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Loan Agreement Terms

For Fixed Sum Loan(s) under article 36H of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

  1. Parties

    1. References in these terms to “the Borrower” “You”, “Your” are to the Borrower, as identified in the “Offer to Borrower” sent to the Borrower and the “Notification of Loan” sent to the Lender.

    2. References to “Us”, “We”, “Our” “the Lender” are to the Leap Investor funding a Loan Agreement as identified in the “Offer to Borrower” sent to the Borrower and the “Notification of Loan” sent to the Lender. References to “We”, “Us”, “Our” may also include references to Leap acting on a Lender’s behalf where appropriate.

    3. All Lenders providing loan funds are Leap Members and Investors.

    4. Leap is a trading name of Signia Money Limited. References to Leap are to Signia Money Limited.

    5. Leap, whose registered office address is 40-44 Newman Street, FKS House, W1T 1QD, London, United Kingdom, acts as a credit intermediary and does not provide credit.

    6. This is a non-commercial loan agreement between you and another Leap Member who has agreed to lend you money.

  2. Your Loan Request and Loan Agreement(s)

    1. In order to fund your Loan Request, Leap will allocate your Loan Request to one or more Lender(s) during the Matching Process. You agree to enter into separate Loan Agreement(s) with each Lender, up to the value of your Loan Request. Each Loan Agreement will be for the principal of £0.01 (one penny).

    2. Each Loan Agreement will be made on these Loan Agreement Terms. The Offer to Borrower will notify you of the final terms of your loan agreements.

    3. The Offer to Borrower will notify you of the Leap Account ID of the Lender(s) allocated to your Loan Request and the individual Loan Agreement(s) provided by each Lender.

    4. The Offer to Borrower will be sent to you following the Matching Process and you will be asked to click to agree it before any funds are released.

    5. The Loan Agreement Terms will have estimated financial terms as the starting date of your Loan Agreement will be effective when you click to agree the Offer to Borrower.

  3. Financial Particulars

    1. You will be notified of each Lender’s Leap Account ID and the corresponding number of each Loan Agreement which funds your Loan Request in the Offer to Borrower, which will be provided to you following the Matching Process.

    2. The financial particulars common to each Loan Agreement are:

      1. Amount of Credit: £ (amount of credit)

      2. Interest rate: % (interest rate) p.a. fixed. Interest is applied on a daily basis.

      3. Repayment Amount: £(monthly repayment amount ) monthly.

      4. Method of Repayment: You agree to make (number of months) single monthly repayments to Leap to cover the total monthly repayments due to all Lenders who fund your Loan Request. Repayments will be made via monthly consecutive payments to the Leap Trust Clients’ Account. You may choose a monthly repayment date from a number of alternatives which will be offered to you at the time you receive the Offer to Borrower. Thereafter your monthly repayments will be due on the same date of every calendar month, unless an alternative date is agreed with Leap. The above dates are referred to hereinafter as Scheduled Repayment Dates. If a Scheduled Repayment Date falls on a non- working day, the payment will be treated as due on the next working day. You agree to pay the monthly repayments by Standing Order or other payment method, as agreed with Leap.

      5. Borrowing Fee: £(total borrowing fee) for the total amount of credit.

      6. Administrative Fee: £35 (administrative fee) for the total amount of credit.

      7. APR: (borrower APR) %. The APR represents the total cost of your borrowing expressed as an annual percentage of the total amount of credit.

      8. Total Amount Payable: £ (total amount payable).

    3. Charges

      1. You will be charged interest as set out under clause 3.2.2 above.

      2. Each time you make a successful Loan Request to borrow money using the MarketPlace, Leap, who act as a credit intermediary, will charge you a Borrowing Fee. Borrowing Fees are variable. The Borrowing Fee for the total amount of credit is set out in clause 3.2.5 above.

      3. Each time you make a successful Loan Request to borrow money using the MarketPlace, Leap, who act as a credit intermediary, will charge you an Administrative Fee. The Administrative Fee for the total amount of credit is set out in clause 3.2.6 above.

    4. Interest and charges for late payment

      1. If you do not pay your monthly repayments in full, on the Scheduled Repayment Dates, interest will continue to accrue on the outstanding balance until it is paid in full. The rate of interest will be the same as shown above. Interest after default is calculated daily and applied to the loan amounts every 30 days (or when the outstanding balance is repaid in full if earlier). The rate of interest may be charged before as well as after any court judgment.

      2. If you do not pay your monthly repayments in full, on the Scheduled Repayment Dates a collections agency may be instructed to attempt to recover sums owed to the Lender.

      3. If you are late in making payment Leap may charge you a Late Payment Fee. The Late Payment Fee will be £10.00 for each missed monthly repayment.

      4. Other fees or charges which may be charged are:

        1. Tracing charges (charges associated in trying to find you if you cannot be contacted): £25.00;

        2. Charges for document retrieval and copying up to 20 pages: £35.00 (these charges do not refer to a copy of the Loan Agreement to which you are entitled for a fee of £1.00);

        3. Any other reasonable expenses and costs that may be incurred in taking steps to enforce, or attempt to enforce, any rights the Lender has under the Loan Agreement, including all reasonable costs associated with tracing you, and reasonable costs associated with the use by us of debt collections agencies and/or the institution of legal proceedings.

    5. Allocation of Payments

      1. Payments will be allocated pro rata to all Lenders funding your Loan Request.

      2. Late or partially paid instalments will be allocated:

        1. Firstly, against any arrears (interest and then capital against the longest outstanding instalment first, then the second longest and so on);

        2. Secondly, against the current instalment (interest and then capital); and

        3. Thirdly, against any fees owed to Leap under this Loan Agreement or the Leap Terms of Use.

  4. Duration of Loan Agreement

    1. A Loan Agreement is made when you click to accept the Offer to Borrower and will end when repayment is made in full, or upon early termination by you or by us in accordance with these terms and conditions. Please see clause 3.2.4 above for the repayment period.

  5. How and when credit is to be provided

    1. The credit will be available after you have clicked to accept the Offer to Borrower.

  6. Services provided by Leap on behalf of the Lender

    1. You understand and agree that the Lender has appointed Leap for the purposes set out below:

      1. to make available prospective peer to peer credit agreements for individuals;

      2. to make provision for the sending and receipt of communications concerning such Loan Agreements;

      3. to facilitate and assist in the lending process, including assisting in the entering of agreements by individual Borrowers with Lenders, assisting in the assessment of credit worthiness by contacting Credit Reference Agencies and Fraud Prevention Agencies;

      4. to receive repayments due under the Loan Agreement from the Borrower;

      5. to make payments due under the Loan Agreement to the Lender;

      6. to take steps to procure the payment of a debt under the Loan Agreement, including debt collections activities on behalf of the Lender. This may also include Leap appointing a Collections Agency to recover the debt; and

      7. to exercise or enforce the Lender’s rights under the Loan Agreement on the Lender’s behalf, including but not limited to any transfer of the Loan Agreement to a new Lender in accordance with clause 14 below.

  7. Loan Approval and Provision

    1. The provision by the Lender of a Loan is subject to approval. As part of the approval process the information you provided on the application form will be considered and Credit Reference Agencies and Fraud Prevention Agencies may be contacted in accordance with Clause 13 below.

    2. You confirm that the information you have provided to Leap during the application process is complete, accurate and correct. You confirm that the purpose of the Loan is not to acquire or retain property rights in land or in existing or projected buildings, nor is it to repay debt secured on such property. You also confirm that in entering into the Loan Agreement you have not relied upon any representation made by or on behalf of a Lender or Leap and that you are responsible for assessing whether or not you should enter into a Loan Agreement.

    3. If you provide inaccurate or incomplete information, the Loan Agreement may be void or voidable, the failure to provide accurate information may be reported to Credit Reference and Fraud Agencies and we may seek to terminate the Loan Agreement and demand immediate repayment of the outstanding balance.

    4. During the application process and at any time afterwards you may be asked to provide any additional information which may be required to progress your application.

  8. Transmission of documents

    1. To the extent permitted by law, you agree that we may serve documents and notices via electronic means to the email address you provided during the application process. You can email documents to us at support@leaplending.co.uk or upload documents via your Leap Members Account.

  9. Repayment and Early Repayment

    1. You agree to pay your monthly repayments for each Loan Agreement into the Leap Trust Borrowers’ Account as set out in clause 3.2.4 above. In particular, please note that you agree to make one monthly repayment to Leap each month to cover all Loans funded under your Loan Request. The Leap Trust Borrowers’ Account is operated by Leap on behalf of Leap Members and will at all times be a segregated account held with one of the major UK high street banks. This ensures that should Leap cease to trade, the money held in this account will not be considered to be part of Leap’s assets.

    2. It is essential that you make your repayments on time. If you miss a loan repayment, or find yourself in financial difficulties and you believe you cannot afford to repay the amounts due as set out above you should contact Leap as soon as possible by email to support@leaplending.co.uk, via calling at 020 3664 8625 or contacting Leap using the internal messaging system.

    3. You must keep Leap and any Collections Agency acting on our behalf informed of any change in address and any change in circumstances which may or may not adversely impact your ability to repay the amounts due as set out above.

    4. If your relationship with Leap or a Collections Agency acting on our behalf has broken down, this will be included in the information supplied to the Credit Reference Agencies. You should be aware that this may have serious consequences for your ability to get credit in the future.

    5. You may make early repayment in full, or in part at any time. If you wish to do so, please contact us on 020 3664 8625 or at support@leaplending.co.uk.

  10. Right to Withdraw

    1. You have the right to withdraw from a Loan Agreement within 14 days beginning with the day after that Loan Agreement is made. A Loan Agreement is made when you click to agree the Offer to Borrower relevant to that Loan Agreement.

    2. If you choose to exercise your right of withdrawal you must notify us of your intention to do so, either in writing to Leap, 40-44 Newman Street, FKS House, W1T 1QD, London, United Kingdom, via email at support@leaplending.co.uk or orally via calling 020 3664 8625.

    3. You agree that Leap may treat a notice of withdrawal as notice that you wish to withdraw from each Loan Agreement funded pursuant to an individual Loan Request.

    4. If you withdraw, a refund will be provided of any charge made by the Lender.

    5. If you withdraw, you must repay the credit provided and pay any interest which has accrued, from the date the loan was provided up until the date you repay. You must repay us no later than 30 calendar days after giving notice of your withdrawal.

    6. Repayment of the loan provided together with any accrued interest should be made by bank transfer or debit card to Leap.

  11. Default and Termination

    1. You agree that we/Leap acting on our behalf, may terminate the Loan Agreement and or demand repayment of the full amount owed thereunder if you are in significant breach of these Loan Agreement Terms.

    2. You also agree that we/Leap acting on our behalf, may terminate the Loan Agreement and/or demand repayment of the full amount owed if any of the following applies:

      1. you fail to make any payment in full as it falls due under the Loan Agreement;

      2. you fail to provide us with any information and/or provide us with any false or misleading information, which would have had a material impact on the Loan Agreement (including but not limited to the decision to lend and the rates agreed) or your membership of Leap;

      3. there are reasonable grounds to believe that you are or will become unable to pay your debts as they fall due. This includes, but is not limited to:

        1. any action taken with a view to procuring your insolvency, arrangements between your creditors and/or court proceedings;

        2. your non payment and or the termination of any other Loan Agreements with Leap Members;

        3. termination of your membership of Leap; and

        4. other information as to your creditworthiness generally, including other non Leap Loan Agreements and Mortgages etc.

    3. Before making any demand we/Leap acting on our behalf, will take all the steps we are required to take by law.

  12. Use of Personal Information

    1. Leap is the data processor and controller and may use data that identifies you “your personal data” for: statistical analysis; to develop and improve our products; to update your records; to identify which of our products might interest you; to assess lending and insurance risks; to arrange, underwrite and administer insurance and handle claims; to identify, prevent, detect or tackle fraud, money laundering and other crime; to carry out regulatory checks; keeping you informed about your loan, for market research; and in relation to the products and services which we offer to third parties. More specifically Leap may use the data for the purposes of debt administration with Leap, and other licensed debt administrators.

    2. Leap, the Lender and any assignees will keep your personal data confidential.

    3. Leap may only give it to others for the purposes explained above and in the privacy policy at (insert privacy policy link) including:

      1. to Leap’s agents and subcontractors, including but without limitation the training providers, acting for us, to use for the purpose of operating our lending business and obtaining payment;

      2. to share information via organisations which provide a centralised application matching service which they collect from and about mortgage and/or credit applications, for the purpose of preventing and detecting fraud;

      3. to trace debtors and recover debt;

      4. to meet its, or the Lender's obligations to any relevant regulatory authority or taxing authority;

      5. if Leap or the Lender has to by law, the law allows it, or it is in the public interest;

      6. if all or some of the assets of Leap which it uses to operate the MarketPlace are acquired by a third party, Leap may transfer personal data it holds to that party so that the acquirer can continue to operate the MarketPlace.

    4. Leap reserves the right to amend its privacy policy from time to time and such amendments will be posted on its website.

    5. When you apply via the MarketPlace for a loan, Leap will check the following records about you (and others where applicable)

      1. Leap’s own records;

      2. third party providers of information such as electoral register and others to verify your identity;

      3. those at Credit Reference Agencies (CRAs);

      4. those at Fraud Prevention Agencies (FPAs).

  13. Credit Reference Agencies (“CRAs”)

    1. Leap will ask CRAs to provide a credit report in relation to you.

    2. When CRAs receive a search from Leap they may place a search footprint on your credit file that may be seen by other lenders. The CRAs may supply to Leap both public (including the electoral register) and shared credit and fraud prevention information

    3. Leap will make checks on behalf of the Lender such as; assessing this application for credit and verifying identities to prevent and detect crime and money laundering. may also make periodic searches at CRAs and Fraud Prevention Agencies (FPAs) to help Leap when advising the Lenders how best to manage your loan account.

    4. Please contact us at support@leaplending.co.uk if you want to receive details of the relevant FPAs and/or CRAs.

    5. Information on applications will be sent to CRAs and will be recorded by them.

    6. Where you borrow using the MarketPlace, Leap will give details of your Loan/Members Account and how you manage it to CRAs. If you borrow and do not repay in full and on time, CRAs will record the out-standing debt and, in some cases, the length of time that the debt remains outstanding. This information may be supplied to other organisations by CRAs and FPAs to perform similar checks and to trace your whereabouts and recover debts that you owe. Records remain on file for 6 years after they are closed, whether settled by you or defaulted.

    7. Leap will ensure that you are given prior notice of a default being registered on your credit reference file. However, you may not always be given notice if a decision is taken to commence court action.

    8. If you give false or inaccurate information and there are reasonable grounds to suspect fraud or fraud is in fact identified, Leap may record this and may also pass this information to FPAs and other organisations involved in crime and fraud prevention.

    9. If you are making a joint application or during the application process advise that you have a spouse or financial associate, your records will be linked together so you must be sure that you have their agreement to disclose information about them. CRAs also link your records together and these links will remain on your and their files until such time as you or your partner successfully files for a disassociation with the CRAs to break that link.

    10. Leap and other organisations may access and use from other countries the information recorded by Fraud Prevention Agencies. Leap may transfer your personal data abroad to countries whose data protection laws are less strict than in the UK. If so, Leap will ensure the information is held securely to standards as least as good as those in the UK and only used for the purposes set out in this clause.

    11. Your data may also be used for other purposes for which you give your permission or, in very limited circumstances, when required by law or where permitted under the terms of the Data Protection Act 1998.

    12. Under the Data Protection Act 1998, you have a right to access certain personal records Leap, the Lender, Credit Reference Agencies and Fraud Prevention Agencies hold about you. This is called a ‘Subject Access Request’, which you can make by writing to support@leaplending.co.uk . A fee may be payable, but neither Leap, nor the Lenders will charge you until you have been told how much the fee is and what it is for, and you have told us you still want to proceed.

    13. This is a condensed version and if you would like to read the full details of how your data may be used please visit our website at (insert privacy policy link).

  14. Assignment

    1. You agree that the Lender may assign any right, title and interest in the Loan Agreement to any third party, which for the avoidance of doubt may include other Leap Members.

    2. Your rights and obligations under the Loan Agreement should it be assigned by the Lender, will not be adversely affected.

    3. You agree that you are not entitled to assign the Loan Agreement.

    4. Assignment by the Lender may take place by the Lender selling the Loan Agreement in Leap’s Secondary Market to another Leap Lender. Where this occurs the old Lender and the new Lender will enter into a Transfer Agreement by electronic means on completion of fund transfer from the new Lender to the Leap Trust Lenders’ Account. This Transfer Agreement will have effect as if it was signed in hard copy and will be available in the old and the new Lender’s Leap Members Account. Notice of the Transfer will be given to the Borrower in writing and available in their Leap Members Account. In the event of such a Transfer Agreement, the Borrower, the old Lender and the new Lender agree that the old Lender’s rights, title and interest in the Loan Agreement is assigned to the new Lender, the old Lender is discharged and the new Lender becomes a party to the Loan Agreement, but there shall otherwise be no effect on the Loan Agreement.

  15. Miscellaneous

    1. These loan terms and conditions are governed by English Law and non-exclusive jurisdiction of English courts, unless you live in Scotland, Northern Ireland, the Channel Islands in which case we are required to commence legal proceedings in your local courts.

    2. Any waiver by either party of a breach of any clause or provision of these loan terms and conditions and/or the Agreement shall not be considered as waiver of any subsequent breach or any other provision.

    3. If any term, clause or provision of the loan terms and conditions and/or the Agreement is found to be illegal or unenforceable and it is not fundamental to our Agreement with you, it will not render the remainder of the loan terms and conditions and/or the Agreement unenforceable or invalid.

    4. You are entitled to request a paper copy of the Agreement and these Terms and Conditions.

    5. All communications with you will be in English.

    6. We may at our discretion serve documents and notices on you, by post at your last known address, on you personally or by email. You can serve documents and notices on the Lender by post to Leap’s registered office address above or by email to support@leaplending.co.uk.

    7. Words and phrases used in these terms have the meanings defined in the Leap Terms of Use.

  16. Ombudsman scheme

    1. If you have a complaint, please call either 020 3664 8625 or email support@leaplending.co.uk or alternatively, write to Leap at 40-44 Newman Street, FKS House, W1T 1QD, London, United Kingdom and we will investigate it.

    2. We will send a prompt written acknowledgment (where possible by the next working day and provide you with a summary of our complaint handling procedure).

    3. We will ensure to keep you reasonably informed about the progress of your complaint; and

    4. Within 8 weeks of receiving your complaint we will write to you with our final response. If you are not happy with our final response, you may have a right to have your complaint dealt with under the Financial Services Ombudsman Scheme, South Quay Plaza, 183 Marsh Wall, London E14 9SR or telephone 0800 023 4567 or 0300 123 9 123. Their website is at http://www.financial-ombudsman.org.uk. To do so, you would need to notify the Scheme in writing within 6 months of our final response. We will provide a copy of the Financial Services Ombudsman Scheme explanatory leaflet with our final response. In addition, you have the right to make a complaint to the European Commission's Online Dispute Resolution platform at http://ec.europa.eu/consumers/odr.

  17. Missing payment warning

    1. The principal consequences of a failure to make payments under the Loan Agreement at the time required are:

      1. Interest will continue to be applied to the total outstanding loan balance at the same rate as provided for under these Loan Agreement Terms;

      2. A Late Payment fee of £10.00, for each repayment, will be charged where you do not pay your monthly repayments in full, on the Scheduled Repayment Dates;

      3. The outstanding balance will be immediately payable on demand;

      4. Legal proceedings may be commenced and this may result in a court judgment which could lead to possession of any property you own, including your home.

    2. Missing payments could have severe consequences. Please note that missing payments could make it more difficult to obtain other credit in the future. If you do not repay in full and on time, CRAs may record the outstanding debt. This information may be supplied to other organisations by CRAs and FPAs to perform similar checks, trace your whereabouts and/or recover debts that you owe. Records of accounts remain on file for 6 years after they are closed, whether settled by you or defaulted.

  18. Electronic Signature

    1. By clicking the “I Accept” button in the box below, you agree that these Loan Agreement Terms will govern each Loan Agreement offered to you in the Offer to Borrower. The Offer to Borrower will identify which Lenders have been chosen to fund your Loan Request and the individual Loan Agreement numbers relevant to each Lender. Each Loan Agreement will be made at the time you click to agree the Offer to Borrower.

    2. This agreement was digitally accepted on xx/xx/xxxx Dated: TBC

 

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