UPDATE Advancis was dissolved in December 2023
Advancis Ltd, trading as Buddy Loans, went into administration on 7 September 2021.
Buddy Loans was a small guarantor lender. Its loans were typical of the UK guarantor market – between £1,000 and £10,000 lent on a 1-5 year term at a 49.9% APR. The FCA describes these loans as “high cost”.
Buddy’s slogan was:
If you’ve got a good BUDDY, you can get a loan!”
Advancis’s last available accounts show that in 2019 it had 48 members of staff and a loan book of under £25 million.
Buddy was the first guarantor lender to go into administration. TFS followed them into administration in February 2022.
Contents
The cost of paying refunds
Like all high-cost lenders Buddy Loans will have struggled during the early stages of the pandemic. It’s hard to keep lending when you can’t tell who will still have a job in a few months and when Covid-19 payment breaks weren’t clearly shown in credit records.
But it is likely that Buddy Loans’s decision that they were insolvent was caused by having to pay customer refunds. Not just the complaints in progress but the likelihood these will increase in future. Like other guarantor lenders, Buddy Loans has had an increasing number of affordability complaints and many of them have been upheld by the Financial Ombudsman (FOS). Here are a couple of recent FOS decisions against Buddy Loans:
- Mr G should not have been accepted as a guarantor because he had a lot of other debt and would have struggled to repay the loan;
- Mr M should not have been given a loan as he was becoming reliant on credit and already failed to pay some loans he had only recently taken out.
Reading the FOS decisions on Buddy Loan complaints, it feels as though there was a systemic problem of not making enough checks. It seems that “having a good buddy” isn’t enough for good lending decisions. And the application process (below) that emphasises speed isn’t likely to encourage accuracy:
What administration means for customers
The administrators have now published their proposals, see below.
This is likely to follow the standard pattern for high-cost lender administrations.
It is the administrators’ role to realise the assets of a company and divide them between the creditors. This distribution can take a long time – a year or more.
Customers, past and present, borrowers and guarantors, are potential unsecured creditors because they may have a claim against the company eg for unaffordable lending.
The administrators say:
Buddy Loans has been working to develop a methodology for identifying customers who may have suffered a loss as a result of Buddy Loans’ lending practices. Such customers may be eligible for redress.
The Administrators intend to finalise the methodology for identifying customers who may have suffered loss, with a view to putting in place a scheme in which customers with valid redress claims who are owed compensation can be identified and calculated.
Current customers can benefit from getting their loans reduced or cleared. But the Buddy Loan administrators are already warning there may be no cash to be distributed:
Whilst the position at the outset of the administration is uncertain, current indications are that there may not be sufficient realisations to enable a dividend to be paid to unsecured creditors. This means that former customers with redress claims may not receive any payment. If we’re ever in a position to make a payment to unsecured creditors, then we will contact you and advise what action needs to be taken.
Current loans
Current loans still exist on the same terms. You are not expected to pay the full amount immediately.
The administrators will probably want to sell the current loan book to a debt collector (with the likely exception of loans that are due to finish soon.)
Having your loan sold isn’t anything to worry about – most debt collectors are a LOT nicer to deal with than most guarantor lenders! And the debt collector will not expect you to repay the full amount immediately.
But the administrators will probably wait to sell the book until claims for unaffordable lending have been determined. A borrower may be able to get their balance reduced or cleared by a refund – only cash payouts are reduced to a small percentage, possibly nothing.
The Administrators Proposals
The Proposals were published in November 2021. They are a report by the administrators to the company’s creditors – all current and previous customers are “unsecured creditors” if they have an affordability complaint upheld.
The proposals say:
Based upon present information, the Joint Administrators do not anticipate that realisations from the Company’s assets will be sufficient to enable us to make any distribution to unsecured creditors.
This means that customers who have repaid their loans will not get any refunds, even a very small one.
But for people with a current loan:
If, however, a current customer is found to be due redress, this should reduce the outstanding balance of the customer’s loan.
and:
As and when a scheme of redress is agreed, affected customers will be contacted by the Company and will receive an explanation of what this means to them and their outstanding loans.
You may think the administrators’ fees are too high but they are standard.
The lack of money for refunds reflects the way the company was run and the failure of the FCA to insist that a lender has adequate capital to pay refunds. It isn’t the administrators’ fault.
The Redress Scheme for current loans
The administrators developed a scheme for determining which open loans may have been mis-sold. This found that:
- 2,768 loans were eligible for redress
- the open balances on these loans have been reduced by c £1m
- no interest will be charged on outstanding loans eligible for redress
- cash refunds will be payable to certain customers, guarantors and third parties in respect of post-Administration loan payments (i.e. payments made since 7 September 2021) on affected loans that have resulted in overpayments as a result of the redress adjustments subsequently applied to the loans.
because this was applied automatically, there was no need for people to make a claim to the administrators.
Loans sold to 1plus1
The administrators have sold c 1,900 open and non-defaulted loans to 1plus1 in February 2023.
So far there has not been an announcement about what will happen to the outstanding loans which have defaulted.
To talk your situation through with a debt adviser, borrowers and guarantors can phone National Debtline on 0808 808 4000.
Comments are now closed on this article.
Joe says
Thanks for the update.
That means no redress and a small, if any refund, despite upheld FOS so this process will drag out longer now won’t it?
Sara (Debt Camel) says
your balance should be cleared as before. but any cash payout will be delayed. We won’t know until we see the finacials from the administrators, but it would be sensible to assume you will only get a small payout after a long while.
Sara (Debt Camel) says
The fact the administrators are already warning there may be nio money is very bad news.
Joe says
I’m resigned to the fact that I won’t get a penny back, the bunch of cowboys. Also fuming with FOS for dragging it out (I know, I know).
I just HOPE that with our FOS final decisions our balances will definitely be cleared and they won’t try and make is continue paying.
Ed says
Hi Sara,
Really not good at all, looking at there accounts on companies house too there will hardly be anything left for redress.
Interesting to see the directors are previous employees of George Banco & Everyday Loans and Buddy’s address got changed to the same address as those other loan providers, something doesn’t seem right!
So poor for all of us!
Thanks,
Ed
Pol says
Hi Ed,
It’s absolutely disgusting. Surely some blame lies at the FOS with how long they took to investigate and how conveniently everyone got their final decision round the same time and then they go into administration. Joke of a system
Jade Partington says
I am owed £10,910.47 back from Buddy mis selling me a loan. I need to stop paying as I can’t afford it anymore. Still got 8 months left and already repaid more than double the loan amount!
Peter says
Hi Sara ,
Buddy didn’t uphold my complaint , iv sent it to the ombudsman, still hasn’t been picked up yet ( sent 4 months ago ) will fos still be handling complaints or will it now be back with the administrators , and secondly , iv already paid the principal back and am now paying the interest , will I still need to continue paying once administrators take over ? As I’m not going to ever get it back now am I ?
Thanks
Sara (Debt Camel) says
Hi Peter.
your complaint will be returned to the administrators by FOS.
How good do you think your complaint is? As you say any money paid from here on you won’t ever get back…
Could you explain to your guarantor why you want to stop paying? What is your guarantor’s financial situation?
Peter says
So both me and my guarantor had our complaints rejected , I believe we both have good claims ,
At the time of me applying I already had
Amigo loan £6000
George banco £5000 ( case won )
Satsuma loans x2
My jar
Littlewoods
Very
Captital one
Vanquish
So had large amounts of debt and I had also just come out of a Iva the year before ( which they did mention in my rejection letter )
My guarantor had debts over £46k including car finance, 2 small children and wife who wasn’t working due to child care , so I think are complaints are strong but my guarantor is now debt free ( due to winning complaints ) and is applying for his first mortgage so doesn’t want to risk his credit file by stopping payments
Sara (Debt Camel) says
Does the Buddy Loan show on his credit record? I know for Amigo the loans never show on the guarantor’s record. He needs to check this, not just assume it is there.
Peter says
He said he’s never seen it on there , can they take you to court if they are in administration?
Sara (Debt Camel) says
In theory yes. I mean if someone owed the firm a million, they would want that money! But taking a customer to court for a small sum, when they have a counterclaim that they should never have been accepted as gaurantor would be mad. Court claims are very slow.
In your situation, one thing to do would be to put that money aside every month into a savings account. Then in the worst case, if you lose your complaint and he loses his complaint, you can just pay off the arrears and carry on repaying the rest of the debt. Not need to take you to court then. Do you think this would work for the two of you?
Peter says
He’s just checked and no it’s not there
Sara (Debt Camel) says
HAs he checked all three credit reference agencies? he is probably right, but this would be a BAD thing to get wrong.
Peter says
It’s definitely not on his credit file , the putting the money aside each months is a good idea but unfortunately the loan has always been unaffordable so I think if I must carrying on paying I should maybe have to get in touch with step change :-(
Sara (Debt Camel) says
Getting in touch with StepChange is a good idea if your finances generally are difficult. But it isn’t going to change the decision for this BL – if you don’t pay it in full, (which you wouldn’t with StepChange) they will ask your guarantor to pay.
Andrew says
It seems that Fos upheld all out complaints against buddy loans for a reason. They keep my case for 2 years. And finally, when they agreed with me buddy will not pay our redress. I feel like I have been scammed by the FOS – who suppose to protect us. Well done.
Pol says
Hi Andrew,
Exactly how I felt, probably the same as many others. Absolutely no protection for consumers whatsoever. And these crooks get away scot free, hope the fat cats choke on their profits
Brett says
I am gutted about what happened to you all waiting for Redress from Buddy. I hope you guys can at least clear balances and get them to correct credit files (if applicable) in the near term.
I’ve also experienced a lot of these issues as I was due to receive my redress from Sunny, CashEuroNet (CEN) and PiggyBank just before they went under. My cases against CashEuroNet and Sunny were both lost due to FOS delays. I know what you’re going through now and I can only recommend that you stay positive.
Sara (Debt Camel) says
Gutted is right.
But even if there is no money to distribute, people with current loans still have the right of insolvency offset, so they will be able to get balances reduced or cleared. And credit records corrected as you say.
Holly says
I had the exact same thing with FOS really disappointing as I have won cases for a lot less than what sort of money I had got involved with buddy
Sam says
I was due a £1900 refund and my accoint balnce to be cleared and account closed on the 17th August. Was due to receive the money any day now I am absolutely livid. I was told i would have to make no further payments and my account would be closed will this still be the case?
Sara (Debt Camel) says
this was a final decision from FOS?
Sam says
I received an email from Buddy Loans on the 17th August stating that I would receive £1900 refund within 28 days, my account would be closed and no further payments would be required on my account
Sara (Debt Camel) says
In that case, I think you need to talk to Buddy Customer services and say you understand that you may not get a cash refund, but you want confirmation that your loan account is being closed as completed. And you and the guarantor should cancel your direct debits and any continuous payment authorities over your debit cards so money can not be taken.
I don’t expect there will be a problem, but you should try to get it confirmed.
It seems unlikely you will get much is any refund though.
Brett says
This ’28 days to process the payment’ is just absolutely ludicrous and the FCA shouldn’t let it happen.
After all the time they take to go through complaints, they should just have 3 working days to process a payment when the redress is calculated and agreed. At the end of the day, they have capabilities to pay loans into people’s accounts almost immediately anyway.
Katie says
Hello
I’m so confused with what’s happening ? So do we still continue to pay our loans or is everything on hold?
Sara (Debt Camel) says
Do you think the loan was affordable at the time you applied for it? A loan is only affordable if you can make the payments and still pay your other debts and bills and your living expenses without borrowing more. So if the Buddy Loan caused you problems so you had to borrow more (including using more of your overdraft and credit card limits)) then it may not have been affordable.
But if you later lost your job, then you may not now be able to afford it but at the start it may have been affordable.
Morgan says
Absolutely fuming because I was supposed to get my redress figures today and like many other FOS have part to blame for taking 18 bloody months to assign my case. I needed this money as it was about 3.5k and can’t believe it. Knew this would happen like the others but was hoping it was after my payout no wonder they dragged it out saying 28 day redress then 28 day payout. Absolutely raging at incompetent clowns at FOS
Lee Harris says
Pretty similar story to most… complained to buddy, they disagreed, I complained to FOS, they upheld and agreed a refund plus 8% interest.
I log in to check what’s going on and see they’ve gone into administration.
So should I keep paying? My payment is due 15th.
It’s disgusting they can work like this, really bad communication or response and it takes so long.
Sara (Debt Camel) says
If your refund would have cleared your balance, I think you should stop paying.you need to explain why to your guarantor and tell them to stop any payments being taken.
Tony Fowles says
Hi Sara,
I have a loan with Buddy and also Amigo. You have previously argued vociferously against Amigo getting away with a deal……will they not now also go into administration and repay nil, or even less than offered? What’s the difference between Amigo and Buddy Loans?
Many thanks
Sara (Debt Camel) says
I argued that the proposed Amigo scheme was unfair to customers – Amigo could have proposed a fairer scheme but choose instead to put forward a scheme that was of considerable benefit to its shareholders. This is also what the FCA said and the court agreed.
We don’t yet know what Amigo’s new scheme will look like.
There is also a competition argument that the FCA should reject any scheme from a business that is proposing to continue in operation because it is unfair to the rest of the market. Why should very large firms such as Amigo be able to get away with paying their customers 10% or 20% when that option is not open to a small firm such as Buddy Loans, who could not afford to carry on paying out 100% of customer redress and could not afford the £15million to set up a Scheme?
Sean says
Hi I’ve just seen the buddy Insolvency news and want to file a complaint for affordability on a loan I’m currently still paying, would I still email this into buddy or is there another email address I should send too? And should I stop paying or ? Next payment due 17th so just wondering whether I should cancel the DD and CPA and get the guarantor to do the same?
Thanks for any help!
Sara (Debt Camel) says
See the Should you carry on paying section in the article above.
Tim Fairless says
Hello
Buddy Loans going into administration = nothing for customers, how do you now sit regarding your stance towards Amigo’s Scheme of Administration. You opposed it first time around despite the Company stating that it could go into administration if the Scheme failed. Clearly that hasn’t happened, so what will your stance be towards the second/revised Scheme if it too does not offer 100% redress to complainants?
Sara (Debt Camel) says
Well let’s see what the new scheme looks like… I don’t see any reason to prejudge it now.
It isn’t just the simple % payout. There is the question of the likely Scheme uphold rate and whether Amigo carries on making an unfair deduction for unpaid interest in some cases.
The FCA may have competition concerns though (see my answer to Tony above).
TF says
Fair enough, too early to offer comment. I would hope to see a Scheme which pays out all or most of the disputed sums for bona fide complainants. The caveat being that all complaints should be subjected to a detailed review and spurious/ill-founded cases rejected. I would also hope to see legal action taken (for fraud/misrepresentation) against any Claims Management Companies that have promoted false claims. The FOS is inundated with claims, so weeding out the spurious would speed up the redress for genuine cases, and may put an end to the unethical, cynical and opportunist aproach adopted by some Claims Management Companies who do not act in the interest of their clients and are only in the business to make a fast buck.
Sara (Debt Camel) says
“A detailed review” realistically most complaints will have to be determined by an algorithm, with only a few having to be considered “manually” or the process will take too long and cost too much.
FOS does look at each complaint individually. With an 88% uphold rate against Amigo, there aren’t many spurious CMC cases in there…
Sean says
Okay thanks
So should I email buddy loans or it’s my complain or wait till administrators make an announcement on how to claim etc? I’m worried it’ll take some time for this and I’ve already had difficulty mainiting payments. I’m also worried about affecting my guarantors credit
Sara (Debt Camel) says
If you can’t afford the repayments I suggest you should talk to your guarantor about the situation. I don’t think the loan shows on a guarantor’s credit record (I know an Amigo loan doesn’t) they could check to be sure?
Can you describe your financial situation at the time you took the loan out the loan? Do you have a feel for how good your affordability complaint is?
And what was your guarantors financial situation at the time you took the loan, they may have been better off than you, but that doesn’t always mean they had enough spare money a month to pay the Buddy loan and their own debts, bills and living expenses.
Leanne says
I’m in the same predicament as most, made an unaffordability complaint which was dismissed by Buddy, went to FOS but due to allocation delay of my case Buddy went into administration whilst waiting to be looked at by FOS. I began my complaint process in Oct 2020. I have completed paying off my loan last year and I’m now paying the interest and only have 2 months left. I’m so angry I already had debts when I took out the loan which Buddy were aware of and relied on a second income to pay the Buddy loan which Buddy were aware of again but due to Covid I have lost my 2nd income. Spoke to Buddy several times explaining I am struggling to pay my priority debts whilst paying Buddy, just told that my guarantor will have to cough up! I’ve written to the administrators several times asking them to look into my loan and release me and my guarantor from the loan but not heard anything back. I literally last month had to choose between Buddy and my electric bill as I had to pay a deposit for my sons uni accommodation. I’m so angry and disappointed with FOS feel they let me down badly. I would have happily paid back the money I loaned but at least release me from paying the bloody interest!!
Rob says
Hi Sarah,
Do you know if the employees are still employed, or have they been made redundant?
Sara (Debt Camel) says
I don’t know. The Administrators Proposals may say something.
Peter says
Good morning ,
Can we ask for equitable set off with buddy if we’ve paid the capital like you can with amigo ? I have a open complaint with the fos about buddy
Thanks
Sara (Debt Camel) says
Buddy Loans is now in administration. FOS will be returning your complaint to the administrators to determine.
You could ask the administrators if you can stop paying and if they won’t try to take payments from your guarantor. My guess is they will just say to keep paying as the administrators haven’t yet produced their administration proposals.
I would probably avoid using the term “equitable set off” as in insolvency there are slightly different legal set off processes and if you use the wrong name they may try to blind you with legal jargon…
Do you have a feel for how good your complaint is?
Can you afford the repayments or it causing you problems?
Peter says
So buddy rejected my complaint even tho they mention in my final response they could see from my credit history I’d had problems in the past ( they said been ok for 12 months ) when I applied I had a amigo , George banco , 2x satsuma , my jar , likely loan , very , littlewoods, 3x credit card , Im in a much better position now with the debts with your help I won lots of complaints , when I applied I was getting a pension payment but was only for 3 years till it run out , buddy were aware it was a temporary payment and would last through my loan term , my guarantor had over 40k of debts at the time , I feel I have a good complaint I just don’t want my guarantor to get hassled
Sara (Debt Camel) says
That sounds like a lot of bad credit lending.
You should also encourage your guarantor to make a claim to the administrators that the loan was not affordable for them – that gives two ways they can be released – if you win your claim or they win their claim.
It’s up to you if you want to talk to your guarantor about stopping payments. If you have repaid more than you borrowed, your balance would be cleared if you win your claim, but I suspect you would only get a very low percentage back of any cash refund you should have got.
Jamie says
Morning people, I’ve been trying to contact Buddy Loans to change my DD details to my new bank and have stumbled across this thread. I wasn’t even aware that they had gone into Administration. So i’ve had 2 loans with these guys, 1 original loan and 1 top up loan. I believe that the payments i have made over the past 4 years would of covered the amount borrowed. What happens after the Administrators have done what they need to do? Do the debts get sold off? Do they get written off? Never been in this situation before.
Sara (Debt Camel) says
The loan will probably be sold to a debt collector. This would be on the same terms as the original loan so there would be no difference for you.
The question for you is whether you think the current loan is “affordable”? A loan is affordable if you can make the payments and still pay your other bills, debts and living expenses without having to borrow more.
If the loan was unaffordable at the time you took it out, you can make a claim and if it upheld by the administrators you may get the interest removed and the guarantor released.
Peter says
Hi Sara ,
So I called buddy today to go through a income and expenditure to maybe get a reduced payment as I can’t afford it and had a change in circumstances , my payment is currently £296 a month and I asked for it to be reduced to £210 , they said they would set up the payment plan but would take the £86 each month from my guarantor, I was under the impression if a plan was set up and agreed they wouldn’t ask the guarantor to pay the remainder?? Me and my guarantor both have a complaint in with with the fos but it’s obviously now being passed back the the administration team , my loan was for £7000 iv paid back £8300 so far , so iv paid all the capital , any advice on what to do next as I’m aware if I continue paying if I win my complaint I won’t get what iv paid over back , my guarantor is happy to stop payments all together as long as it doesn’t go to court or him getting any markers on his credit file
Sara (Debt Camel) says
I don’t think the loan shows on your guarantor’s credit record – can he check that?
Peter says
Yeah he’s looked and it’s not on there
Sara (Debt Camel) says
So you know if you win your complaint, your guarantor is released, your balance cleared, you may get back a small percentage (I can’t guess how much but keep your execations low) of any additional cash refund, and your credit record is cleaned.
And you are happy with the fact that if you don’t pay or pay less your credit record will be affected so if you lose your complaint this will remain.
For your guarantor the question is what will happen while the complaint is being decided? And what will happen if you both lose your complaints (if either of you win he is fine).
There is no track record of what happens in guarantor lender administrations. But no payday/high cost credit administration has taken a borrower to court at all. Let alone where there is a complaint outstanding. Going to court costs money and takes time and your guarantor would be able to defende the case – it is vanishingly unlikely this will happen before the complaints are settled.
If you and he both lose your complaints, at that point the administrators would expect the loan to start being paid again. They still probably wouldn’t go court but would sell the loan to a debt collector who might. Debt collectors though are practical people – if you make a reasonable monthly offer they are more likely to take that than rush to court.
One thing you can do to minimise the pain in that worst case is to save up the £210 you have offered in a savings account. Then if you lose your complaint you have a pot of money there which will clear most of the arrears.
Daniel says
Hi ,
Wondering if you could help me , so I’m a guarantor on a buddy loan for my father in law , he has paid over the capital on his loan and we’ve have both made affordability complaints , he called them today to set up a plan as he can’t afford the repayments , they said if the reduce his payments then once the account reaches 6 months in arrears we will both get defaults on our credit files , the buddy loan doesn’t show on mine as it stands , if they issues defaults will it appear then on my file ? , they’ve already called me to make payments and iv told them I can’t afford it , we both feel like we are throwing money down the drain as we are pretty sure we will win out complaints , is there anything we can do to maybe pause payments or ask for equitable set off like amigo while the administration sort out the complaints as I’m assuming this will take a year or more ?
Thanks
Sara (Debt Camel) says
If he can’t afford the payments and you can’t afford them either, then it sounds as though you have to stop paying. If he wins his complaint, his credit record will be cleared. If he wins his complaint or you win your, you will be released as guarantor.
If the loan is not currently showing on your credit record, it seems unlikely that it will be added if you don’t pay – I have never heard of this happening. If it doesn’t normally happen with buddy Loans then there will be no systems in place to do this and administrators don’t normally want to make any system changes as they cost money. In any case even if there were any negative marks on your credit record they would be temporary and if either of you win your claim.
Amigo#s Equitable Set Off is something Amigo has come up with with its own set of rules – not really relevant to any one else.
Joe says
Just wanted some advice – after back and forth on my BL account, communication holds that is, whilst the complaints department apparently try to find out what is happening to customers who received a final decision from FOS but were still waiting for BL to reply when they announced administration, I got this reply;
“I am conscious that whilst your account is on hold for communications this does not prevent payments falling due. Any payments that are not made in line with your contract will be affecting your credit rating. It would be my recommendation that you resume payments whilst the redress scheme is being worked on to prevent impact on yours and your guarantors credit rating. The reality of the redress scheme is you may be affected but you also may not. If it should finalise that you are not to be awarded any redress you will have irreparably damaged your credit rating.“
My argument is that the FOS decided that I’ve paid my principal back in full so should not make further payments (not bothered about redress anymore as won’t get anything close to what I’d be owed). So essentially it’s carrying on paying, knowing I won’t get the refund back when in reality when their own scheme is announced, it’ll more than likely state that I shouldn’t have been provided with a loan and it was unaffordable. I can’t understand how this makes sense.
Sara (Debt Camel) says
Who is this reply from?
You have a FOS final decision from an Ombudsman? Not one from an adjudicator?
You have already stopped paying?
Joe says
The reply is from the complaints department at Buddy Loans.
I have had a communications hold put onto my account ever since they announced being in administration.
The final decision is from an Ombudsman and was binding.
Received around 23rd August.
I stopped paying as I explained to Buddy Loans, my final decision clearly states that I should not pay more than I’ve borrowed, which I’d be doing. Buddy Loans agreed to this but clearly my payments are still falling due it’s just that they are not sending letters etc to chase. Now it seems they are saying basically keep paying or else – so they don’t take any notice of the ombudsman decision and now will be a long drawn out process for their own scheme which may not agree with what FOS said.
Sara (Debt Camel) says
The administrators have now published their proposals – I have updated the article above to cover this. The proposals say there won’t be any money for cash refunds.
Yes they are developing their own redress scheme. I have seen quite a few of these and they ALL take a final decision from FOS as being correct. I think it is incredibly unlikely that this case will be any different.
If you have already paid more than you borrowed, you are essentially throwing away any further payments you make. And your credit record will be cleaned up.
I think it is unreasonable of Customer Services to try to pressure you to repay this. If you would like to complaint to one of the admibnistrators, their contact details are here: https://www.insolvencydirect.bis.gov.uk/fip1/Home/IP/15110
Joe says
Okay – i spoke to FCA, they said the decision is legally binding and if Buddy Loans are refusing to adhere to the final decision, I could seek free legal advice. Not sure how useful or true that is.
FOS just told me they are not allowed to get involved anymore as they’re in administration.
I’ve emailed a full complaint back to the complaints team and also administrators.
Sara (Debt Camel) says
the decision is legally binding and if Buddy Loans are refusing to adhere to the final decision, I could seek free legal advice.
A Final decision is legally binding but so far as I know there is no way to enforce it in court once the lender is in administration.
So I would say that is unhelpful.
If there is a Law Centre near you, you could talk to them about this – that would be free.
I think you will be OK, I cannot imagine the administrators not clearing the balance of the loan and cleaning your credit record. But I understand why this is alarming.
Sam says
My situation is almost identical to yours Joe! My credit file is now being affected after they have put my account “on hold” and there doesn’t seem to be a thing o can do about it despite my judgement from FOS. Have you been given any indication on time frames as to when they will decide?
Sara (Debt Camel) says
If you had a Final Decision from an Ombudsman – not a decision from an adjudicator/investigator – then send a complaint about this to one of the administrators, their contact details are here: https://www.insolvencydirect.bis.gov.uk/fip1/Home/IP/15110
Joe says
Nope they kept dragging it out, so I told them I’m going to keep refusing to pay due to my final decision stating I should not continue paying if paid over the principal amount. I said I will call every 30 days to request a hold (my credit file will be cleared anyway) but I’m refusing to make further payments.
I sent an email to Shane Crooks using the link that Sara gave, had a reply for and on behalf of them by their assistant – Nadine Naylor. I sent my Final Decision letter on that email but as another stalling tactic, they came back with “it would be helpful if you confirm whether you accepted the FOS decision” – well clearly I
did, as the bulk of my email states. I sent this information back confirming this the same day, over 5 days ago and have heard nothing.
They will not give timeframes or timescales. It’s a complete joke. FOS final decision before they entered into administration, accepted before they entered in administration yet we get penalised because of that. I can understand if a case was still open or a final decision not yet made but there is a clear distinction.
Jade Partington says
I’m in the same position as you Joe.
Sara (Debt Camel) says
The administrators have now published their proposals and I have update the article above.
Joe says
Response from administrators here;
As previously advised The Joint Administrators have been working with the Buddy Loans’ team to confirm the details of the cases that had been referred to the Financial Ombudsman Service (‘FOS’), together with any FOS decisions, before the Company entered into Administration.
At the same time, the Joint Administrators have been working with the Company’s lawyers to understand the impact of the FOS referrals on the Company, given that the Company is now Administration and that it is also developing a redress scheme for customers who may have been mis-sold a potentially unaffordable loan.
Once we have clarity as to how the Company can proceed, we will be in touch again to let you know what this means for you.
So still no decision despite me having a final FOS Decision, before any administration was announced…. They are making me wait for their own scheme – not great is it.
Sara (Debt Camel) says
no it’s not. But I would be ASTONISHED if the end result is your claim is not upheld.
Joe says
Just means if I choose to keep chucking money away to pay for outstanding payments I won’t get any back but if I don’t make payments my credit file is continually affected.
I can’t understand how customers who had final decisions before the administration are classed as the same as those with ongoing FOS complaints.
Sara (Debt Camel) says
I agree this is a pain. But unless your credit record will be excellent without this, is it worth losing money to try to buy some small improvement in it that you will get anyway with the final decision?
Michelle says
Hi sara ,
I stopped my payments to buddy as Iv paid over my capital and had a case with the fos ( no final response ) , I don’t want to throw my money down the drain now the are in administration as I no I’d never get it back . My question is do you have any idea how long they will take to start contacting customer about claims now they are in administration? And I constantly get letters about missed payments now default threats , my guarantor is getting a bit panicked now , the loan doesn’t show on his credit at all , can they still put a default on his ?
Thanks
Sara (Debt Camel) says
do you have any idea how long they will take to start contacting customer about claims now they are in administration
No, there is no way I can guess this.
can they still put a default on his ?
Could your guarantor afford to make all the payments when the loan was taken out? If not, your guarantor also needs to make a claim to the administrators. They can’t add a default unless they have started to demand that he pays – even then they may not. I don’t know what Buddy’s normal practice was, I don’t recall a guarantor having this problem with Buddy but it is possible. Buddy’s normal practice matters because it isn’t likely that the administrators aren’t going to deviate from that towards the side of more aggression. More likely they will either carry on doing what Buddy did or be less aggressive until claims are resolved.
Joe says
Buddy Loans have also threatened me with default – due to me being months in arrears. If/when their own scheme decides the same as FOS that the loan was unaffordable, will the defaults be cleared off my credit file too?
Also, how can they default my guarantor? They literally want me to throw my money down the drain and are now threatening me with defaults it I do not do it. Completely unacceptable behaviour. Administrators are useless when I complained to them too.
Anything else I can do? Don’t really fancy wasting money but also don’t fancy defaults being given to me or the guarantor to be fair.
Sara (Debt Camel) says
If/when their own scheme decides the same as FOS that the loan was unaffordable, will the defaults be cleared off my credit file too?
yes. Well that is what has happened with every other administration.
Some administrators have even got so fed up with all the hassle about credit records that they are simply deleting all records…
Also, how can they default my guarantor?
clearly they should not. I don’t know if Buddy ever did this – if it didn’t (and I know Amigo never does) then it’s incredibly unlikely the administrators would want to develop a special process for doing this – they want to do as little as possible at the minimum cost. If Buddy used to do this , well I suppose it is possible. But is doesn’t seem likely.
Anything else I can do?
What happened to your complaint to the administrators? If they are still giving you the run around or the brush off, then you can take that further and complain to the administrator’s regulator… Fill out this form: https://www.insolvencydirect.bis.gov.uk/ExternalOnlineForms/InsolvencyPractitionerComplaint.aspx.
Don’t really fancy wasting money but also don’t fancy defaults being given to me or the guarantor to be fair.
I am afraid you have to make a decision between possibly getting a temporary default and losing a lot of money by starting to pay. If you are months in arrears it will be expensive to bring the account up to date.
Joe says
Nope they’re a bunch of muppets. In response to me arguing my case they’ve replied again saying either I resume payments or the default will be issued to both me and guarantor – they’ve also refused to put my account on hold at all since they announced administration. They’ve simply agreed to stop contacting me but haven’t put my account on hold once since I received my FOS final decision or since they announced administration.
Complaint to administrators – two replies telling me until there is a scheme, that’s it – can’t tell me when it will be up and running and said even final decisions from FOS are included in a scheme for “potentially” being mis-sold unaffordable loans, even though FOS decided that was the case before any announcement on administration came.
They didn’t address my points about not wanting to make further payments and my account not being out on hold so can I go to the regulator?
Sara (Debt Camel) says
Yes. I would be surprised if it gets anywhere, but hopefully it might annoy the administrators into actually reading complaints they are sent.
Andrew Macdonald says
My payment this month for my buddy loan still hasn’t been taken it normally comes off on the 1st of every month. Does this mean my account is on hold ?
Wesley says
Hi I need advice, buddy say I owe £7000 but have agreed to a partial settlement of £3500 do I pay it or wait, I also have a complaint regarding my partner who shouldn’t of been my guarantor what should I do
Sara (Debt Camel) says
How large was the loan and what have you paid so far?
Do you feel you have a good affordability complaint yourself, in addition to your partner? Where could you get the settlement amount from and would this be a loan you have to pay interest on?
Wesley says
Hello, £7000 I’ve been paying for 3 years now yes I did because they knew I had a amigo loan which was £5000
they knew I had a amigo loan when I took out buddy my amigo was £5000 and buddy was £7000 I complained and it got declined my partner/guarantor also had £5000-£10000 debt at the time and is not a home owner and no interest and my family said they would help pay what would you recommend to do?
Sara (Debt Camel) says
can I ask how much other debt you and your partner have now? Do you still owe Amigo? Can you afford the current payments to Buddy?
When did Buddy reject your complaint and did you send it to the Ombudsman?
Having a large Amigo loan makes it sound as though the Buddy loan may well have been unaffordable. And your partner can also make a claim to be released as guarantor
If you have been paying Buddy for 3 years, then it sounds as though you must have paid more than £7000 so far (can you check that?). In which case if you win your claim you would not have to pay anything and may get a bit of cash back.
Wesley says
Hello Sara, yes and I tried to put the deadline passed, and now I can’t I thought that, the settlement money is my own no interest and what should I do if I can’t make the claim anymore I really don’t know what do to, because I want to pay to get the debt gone but then I think they’ve given me the loan when I couldn’t afford it
Do you think I should pay it off or call them and talk it through
Sara (Debt Camel) says
I am not clear what you are saying. Did you miss the 6 month deadline to send your complaint to the Ombudsman? Or did you send it but it hasn’t been looked at?
Did your guarantor ever make a complaint?
Can you answer my question about what your and you partner’s current financial situation is as this makes a big difference to your options at the moment.
Wesley says
Yeah I missed the deadline, and no she hasn’t, we’re okay, we struggle sometimes but I do have a lot of debt
Sara (Debt Camel) says
It sounds pretty likely that you have a good claim – it is a shame you did not send it straight to the Ombudsman.
The problem now is that until the Buddy administrators publish details of how people can make a claim to them, it isn’t clear if you will be able to make a claim. I would say that most administrators in other lender administrations do allow people in your situation – a declined complaint that wasn’t taken to FOS – to make a claim but it isn’t certain.
If you can make a claim then that would be better than taking this money from a relative and settling now.
Your partner definitely will be able to make a claim to be released as a guarantor though. If that is upheld then that is probably the best way for you to go. If you can make a claim and win that is simple. If you can’t make a claim then with her removed as guarantor you can look at a debt management plan or a form of insolvency for all of your debts.
If you are struggling at the moment it is likely to get worse this year with energy bills, national insurance, council tax, food prices etc all going up, many of them in April. So the problem about you taking money from family now to settle this debt is that in 6 months time you may again be unable to manage the debts.
Can I suggest you talk to National Debtline now on 0808 808 4000 before you take this decision.
Joe says
UPDATE
After I sent an email to the administrators asking how I could raise a formal complaint against them, I received a response. I had my FOS Final Decision issued a full 10 days before Buddy Loans announced administration, so my stance was why should I continue making payments and wait for their own scheme when my complaint had already been decided, compared to others who were still with the FOS.
Anyway, the administrators responded that;
– the outstanding balance will be written off
– any money paid above the amount borrowed on the date Buddy entered administration counts as an unsecured claim in administration (assume they are talking about their own scheme and redress but will be peanuts so not bothered really)
– they say because loan being written off, any payments made after 7th September would be refunded (last payment made was in August last year)
Anybody else had an update?
Sara (Debt Camel) says
At last. That is what you should have been told from the start.
Sam says
Nice work Joe!
I sent a similar mail a couple of weeks ago (my situation is almost identical to yours). I got the usual generic response saying that they had no timeline for resolution. I will try them again today!
Cheers
Sam
Joe says
Yeah – tell them you want to make a formal complaint (direct to administrators) and see them squirm!!
Surprised they’re willing to return payments made after they entered administration though – but probably know that I have not made any payments so won’t get anything back ha!
Just happy it’s over with.
Sam says
I’ve not had any letters of confirmation from Buddy but I have noticed that the loan has now been marked as paid in full on my credit file, I’ll take that!!
Thanks to Sara and all on this site for your help and support!
Cheers
Sam
Wes says
Hi I’ve emailed the administrators loads but no reply, I’ve told them I have a case for myself and my guarantor and that I’ve paid the loan off itself and they want me to pay £3500 interest as a partial settlement any advice or should I just keep going on at them
Sara (Debt Camel) says
I am sorry but all I can do is repeat what I said a couple of weeks ago:
https://debtcamel.co.uk/buddy-loans-administration/#comment-464916 (I moved that comment to this page)
We now know a bit more about price rises coming up in April – it will be announced later today that energy bills are going up c 50%. The government is proving c £200 rebate on this, so the average bill is likely to go up from £1300 to about 1800 a year. You can look up how much your council tax will be going up. Water, most broadband, rail prices, petrol, food…
If you have a lot of debt then you need to talk to a debt advicer NOW about your options. Don’t borrow money from a relative that you may not be able to repay.
Jonathan Young says
Hi
Hoping someone can shed some light on my situation and what steps i can take to get my account cleared or some of the amount cleared.
My loan was for 8000 paying back £19049.83 back.
My loan was for 60 months and i started my loan on the 14/02/2020.
Can i still raise a complaint if so how do i do it?
What outcome can i expect?
Thanks in advanced
Sara (Debt Camel) says
How much have you paid so far?
Do you think the loan was unaffordable when it was given in 2020?
Do you have other problem debts? What is your current financial situation?
What is your guarantor’s financial situation?
Joe says
Sara – BL have sent my letter confirming what BDO told me above – the problem is, stapled to my letter are the individual letters of 5 other customers with their personal details…
Who do I report to? Clearly I want the shred the letters with other customer details on but this is not good is it?
Sara (Debt Camel) says
not good at all :(
I suggest you send an immediate complaint to the three administrators. You can get their email addresses from https://www.insolvencydirect.bis.gov.uk/fip1/
Explain what has happened and that this is a breach of GDPR. Ask for compensation – the going rate is normally about 3100 – I haven’t seen one of these in administration.
or you could just report them to the ICO, but they normally want you to have complained to the firm first.
Joe says
I complained go administrators. Their response was either securely dispose of letters myself (bit trusting???) or they will arrange a courier to collect the letters of other customers (at time expense and inconvenience to me obviously).
No mention of compensation. Shall I refer to ICO?
Well they said if not satisfied with outcome I can refer to Insolvency Complaints Gateway. Should O refer to them and also ICO at same time?
Sara (Debt Camel) says
As I said, I haven’t heard of a case like this with administrators. You can report them to the ICO but they won’t order compensation. It’s up to you how cross you are about this and how far to pursue it.
Matthew says
Hi I took out a buddy loan on 17/06/2018 for £7500 paying £296.44 pm, looking back I feel my wife who was my guarantor should not of been allowed as we live in the same house so of I could not cover the loan she would not be able to either as our money is 1 pot in the Household. Would I potentially have grounds to redress for this situation?
Sara (Debt Camel) says
Has the loan been repaid?
Do you feel the payments were affordable for you?
Matthew edwards says
I’ve paid back about £13.000 with about £5000 left
I have kept up the payments but I have had to use loans or credit cards at times to cover it
Sara (Debt Camel) says
That suggests that the loan was unaffordable for you. You cabn make a complaint saying that.
Your guarantor can also make a complaint saying that Buddy did not properly assess whether the loan is affordable for her, as she would be unable to pay it if you could not.
The loans and credit cards you have used – have you looked at affordabilit complaints against them too?
Leanne says
I’m in the same predicament as most, made an unaffordability complaint which was dismissed by Buddy, went to FOS but due to allocation delay of my case Buddy went into administration whilst waiting to be looked at by FOS. I began my complaint process in Oct 2020. I have completed paying off my loan last year and I’m now paying the interest and only have 2 months left. I’m so angry I already had debts when I took out the loan which Buddy were aware of and relied on a second income to pay the Buddy loan which Buddy were aware of again but due to Covid I have lost my 2nd income. Spoke to Buddy several times explaining I am struggling to pay my priority debts whilst paying Buddy, just told that my guarantor will have to cough up! I’ve written to the administrators several times asking them to look into my loan and release me and my guarantor from the loan but not heard anything back. I literally last month had to choose between Buddy and my electric bill as I had to pay a deposit for my sons uni accommodation. I’m so angry and disappointed with FOS feel they let me down badly. I would have happily paid back the money I loaned but at least release me from paying the bloody interest!!
Matthew edwards says
How would I go about making that claim is it directly to the administrators?
Sara (Debt Camel) says
See Q14 here in the administrators FAQs
Dan says
Hi Sara , I really need your advice ,
Both me and my guarantor have made complaints to buddy which went to the fos , obviously now gone back to the administration, I stopped paying and now my guarantor has received a default notice , they want me to pay £2075 by the 26/03 , my guarantor is saying he can’t get a default in his name but I really don’t want to pay as I have a good compliant I think and if I win I’ll never get it back
Sara (Debt Camel) says
does this loan show on your guarantor’s credit record?
Dan says
No it doesn’t , but he received the default letter and I haven’t yet , iv paid over my capital already which is why I decided to stop paying
Sara (Debt Camel) says
I haven’t seen enough Buddy Loans complaints to know what Buddy would do. And then it’s possible the administrators may change things. So I can’t say what will happen.
But I assume your guarantor has been sent a Default Notice (DN) – that is a formal communication under the Consumer Credit Act, a creditor cannot go to court unless they have issed a DN. But it has nothing to do with his credit record… someone’s credit record can have a default added without getting a DN. And someone can get a DN and their credit record may not be affected.
If Buddy don’t normally update guarantor’s credit records (Amigo never does, i don’t know about Buddy) then this may not be anything to worry about.
Getting a DN doesn’t mean you or he will be taken to court. It wouldnt happen with a complaint in before administration. And it isnt likely to now – court cases take a LONG time to come to trial – about a year on average if you defend them – so what would be the point of doing this rather than just deciding the complaint?
I am sorry there is nothing definite here.
George says
Hi,
Not sure if I’ve posted in the right place, but my situation is probably like many … I’ve been paying my buddy loan since June 2020 and it’s got to the point where I’ve pretty much repaid all the capital (I think May would be my last one then all capital is repaid) I feel myself and my guarantor have a pretty good affordability claim (although I’m up to date with payments, one month I did have to pay via a credit card – not good I know but I didn’t want them chasing my mum who’s the guarantor)
My question is really what do I do next? I don’t want to pay any more than the capital as I know if my affordability claim is successful I won’t see any money back .., but at the same time I don’t want my mum to be in a position where she’s chased for payment if I don’t pay! How long do you think the administrators are going to take to finalise things, it really seems like it’s been dragging! Is it worth me putting in a complaint now or do I just wait for their findings? It all seems a bit in limbo at the moment
Sara (Debt Camel) says
Have you made a complaint ?
What is your mum’s financial position – could she have made all the repayments out of her spare income, and still been able to afford to pay her own debts, bills and living expenses?
George says
No not at all, she doesn’t have that money available as disposable income/in savings
Sara (Debt Camel) says
Then your mum too can make a complaint saying she should not have been accepted as a guarantor as the loan was unaffordable for her.
This gives two chances that she can be released as guarantor – if you win your complaint or she wins hers.
I am sorry but either you have to keep paying (and may get little of the money back) or your mum is going to be asked to pay. If she doesn’t mind the hassle, she can cancel her direct debit to BL (I don’t know if BL also take a Continuous Payment Authority over her debit card? She can tell her bank to cancel that too)
I don’t think the loan appears on her credit record – she could check. See my comment to Dan above.
Susan says
Can I ask where does my husband stands as buddy loans gave him a guarantor loans back in feb 2019 for his sons funeral , my brother in law went guarantor for him , buddy loads have been paid every month but March 28th they didn’t take the usual payment that they have taken from day one , we haven’t cancelled payment ( ps don’t speak to brother in law anymore ) we have more or less paid all the loan back and in a way now it’s the interest we are paying for next year , but as I said it’s been paid right up till 28th March 2022 when they didn’t take direct debit out
Sara (Debt Camel) says
What a horrible reason to have to take such an expensive loan.
Are the payments causing you problems?
Susan says
They are a bit more so now will the cost of living going up so much , yeah and we had his brothers funeral year before so just couldn’t afford to pay for both hence the loan from buddy , but they have taken payments every month except last month which still hasn’t been taken out , just don’t know where we stand with it all now
Sara (Debt Camel) says
So I don’t know what is happening. There are three options:
1) the administrators may, I suppose, have decided not to take more payments from people who have already repaid what they borrowed while redress assessments (see 2 below) are being made. I think this is unlikely.
2) the administrators are developing a process that will identify mis-sold loans. It may be that this is complete and they have identified your husband’s loan as having been mis-sold. If this is the case, then if he has already repaid more than he borrowed, the balance will be cleared and he will be owed redress of the amount of interest he has paid so far. But he will only be paid a small percentage, possibly very small, of this redress amount. This is possible but I don’t know if the administrators have yet got to that stage.
3) It may simply be that this is an error and they will contact you in the next week or two and ask for payment. This should NOT damage his credit rating as it is Buddy’s fault they failed to take the payment.
You can wait and see what happens? Or phone them up and ask.
Susan says
Thank you for this information I might just get him to phone and find out , as we have paid almost all the loan monies we borrowed , thank you again much appreciate your help
Susan says
Think my husbands load is paid off as he borrowed £2500 on 5th march 2019 and paid £121:46 each month with 28th February payment being last one as that would be exactly 3 years paying it , which worked out a £4776 odd pence does that sound about right £1776 in interest roughly
Sara (Debt Camel) says
That would explain it! But I cant check if those numbers are right.
Wesley field says
Honestly they don’t care I complained and complained to everyone and all they could offer me was a partial settlement of £3500 for the interest good luck
Bianca says
Has anyone had any success against Buddy Loans? They’ve gone into Administration. But they keep coming after me and rejecting my affordability claim. I took out a 7K loan from them in 2017 and have struggled to yet repaid 13K since then. I raised a complaint with the FOS and my claim is with the administration but they keep harassing me to continue repayments. I sent another affordability claim and even offered 30% of the settlement amount which is £3255.82 but they said if I can afford to settle with 30% I can pay the rest and I cannot. And are threatening me with default.
What can I do? I have tried everything to get this resolved and they will not budge.
Sara (Debt Camel) says
what is your guarantor’s financial position?
Bianca says
They’re not in great standing themselves either. My mum was my guarantor.
Sara (Debt Camel) says
You can’t make them accept a settlement.
If you think you have a good affordability complaint one option is to refuse to pay until the complaint is decided and to explain this to your mum. She can also make a complaint saying she should not have been accepted as a guarantor and cancel her direct debit to them so they can’t take her money and her short. She may want to talk to National Debtline on 0808 808 4000 about the implications of going this.
julie says
I won an appeal against George Banco that I shouldn’t have the loan, and made a payment arrangement with all interest dropped. Today I received an income and expenditure form which I completed and they have come back asking what the position is with my guarantor? I always thought if you won then your guarantor should be removed.
Sara (Debt Camel) says
yes that is what normally happens. Most guarantor lenders such as Amigo do this immediately.
Tell them unless they release your guarantor, your guarantor will make a complaint that the loan was unaffordable for the borrower so it should never have been made and they should be released.
Peter says
Do you have any idea how far ahead buddy are with administration? Or if there’s been any changes as Iv been trying to call them for over a week and nobody ever answers ( trying to set up a payment plan with them )
Thanks
Sara (Debt Camel) says
the last administration report was early April https://find-and-update.company-information.service.gov.uk/company/08089541/filing-history
Alison says
Wondering if anyone could help me with a template for an affordability claim please?
Sue says
Has anyone heard anything from buddy yet ? Seems to be dragging on
Jade Partington says
Hi Sue.
I spoke with buddy loans the other day as I’ve cancelled my direct debit with them as I was MIS sold a loan. I thought it was due to end January 2023 but it’s actually January 2024. Anyway she said apparently the redress scheme has been finalised but they are awaiting FOS to do their bits now. It could take months. I have paid my loan off and thousands in interest already. The payments I’ve cancelled are for a further £5980 in interest. I’m not paying it! Jade. X
Sue says
Thank you for your reply , did the fos say you’d been miss sold or do you just think you have a good case ? . Iv paid well Over my capital and around £2k in additional interest , my complaint was sent to fos but didn’t get looked at in time , I stop paying for 6 months and now the are constantly contacting me and my guarantor saying if I don’t pay £2k by next week both me and my guarantor will get defaults on our credit files , in ok with that but my guarantor is not at all!! I think I have a good case but it’s a huge risk for my guarantor to take with a default if we don’t win
Sara (Debt Camel) says
does this loan show on your guarantor’s credit record?
Sue says
No it does not show on his file , I called them and said would my guarantor also get the default on their credit file , the lady on the phone went off to check and came back saying yes
Sara (Debt Camel) says
There is a reasonable chance that that was incorrect information. Although it is possible they could choose to add it to your guarantor’s credit record, this would require some work on their part. It may well be that your guarantor’s credit record will be unaffected unless the creditor was to go to court for a CCJ – which is a long process and not one that administrators are at all likely to do.
However it is possible so I can’t be sure that they won’t do this.
Jade Partington says
I’ve checked both mine and guarantors credit records in multiple agencies websites and the loan doesn’t show in either of our credit files. I got into a heated debate with the woman from Buddy loans because she was coming out with all this stuff, I’ve been told I was mis sold the loan and because I’ve paid well over £4,000 in interest plus the £7,500 loan, I should stop payments as Buddy Loans can not afford to pay anyone any money at all. Redress is only likely to those who complained before they went into administration as they aren’t taking any new complaints. I cancelled my direct debit and they done it there end! I look forward to them either dropping it (we can pray) or them taking customers to court who were mis sold. I also checked my credit score at the time which was 97 (non existent)! And my guarantors was 307 (very poor). I can guarantee they didn’t check this and they certainly didn’t look into mine or his financial expenses that’s for sure! Jade x
John says
I had a loan for £4,000 I’ve paid over £10,000 back, literally just found out today buddy loans went into administration…I have £360 remaining and want to clear the lot…want it gone!! My concern is, when you look on Google at their reviews, people are still having the direct debit taken AFTER the loan is paid. If I cancel the direct debit after the final payment, and they attempt to take more…will I (and my guarantor) get a default on my credit report?? I’m currently trying to save enough for a deposit on a house…
Sara (Debt Camel) says
no, you can delete the direct debit when the loan is repaid – but do make sure it is the last payment – you could ring them up to be sure. They can’t default you then as no more money is owed.
Chelsie says
Hi all,
I had a loan with buddy loans a few years back now which my husband was a guarantor for. I had no job when I took out the loan and it was used to pay off some of my debts which I had built up etc. my husband also had poor credit according to his credit score!
I wasn’t aware of all this happening with buddy loans I was only informed about provident in which I applied for redress. Am I to late to do anything about this loan?
Sara (Debt Camel) says
You can make a claim to the administrators but it may well be that there is no money to be distributed.
What other high cost loans did you have at that time?
Chelsie says
Provident, car finance, catalogs. My credit file has been basically the lowest it can be for many years now :(.
I’ve sent a form in so I will see where it goes, can only try.
Sara (Debt Camel) says
ok so also look at a complaint about the car finance (see https://debtcamel.co.uk/refunds-large-high-cost-loans/) and the calatalogs (see https://debtcamel.co.uk/refunds-catalogue-credit-card/)
Do you know how much debt you owe at the moment? Are you behind with any bills?
Singh says
Hi all. I was a guarantor for a Buddy Loan and although it didn’t show on my credit file, it eventually did once it defaulted around April 2022. We both submitted affordability complaints to Buddy loans before they went into administration and we are waiting to hear back. As a guarantor, I believe I have a strong case as I have received refunds from all of my other debtors regarding affordable lending (eg Bamboo, Barclaycard, Vanquis and NewDay).
I was extremely disappointed that a default came through for Buddy Loans however. I emailed them to say that they missed the deadline they set to respond to my complaint (before they went into administration) and that they were aware I was struggling financially however they responded to say I should have spoken to them. At the time of the default, I was away on a family emergency in New Zealand, I had received an email from them which was a corrupted file and was unable to open, I called them many times despite the time difference and no one answered, this corrupted file turned out to be a default notice. And despite them saying I should have called them, I couldn’t because they never pick up!
George says
Just been into buddy loans website and looks as if redress scheme has been finalised (At long last!). I called them as I have missed a payment (… well after making 2 years worth of payments out of a 3.5 year loan my capital balance has actually been fully repaid now so I decided to cancel my payments as I didn’t want to pay the interest as I’d put in an unaffordabilty complaint with them and presumed even if successful I’d get nothing additional back – I’d just be happy if they closed down the loan at this point!!! ) spoke to someone (Chloe) and they said they will be approaching customers via email within 28 days and it’s ONLY the ones who are covered by redress scheme that will be contacted. She advised if you don’t get an email to call back in September to discuss further. She put my account on hold for 30 days and myself and my guarantor won’t be contacted during this time. I’m really hoping this is the light at the end of the tunnel and hope the rest of you get the emails you’ve been hoping for too!
Michelle says
Morning all , Has anyone had a email yet ?
Leanne Hardacre says
No nothing yet, fingers crossed it comes soon. I’m still paying, cleared the debt in Feb just paying the interest. I wrote to the ombudsman just before it went into administration on an affordability complaint. Been back and forth to the administration since and got nowhere. Hoping this ends soon as I feel I’m just giving them money when the loan I borrowed is cleared.
George says
Same here … I cleared my debt and am just paying the interest! I only put a complaint in after they went into administration and so did my guarantor so I’m doubtful I’ll be included in the redress scheme but fingers crossed! … if nothing happens with the redress I hope they at least take my mum off as a guarantor
Josh says
Has anyone had a response yet?
Michelle says
No not a thing , getting impatient Now ha ha
Matthew edwards says
Hi I have had an email today, states everything paid since they went into administration will be refunded and the amount paid over the principal amount will be an unsecured claim. And the rest of my loan is cleared (had about 1800 left to pay) I must say its a lot more than I was hoping for, I would of been happy just to have it finished.
George says
Hi,
I bet your so relived! And good to hear the outcome was better than you expected :-)
If you don’t mind me asking what was your situation? i.e was this an ombudsman complaint that wasn’t seen in time/handed back to buddy or just a general unafordability complaint? Thanks
Matthew edwards says
To be honest I hadn’t even submitted an official complaint, I didn’t even know they had gone into administration until about march. Upon contacting them I just got the standard reply of “we will be contacting people once the methodology is in place” so quite surprised to be contacted so swiftly.
Laura says
How long have you been waiting on your refund Matthew?
Matthew edwards says
Hi I received initial email on the 19th confirmation email from refunds department on the 21st so only 5 days so far. I’ll update if/when I receive it.
Wesley field says
I’ve emailed and asked them about it all I get is 28 days hasn’t passed yet
George says
Oh wow so a really good outcome then!
Hopefully I might get a similar email soon
Laura says
Can you tell me how long you wait for a refund?
Michael says
Had my email on 20th August my loan written off and refund of £1800. Sent email to refund department and refund will be given within 14 days.
Peter says
Does anyone know when the 28 days are up as I still waiting to hear and losing hope fast
Thanks
George says
When I called up they put my file on hold until beginning of September. I actually thought I’d have heard by now too
… beginning to lose hope was well!
Andrew Macdonald says
Just heard on the phone that all customers eligible for redress will be contacted by the middle of September
Michael says
Day 12 and full refund given. Feels so good to finally get it all done.
Laura says
Michael did your refund go in at a certain time of the day?
Matthew edwards says
Had my payment last night as well, wasn’t there about 5pm but was when I logged in around 9pm.
Michael says
After 5pm same as all the emails sent always between 5 and 6pm.
Karl says
They haven’t took my payment this month anyone know what’s happening ?
George says
Just spoke to Laura at buddy loan a on the phone (managed to get through to someone today) she said customers should be contacted via email by middle of September (did say end but then corrected herself to middle so not sure??) She said it’s because of FCA checks – they have reviewed every customers account (I presume current customers with active loans presently) not just those that put a complaint in. Fingers crossed we hear something soon then! I just really want the account closed and the matter put to bed! I stopped paying my loan once I’d paid off the capital so I’m not due a refund (we’ll if I am it’s about £100) just want it closed and taken off my credit file and to know my guarantor won’t be liable for anything more. I’d like to think I have a valid complaint but we shall see! It’s the not knowing that is stressing me out … I’m literally checking my emails about 20 times a day!!