Lending Stream

Warning: Late repayment can cause you serious money problems

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Representative APR

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Author: Internal 

Editor: We asked some of our staff to research other lenders and write an article about them. The information in this article came from publically available sources as was available at the time the article was researched. Readers shoudl be aware that this article does not contain 'insider knowledge' of the company researched and that they policies and processes may have since changed.

For those who are yet to be familiar with the term Lending Stream, this is a company which provides short to medium term loans which are paid over in an installment of 6 months or less. Take a representative example: suppose the borrowers borrow an amount of £200 for 35 days. Now one total repayment with fixed 292% pa will mean the borrowers will owe an amount of £256.00.

Now it is a noteworthy advise that short term loans should only be used when short term financial needs come up which are not appropriate for other types of borrowing. So if any of the borrowers have decided to take out a Lending Stream loan, here are some information the borrowers could use.

Let's dive deeper into how Lending Stream loans work. The first thing is if the borrowers want get hold of a Lending Stream loan they have to be a resident of UK who is minimum 18 years of age or older, also the borrowers need to be in a regular employment schedule with an income of minimum 400 pounds per month, and the borrowers should have a valid debit card with a valid bank account. Lending Stream does not lend to people who are self-employed. If the borrower matches all these requirements and are interested to know more, we have some details here.

To decide what amount the borrowers can get from Lending Stream, the firm will use some credit scoring system along with an affordability analysis which gives an overall assessment of the borrower’s affordability of the loan. If the borrowers successfully complete a loan and demonstrate good repayment behavior, they might be eligible to apply for an even higher loan amounts through Lending Stream. This process is quite simple, the borrowers have to apply for loan, and the Lending Stream will analyze the borrower’s personal financial situation, and if the loan is approved borrower will receive the money.

So what are the repercussions if a payment is not done on time? If the borrower does not pay the repayment amount when it is due for payment, the bank or agency will apply these following charges:

1. On the first occasion of Lending Stream loan when an installment is due and remains unpaid on the exact date of payment, a default penalty charge which could be up to £15 gets added to the loan.

2. If any more occasions as such comes up when an installment is unpaid on the exact date of payment, if the Lending Stream had applied a charge less than £15 on the first defaulting of the payment, they will apply another charge but this will not take the total default charges above £15 to comply with FCA regulation of the price cap.

Under the regulations enforced by FCA the Lending Stream is required to not promise approval of the borrower’s short term loan till the time the borrower’s application is submitted to them for consideration. Even if the borrower has had a Lending Stream loan before and completed it successfully, the agency is required to use all the data available about the borrower to make a loan decision about lending. This ensures that the lenders are always using the financial information available to reduce every chance of putting the borrowers into a potential financial meltdown by giving them approval for loan that the borrowers may not even be able pay back. 

Even if the borrowers have good history with the Lending Stream, they don't approve more than a total of six loans at one time. The borrowers can log in to their account to check on the status of their current loan or loans expending on how many of Lending Stream loans they have taken and then they can apply for an additional loan.

Lending Stream loan application mandates for the borrowers to have an active debit card. In the loan agreement, the borrowers give the Lending Stream rights to use the mentioned debit card to deduct the loan payments on the due payment date. If the borrowers wish to change this process of collecting payment through their debit card, the borrowers can do it by contacting Lending Stream. In addition to this the borrowers also need an active bank account where the Lending Stream agencies are supposed to deposit the funds if the borrower’s loan has been approved.

The Lending Stream considers a lot of factors while deciding whether they should approve the borrower’s request for a short term loan or not because they have the motto of responsible lending. If the information the Lending Stream receives from any major credit agency plays as a factor for getting denied in the application, the lenders will let the borrowers know about the credit reference agency through email, so the borrowers can run a check on their credit records with them. Once a Lending Stream loan is approved the company streamlines the loan process to initiate the transfer of the borrowed amount to the borrower’s account within a matter of minutes after the borrower’s application has been approved fully.