Ideal Finance Code of Practice
We, Ideal Finance Limited (“Ideal Finance”), work with Think Money Limited (“Think Money”), who are both part of the Think Money Group to provide credit to Current Account customers.
The credit facility that Ideal Finance provides allows you to borrow up to your agreed credit limit for up to 30 days. We can usually provide an immediate answer and the funds will arrive in your account instantly.
This Code of Practice will clearly outline what you can expect when you borrow from Ideal Finance. It also aims to answer any questions you may have. If you can’t find the answer you’re looking for please don’t hesitate to contact us.
What we will do We're committed to responsible lending as well as outstanding customer service. What that means is...
- We will only lend to you when we believe you can afford it
- We will never pressure you into borrowing more - or over a longer term - than required
- Our charges will be transparent and easy to understand
- We will act fairly, reasonably and responsibly in all our dealings with you
- We will consider cases of financial difficulty sympathetically and positively
- We wouldn't offer you this facility if we didn't think you could afford to borrow responsibly. Because we're committed to responsible lending, we will also assess each application on an individual basis - to make sure it really is affordable
- The types of things we consider are: changes in income and outgoings, unpaid items (including arrears to other short-term lenders) and how well you've repaid any money you may have borrowed from us previously
- Your relationship with thinkmoney helps us recognise what you can and can't afford. As you'll appreciate, this is a two-way street: the more you keep them informed about your finances, the easier this will be
- All charges and cancellation rights will be outlined during the application, to help you decide if you really want to go ahead.
- The Representative APR for the credit facility is 1077.4%.
- There will be a daily interest rate of 0.75% on any amount borrowed and outstanding. If you borrow £100, the interest charge would be 75p per day. There are no hidden charges.
- You have the right to repay early at any time and the cost will be reduced accordingly. There are no additional fees for repaying early.
- As you might expect if you fail to make a repayment you'll keep on paying the daily interest (daily interest rate of 0.75% on any amount borrowed and outstanding) for a maximum of 30 days. After this time the outstanding balance will still be owed, however no further interest will be added. Failure to make a repayment may also affect your ability to obtain further credit.
Representative example: Amount of credit £400. Interest 273.75% (fixed) per annum. Representative 1077.4% APR.
Example cost of credit: If you borrow £400 for 17 days and repay this in full on the due date, the total amount repayable will be £451. Interest is charged at 0.75% of the amount borrowed and outstanding per day. If you choose to pay any of the outstanding balance off early, the total amount that you pay back will decrease.
- We'll keep you informed by SMS at every step when you apply for credit.
- If you want to apply for credit, discuss your existing facility or raise any concerns you may have, you can contact thinkmoney on 0161 779 5000 between 8am-8pm Monday-Thursday, 8am-6:30pm on Friday and 8am-4:30pm on Saturday.
- For anything else, please contact us directly on 0161 779 5000. We are available between 8am-6pm Monday to Friday.
- We will always be sympathetic to your situation and do what we can to help.
- We understand that you might run into unexpected problems that make it difficult to make your repayment - if you have any concerns, please tell us as soon as possible.
Although we will always do what we can, you can also get free independent advice from a number of sources, including:
- Money Advice Service Please call 0300 500 5000 or visit www.moneyadviceservice.org.uk
- Money Advice Scotland Please call 0141 572 0237 or visit www.moneyadvicescotland.org.uk
- Stepchange Please call 0800 138 1111, or visit www.stepchange.org
- National Debtline Please call 0808 808 4000 or visit www.nationaldebtline.co.uk
Citizens Advice you can contact your local Citizens Advice Bureau or visit:
www.adviceguide.org.uk (England & Wales)
www.citizensadvice.co.uk/ (Northern Ireland)
What you should remember
Taking out a short-term loan is a big commitment and one you shouldn't take lightly. The credit facility should only be used for short-term, occasional borrowing and not for long-term financial needs. If not used responsibly, it could cause long-term financial difficulty, so please only apply if you're confident you can afford the repayment.
You could use a short-term loan:
- For unexpected necessary expenses, e.g. car repairs, boiler repairs or larger-than-expected bills.
- To relieve a temporary cash flow problem.
You shouldn't use a short-term loan:
- For regular bills or living expenses such as food or clothing.
- To repay debts.
- To increase your disposable spending money.
- You should always be honest with yourself and only borrow if you can afford the repayment.
- If you're experiencing real financial difficulty, borrowing money probably isn't the answer and you should seek help with your debts or budgeting advice.
- You should always keep thinkmoney informed of any changes to your incomes and outgoings; this will keep your Current Account up to date and help us make the right decision about lending money.