Auden aims to offer an ethical take on the traditional “payday” loan, with flexible loans of £200 to £1,000 repayable in up to 12 months.
Auden is a “for-profit social enterprise” that uses advanced technology to undercut more established lenders in the high-cost, short-term loan market. It claims to be a new type of short-term lender, taking its social responsibilities seriously and permitting borrowers more flexibility than is normal with short-term loans.
But what does all that mean in reality? Well, it doesn’t charge some of the penalties that are normal for many traditional payday lenders, it caps both rates and the maximum amount you can end up paying for your loan at a slightly lower point than the legal requirement and it offers a degree of flexibility in its loans.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
Please note: High cost short term credit is unsuitable to support sustained borrowing over long periods and would be expensive as a means of longer term borrowing.
How do Auden’s loans compare against other lenders’?
If you’ve used the calculator on Auden’s site to get a quote and want to see if you’re getting a good deal, find out how much a comparable loan is likely to cost you from some popular short-term lenders:
You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
We compare payday/short-term loans from
Key features of an Auden loan:
- Borrow £200-£1,000 over 2-12 months. New customers who have never used a short-term loan before are limited to a loan amount of £400.
- High, fixed rates. Auden charges a high fixed rate for the first 90 days of your term, followed by a lower rate per day for the remainder. Although Auden aims to undercut competitors by “up to 40%”, it is still realistically an expensive way to borrow money.
- Quick access to funds. Following approval, funds are usually transferred within an hour.
- Repay in daily, weekly or monthly instalments. Match up repayments with with your paydays.
- No late fees. Auden will not charge you a penalty if you are late with a payment, although you will pay extra interest. Always speak to an advisor if you run into difficulties with your repayments as it will harm your credit rating if you are late.
- Apply for an extension or repayment holiday. If you are struggling to make your repayments, there is an option to extend your loan or take up to two repayment holidays. Bear in mind that you will pay more in interest in the long run.
- Early repayment. You can pay off your loan in part or in full at any time without being penalised. Doing so could save you money in interest.
How does an Auden loan work?
How do I pay back my loan?
Like most short-term loan providers, Auden uses a Continuous Payment Authority (CPA) to collect your repayments. As part of the application process, Auden will take details of your debit card and carry out a zero-authorisation check. It does this to verify that the debit card belongs to you and was issued by your bank.
On each loan repayment date, Auden will use these details to collect payment from your current account using your debit card. Your repayment will be debited between 10am and 12pm on your chosen dates.
What is a Continuous Payment Authority (CPA)?A CPA is a recurring payment in which you give a company permission to withdraw money from your account on a regular basis. CPAs differ from direct debits because they give the company being paid the ability to withdraw money from your account whenever they wish, and to take payments of different amounts without consulting you. Most “payday” loan companies will use CPAs to collect your repayments, however you can cancel this at any point by either contacting your provider or your bank.
What are the eligibility requirements?
You should only apply for an Auden loan if you are certain you can meet the repayment terms. You must also:
- Live in the UK.
- Be at least 18 years of age.
- Have a bank account.
- Have a debit card which passes a zero-authorisation check
- Have a mobile phone and email address
Additional borrowing options
- Extensions. You can request to extend your loan for up to 12 months. This may help to make payments more manageable, but bear in mind that you will pay more in interest.
- Repayment holidays. Auden offers the option to take two repayment holidays after your first payment but not more than one in any four-month period. Again, this will mean that you pay more in interest overall.
- Change your repayment date. You can change your repayment date on two occasions but not more than once in any four-month period.
Did you know?In 2015 the Financial Conduct Authority (FCA) capped interest and fees on all high-cost short-term credit loans at 0.8% per day.
They additionally capped all default charges at £15 and the total cost (interest, fees) of loans at 100% of the original sum. This means you’ll never have to pay more than double the amount borrowed.
Is high-cost, short-term borrowing a good idea?
Short-term loans offer a quick solution when you get into difficulty with your finances, but they are a very expensive method of borrowing. Therefore, you should only consider this as a last resort. Short-term loans are unlikely to solve your money problems in the long term, and are not suitable for borrowing over longer periods, or for people who are in serious debt.
Before you apply for a short-term loan, make sure you have considered all other options carefully. Is the expenditure that you’re planning absolutely essential? If you can defer a purchase then you could save yourself money in the long run. If you are struggling to pay a bill, then try talking to your electricity, gas, phone or water provider to see if you can work out a payment plan. Read more about alternatives to payday loans at moneyadviceservice.org.uk.
Frequently Asked Questions