Updated
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 for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Peachy collapsed into administration in March 2020. If you have a Peachy loan and are wondering what to do next, unfortunately you will still be required to pay off your loan. Loan payments will be collected as usual. Peachy isn’t offering new loans.
The once-popular lender has become one of a long line of payday lenders that have buckled under the volume of complaints and compensation claims from former customers.
Our calculator is based on the loans Peachy was offering just before it entered administration.
Manchester-based Peachy.co.uk was a direct lender, authorised and regulated by the Financial Conduct Authority.
Peachy loans were quick, short-term loans designed for covering unexpected costs. They weren’t quite the same as traditional “payday” lending, where you borrow over a very short period of time and make a single repayment on your payday. With a Peachy loan, borrowers made a repayment each month, which pays off part of the capital (the original amount borrowed) as well as the interest accrued so far.
| Product Name | Peachy Loan |
|---|---|
| Available Amounts | £100 to £1,000 |
| New customer maximum | £1,000 |
| Loan terms | 1 month to 12 months |
| Soft search eligibility check | |
| Instant decision in most cases | |
| Funding speed | Peachy says it will process your online application within couple of seconds of receipt, and that once approved, receiving funds usually takes about 15 minutes, but depending on your bank could take up to 1 hour. |
| Repayment period options | Monthly |
| Default repayment method | Continuous payment authority |
| Additional repayment methods | Online payment Phone payment |
| Repay early at any point | |
| Parent company | Cash On Go Limited |
| FCA registration number | 67433 |
| Link | More Info |
The first phase of your application was to decided on the size of your loan and the number of instalments you wish to pay your loan back in. Following this you’d be redirected to a sign-up form. Here you’d have to complete 4 simple steps providing personal, contact, employment and financial details.
Peachy would then calculate your credit score and within seconds be able to determine if you were eligible for a loan and the size of that loan. You could be called at this point to double check some data. Once approved your loan would often be credited within 15 minutes, but this could take up to an hour.
Your loan could be repaid in two ways:
If Peachy was unable to collect your repayment on your chosen date, they’ll contact you. If you fail to make the payment on this date you’ll be charged a fee of £15.
A CPA is a recurring payment in which you give a company permission 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 CPA’s to collect your repayments.
You can cancel a CPA at any point by either consulting with your provider or your bank, but remember that you’ll need to make alternative arrangements to meet your repayments (otherwise you’ll risk a fine, extra interest and damage to your credit score).
You should only apply for a Peachy loan if you’re certain you will be able to make the repayments, and you meet the following criteria:
| Residency | UK resident |
|---|---|
| Minimum age | 18 |
| Min. income | £600 a month (some benefits may be included) |
| Applicant with CCJs | You must not have had a CCJ in the last 6 years. |
| Additional eligibility notes | You must hold a UK bank or building society account with a valid debit card. You must have a working mobile phone & email address. |
| Link | More Info |
These were the steps borrowers could follow to get a loan from Peachy:
After selecting your loan amount and term, you would be prompted to enter a coupon code can enter a promo code during the online application process. Once you’d entered the code, the total repayable would be recalculated taking into account your discount.
| Option to change repayment date | |
|---|---|
| Repay early at any point | |
| Repaying early can reduce overall interest | |
| Interest is only applied to days where funds are outstanding | |
| Multiple loans allowed at the same time | |
| Option to extend loan term | |
| Phone number | 0800 0124 743 |
| Link | More Info |
You could repay your loan early at any point. There was no penalty for doing this, and it could save you interest… but maybe not as much as you’d expect. You may have to pay interest up to the date that you next instalment would have been due.
“High-cost, short term credit” from companies like Peachy is quick and easy, but very, very expensive. So before you apply, consider your alternative options – you may have more than you thought.
These loans shouldn’t be treated as anything more than a “patch”. They’re very unlikely to solve any ongoing money problems.
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.
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