At Uncle Buck, customers can apply to borrow up to £1,000 and repay in monthly instalments with the option to repay early at any point.
We collect your repayment each month from your debit account using continuous payment authority on a scheduled pay date which is agreed with you beforehand.
Most customers select their repayment date on the last working day of the month because this is usually when they receive their salary from work and will have money available in their account.
The repayment dates are made clear to you in the pre-contractual information and agreement which you sign prior to your loan being funded. To make life easier, we also send you a SMS or email and attempt to call you on the days leading up to each repayment so that you know what to expect.
If your circumstances change and you wish to change your repayment date to another day, you can simply email our team or call us on 01959 543 400.
We are pleased to offer instalment loans that give you the flexibility to repay your loan over monthly instalments. Rather than a typical payday loan or loan that lasts for one month, you do not have the same rush to repay your entire loan and interest at the end of the month. Instead, you have the opportunity to repay your loan over time and have some breathing space.
Your money is transferred to you in one lump sum, meaning that you receive the entire amount you have been approved for e.g £300. By receiving the money upfront, you are able to pay for your emergency expense immediately and get your feet on the ground. Then, you can repay your loan in instalments on your pay day using income from your next pay cheque. This should give you the chance to manage your finances effectively and find yourself in a financially stable position once the loan period has ended.
The different instalments you repay are usually very similar amounts, which should make it very transparent and easy to understand.
How interest and capital works
Like any loan or mortgage, your repayments are made up of interest and principal. The principal is the amount you have requested to borrow e.g £200 or £300 and the interest is what we charge for providing the loan and this equates to a maximum of 0.8% per day on the principal outstanding.
When you are repaying your loan each month, you start by paying off most of the interest first and some of the principal but towards the end of the loan term, this switches to paying off more principal and less interest.
Borrow £300 for 4 months and repay with 4 payments
Payment 1 £118.20 (Principal £67.80/Interest £50.40)
Payment 2 £118.20 (Principal £66.12/Interest £52.08)
Payment 3 £118.20 (Principal £74.31/Interest £43.89)
Payment 4 £113.67 (Principal £91.77/Interest £21.90)
Rate of interest 0.8% per day on the principal outstanding. Total repayable £468.27. Interest rate 292% per annum fixed. Representative 1249.2% APR
Repay your loan early
Our customers have the freedom to repay their loans early at any time and this can be done by calling or emailing our customer service team. You may find that you are in a better financial position and can afford to clear your debts earlier than planned, whether it is after 1 month or 2 months.
Our loans are calculated at a daily interest rate on the principal outstanding for the agreed loan duration in accordance with the Financial Conduct Authority’s price cap requirements. Therefore, although this is not quite the same as applying “daily interest”, by agreeing to repay early, you may be entitled to a rebate of interest meaning that you will save on the overall cost of your loan.
How repayments are collected from your account
Repayments are collected from your debit account using a process called Continuous Payment Authority. We will verify your debit account during the application process and then when your collection is due, we will collect the amount owed.
This is the most convenient way for us to manage recurring repayments. This allows for a smooth transaction when it comes to collecting and means that you do not have to worry about calling up or making a manual payment each month.
Receiving repayment via your debit account is the first port of call. If you are unable to make payment via your debit account e.g. if your debit card is lost or stolen or you have cancelled the continuous payment authority on your account, we will accept bank transfer as an alternative form of repayment. We do not allow customers to repay using credit cards as this is like using one form of credit to repay another and can lead to long-term debt problems.
Can I repay on behalf of someone else?
If a customer is having trouble repaying, we may, in extreme circumstances allow another person they know to repay on their behalf. This could be a parent, sibling or spouse who can call up and make a repayment by providing their card details. We will always require the borrower’s permission in order to take repayment from another person.
Are there late fees?
Yes, you may be charged a one-off default fee of £15 on your first missed instalment if you have not responded to any of our communications and your payment is still outstanding three days after the scheduled collection date. In addition, default interest may be charged for every day that your loan is in arrears subject to the application of the price cap.