Am I taking out a loan?
Yes. Commuter Club works with Premium Credit Limited, a lender Authorised and Regulated by the Financial Conduct Authority (Reference Number 702718). Like any loan you will need to sign a Credit Agreement before you can be issued with a loan for your ticket.
This loan is linked to the ticket refund value which allows you to benefit from the savings of an Annual ticket while paying for it monthly at a low interest rate. Like all loans that are linked to a product, if you fail to make payment then as a last resort we can cancel your ticket and reclaim the remaining value. This could also negatively affect your credit score.
Do you perform a credit check when I apply?
Commuter Club is a broker, providing finance through a panel of lenders. Depending on the lender either a soft search or a full credit search will be carried out. Full credit searches are recorded on your credit file and visible to third parties and you will be informed in the journey prior to the search being carried out. If you maintain your repayments over several months, taking up finance can help strengthen your credit score.
How is your loan linked to a ticket?
This means that you as a consumer can get lower cost credit.
With Commuter Club, your loan is secured on the ticket. Therefore, in a very specific circumstance such as default the Credit Agreement gives us the right to cancel the ticket. This right is limited to default and of course we would not cancel your ticket if you are paying regularly.
By cancelling the ticket and requesting a refund for the remaining value we can use this to contribute to the outstanding loan balance, and minimise any further payment obligations. As with any loan, late payments could adversely affect your credit score. Of course, if ever you decide you do not want to continue with a Commuter Club loan, please get in touch with us promptly in order to initiate the cancellation process.
Is the Annual ticket issued in my name?
Yes, the ticket is issued in your name and can only be used by you.
I've missed a monthly Direct Debit. Will I pay a fee?
Your monthly Direct Debit should be paid automatically by your bank. However, if a payment is missed our first step will always be to try and get in touch with you and collect payment via the payment card on file, or reschedule for the next available Direct Debit. There will be no fees or penalties if you pay within four days of a missed payment.
If we cannot get in touch with you after four days, we will issue a default notice incurring a £15 processing fee. If the next day we still cannot get in touch with you then as a last resort we may have to suspend your ticket, incurring a £12 processing fee.
My ticket has been suspended. Can I reactivate it?
Yes. You will first need to pay any outstanding balance and/or fees. Once cleared, a new ticket will be issued and sent to you by the ticket issuer.
If your ticket has been suspended due to non-payment, you cannot be reimbursed for interim travel.
What are the risks of borrowing?
The general risk of borrowing with our funding partner Premium Credit Limited is the same as borrowing from any other loan provider. You will need to consider if the repayments are affordable for you on a monthly basis and the impact on your credit score from late payment.
However, unlike a normal loan, if ever you decide that you would like to stop your loan we will receive a refund from the ticket issuer for the unused portion of the ticket which goes towards paying off the outstanding balance.
You can have peace of mind that even if your circumstances change, your loan is a burden you can always cancel.