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.
Uncle Buck short-term loans review
Uncle Buck entered into administration as of March 2020. Prior to going out of business, Uncle Buck offered short-term loans of up to £1,000, repaid over 4 months or 6 months designed to cover emergency expenses.
Uncle Buck went into administration as of 27th March 2020. Uncle Buck has advised that all new lending activity has ceased and, if you’re an existing Uncle Buck customer, you should continue to make payments for your outstanding loans in the usual way.
Uncle Buck was a direct lender (rather than a broker) which traded from 2004 until March 2020, authorised by the Financial Conduct Authority (FCA).
Unlike traditional “payday” loans, where the amount you borrow would be due in one single repayment on your payday, an Uncle Buck loan split repayment into manageable monthly instalments over a 4 or 6 month term.
How did Uncle Buck’s loans hold up against the competition?
We compare payday/short-term loans from
What were Uncle Buck loans?
|Product Name||Uncle Buck Short Term Loan|
|Available Amounts||£100 to £1,000|
|New customer maximum||£500|
|Loan terms||4 months to 6 months|
|Soft search eligibility check|
|Funding speed||Uncle Buck says that funds are transmitted every 15 minutes between the hours of 6am to 11pm, 7 days a week, and that if your application is approved after 11pm, funds will be sent the following day.|
|Repayment period options||Monthly|
|Default repayment method||Continuous payment authority|
|Additional repayment methods||Online payment|
|Repay early at any point|
|FCA registration number||673545|
How did a short term loan from Uncle Buck work?
Uncle Buck’s online calculator enabled you to select your loan amount and loan term, plus your preferred repayment day. You would then get a good idea of how much the loan would cost you each month and overall.
Applications were submitted online, after which Uncle Buck would complete an eligibility, creditworthiness and affordability assessment. Using your personal details, employer details, bank details and address history, as well as details of income and expenditure information, Uncle Buck would ensure your loan repayments were affordable and approve or decline your application accordingly.
Funds for applications approved between 6am-11pm were sent within 15 minutes, and applications approved after 11pm were sent the following day.
Like most payday/short-term lenders, Uncle Buck used a Continuous Payment Authority (CPA) to take your payment automatically on the repayment date you chose during your application.
What is a Continuous Payment Authority (CPA)?With a CPA you give a company permission to withdraw money from your account on a regular basis.
CPAs differ from a direct debit 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/short-term lenders will use a CPA to collect your repayments. You can cancel this at any point by either consulting with your loan provider or your bank.
What were the eligibility requirements?
Uncle Buck loans were an option for you if you met the following criteria:
|Applicant with bankruptcy||You must confirm that you are not currently signed to or anticipating entering a Debt Management Plan, Individual Voluntary Arrangement or a debtor under any bankruptcy proceedings|
|Additional eligibility notes||You must be employed.|
You must have your salary paid directly into your bank account.
you must have a valid debit card for this account.
You must have a valid email address and mobile phone.
Changing your loan: Additional borrowing options and early repayment
Uncle Buck didn’t offer top ups, rollovers or extensions. Although some other lenders do offer these options, Uncle Buck believed it can lead to severe debt problems for customers and therefore didn’t offer the facility. Instead, it encouraged you to speak to customer service to discuss repayment options.
|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||01959 543400|
What if I missed a payment?
If a payment didn’t go through, Uncle Buck would email and text you. They would also attempt to call you. If you were having financial difficulties Uncle Buck would help you set up an alternative, more manageable, repayment plan. This may have involved breaking down repayments into smaller amounts over a longer period of time and freezing the interest.
If you did not respond to correspondence and no payment had been made three days after the due date you would incur a £15 fee. In addition to this you may have been charged a daily interest rate of up to 0.8% on the outstanding amount.
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?
Payday/short-term loans from lenders like Uncle Buck offer a fast fix when you get into difficulty with your finances, but are a very expensive method of borrowing. You should only consider this as a last resort – they’re unlikely to solve your money problems in the long term, and aren’t suitable for borrowing over longer periods, or for sustained borrowing. Before you apply for a short-term loan, make sure you have considered all other options carefully. Find out more at moneyadviceservice.org.uk.
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