Lending payday loans responsibly is at the core of the business

Representative Example

Total amount of credit £80, duration of the agreement 29 days, rate of interest 292% per annum (fixed), total amount payable (in one repayment) £98.56. Representative 1281.8% APR.

Lending responsibly and our commitments

As a responsible payday lender, we want to ensure that you can repay your loan comfortably in a way that is affordable to you. Our loans provide a solution for your occasional short-term needs. They are not suitable for supporting sustained borrowing over longer periods, nor if you are in financial difficulties. The cost of our payday loans can be higher than other types of loans, such as those requiring you to provide a guarantor, which are typically payable over a longer period, so if you do require a longer-term solution there are other more suitable forms of finance available elsewhere. We use the information you provide to help us make a responsible lending decision as to whether you can afford to repay your payday loan without causing you any financial difficulty. Find our more about our payday loan product on our payday loans page.

Sound principles

We acknowledge that as a payday lender we have a clear set of principles to abide by. This means that in providing our loans we must treat you, the customer, fairly, providing clear information during your application and to process your data in a safe and secure online environment. We make it clear that payday loans should be used for short term financial needs and are not appropriate for longer term borrowing nor are they to be used in situations of financial difficulties. Appropriate checks will be conducted to discover whether our loan is suitable, taking into account your circumstances.

To reach a lending decision, applications will be checked thoroughly and undergo a sound, proportionate and appropriate affordability assessment which includes assessing your ability to repay the loan in sustainable manner. Not only does this involve data from external sources such as credit reference agencies but also information captured on our online application form.

As part of the application process we ask you if you have anything you would like us to know about, that may lead us to conclude that our loan is not suitable. For example, where there are health issues at play that impair sound judgement, bankruptcy, levels of indebtedness including any other payday loans, or entering an IVA.

Embracing the letter and spirit

Being fully authorised by the Financial Conduct Authority (FCA) to act, we acknowledge and appreciate our obligations to uphold not only the rules and regulations but also the spirit of responsible lending. Being a responsible lender isn't just about making sure all the rules are followed to the letter, although that is incredibly important, it's also about infusing responsible lending into our culture. Check out the following infographic where our commitment to lending responsibly translates into tangible actions.

Responsible lending infographic

What is the loan process?

At 247Moneybox, we endeavour to ensure you are clear about all aspects of the payday loan and the loan application process. As the infographic above shows we want to enable a high level of transparency across the business. As a result, the amount you have to pay at the end of the loan, i.e. your repayment date, is stated clearly in the pre-contract information. As the name suggests the pre-contract information is provided before you sign the loan agreement. We do this not only to comply with applicable rules and regulations but also so that you can make an informed decision before making a commitment to us.

In addition, the charges and fees are also displayed on those documents, and are set out in full on our website. If you still require assistance having reviewed the information provided during your application process then you should get in touch! Our friendly team will be delighted to help you.

Full disclosure

The only way that you will not repay the amount stated in your loan agreement on the repayment date is If you fail to comply with the terms of your loan agreement. If you do keep to the terms and make all repayments on time as agreed, you will only be required to repay the amount in the loan agreement i.e. the sum advanced, the interest accrued and any fees notified to you and agreed with you in the contract. Should this be that case then all is well and you will not be required to pay any additional fees.

As we charge interest by the day we encourage you to repay your loan as soon as you can, if you can afford to, as this will reduce the amount you have to pay. It may also help avoid accruing any additional interest and/or any other late payment fees should you miss your repayment date(s).

"As we charge interest by the day we encourage you to repay your loan as soon as you can." 247Moneybox.com
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We have a straightforward 3-step process written in clear, plain English. Remember to qualify to apply for a loan you must satisfy these basic criteria:

  • Reside in the UK and be 18 or over
  • Be employed with a regular income
  • Have a UK bank account with a valid debit card (we don't accept pre-paid cards)

Loan application process for payday lender 247Moneybox

Responsible lending at the core of our operations

The aim of 247 Moneybox is simple; we want to offer the most convenient and straightforward short-term loans to the hard-working men and women of the UK. Established in 2009, our online lending operation is based in central London providing payday loans to UK consumers. We decided the UK consumer credit market needed a right good shake up and 247Moneybox may be able to help you smooth your cashflow when an unexpected bill lands. We know time is of the essence in this scenario and we aim to give you the flexibility you need when you require funds in a convenient fashion.

We take short-term loans very seriously and are fully regulated by the FCA and are members of the industry trade body CFA. 247Moneybox is a trading name of Active Securities Limited.

See how responsible lending impacts other areas of our business:

Responsible Advertising

Bad Credit Loans

Annual Percentage Rate or APR

Payday Loan Alternatives

Customer Service Commitments

Understanding the World of Credit Reports

What makes 247Moneybox different?

Online in real time, applying for a 247Moneybox loan is straightforward. Should your application be approved we can provide you with the cash you need when you need it, direct to your bank account allowing you to withdraw funds as and when you need it.

Bank managers, rubber plants, tasteless coffee, and long queues are all refreshingly absent from our process. Remember, our friendly customer services team are on hand to help in any way they can. Traditional lenders are just not set up to provide for your urgent money needs. That's where we may be able to help. Our proprietary risk and decisioning tool is best in class allowing us to make responsible decisions in an efficient manner.

As we operate in an online environment from the start of your loan application, to funding (if approved) to collection, the convenience to manage your affairs on-the-go is key. Given technology is now such a major part of all our lives, it makes sense to apply and manage a small short-term loan online. This doesn’t mean that transacting online is any different than if you were to step into a shop and meet face to face. Our checks are just as comprehensive and perhaps even more secure as we negate the need for a member of staff to re-key data.

Just applying for a loan is only part of the story. For example, we manage the collection of your loan repayment using your debit card. Collection occurs on your agreed repayment date automatically so you don’t have to remember to make a repayment. However, should you wish to make an early repayment before that date that is totally up to you. Don't worry we keep you informed with handy reminders whilst the loan is live. Giving you control over your affairs and providing you the tools and information necessary to make sensible borrowing decisions is part of our overall commitment to responsible lending.

Direct lenders versus brokers

When we make a loan to you, it is our name on the loan contract. In accountancy speak, as the loans we advance come directly from us, they are recorded on our balance sheet, hence the term 'balance sheet lender'. This is an important distinction to make. A credit broker is an organisation that aims to help a prospective borrower find a firm that is willing to lend them credit. Another definition that is often used to describe a broker is an intermediary that affects an introduction to a credit provider. Acting as a broker can be the main source of the firm's revenue or business or can be secondary, it doesn't matter, they are both seen as being a broker by the regulator. An example of the latter, could be a car dealer where their main business is selling cars but who can act as a broker and introduce a customer to a credit provider during the sale process.

Where broking is the main function of the business, the firm must be fully authorised by the FCA to offer its services to UK consumers. This gives the public confidence that the organisation they are looking to form a relationship with and potentially supply personal and sensitive information to, has attained a minimum standard.

Making it clear that a credit broker is offering a broker service as opposed to being a lender is stipulated clearly in the regulator's rules. You will be able to locate the credit broker's registered name on all their communications, such as their website, emails, voice messages, text messages and letters. You can use this name to search the Financial Services Register.

The actual mechanics of brokering can take on many forms. In the payday loan industry, it is common for a prospective customer to fill in a form on a broker's website. Once you hit submit, the information is now called a lead. This lead is shown automatically, system to system, to various lenders effectively checking in real-time whether they want to accept the lead. When a lender in this auction accepts the lead, they send the broker's system their webpage to redirect the customer who goes on to fill out a pre-populated application form.

Alternatively, the broker may show a comparison table of credit products and invite the customer to click on the offer that appeals to them. The click will take the customer to the lender's website for them to apply direct.

Historically, some people have suffered from rogue broking operations that charged up-front fees without actually then going on to do any real work in finding a suitable lender. Credit brokers must follow the rules laid down by the FCA. From January 2015 brokers are now only allowed to charge you a fee or ask you for any payment details if both of the following conditions are met:

  • Written information - the credit broker must give you a written information notice setting out details of the fees
  • Record consent - you must have acknowledged and agreed to the information notice and the broker must record this

The information notice that the broker provides must contain certain types of information to enable you to make an informed choice. So any notice must contain:

  • The registered name of the firm
  • The registered name of the firm
  • That they are a broker and not a lender
  • How much you will pay in fees or are likely to have to pay
  • When and how the fee will be paid

If a credit broker has charged you a fee or taken payment details from you without sticking to these rules, then you can let them know and ask for a full refund. If the credit broker passes your payment details on to another credit broker, that new credit broker cannot charge you a fee until they present you with a new information notice and have agreed to be charged.

Responsible borrowing and where to find advice

Advice on money related matters is available should you require it. This includes information on borrowing money and we believe is essential reading before committing to any credit related products, including online loans.

National Debtline provides free debt information and help via its My Money Steps tool (available online) and the guides, sample letters and fact sheets on their website. Visit mymoneysteps.org.

StepChange gives advice, budgeting information and other tools to assist in managing debt. Visit stepchange.org.

PayPlan provides free online services such as debt advice and help. The website is packed with useful information and you can chat to them online. Visit payplan.com.

Debt Advice Foundation is a national debt advice and education charity offering free advice in a confidential manner to support and assist anyone concerned about money issues. Visit debtadvicefoundation.org.

Remember that Citizens Advice offer impartial and independent advice about debt via their online chat facility.

At all of these sites you will find advice in clear, plain English on a range of money related topics from budgeting to guides on how to improve your finances. In addition, you can use their tools and calculators to help keep track of your cash and plan ahead. Often support is offered both over the phone and via online chat.

Next stop for getting clued up on borrowing money would be to bash the major search engines. However, ensure that the sources of information are meant specifically for UK borrowing where appropriate. So, for example if you want to know about the rules on continuous payment authority you need to ensure you are looking at UK specific sites. On the other hand, international sites may provide interesting blogs and reviews for consumers and can provide a great source of knowledge.

Retain control

Keeping track of your finances means balancing the incoming funds with the outgoing expenditure. This may not always be possible in the super short term. For example, a bill lands that is more than you have available in your current account at that exact moment. However, you are 1 week from payday and know that you can cover the expense with those funds. To bridge that gap an advance or a loan may be the right thing to do especially if that is a priority bill such as your rent. So, if you look at your cashflow over a longer period, say 8 weeks, you can see that your cashflow was adequate to cover all expenditure, but needed a few boosts along the way.

Therefore, the length of time you use to analyse your cashflow is very important to your budget. Part of staying in control is not to underestimate your expenditure nor overestimate your income nor indeed try to extend the length of time to analyse your cash flow too far into the future.

We have more tips on our media page on budgeting and money saving. We update this page regularly and try to tackle the issues of the day, new product launches, topical personal finance news, stories and things that just interest us. We don't just want to publish information to you, we would love your feedback. You can reach us via email or across our social media accounts. Given the importance of listening to customers in designing a service or product, the more ways a business can engage with its stakeholders the better. We believe that the rise of independent review sites and social media is great news for all and will drive up standards. This is especially important for a business such as ours that has customers at the heart of its operations.

247Moneybox.com is 100% focused on providing straightforward transparent online payday loans and is firmly committed to the responsible provision of credit. With this in mind your online payday loan account is accessible 24 hours a day, 7 days a week for you to check your loan outstanding balance, your terms and details - all in a safe secure environment. We feel that an online loan is not always right for everyone that's why we are committed to responsible lending. However, if our loan fits your occasional short-term money needs and we deem it to be affordable, then we may be in position to really help out.