Service Terms
1. General Accounting Services and Account Opening
1.1 Account Opening Requirements: To open an account with Flynn Bank, customers must provide the required documentation and an initial deposit as specified by the account type. The account number will only be generated and activated after the required opening deposit has been received.
1.2 Information Verification: By opening an account with Flynn Bank, you agree to provide accurate information and grant Flynn Bank the right to verify your information with the necessary authorities. Failure to provide accurate information may result in account suspension or closure.
1.3 Account Security: Customers are responsible for protecting their login information with due care and diligence. Flynn Bank will not be held responsible for any misuse of your account resulting in the loss of funds.
2. Loan Application and Fees
2.1 Application Fee: A non-refundable loan application fee of £500 is required upon submission of your loan application. If your loan is not approved, this fee will be refunded.
2.2 Security Deposit: Approved loan applicants are required to make a security deposit ranging from 0.25% to 0.75% of the total face value (TFV) of the loan. This deposit will be blocked in the borrower's trading account at Flynn Bank for the entire duration of the loan term.
2.3 Trading and Access to Blocked Funds: The security deposit will be traded in Flynn Bank's auto stock trading program. Borrowers will have access to monitor the performance of the blocked funds and the interest generated. Upon termination of the loan contract, the blocked funds will be released to the borrower along with 60% of the accumulated interest, which will be available for withdrawal.
2.4 Loan Interest Rate: Flynn Bank's loan interest rates are capped at 2% per annum of the total face value of the loan.
2.5 Financial Records and Project Summary: Borrowers agree to share their financial records, project summaries, and actual utilization of the loan funds to enable Flynn Bank to assess the viability of the business and ensure proper use of the loan.
3. Mortgage Terms and Conditions
3.1 Eligibility and Application: Customers applying for a mortgage must meet Flynn Bank's eligibility criteria and provide all required documentation, including proof of income, credit history, and property details.
3.2 Mortgage Rates: Mortgage interest rates are determined based on the borrower's creditworthiness and the prevailing market rates at the time of application.
3.3 Repayment Terms: Mortgage repayment terms will be agreed upon at the time of loan approval. Borrowers are expected to make timely payments as per the agreed schedule.
3.4 Default and Foreclosure: In the event of a default, Flynn Bank reserves the right to initiate foreclosure proceedings as per the applicable laws and regulations.
4. Fraud Protection and User Actions
4.1 Fraud Detection: Flynn Bank employs advanced fraud detection mechanisms to protect customer accounts. Customers must report any suspicious activity immediately.
4.2 User Responsibilities: Customers agree to take all necessary precautions to protect their account information. Flynn Bank will not be liable for any unauthorized transactions resulting from customer negligence.
4.3 Account Monitoring: Flynn Bank reserves the right to monitor account activity to detect and prevent fraudulent activities. In case of suspected fraud, Flynn Bank may temporarily suspend the account while investigating the issue.
5. Why We Request a Security Deposit for Loans
5.1 Risk Mitigation: The primary purpose of a security deposit is to mitigate the risk of default. By requiring borrowers to put down a security deposit, lenders ensure they have some form of collateral that can be used to offset potential losses if the borrower fails to repay the loan.
5.2 Borrower Commitment: A security deposit demonstrates the borrower's commitment and financial stability. It shows that the borrower has a stake in the loan and is more likely to fulfill their repayment obligations.
5.3 Interest Income: In our case, security deposits are invested and placed into interest-bearing accounts. This allows us to generate additional income from the deposited funds during the loan term.
5.4 Reduced Lending Costs: Security deposits can help us cover administrative costs and potential losses, reducing the overall cost of lending.
5.5 Loan-to-Value (LTV) Ratio: For secured loans, a security deposit can help maintain a favorable loan-to-value ratio. This is particularly important in mortgage lending, where the value of the property acts as collateral.
5.6 Improved Loan Terms: Borrowers who provide a security deposit may be eligible for better loan terms, such as lower interest rates or higher loan amounts, as the deposit reduces the lender's risk.
5.7 Overall Benefit: Security deposits provide lenders with a safeguard against potential losses and ensure that borrowers are serious and capable of meeting their loan obligations.
By opening an account with Flynn Bank, you agree to these terms and conditions. Flynn Bank reserves the right to modify these terms and conditions at any time without prior notice. It is your responsibility to stay informed about any changes to these terms and conditions.
For further information or inquiries, please contact Flynn Bank customer service.