Mobile Money is a loans company offering logbook loans. They offer loans of £500 to £25,000 over 18 to 48 months. A logbook loan uses a customer’s vehicle as security for a loan, so ownership of the vehicle is transferred to the lender and is repossessed from the customer in the event of an unpaid loan repayment. Mobile Money offer high value loans for a longer period of time than many other money lenders. This means that many customers are drawn to the idea of a large cash injection, with ample time to pay it off. However, in reality, a large loan like this could set you back thousands more pounds than you borrowed to begin with. Mobile money lends at what some would consider an eye wateringly high representative APR of 442.66%. This means if you were to borrow £850 over 18 months, you would find yourself paying back £2,533.
The logbook loan company has been criticised for offering arguably disproportionately high interest rates for the amount of money they lend their customers. Their customers claim they felt “extremely disappointed” with the outcome of the repay value of their loan. Some customers even call the company’s approach to handling their dept “heartless”. Many found themselves in thousands of pounds of dept, after taking out a loan of just hundreds.
Mobile money does warn on their site that “Late repayment can cause you serious money problems. Your vehicle may be repossessed if you do not keep up repayments on your loan.”. Many may customers overlook the severity of this statement; however, it is no exaggeration. Customers have found themselves facing the loss of their, money, car, and even personal belongings to Mobile Money. Many financially vulnerable customers look to Mobile Money when in a time of financial need, only to find themselves in hot water month on from the issuing of their loan
At Redbridge Finance, we look at loans distributed by Mobile Money, and investigate if they have been compliant with the FOS’s standards of lending. Financial Ombudsman Service states that lenders must undertake full due diligence when assessing whether a customer should be offered a personal loan.
In cases where we feel that Mobile Money have not had sufficiently investigated the financial situation of their customers, or have agreed to a loan in cases where it is clear that full and timely repayment won’t be possible, we will step in and make first steps towards zero debt
A log-book loan allows customer with low credit scores, no guarantor, or those looking for a quick cash injection, can apply for a loan using their vehicle as security. This can be appealing to many customers, meaning less jumping through hoops with extensive credit checks, and without involving others in their financial struggles. However, transferring ownership of your vehicle can be a massive financial risk. With a massive ARP of 442.66%, customers may underestimate the thousands of pounds of dept they can be getting themselves into. Using what to many is their biggest financial investment as a guarantee to repay this loan, leaves some with no vehicle, and less money than they started with.
Yes, in short, Mobile Money can negatively affect your credit rating. Mobile Money are a money broker and have the right to provide information regarding your loan to credit check companies. If you consistently fail to repay your loan on time and in its full amount, this can affect your credit score negatively.
Many customers of Mobile Money use their company as a log-book loan can be obtained with a lower credit score. This could mean that customers that would greatly benefit from a higher credit score could be further worsening their situation.
Some customers take our loans in order to avoid charges, for example from their bank in the case of an overdrawn account, or unarranged overdraft. These charges can be daunting prospect, however often the interest on a loan of this kind can cost much more than these charges.
Yes, Mobile Money do have the right to contact you following up on repayments of their loan. However, what they cannot do is send you intimidating or harassing emails, calls, or letters.
Legally, Mobile money can take action against you if you are currently in dept to them and choose to ignore their correspondences. This is why it is so important to take action as soon as you find yourself in a situation where you are unable to repay your loan.
We can help assess whether you have a viable claim against Mobile money with a refund claim. If you feel that Mobile Money mis-sold you the service they offer, and agreed to a loan when it was clear that you were not in a financial position to repay them, then we can help.
Our team of claims experts can take on your mis-sold loan case and claim for a full refund of all interest and charges charged to you by Mobile money. To make a claim against Mobile Money is simple. All you need to do is sign up on the Redbridge finance site and let us know which lender you want to claim against. Provide us with some information about your loan, and we do the rest. We make a claim on your behalf, and deal with all responses from Mobile money. We take the stress and confusion out of your claim, while keeping you updated on your cases progression every step of the way.
If you think you have been mis-sold your loan, or you are struggling to repay your growing dept, you could be entitled to a refund. Contact us by signing up on www.redbridgefinance.co.uk, and we will assess for you if you could be entitled to a refund.