If you’re an existing customer, and have a question about your secured loan from Nemo, you might find the answer below.
I live in Scotland – how does this affect me?
Due to the land registration process in Scotland Nemo needs more correspondence and a larger involvement of our solicitors. As a result administration during the set up of your loan and things further down the line like transferring your finance from property to property can take slightly longer.
The main tasks affected include:
The documents you receive when you first get your quote for a loan from us.
Deed of Postponement – The document that allows a new first mortgagee to rank in priority to ours e.g. if you moved your mortgage from one lender to another.
Transfer of Property – The transferring of your Nemo loan from property to property i.e. you move home and take your loan with you.
Transfer of Equity – the addition to, or removal of a name from the loan
If you have any questions about secured loans and the property is in Scotland please call Customer Services on
0845 371 0466 to talk it through.
What is the FLA and what does it mean to me as a customer of Nemo?
FLA stands for The Finance and Leasing Association and it is the leading trade association for the consumer credit, motor finance and asset sector in the UK. The FLA Lending Code provides the finance and leasing industry with standards of good practice, intending to assure those who are obtaining finance from full members that they are dealing with reputable organisations. More information on Nemo and its membership of the FLA can be found here:
Who can correspond with Nemo regarding my Loan?
In order to protect your information we will require your written and signed permission to speak with anyone who is not you, about your account. If you do require a third party to speak to Nemo about your Loan then please send a letter to Customer Services, Nemo Personal Finance Ltd, Trafalgar House, 5 Fitzalan Place, Cardiff, CF24 0ED stating clearly the nominated person(s) or company you give permission to speak to us and provide your account number, signed and dated with your name(s) printed clearly. If there is more than one person on the account we will require all customers to sign the letter. If you have any questions about nominating third parties please call Customer Services on 0845 371 0466.
Why have I paid a Broker Fee?
If you were introduced to Nemo through a Broker, they would have searched the market to find the best loan for you and your individual circumstances. Most brokers charge their clients a fee for this service, and they would have discussed this with you when you progressed with your loan. The broker fee is added to your loan balance and is therefore charged to your account. If you have any queries about the broker fee you were charged, please contact your Broker. Alternatively, if you have any queries about any other fees which appear on your statement, please contact our Customer Services team on 0845 371 0466 who will be happy to help.
Can I settle my loan by paying off the outstanding balance stated on my statement?
No, if you are thinking of paying off your Nemo loan you will need to request a settlement quotation. This can be done by phoning our Customer Service Team on 0845 371 0466 who will be happy to help.
How often am I going to be sent a statement?
Each named person on the loan agreement will normally receive an annual statement from Nemo until the loan has been repaid.
The Consumer Credit Act requires that annual statements be provided to all customers with a fixed sum loan agreement that is regulated by the Consumer Credit Act.
The Act requires lenders to issue a statement at least once a year.
Your statement will only contain information about your account for the last 12 months, even if you have had the loan for longer, as this is the most up to date information.
My annual statement shows fees added and then refunded. Why has this happened?
There may have been occasions in the past when activity on your account triggered you being charged a fee. This could have been for a number of reasons, for example it could have been because of a unpaid Direct Debit, a change to the term of your loan or adding a name to the loan agreement. However, we constantly review our processes and procedures to ensure we treat customers fairly and as a result, sometimes we change policies or fee amounts in line with industry best practice. Depending on the change, we would then review the accounts where that fee was applied historically. In some circumstances we refund fees that, under a new policy, would not have been charged. If this is the case, we also refund any interest that would have been payable as a result of that fee being added to the loan. Your annual statement shows all transactions on your account so if this situation has occurred, it would show the original fee being charged and then subsequently refunded with the additional interest paid.
There are fees on my statement – what fees do I need to pay?
Fees are payable under the terms of your Loan Agreement. There are two types of fees charged by Nemo Personal Finance: Service fees and Default fees. Some fees need to be paid by you, others need to be paid by a third party (e.g. your Solicitor or Loan Brokers). A list of the fees and, where applicable, whom or what they relate to is available on Our Fees Page. All fees charged to your account can subsequently be paid for by Switch, Delta, Solo, Electron, Maestro or cheque. If not paid, the fee will remain on your account balance where it will accrue interest. (Default fees applied on or after 1st October 2008 will only incur interest after 28 days from the date on which we serve a default sum notice). The fees will show on your account statement as a debit transaction. Where payment has been received it will be shown as a credit transaction.
Who should I contact if there’s something on my statement I don’t understand?
Please call our Customer Service Team on 0845 371 0466
Why does my statement show “Interest Adjustments” on my account?
Interest adjustments are applied to accounts where something has happened which affects your loan balance, but this has happened in the past so must be rectified. For example, if a cheque payment bounces 5 days after it is due, we need to record that the payment wasn’t made as first thought so a ‘reversal’ transaction needs to be entered to show that the payment bounced. The reversal transaction is back-dated to the day the payment was due and the interest adjustment therefore accounts for the additional interest due for this 5 day period.
Why has my interest rate changed?
The interest rate applied to your loan is a “standard variable rate” – which means it can vary. Nemo can change the interest rate for various reasons set out in your loan agreement as and when deemed necessary, usually when Nemo’s costs or market conditions change.
Why is the interest rate on my statement different from my loan agreement?
Your loan agreement shows the Annual Percentage Rate (APR) at the time your loan was taken out. The APR is calculated according to a formula set by the government that’s intended to allow fair comparisons to be made between different lenders and loan products. As a result, the APR takes account of the entire cost of the loan and not just interest; for example, if you paid a broker fee, that’s included in the APR formula. Your loan agreement will also show the interest rate
at the date of the loan agreement.
The interest rate shown on your statement is the rate currently used by Nemo to calculate the interest to add to your loan each month. It is normally lower than the APR unless we have increased your rate.
Can I have a Payment Holiday?
At Nemo we do not offer payment holidays on our loans. If you are concerned about making a payment or are experiencing difficulties please contact our Arrears Management team on 0800 019 7410 to discuss your account
Can I make a Lump Sum Payment?
If you want to make a lump sum payment, please call our Customer Services Department on 0845 371 0466 to discuss this further.
How do I change a monthly repayment date?
Simply call Customer Services on 0845 371 0466 who can change the date of your repayment over the phone with no additional paperwork.
You need to bear in mind when looking to change your payment date that unless you change the date before you make your first payment you will be charged £25 to amend the date.
If you move your payment forward you will accrue interest for each day – the accrued interest will be added to the first new payment you make. If the payment date is moved backwards, your monthly payment will remain unchanged.
How to Pay
All Charges can be paid for by Switch, Delta, Solo, Electron & Maestro. The charges are payable under the terms of your Nemo Personal Finance Loan Agreement and are subject to change without notice to reflect changes to Us in the cost of these services. There may also be a charge for uncommon services.
I'm in arrears on my secured loan. How does this affect my credit profile?
On a monthly basis, we will give credit reference agencies details about payments you make to us and the status of your account, to help us and other lenders make credit decisions about you (and the people associated with you) in the future. If you exceed agreed limits, and the amount owed is not in dispute, and you fail to make satisfactory repayment proposals following our formal demand, we may register this with credit reference agencies. It is important that you contact us at your earliest convenience if you think you may fall into arrears with your secured loan from Nemo.
When I make my monthly repayments, what exactly am I paying off?
Your Nemo loan is a repayment loan - it's designed to provide the reassurance of gradually clearing your loan each month. Each month, you pay back the interest that has accrued that month plus some of the loan capital. In the early years of your loan, when little capital has been repaid, the monthly repayment mix is mostly interest.
As time goes on, and more capital has been repaid, so the interest element reduces. There is then more of the monthly repayment available to repay capital. So capital is repaid faster and faster until it is all repaid and that's the end of the second charge mortgage.
On a 25 year term loan it would not be unusual to still owe over 50% of the original debt after the first 15 years. Providing the correct monthly repayments are made on their due dates, together with any fees you've incurred, your total debt will be repaid by the end of the loan term.
Why are you charging me interest every month?
The terms and conditions for your Nemo loan state that interest is calculated each day on the outstanding loan balance - it is then debited to your account each month (monthly in arrears). This is a standard method used for repayment loans.