Whatever line of credit you apply for, whether it’s a log book loan, a mobile phone contract, even a mail order catalogue, there’s often pages of small print attached to the paperwork that you probably won’t read.
But that small print is often the place where most of the information about hidden fees is kept.
No one reads the small print. It’s just a fact of everyday life. It doesn’t really matter what we’re signing up for, we gloss over it, or blindly accept it – usually both, ignoring it all and signing anyway. But those tiny Ts and Cs are there for a reason. And that’s to tell us about any legal or financial obligations that we, or the lender, are liable for.
All the relevant info will be listed, but because it’s written in ‘legal speak’, it can be full of jargon, making it difficult to read and understand. But that’s what some lenders rely on. And as lenders might not be legally obliged to tell you about fees and charges beforehand, this is where many borrowers can get into difficulties.
You pay for the privilege
So what exactly are hidden fees? They’re additional costs you might not know about and could run up throughout the course of your loan. They’ll be added to your account, making your monthly payments or final balance larger, and therefore making it difficult to pay it off in full. The hidden charge that many people get caught by are for late or missed payments.
Though it might be obvious that you could get this kind of charge, it can still be a hidden one that your lender might not let you know about before you sign. However, late and missed payment fees are fairly common and you can get them on almost every finance agreement around, including credit cards. But if your lender doesn’t tell you up front, it’s reasonable to think those charges don’t exist.
But it’s not unusual for some lenders to use every opportunity to slap a hidden fee on you, and they’ll be the ones they definitely didn’t warn you about. If your lender calls you on the phone, they might charge for the privilege, even though you might not need, or even want them to call you. The same might be applied for any postal correspondence too.
Other lenders might charge you a messaging fee if they text you about your account or other information that you need to reply to. What you find quite helpful or personal will be just another hidden charge added on.
However, most lenders will usually be contacting you about a missed or late payment. Even though you might already know your payment is late, you still get charged for a letter or call telling you so. And that charge gets added to your overall account, increasing the amount you need to repay.
Excessive and unfair fees
Saying ‘just pay on time’ to avoid any additional fees isn’t as simple as it sounds. Life isn’t as straightforward as that and it often involves a lot of financial juggling from month to month, or even day to day. To avoid these complications when you borrow, ask your lender to tell you outright about any fees, charges or other little surprises, before you sign any agreement.
When it comes to any log book loan agreement anywhere in the UK, you should always have the best intentions of paying the loan back, regularly and on time, every month. But by making sure the lender tells you about the hidden fees, at least you know what you’re dealing with. They might not go into great detail, and they may even try to gloss over them or downplay their importance. But if you know what to expect should you miss or be late with a payment, it might make it slightly easier to manage.
Many hidden costs are excessive, unfair, and unjustified. They’re just another way for some lenders to make extra profit at your expense. And as a borrower who might need funds urgently, it’s advised to steer well clear of this type of lender. These high cost, hidden fees are unethical, and as a result UK log book loan lender, Car Cash Point, don’t hide any fees.
A totally transparent log book loan
Any fees you might be charged for with log book loans should be told to you right at the start of your application. Car Cash Point provide a totally transparent log book loan do just that and don’t have any hidden fees or charges. Everything is up front and out in the open, so you know exactly how much to pay and when you need to pay it.
With the introduction of new regulations on ‘price caps’ from the Financial Conduct Authority (FCA), Car Cash Point caps fees at £6 per weekly payment and £15 per monthly payment. So, if you do fall short and miss a payment, you know exactly where you stand. And any fees that are incurred will only apply four days after your payment is due.
Payments can be late or delayed for different reasons – probably because someone you’re relying on is late paying you in the first place. With their fees added after four days, it means there’s a chance for you to get your own finances in check, and make your payment without penalty, giving you a few days breathing space.
Get in touch today
Car Cash Point are authorised and regulated by the Financial Conduct Authority (FCA) for the conduct of consumer credit. They’re also a proud member of the Consumer Credit Trade Association and therefore conform to its ‘Code of Practice’.
They have a range of transparent and easy to understand log book loans with no credit checks and flexible repayment options to suit your own finances. And of course, no hidden fees! So when you’re looking for a fast, safe and easy to understand log book loan with no hidden fees, visit www.carcashpoint.co.uk.