At Moneyline, we like to keep things simple and use words that everyone understands. Our Jargon Buster is here to help you with some of the words and phrases used in financial services.
Jargon | Explained | Meaning | ||
|---|---|---|---|---|
DRO | Debt Relief Order |
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APR | Annual Percentage Rate | APR stands for Annual Percentage Rate. It's the interest rate you would pay if you borrowed money from us for a year, including any fees or charges linked with the loan. It's a way to compare the cost of loans from different lenders. | ||
IVA |
| IVA means an Individual Voluntary Agreement. It’s a legal agreement between a person and their creditors to pay back debts over a set amount of time. An Individual Voluntary Agreement is more flexible than bankruptcy, allowing you to continue using a bank account. Bankruptcy could mean that you lose your home or job, then an IVA maybe a better option for you. | ||
| Default Notice |
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NOSIA | Notice of sums in arrears | A notice of sums in arrears is a letter we must send you by law if you fall two or more payments behind on your loan. A subsequent notice of sums in arrears (SNOSIA) is a letter we must send you by law every six months after sending you a NOSIA, until you're up to date with your loan payment schedule. | ||
Pre-contract | Pre-contract | A pre-contract is where we pre-approve a loan, pending our final checks. It shows you money we will lend to you over the agreed term at the interest rate we offer you. | ||
Loan agreement | Loan agreement | A loan agreement is a formal contract between a lender and a borrower. Loan agreements spell out all the details of the loan, such as the amount, interest rate, term of the loan and payment terms. They also outline the rights of a lender to collect payment if the borrower defaults. | ||
FRL notice | Final reminder letter | This is a final reminder letter. We will send it to you to remind you that your payments are not up-to-date. It will be sent after we have already sent you a NOSIA. It will explain to you what action we may take if you do not make a payment plan with us in the next 14 days. | ||
Direct Debit Mandate | Direct Debit Mandate | A Direct Debit Instruction is an authorisation from you so we can collect future loan payments from your account. |
