The NCCL (NoCreditCheckLoans.co.uk) started in 2014 and has since helped tens of thousands of people get credit when others would tell them no.
We were licensed to operate directly in the UK for a short while. However, our previous parent company Quick Loans Ltd was advised that the domain name of the site indicated certain things that the Financial Conduct Authority would consider to be against their rules. They politely asked that they remove the trading name from the FCA's register of authorised sites and it was removed shortly after.
The problem with the name is down to a misunderstanding and misinterpretation by the FCA. We previously argued that the site is consistent with the rules because not all lenders do credit checks. The FCA would counter that their rules clearly stated that affordability checks need to be done on all applicants. We appreciate that, but we are not called "noaffordabilitycheckloans.co.uk" so their rules shouldn't apply to us.
Although we removed the site from the FCA's register, the site is still live and legal.
Keeping people away from loan sharks by offering alternatives
We want to bring lending in from the cold. Over the last few years, subprime lending has taken a battering in the press and by the authorities. This has resulted in lenders going out of business and borrowers being forced into some pretty dark options in search for short term credit.
If we succeed in helping people obtain finance from legitimate sources instead of backstreet lenders - the real loan sharks - we would consider that a success.
NCCL is about arranging finance for people with no charges, no costs to the individual. When the individual completes our information form, we can then guide them to the lender that will accept their application.
We first got our direct lender license in 2013. Since then the short term loan market has changed beyond all recognition. Added to that was the arrival of a more interventionist FCA, bigger fines, more people complaining about mis-sold loans and it all became too much. NCCL decided not to continue any further in continuing with the license to lend. Since then, we have taken the better route of liaising with lenders to send them customers that we know they will accept.
We understand that a lot of people prefer direct lenders, but with subprime borrowers, it isn't the best path in our opinion. By getting lenders to compete to lend, we can get borrowers a higher approval rate, bigger credit limits and cheaper interest rates.
The Future For Us
We aren't 100% sure yet what the future holds for lending in the UK. For that reason, we are happy to sit on the sidelines waiting to see what changes occur. 2020 is an important year as the FCA decide on the short term lending price cap. If the price cap rises, we may make a return back to the UK and start lending again.