but you should be able to receive your loan the exact same day as you have your application approved although this will be dependent on:
- How quickly your bank account processes transfers
- Whether you’ve previously held a transaction with this lender before
- How fast your lender processes your application
It is worth mentioning that some of the lenders we work with do not process applications outside of Monday to Friday; which means that while they will be able to accept your loan whatever time you apply, they may not be able to process your application until the start of the next working day. Which could amount to a maximum of 5 days over a long weekend; so the maximum time you will have to wait to receive your loan will be six days.
Will my employer be contacted?
Should any lender need additional confirmation of your place of work, then they may get in touch with your employer to confirm some details such as your income, position and the stability of your position within the company. However, it is worth mentioning that although they will verify their identity with your employer, they will not disclose any personal information regarding you or your personal finances.
Will I need to provide any additional documents?
Our entire application process is done online, meaning that unlike bank applications, it requires no paperwork. However, all our lenders go the extra mile to ensure that if they can provide you with the loan you need, they will, so should any lender that we work with need to confirm any of your details in order to provide you with a loan, instead of being rejected, then you may be asked to provide additional paperwork.
If you are required to provide any documentation, then most lenders will ask you to take a photo with your phone and send it via email so that the process won’t slow down your application.
What is representative APR?
Representative APR or Representative Annual Percentage Rate (or sometimes called the RAPR) is an example of a lender’s rates of interest for borrowing an amount of money for a year, that they advertise to you as a borrower. In order for a company to display their Representative APR at least 51% of their customers must have their loan approved at the rate they advertise.
Some APR rates for short-term finance will look higher compared to other organisations such as banks. This is because the critical elements of APR are interest rate and loan term, meaning that one will multiply itself against the other. With short-term finance, loans which must be paid over a shorter period will make APR look higher than other traditional forms of lending, because of the short loan duration. For short-term loans, it is best to look at the interest rate and the total amount you will pay back.
Can I apply even if I have bad credit?
Yes, you can still apply for a loan even if you have bad credit. Although one lender may have rejected you, that is not strictly an indication that you are likely to be rejected by another, as some lenders will reject applications on other criteria besides credit history. All of the lenders that we work with have different risk thresholds that they are willing to take with applicants including those who may have bad credit.
What if I can’t repay my loan?
If you are having trouble repaying your loan, then the first step would be to go to your lender directly and tell them about any difficulties that you are having. This will enable them to make suitable and appropriate arrangements to help you to repay your debt as easily as possible.
Lenders can help by:
- Offering a settlement figure
- Freezing interest rates
- Organising a debt management plan
You can also visit www.moneyadviceservice.org.uk for further free help and advice on how to deal with any financial problems that you may be having.
How do I make a complaint?
With us: If you wish to make a complaint with us, you can do it through either one of the following ways:
- Via email on firstname.lastname@example.org
- You can contact us by telephone on 0203 475 4080
- Alternatively, by post to: Dojono Limited, 4th Floor, Office Block, 47 Dean Street, Soho, London, United Kingdom, W1D 5BE
If you have already taken out a loan with one of our lenders, then you will have to contact your lender directly to deal with your complaint, as once you have signed an agreement with the lender we can no longer help you with your complaint.
For more details on how to make a complaint with us, take a look at our Complaints Procedure.
With a lender: Contact your lender directly, either by telephone, email or alternatively by post. You should be able to obtain your lender’s contact details by looking at any documentation you have from your lender, or by visiting their company website. It may also help to see if they have a complaints policy or procedure for an indication of how long it will take them to respond to your complaint.
With the Ombudsman: If you feel as if your complaint has not been resolved after contacting your lender in an effort to resolve the dispute, or your complaint has been ignored, then you can take up a complaint with the financial ombudsman who can help you to settle the complaint. You must ensure that you give your lender an appropriate time frame to settle the complaint before making a complaint with the ombudsman, this is generally a time frame of 8 weeks, after that you can make a complaint with the ombudsman. For further information about how to start your complaint with the financial ombudsman click here.
Will I be subject to a credit check?
Our Lender panel comprises FCA registered UK Lenders. Therefore, as part of their regulatory obligations, all lenders must ensure that they carry out a credit and affordability check before lending you money.
Most Lenders will perform what is called a ‘Quotation Search’ as part of their initial risk assessment, which allows them to check your credit history but without leaving a record of the check for others to see.
If you pass this initial check and the lender makes you an offer, this Quotation Search will be converted into an actual Search, commonly called a ‘Credit Check’ or ‘Hard Check’, which will be visible to other financial organisations, as well as yourself, when accessing your Credit History.
When will I receive my decision?
In most cases, we will be able to give you an instant decision on whether you’ve been approved; however, sometimes the process will take a little longer and may require you to wait up to 15 minutes for a decision on your application.
It is also possible that once the lender has completed all their checks that they might wish to change the loan amount or duration. This is commonly done as a result of your affordability check and after a discussion with you about any concerns they have about your ability to repay.
This is generally a good thing as they are keen to avoid the risk of you defaulting on your loan by reducing the monthly repayment amounts to account for your circumstances or affordability.
Do you charge any fees?
No, we NEVER charge fees. It is possible that the Lender might charge you for additional items as part of your loan agreement. For example, a lender might charge a fee for a 15 minute ‘faster payment’.
Please note that these fees are deducted from the total loan amount as it is illegal, in the UK, to charge an arrangement fee for an unsecured loan. If you are ever asked to pay money to arrange an unsecured loan, then terminate the transaction immediately. A legitimate lender will never ask you for any arrangement or upfront fee.
Also, Lenders can add administrative fees, where they can legitimately justify them. This generally happens when you miss a monthly instalment or fail to repay the loan on time. Fees can vary in amount and are often related to things like contacting you to see why you haven’t paid.
What do I do if I’ve been rejected for credit?
This will help you to get a better insight into why you may have been rejected.
When checking your credit report, you ensure that there is no:
- False or incorrect information
- Name or address errors
- False or unrecognised applications
- False or unrecognised defaults (failures to repay)
- False or unrecognised late payments
- Missing information or repayments
As all of these instances could affect the success of your application.
Is the entire application carried out online?
In many instances, yes. Of course, there can be some instances where some documentation may need to be sent in, but for the most part, the application process and validation can all be carried out quickly and simply online.
How do I make repayments on a loan?
While different lenders will provide various payment options, it is often the case that a Continuous Payment Authority (CPA) is set up to collect payments. Alternatively, if there are any disruptions or if you have any desire to make any early repayments, then these will be made via Debit Card. However, applicants can be confident that all aspects of the loan will be explained beforehand, including the repayment process.
How much will I be able to borrow?
The amount that a lender will offer an applicant can vary based on many factors, such as their term of employment and any current credit commitments. Lenders generally offer personal loans from £100 to £5,000 but will use the information given to ensure they are lending money responsibly.
How long will it take to repay the loan?
The term of the loan can vary. If you're only borrowing £300, then it's likely this will be paid much quicker than a more substantial loan of £5,000. Lenders will ensure you're happy with the terms of the loan before finalising the application, but as a guide, the terms can vary between 1 and 24 months.