Common Questions

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Further queries? Contact us

How does Punk Money work?

Punk Money has been designed to make borrowing and lending money between friends and family simple, fair and transparent - keeping your relationships intact. 

Friends and family can be the most affordable and flexible source of finance for personal loans. But the awkwardness involved and the negative effect they can have on relationships push people towards more expensive banks, credit cards and high-cost lenders.

We are the solution - in just a few minutes, you and your friend or family member can create a loan and sign a legally binding contract.

Why would I want to use Punk Money?

Borrowing or lending money between people you know isn’t easy. You have to agree on the terms, keep up with the payments and rely on the trust you have. We take the hassle out of the loans, giving you your time back and keeping things more secure. 

Here are some of the reasons you should use us:

-It takes the hassle out of lending to people you know 
-We handle all the paperwork, creating you a legally binding contract
-Skip the long applications (no credit checks) 
-Improves your credit score

How does Punk Money improve my credit score?

Punk Money is a platform that can help people improve their credit scores by setting up and repaying loans with people they know. Here's how it works:

1. Create a Punk Money account: Customers create a Punk Money account and find a friend or family member who is willing to lend them some money. 

2. Set up a loan: Customers set up a loan with someone they know, choosing the amount they want to borrow over all, if there is interest and the duration of the loan, which will dictate the amount they repay each month. 

3. Credit building: Each month, the customer's loan repayments are reported to the credit reference agencies. This helps to build a positive credit history and improve the customer's credit score.

Punk Money is designed to help people who have limited credit history or a poor credit score to build a positive credit history and improve their creditworthiness. By using Punk Money, customers can demonstrate their ability to make regular payments, which can help to increase their chances of being approved for credit in the future.

How do I create a loan?

It’s simple. Just enter your and the other parties' details into our loan builder, and then sign the loan contract on our platform. The loan agreement will then be sent to the other party to agree and sign. 

Who can create a loan?

Anyone who resides in the UK with a bank account can create a friend and family loan agreement with Punk Money - there are no credit checks to hold anyone back. These agreements are legally binding loan contracts for people over 18 years of age and may not be enforceable for people under the age of 18.

What does it cost?

Punk Money wants to make borrowing and lending money between friends and family as affordable as possible and accessible for everyone.

Lenders and borrowers can set the rates for the their own loans, adding interest if they wish from 0% - 10% Apr on their loans.

We allow people to add interest to their loans in order to make lending to people you know easier and more beneficial to both parties.

For example, if you need to take money out of savings in order to lend it to someone, it would be nice if you weren't out of pocket by the time they paid you back and in times of inflation, it might be nice to keep up.

Additionally if you're asking to borrow money, it might be nice to offer to sweeten the deal by adding a little interest to make lending to you more attractive than keeping their money in low earning savings.

Do you charge any fees? 

Punk Money is designed to help people set up fair and affordable loans with their Friends and Family.

That's why we're keeping our fees as low as possible with a clear and simple pricing structure.

All loans are the same - it's a 1% arrangement fee and £1 a month connection fee for the term of the loan, plus Vat.

These fees cover the administrative and technical processes involved in setting up, maintaining and reporting on the loans.

Is there a minimum you can borrow?

Nope. Whether you need a small cash top-up from £100 until payday or £100,000 for a house, you can use the platform to set up and manage your loan. 

Is my capital at risk?

When lending your money to friends or family, there is always the risk you won’t be paid back. Lending on Punk Money keeps things as secure as possible with a legally binding contract that could help you recoup any losses. 

Is Punk Money safe to use?

Absolutely. Punk Money never touches any part of your loan. We just facilitate the contract. Money is transferred directly between the lender and the borrower's bank accounts. So, rest assured knowing your money is secure and safe.

Are the contracts legally binding?

The contracts created on Punk Money are legally binding for persons over 18 and can be enforced by the lender or borrower in the UK. Before signing the contracts, you should read over all the details and be clear on the agreement. If you want to enforce the contract, we recommend you seek legal advice first. In line with UK law, contracts may not be enforceable for people under the age of 18. 

Is there interest on the loans?

Adding interest on the loans is for the lender and borrower to agree. There is the option to add interest up to 10% on Punk Money to keep things fair for all during these times of rampant inflation.

Do I have to pay taxes on my loan?

It’s a common misconception that because friend and family loans are a personal arrangement, there won’t be any tax implications. However, if there’s interest involved, you’ll need to inform HMRC and fill out a self-assessment as it may be liable as taxable income. 

What should I do if I haven't been paid back?

Sometimes this happens, even if all the right steps have been taken. Signing a loan agreement does give you some options. Read through our blog on this here.

When should I say no to lending someone money?

You should only lend your money if you’re in the financial position yourself to do so. The first question you need to ask yourself is whether you can afford to lend the amount someone is asking for. Would you be in a difficult situation if they couldn’t make their repayments? Are you left with enough money to cover emergencies or unexpected expenses that pop up? If the answer to these questions is no then you may want to consider if the loan is a wise idea. We have more information on lending to friends and family here.

Can I use this for a money lending by way of business?

The short answer is no. Lending by way of business is a Financially Regulated activity for which you must have appropriate authorisation and you cannot use Punk Money for this purpose.

Any contracts created for money lending by way of business on Punk Money will be not be enforceable by law. If this is your required use of the platform please seek alternative means with the appropriate legal oversight.

What does Lending by way of business mean?

People are allowed to lend each-other money to help one another out and the do so all the time. But if you are lending money just to make money and you are doing it on a regular basis then you could be considered to be 'Lending by way of business' which is a financially regulated activity for which you need appropriate authorisation.

Common considerations of lending by way of business are: 

1. Regularity:
•   frequent or regular involvement, such as carrying on an activity on a weekly basis, indicates that the activity is being carried on by way of business;
•   carrying on an activity on an infrequent basis (such as once or twice a year) may also very occasionally satisfy the business test where, for example, the transactions are of such size or importance that they are essential to the success of other business activities; and
•   formal arrangements for transactions to take place on a regular basis over time indicates that the activity is being carried on by way of business (and vice versa).

2. Commercial benefit:
•   where activities are carried on for commercial benefit, this will indicate that they are carried on by way of business (and vice versa);
•   commercial benefit usually involves an expectation of a direct financial benefit. Therefore, activities carried on out of friendship or for altruistic purposes will not usually be carried on by way of business;
•   indirect economic or pecuniary benefits may amount to commercial benefit, for example, free advice is provided to potential policyholders in the course of a business funded by commission payments; and
•   where materially less income would be obtained from a persons (or firm’s) main activities if it did not carry on the activity, this would amount to commercial benefit (and vice versa).

3. Relevance to other activities/business:
•   if the insurance distribution activity is essential to a persons (or firm’s)  main activities, the activity is likely to be carried on by way of business; and
•   if ceasing to carry on the activity would cause a material disruption to persons (or firm’s) main activities, or be likely to result in a material reduction in income from its main activities, the activity is likely to be carried on by way of business.

Some typical examples where the business test is unlikely to be satisfied are: 

•   carrying on an activity on an infrequent or irregular basis through friendship and purely for altruistic purposes (to be helpful).

•   When an individual enters into or administers a one-off arrangement securing a loan to a friend or member of their family whether at market interest rates or not.

•   When a person provides a service without any expectation of reward or payment of any kind, such as a loan with 0% interest.

The legal perimeters around what could be considered lending by way of business may be complicated and you should seek legal advice if you are in any way unsure.

Punk Money will take no responsibility for any financial losses incurred by either parties in any manner relating to lending whether by way of business or not.

How can I complain?

Step-by-step complaints procedure

If you’re not completely happy with our service we’d like to hear about it so we can do something to put it right.We do everything we can to make sure our customers get the best products and service possible, however, sometimes we understand that we may not get things right. If this happens, please let us know.

We want to:make it easy for you to tell us what went wrong;
give your complaint the attention it deserves;
resolve your complaint without delay;
andProvide you with the right outcome to your complaint

How & where to complain
If you are not satisfied with any aspect of our service or products you can tell us by email – using the email address Complaints@Punk.Money 

How long will it take?
We always aim to resolve complaints in a timely manner and to the satisfaction of all concerned. We endeavour to resolve complaints quickly, through thorough investigation. 

Please see timeframes below:

If we are able to resolve a complaint within 3 business days, we will issue the complainant with a summary resolution email detailing our resolution and advising the customer of their right to refer the complaint to the Financial Ombudsman Service.

For every complaint received that cannot be resolved within 3 business days, we will issue the complainant with an acknowledgement email within 5 business days, along with a copy of our complaint’s procedure.

We will advise the complainant on each communication when they can expect to hear from us next.

If after 4 weeks we are still not in a position to resolve a complaint, we will issue the complainant with a ‘4 week holding letter’ advising why we are not yet in a position to resolve the complaint.

We will endeavour to resolve complaints in a timely manner and within 8 weeks as a maximum.

If we cannot resolve a complaint within 8 weeks then we will remind complainants of their right to refer their complaint to the Financial Ombudsman Service.

All complaints received and resolved will be recorded so we are able to identify trends and make the necessary business changes to improve the services to our customers and prevent repeat occurrences.

If a 3rd party is solely responsible for the complaint or the reasons for the complaint, we will refer the complaint to them within 5 business days and write to the customer to make them aware of this.

If a 3rd party is jointly responsible for the complaint with us, we will refer the complaint to them within 5 business days, write to the customer to make them aware of this, and then investigate and handle the complaint points relating to us as per our normal process.

If we cannot resolve your complaint

If we are unable to resolve your complaint within 8 weeks, we will:

Send you an email explaining our reasons for the delay and an indication of when we expect to provide our final response

The Financial Ombudsman Service

Our aim is to resolve all complaints internally. However, if after receiving our final response letter, or if eight weeks have passed, you may have the right to refer your complaint to the Financial Ombudsman Service (FOS). 

Financial Ombudsman Service

If you would like the Financial Ombudsman Service to look into your complaint you must contact them within six months of the date of our final response email.

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR

Telephone: 0800 023 4567


Further information can be obtained from the Financial Ombudsman Service’s website at

How can I contact the Financial Ombudsman

Online: The website for the Financial Ombudsman Service (FOS) in the UK is

Customers can submit a complaint or track the progress of an existing complaint through the FOS website. The website also provides information about the FOS process, guidance on how to make a complaint, and answers to frequently asked questions.

Phone: Customers can call the FOS on their free phone number, which is 0800 023 4567. The FOS is available to take calls from Monday to Friday, between 8:00 am and 8:00 pm, and on Saturdays between 9:00 am and 1:00 pm.

Email: Customers can email the FOS at They can also request a call back from the FOS by providing their phone number in the email.

Post: Customers can send their complaint by post to the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Is Punk Money responsible for any losses? 

Please note that Punk Money takes no responsibility for any financial losses that occur to either party as a result of using the platform. All users of the platform do so at their own risk and are responsible for their own financial decisions. Punk Money does not provide financial advice and does not guarantee the accuracy, completeness, or reliability of any information provided on the platform. Users should always conduct their own due diligence and seek professional financial advice before making any investment or financial decisions. By using the platform, users agree to indemnify and hold Punk Money harmless from any and all claims, losses, damages, liabilities, and expenses arising from or related to their use of the platform.