Redemptions

Several borrowers have redeemed their loans, our charge has been removed, and they have subsequently requested another loan. In these cases it has been necessary to charge the £80.00 fee again when the new loan is made.

There is an alternative. If you believe a customer may request another loan in the future, it is possible to redeem the existing loan, plus £1.00, and leave our charge in place, thus saving the customer having to pay the redemption fee of £50.00.

The account will remain on the books with a £1.00 credit balance until the customer requests another loan, at which time there will be no £80.00 fee to pay (and the process will be quicker as there is no charge to be registered). It may be helpful to discuss this with customers if they request a redemption figure.

Obviously, if the customer never takes out another loan, it will be necessary to pay £49.00 (£50.00 less the account balance of £1.00) when the charge is eventually removed.

Please note that, if we are not notified the customer wishes to keep the charge in place, by default, the redemption figure will include the £50.00 fee.

Posted 29 July 2015