Non-Standard Finance group (NSF) proposed a Scheme of Arrangement in March 2023. This Scheme was approved in June 23.
NSF had three brands: Everyday Loans (lending from high street shops) and George Banco and Trust Two (two guarantor lenders). All customers with loans that started before 31 March 2021 had to make a claim to the Scheme before 31 December 2023.
That date has now passed and no further claims can be made to the Scheme.
If you had an Everyday Loan that started after 31 March 2021, you can still make a complaint about this, but not through the Scheme – so if it is upheld you will get a larger payout.
At the end of July 2024, NSF announced that people with an upheld claim will be paid 25.73p in the £. Payments started in August 2024.
Contents
What is “a Scheme of Arrangement”?
What is the purpose of a Scheme?
A Scheme is a formal legal arrangement that allows a firm to change the rights of some or all of its creditors.
Customers who have been given an unaffordable loan (see below for a definition of this) have the right to make a complaint and take it to the Ombudsman if the lender rejects it. People will normally get a refund of interest if they win their case.
A Scheme changes these rights:
- any affordability complaints have to be made within a 6 month window – no one can make a claim after that even if they did not know about the Scheme;
- the decision to uphold or reject the complaint is then made within the Scheme and there is no right of appeal to the Financial Ombudsman;
- people owed a refund in cash will only be paid a percentage of it as there is a limited amount of money that all refunds have to be paid from.
So the lender gains as they will pay less to settle these complaints and at the end of the Scheme there can’t be any more complaints.
Other similar Schemes
NSF is now the 5th bad credit lender to seek the protection of a Scheme that will limit the refunds it has to pay to its customers for unaffordable lending:
- schemes by ICL (payday loans eg the Money Shop) and Provident (doorstep lending) have completed. Each paid out about 5% to customers who had their claims upheld
- an Amigo (guarantor loans) Scheme is underway but Amigo failed to raised the necesary capital to continue in business. so it will be liquidated when the Scheme ends.
- Morses Club had a Scheme approved but it then went into administration and their scheme failed.
What is unaffordable lending?
A lender has to check that a loan is affordable for customers before giving the loan.
For Everyday Loans, this is a check on the affordability for the borrower (or borrowers where the loan is a joint loan);
With guarantor loans from George Banco and Trust Two, the loan has to be affordable for both the borrower and the guarantor. A guarantor has to be able to make the repayments out of spare income – simply owning a house does not mean that a loan is affordable.
The Financial Ombudsman (FOS) has set out what it looks at in an affordability complaint.
A simple summary is that when the loan was given it has to have been likely that you could repay it on time, without having to borrow more or get behind with bills. So if all the loan payments were made on time, the loan may still have been unaffordable if repaying it meant that your credit card balance or overdraft increased.
Recent Everyday Loans are NOT included in the Scheme
The Scheme covers customers who borrowed or guaranteed a loan from Everyday Loans, George Banco or Trust Two before 31 March 2021.
It does NOT cover Everyday Loans made after March 2021. If you have one of these later loans this Scheme is not relevant.
Instead you can make an affordability complaint in the usual way. See Affordability complaints about large loans for a template to use,
If your complaint is rejected, send it to the Financial Ombudsman (FOS) straight away, as that article explains. FOS will be able to look at these complaints as they are about loans that are not included in the Scheme.
The Scheme timetable
- 28 April 2023 – Court Convening hearing – approved the voting arrangements
- May & early June 2023 – voting on the Scheme.
- 22 June 2023 – Court Sanction hearing – approved the Scheme
- July to end December 2023 – customers have 6 months to submit a claim to the Scheme. Claims after this point will not be considered in the Scheme and will not be able to go to FOS.
- by end December 2023 – NSF raises enough money to continue and pays £14m into the Scheme to be distributed. If this is not successful the company is likely to go into administration.
- April 2024 – refunds paid from the Scheme.
Raising the £14m for the Scheme
NSF originally proposed two ways to raise new capital – Plan A and Plan B. Since March it has abandoned Plan A and now proposes:
a transfer of the Group’s business to the secured lenders in exchange for the release of a portion of their secured debt and the provision of a new lending facility. Part of the proceeds from this new lending facility would be used to fund the Scheme Fund and cover the costs of the Scheme.
This has not changed the amount of money that is likely to be available to distribute in the proposed Scheme.
Make a claim to the Scheme
It is now too late to make a claim to the Scheme.
What happens after you have made a Claim
NSF will decide whether to uphold your Claim.
I think it’s worth checking your Portal Account every month to see if there is an update there.
If your claim is rejected you can appeal this, but there will be a time limit. So don’t forget to keep looking for this.
What refund may you get?
If an affordability complaint is upheld in the Scheme, the compensation (called “redress”) is calculated:
- for upheld loans that have been repaid, the redress is the interest paid;
- for outstanding upheld loans, interest is removed so the borrower only has to repay in total the amount they borrowed. This may mean a lower balance is owed or that the loan cleared and a cash refund is due.
Where your balance is being reduced or cleared, this will be paid “in full”.
But where a cash refund is calculated, you will not receive that amount. The amount you will get will depend on the total cash refunds calculated and the amount of money in the Scheme to be distributed.
NSF says customers may get paid 24-31% of the calculated cash refund
This is a very uncertain estimate. It depends on how many people make a claim to the Scheme.
It also depends on how many of the claims are upheld and how many of the loans in each claim are upheld.
Credit records
NSF is likely to remove loans that it decides are unaffordable from your credit record.
Card & catalogue affordability complaints
Can you get an overdraft refund?
Refunds from large loans
Jo says
I got a pay out from everyday lending in October and it was a very swift payout thank goodness I did it then just wish amigo would hurry up
Sara (Debt Camel) says
the Amigo one does seem to be taking forever
Craig says
Wow so if we owe them we got to pay in full but they owe us they can pay us less it’s ridiculous should not be allowed to be frank
Sara (Debt Camel) says
I agree. Any firm that cannot pay its debts should be allowed to be bailed out like this at the expense of the customers. This is the FCA’s fault for failing to supervise these lenders properly, allowing them to hold too little capital to be able to repay complaints, and for not providing a backup compensation arrangement where the lender has gone bust owing a lot of refunds.
Daniel says
So everyday loans are basically just proposing a scheme to cap the refunds there not actually going in to liquidation?
Sara (Debt Camel) says
That is correct. However if they cannot raise the capital from investors, they are likely to end up in administration.
Rich says
As an investor would you lend them money?
Fel9821 says
Hi Sara,
I had a loan with George Banco in 2019. It was paid in full with no missed payment and settled in 2021, do I or my guarantor need to do anything?
Sara (Debt Camel) says
Did repaying the loan cause you problems? If it did you may be able to win a claim to the Scheme if it gets going.
Your guarantor would not have a possible claim unless they made some loan payments.
Martin says
Hi
I have just received the text below, do I need to do anything?
IMPORTANT – Scheme Reference Number: SRN7XXXXXXX. If you received a loan from Everyday Loans, George Banco or TrustTwo, on or before 31 March 2021, you may have a claim for compensation. Please click https://www.everyday-loans.co.uk/soa-letter for more information.
Sara (Debt Camel) says
Did you have one of these loans? Did repaying it cause you difficulty?
Martin says
Hi Sarah,
I had a few loans, all now fully paid and some PPI etc refunded. It did cause me some difficulties and had an arrangement to pay which evidently affected my credit rating. But it’s all settled now and the AR marking dropped off my credit file after 6 years.
Sara (Debt Camel) says
OK then you will be able to make a claim to the Scheme, but there is no particular iurgency to do that now as you don’t have a current loan.
As this much have been some time ago, it is difficult to know what the decision in a Scheme may be, especially if you don’t have much paperwork eg your old bank statements. Having had several loans usually means you would have had a good case if it was niot in a scheme and had gone to the Ombudsman but that isn’t possibsle now.
Marty says
I complained in 2019 and was told would not entertain. Went to FOS who said I was too late I’d forgotten though it took them 18 months to tell me that.
Presume no point in me complaining again?
Sara (Debt Camel) says
You may well be able to make a claim to the Scheme. This will depend on the exact final wording, but check back here in a few months.
Marty says
Thank you for responding
DJTONG says
So we can’t put in a complaint now,we have to wait for the scheme.If I had done it say 3 months ago it would of been ok?
Sara (Debt Camel) says
Do you have a current loan?
Lisa says
I’m so angry with them, this was obviously the reason by keep delaying things the adjudicator gave them them till the 6th march they never replied and then gave them another 2 weeks and when they replied it was an automated email that contained a virus so they had till the 20th March otherwise he was ask ombudsman to make a final decision that would be binding on them.. I’ve asked the adjudicator what will happen now and waiting for a reply
Sara (Debt Camel) says
Horrible behaviour.
I too have asked FOS.
Lisa says
The adjudicator has replied and has said at the moment it doesn’t change anything, and are still working on the cases as normal.. Everyday loans have said they don’t agree with his decision and the adjudicator has taken it now to the ombudsman to make the decision
Sara (Debt Camel) says
fingers crossed!
Lisa says
Yes I’ve got everything crossed. They were quick enough lending people irresponsibly.. Its unfair that people have lost out because of it
Laura says
I tried to get a refund from everyday and they just told I wasn’t able to get a one and refused it, I assume now I can reapply for the refund? My loan was taken out pre 2021 and I settled in full a while ago
Sara (Debt Camel) says
I think you probably will be able to make a claim to the scheme. But this will depend on the exact final wording.
Catherine says
Not sure I am understanding correctly, if someone has a loan that is currently still ongoing since 2018 with George Banco do they need to make a complaint now?
Thanks
Sara (Debt Camel) says
yes that is exactly what I am saying.
(Assuming you have found it difficult to repay this loan, from early on. )
Also would your guarantor have been able to make the payments to this loan? If they would have struggled, you should encourage them to to make a complaint so they can be released as guarantor.
James says
Hi Sara,
Just porting over my post from the other thread, sorry I didn’t realise there was a dedicated one…
“Regarding NSF, if I have them in a DPP/DAS, will this debt persist should they go into administration? Is it worth a mis selling complaint to potentially reduce my debt? They have sent a letter implying most will have been mis-sold.
Reading the tea leaves, I’d bet a quid that they end up pushing for administration.”
So I have a branch-based loan from EL. It is being paid at a set value from the DPP (below the original contractual repayments).
What are my options?
Should I put in an affordability complaint?
Sara (Debt Camel) says
I am not an expert on Scottish debt options, but I think in a DAS you are repaying your debts in full? In that case it is worth you make an affordability complaint NOW (see the article above for how). Now because this ringfences the payments you are currently making.
When you owe a significant balance it makes little difference whether a scheme is approved or they go into administration – in either case you can get your balance owing reduced or cleared.
PS also look at affordability complaints about other debts in your DAS! See https://debtcamel.co.uk/tag/refunds/
James says
Thanks for the tip re. other debts. That is correct, the goal of a DAS is to fully repay your debts (less the distributor/admin fees etc.). This is where I am slightly confused- what is the benefit of making a complaint if I would still owe the outstanding borrowing?
Say I owe a £1000, if I keep paying through the DAS, surely I will still owe £1000 less payments made in the interim?
But you seem to be suggesting those payments would be refunded?
Sara (Debt Camel) says
if you win the complaint, interest will be removed from the balance so you only have to repay what you owe.
Say you borrowed £2000 and £1500 interest was added. Your current balance is £1000. If you win the complaint that balance is cleared.
Make the complaint now!
Here we go again says
Do people who have paid off a loan have to make a claim now or wait until the scheme.
I’ve had a letter and it says do nothing – but my experience is do nothing get nothing.
Few mths after taking out the loan I went in to a financial freefall which caused issues ie defaults with a credit cards & other obtaining other further lending from payday type accounts.
Sara (Debt Camel) says
You can send in a complaint now but I would be very surprised if it is looked at before the Scheme starts (if it does).
The only reason for people with a current loan to make a claim is that it will protect their payments by ring-fencing them. You don’t need to do that.
Nat says
I have made a complaint that was not upheld by EL, I escalated it to FOS and had a adjudicator uphold the complaint and gave them until 8th march, no reply then to the 18tg, still no reply. This is for 2 loans , first one was September 2020 – not upheld by adjudicator, and the second one after the cut off which was upheld. Any ideas if I’m likely to get the second one refunded in full if upheld by ombudsman/ EL ?
Sara (Debt Camel) says
If the second loan is after the cut-off for the scheme (end March 2021) then this scheme is not relevant and EL should pay you in full for that loan, either now or it it is upheld by an Ombudsman.
Let me know what happens – this is, I think, the first time someone has mentioned a loan after the cut off date.
Josie says
Hi Sara
I received a message and a letter for a loan I had taken out before March 2021. I am still paying this loan off. Do I need to do anything?
Sara (Debt Camel) says
Yes! As the article above says, if you have a current loan AND you are finding it hard to repay, you should make a complaint NOW. The article says what to do.
This won’t be looked at before the scheme, but from the time you make a complaint your payments should be “ring fenced” which may mean that you get more money back later.
R says
We put a complaint in last July about loan we got with Trust Two. We initially said to the Ombudsman that we wanted to complain about affordability however said they couldn’t look at this – why I do not know? Did not uphold further complaint about being pestered and charging additional interest when placed in a DMP. Any ideas where we can go from here? Have had the letter about scheme and not needing to do anything but want this loan written off. Borrowed £5k, paid about £7k to date. Balance still £5k!!! Joke…
Sara (Debt Camel) says
So far as I can tell from the PSL (link in article above) you should be able to make a claim to the Scheme.
Could your guarantor afford the repayments?
Sundeep says
Hi Sara,
I received an email and a letter regarding a loan I had taken from Everyday loans in 2018. In 2019, I went into a debt repayment plan because I was struggling to pay of my debts. I settled the payday loan in June 2021. Should I make a complaint?
Sara (Debt Camel) says
As the loan has been repaid, there is no hurry. You will be able to make a claim to the Scheme, if it is approved.
Clare says
I had a loan with Everyday loans in 2016 and only paid 4 months of payments as couldn’t afford it and went in arrangement. Recently I put a complaint in and they said they did nothing wrong! I knew this would happen as they just didn’t want to pay out. These companies shouldn’t be able to be bailed out by doing this. They need to be regulated more by FCA. We have to pay our debts back so why do they get away with it.
Lisa says
I regret the day I ever had a loan with them, they prey on desperate people that obviously can’t get loans from a bank.. We had our complaint upheld by the adjudicator but EL don’t agree that they lent irresponsibly. They reakon our combined debt of £32,000 was way below average because they say the national average is £58,000 apparently. I mean what planet do they live on.. They’ve lent irresponsibly for years and now it’s come back on them, and want to be bailed out.. Their lending practices shouldn’t have been allowed to go on for aslong as what they did.. I mean taking family members phone numbers so they can phone them if you don’t pay, is wrong on many levels
Nat says
I forgot they did that with the phone numbers but they did that to me to! Made you feel awful!!!
karl says
So it basically if they go into liquidation anyone with a valid claim will get a small payment if they are lucky and if the SOA is agreed then anyone with a valid claim will get a slightly larger payment
Sara (Debt Camel) says
That sounds right for people who have had loans that have been repaid. The “small payment” in administration may be extremely small.
For anyone with a current loan though, they have the right of set off in administration. So they may be able to get the current balance reduced or wiped out in administration in the same way as in a Scheme.
Sara (Debt Camel) says
Also todays news about Amigo is not promising. See https://debtcamel.co.uk/amigo-fails-scheme-fallback/. Amigo was unable to raise the money it needed from investors – if that happened with Everyday loans then it would collapse into administration.
Natalie says
Hi Sara, I wrote to you yesterday about this and thanks so much for all the helpful info. My situation is that I took out a loan before March 21 and received the notification from EL yesterday. I had already made an affordability complaint through Resolver a few months ago and it was due for escalation last week. GB requested for further time to investigate but after receiving the EL notification yesterday I panicked and escalated to the Ombudsman. Today I received an email from GB saying they are sorry to hear that I felt the need to escalate the claim. I think I probably did the right thing but I am wondering what my options are now if any? and if there is anything I can do to speed up the process. Thanks again for your post
Sara (Debt Camel) says
There isn’t anything you can do to speed this up. It’s a question waiting for FOS to decide whether they can look at this sort of claim.
natalie says
Hi Sara, is there any reason FOS wouldn’t look at an affordability complaint? I thought that is what they did if one didn’t get a satisfactory response from the lender. I put my complaint to GB quite a while ago and escalated it just at the time I received the notification two months after my original complaint because I didn’t get any response except continual ‘sorry it’s delayed ‘messages. The scheme isn’t in place yet and doesn’t look like it will be for some time so if I made my complaint before this I don’t understand what you mean the FOS looking at this type of claim? since that is what they are supposed to do. I can understand if I hadn’t made my complaint 2 months ago I might be in a difficult position now… it says on the FOS that if you are waiting for a response but in difficulty you should call them..so I’m a little confused because I am in difficulty because of the unaffordable loan…
Sara (Debt Camel) says
Today FOS has put up a notice https://www.financial-ombudsman.org.uk/news-events/information-customers-everyday-lending-everyday-loans-george-banco-trust-two
As that says “It won’t affect complaints referred to us before 17 March 2023, so we are continuing to progress those complaints for now.” So that should cover you.
Lisa says
Thanks for your reply. Its all really confusing at the moment. They are saying they can’t afford to pay out redress but they are still providing loans to people..
natalie says
Thanks so much for your advice re this Sara. Luckily I have received a response from FOS, for which I’m very grateful for after the long saga with GB. I really feel for everybody going through this that were patient with GB thinking they were in the process of responding to their claim only to find out they had other plans.
Ellie says
I made a complaint 2019 which they did not uphold. I also complained to the Ombudsman however it was not upheld either as at the time of taking out the loan I didn’t have to pay rent- but the loan prevented me from ever paying rent… because I was repaying £6000 on top of the £3000 I owed.
What should I do? I’ve received a letter that most other have too.
Is there any point in me complaining again? Do I need to continue paying back the loan… if I stop paying it then will they still seek legal avenues etc .. my credit report is in tatters anyway and I’m in a dmp thanks
Sara (Debt Camel) says
it is likely you will be able to make a complaint to the Scheme if it is approved.
But your claim may still be rejected. I don’t think you can count on this working well for you.
So what might your other options be…
How large is the remaining Everyday Loan day (I assume it wasnt a guarantor loan)?
How large are the other debts in your DMP?
How much are you paying to the DMP a month?
Ellie says
Thank you for taking the time to reply.
My EL loan I owe about 3000 now. It was originally 9000. (The loan was for 3000 orginally)
I still owe just over 8000 on the DMP (Including the EL)
Currently I pay £250 a month into the DMP but they have suggested I reduce this following my annual review.
None of the debts have been sold on to debt collectors.
Sara (Debt Camel) says
I assume your DMP is fairly recent if none have been sold. Definitely cut the DMP contribution – with cost of living problems it’s vital you can stay on top of your finances and dont get behind with bills or get new debts.
Also look at affordability complaints against the other creditors in your DMP – see https://debtcamel.co.uk/tag/refunds/ . The more you can win the more the DMP will speed up.
Mark says
I have got the email and text about this scheme. I took a loan from them years ago to attempt credit consolidation, it back fired and I ended up still paying some of the companies plus was left with the debt from EDL. I struggled as time went on and took out a payment plan to reduce my finances. I have since taken control of my finances and been clearing away at debts.
With EDL I am still repaying the reduced amount and it is taking forever to clear. Do i just continue paying until there is further updates on the scheme being approved, or should I write to them now? As it is a small amount I pay each month it is affordable but its just taking forever to clear.
Or do I just try and increase my payments and get rid of the thing altogether?
Sara (Debt Camel) says
I think you should make a complaint now as the article above says. This will provide more protection for the payments you are currently making.
S says
Hello
I got nsf claim letter. The loan went into dro in 2018 as payment too high and interest and lost my job due to I’ll health.
With this claim do I need to a affordable letter and attach the dro?
Sara (Debt Camel) says
How large was your loan? How much had you paid to it before the DRO?
S says
Hello
£3000 loan amount+intereste. I been paying but the amount owed never seem to go down I been paying £179 a month for over a year then lost Job as because unwell and did dro
But due to interest late payment fee and other charges they put on it needed up being more than originally took and same with payment made
S
Sara (Debt Camel) says
It doesn’t sound from that as though you had repaid more than the 3000 you borrowed?
If that is the case, then you would not get a refund in an Scheme.
S says
Hello
It was un affordable, they also asked my out going even my existing debit. and still lent to me I had alot of existing debit, the women was very pushy in getting me to take it out and pressuring me by contacting me by phone all the time. It was un affordable because I had more out going than income I have problems pay off other debit. I hadn’t been in my job that long either
Thanks
S says
Hello
Before dro I had a damp with step change this loan was included I stopped paying it before I was unemployed because I had so much debit 20,000 in total. And before the dmp I was making £1 token payments
Sara (Debt Camel) says
what matters is how much you have paid to EL in total, originally and the token payments and then through StepChange. If that was more than the £3000 you borrowed, you could get some refund from the Scheme. But if it is uner £3000 then its unlikely you would get anything.
Siobhan says
What happens with payments if I’m in a dmp. Not interested in a refund. I only made three payments on the loan before going in to my dmp. Who will end up getting my dmp payments if/when everyday loans go under?
Sara (Debt Camel) says
The loan will be sold to a debt collector at some point if EL go under.
But your SHOULD be interested in making a claim to the Scheme – or to administrators if that happens. This won’t get you a csh refund but winning the claim would mean that interest is removed from your loan so you only have to repay what you borrowed in total.
Have you looked at making other affordability complaints about debts in your DMP? This is an ideal time to make them as winning will really speed up your DMP. See https://debtcamel.co.uk/tag/refunds/ for a list of the article with different template letters you can use.
Lou says
I also received the letter from NSF
I made an affordability claim in 2021. Adjudicator up help held, EDL disagreed and the ombudsman sided with them.
Should I made a claim under the scheme?
Sara (Debt Camel) says
I think you will be able to make a claim (won’t know for sure until the final scheme documentation is available) but I have no idea if it is likely to succeed.
Lou says
How does this work if the debt was sold?
Sara (Debt Camel) says
You will still be able to make a claim to the Scheme.
Cmp says
I guaranteed an 8k loan from George Banco.
I had to pay over 8k to settle this as no payments were made. Is this a 22-28% silver lining?
Sara (Debt Camel) says
Only if you can prove that either the loan was unaffordable for you or that it was unaffordable for the borrower – unless the borrower co-operates that may not be easy.
stephen says
OMG! – I thought i was pushed into upping my loan from 3k to 7k – Pay back 15k, I was told that the interest rate would lower, Already knowing i was struggling to pay the 3k was advised to up the 3k to 7K paid of the Old debt and received around 3.5k in account, However i have had numerous struggles which EDL helped me with pay less.
I’m in Debt with EDL 10K on a stepchange deal started in December 2022, I was constantly receiving calls and it gave me a break down best thing i’ve done is go to step change
All this started i think in 2017 and I’m still paying them back, All my phone calls will defiantly prove that i shouldn’t have received the 3k never mid the 7K – I even tried to make a complaint but was told i needed to do expenditure
stephen says
I have looked back at my emails – Feb 2018 started at 3k – went in debt with it made alternate arrangements then increased to 7k in 2020 after already struggling in 2019 – I have all email evidence
I’m with Step change already, I’m guessing i don’t need to act on this?
Sara (Debt Camel) says
As you have a current loan, I suggest you should submit an affordability complaint now. As the article above says.
k says
Hi, I made a complaint to george banco nearly 8 weeks ago now. They emailed me last week saying they’re still investigating and aim to provide a response in the next 4 weeks and if im dissatisfied with the progress then I can refer it to the financial ombudsman now. Do you think I should take this to the financial ombudsman now? thank you
Sara (Debt Camel) says
You can’t until it has been 8 weeks.
I don’t know if the Ombudsman will be taking more complaints at the moment.
Michelle says
Hi I’m currently paying everyday loans back via Stepchange…. worst thing I ever did getting a loan with them they talked me into taking out 3 times what I went in for. Should I still make an affordability complaint? Could this jepordise the agreement to pay via Stepchange? Thanks
Sara (Debt Camel) says
yes you should make a complaint.
No, this will not impact your DMP. In fact you should think about making other affordability complaints about debts in your DMP – see https://debtcamel.co.uk/tag/refunds/
D says
Hello
Affordability complaint can this been done for old debits on dro from 2018? If you had alot debits and kept offering it?
Sara (Debt Camel) says
A complaint about an Everyday loan that was included in your DRO?
How much did you borrow? How much had you paid them before the DRO started?
Heather says
Hi, Me and my partner took out a joint loan with Everday Loans in 2013 for £4500, dug out paperwork and it says repayable amount was just over £14000! That included a life protection insurance that we was coerced into taking out. We paid 10 months equalling about £3400 and then entered into a DMP, cancelled the life protection thing at the same time. Still paying DMP now and have paid an additional £3100 through it over the years with approx £4000 remaining as of today.
So having paid around £6500 in total to date, the original loan amount has been more than repaid.
The loan was due to end in 2016 under the original agreement so is this still classed as a current loan? If I complain now will future payments via the DMP be ringfenced?
The original loan defaulted in 2014 and dropped off my credit report in 2020- if I was to stop payments when making a complaint could any action be taken as there is no longer an entry for this loan on my credit report?
Just unsure of the best way forward at the mo!
Sara (Debt Camel) says
Yes this is a current loan as you are still paying it. Complain now and your payments from now on should be ringfenced.
In theory they could take you to court if you stop paying – the fact it isn’t on your credit record isn’t relevant. But this is very very unlikely to happen with a Scheme being proposed as court action takes so long.
But I would let the DMP payments continue.
This is a very old loan and I don’t know how easy it will be to in a complaint in the Scheme.
Sean says
I had a £3500 loan Nov 2020, I have paid it back plus £2810 interest. I was able to pay off early as I got bailed out.
I guess at best I will receive a small % back, but back from what? Total loan, interest etc?
Just wondering what I could POTENTIALLY be compensated.
Thank you
Sara (Debt Camel) says
A percentage of the interest paid.
(plus statutory interest but your loans is recent so that would not be a lot.)
Stephen says
I had a joint loan for £3500 from everyday loans in 2019, after a month we started on a DMP as our total debt repayment was unaffordable.
We’ve paid £3900 and the outstanding balance is still £3000. I’ve not yet made a complaint, but I will do this as per advice.
There’s only £8,000 left on the DMP, if we continue as we are I feel we would get very little benefit as the potential compensation value is so low, whereas if we stop payments we will be in a position to clear our remaining debts within the next 12 months. It seems it would be sensible to stop DMP payments to everyday loans?
Sara (Debt Camel) says
if you win this complaint in a scheme – or in administration if the scheme is not approved – then the balance would be cleared. And you should get a refund in full of any payments made after you have made a complaint (ring fencing) and the £400 interest you have paid so far (£3900-3500) will be refunded at the lower percentage that they are currently guessing may be 22-28%
But it’s up to you if you want to tell StepChange to stop paying EL as you would like to get the DMP finished sooner for the other debts.
Michael says
Hi, I took out a £5000 loan with trust two in Jan 2020 for 60 months, paying £165 each month, l have never missed a payment, since the rise of cost of living it has been a struggle but I have kept with the payments so my guarantor is not involved. I received the letter from NSF, should I make a complaint now as I have a loan that I am still paying off or should I wait for decision of arrangement?
Sara (Debt Camel) says
I think you should complain now. But you need to keep paying so they won’t ask your guarantor to pay.
Michael says
Thanks Sara, will put complaint today and see what happens.
George says
I think there is a mistake in this sentence.
“This includes raising the 314m that ELL will need to pay into the Scheme to pay cash refunds.”
I think it should read.
“This includes raising the £14m that ELL will need to pay into the Scheme to pay cash refunds.”
Sara (Debt Camel) says
thanks, corrected.
Rich says
Hi,
Am I right in understanding if your claim was assessed under the new scheme, and they don’t uphold your complaint you have no right to recourse with the ombudsman?
Sara (Debt Camel) says
that is correct. There is an appeal process within the Scheme.
Rich says
Hi again,
So I borrowed £3100 prior to the cutoff date, I have £5700 left to pay back. I have made a complaint over the weekend.
I struggled from the first payment and started to have difficulties before the 3th payment. Looking at my credit report it shows I have made upwards of 8 clear payments which definitely haven’t done. The rest of the payments were defaulted.
I am going to write to them and explain I have made a complaint but in the mean time I am willing to enter into an agreement where I pay x amount that I can afford will this be ringfenced? Is this a good idea or should I wait the outcome of the first stage of complaint before I proceed to making offers of payment.
I still owe a considerable amount and while I wish to pay back the money I borrowed I am sure the loan was unaffordable and do not wish to pay the extortionate interest, I also would like any defaults to be removed from my account. Are these reasonable requests ?
Also I questioned above regarding ombudsman and the right to appeal. If there is nothing to stop them limiting claim payouts is there anything to stop them refusing all claims, withholding all ringfenced funds and refusing appeals arbitrarily. It seems they are setting their own rules, which remove the right to independent assessment. Is there any way this can be challenged in court, not the refunds themselves but the blatant rewriting the rules to suit themselves
Sara (Debt Camel) says
how much have you paid to this loan so far?
what is the rest of your financial situation at the moment – do you have other problem debts you aren’t paying? any priority debts – eg rent, council tax, energy bills arrears.
S says
Hello
Where is a template for writing affordable letter for every day loans?
Thanks s
Sara (Debt Camel) says
It used to be this one https://debtcamel.co.uk/refunds-large-high-cost-loans/.
But now, as the article above says, you just need to send them a couple of sentences.
Sarah says
As a guarantor, if I put in a affordability complaint now can I still be removed from the loan and credit file adjusted? I’ve only been paying it on behalf of the borrower for a few months so the money won’t be huge amounts for me but I was already in the process of researching how to make the complaint to be removed when I got this info through.
Going to put the complaint in today but not sure if it will do much good now
Sara (Debt Camel) says
if you win the complaint, the loan should be removed from your credit record.
if you are on speaking terms with the borrower, suggest they also make a complaint – if they win that the interest on the debt would be removed and you would be released as guarantor.
Thomas says
If I have a loan with EDL that has been given “additional funds” after the initial contract was signed in 2019, does this fall under this scheme? As I was given the option to re-loan money I was never particularly able to afford?
Sara (Debt Camel) says
the original loan and the “additional funds” will all come under this scheme.
Chris says
I had 2 loans from Everyday Loans, the payments and interest made it difficult to pay, but my credit was low so they were the only lender interested, I took the original loan back in 2015. I finished paying the second loan in 2021.
Will i be eligible?
Sara (Debt Camel) says
yes you will be eligible to make a claim. Those are quite old loans – that doesn’t affect eligibility but it may be harder to prove affordability.
Darren says
I have a loan taken out with this company on the 25th April 2022, so after the date for the scheme.
I’m assuming my agreement is completely unaffected by this, and I can proceed through the normal route? In other words, complaint, final response or 8 weeks, then FOS? Do you know why the cut-off date? Did their behaviour change after this (and therefore they can defend the later loans better)? Or is the cut off just set so the scheme is more likely to be accepted as opposed to attempting to limit all of their loan book?
I don’t know if my own situation was common among others. Was offered £10k as a consolidation loan over 5 years. At the last minute, the underwriter apparently changed their mind, so they could only offer me £7000 at a higher interest rate and only over 3 years, paying about £100pm more. My financial situation was desperate – I had a potential CCJ coming up for one of the debts so had little choice but to accept. A year later I’m paying on time but it’s painful.
Sara (Debt Camel) says
Yes you can make a claim as normal and send it to the Ombudsman if EL reject it as you are unaffected by the scheme. See https://debtcamel.co.uk/refunds-large-high-cost-loans/ for a template to use.
I suggest at the same time you look Into other affocomplaints against the debts that were consolidated and any other debts. Including the one where there was a CCJ. See https://debtcamel.co.uk/tag/refunds/ for articles on different types of debts. The complaint goes to the original lender, not any debt collector.
I don’t know why they choose to have a cut off. They may have improved their affordability checking, but it may still have failed in your case. They may feel this looks better to the future investors I suppose?
Dave says
I had a loan n 2013 I think it was and I have received the letter about the scheme. I complained in the past and it got rejected. For a £2500 loan I paid £3900 intrestback on top of that. I was also pushed in to getting a £250 secondary loan on top for critical illness cover and paid £450 interest on that too. The ombudsman won the claim on the secondary loan and got me £250 back. But I didnt not get anything back for the main loan. Would I be considered under this scheme even though they have previously rejected my complaint about the excessive interest and how much I struggled. I still have the emails
Sara (Debt Camel) says
I think (but can’t be sure until the details re published) that you will be able to make a claim to the Scheme. However they may just reject it again.
Lisa says
Hi Sarah, we complaint in Dec which everyday loans rejected, I complained to the ombudsman, the adjudicator upheld the complaint but they didn’t agree, so now going to the ombudsman for decision. So any award that is decided. Would I have to wait for the scheme of approval, to get paid out? Thanks
Sara (Debt Camel) says
I hope not but this isn’t clear.
Lou says
I have both George Banco and Everyday loans the Everyday loans is with Stepchange as i cant afford the repayments bit the GB one is still being paid as i couldnt let my dad repay this one. Can i claim Sarah?
Sara (Debt Camel) says
Yes you can. Send in complaints about both of them immediately. This safeguards the money you are currently paying in. I would send two separate complaints.
Lou says
Where do i get the complaints forms from and where would i send them to?
Thanks
Sara (Debt Camel) says
See the section If you have not complained & have a current loan – URGENT in the article above. It has the email address and, as it says, you just need to write a couple of sentences saying the loan was unaffordable and you want to make a complaint.
natalie says
Hi Sara, so i got an update on my case from financial ombudsman and they have told me George Banco/everyday loans have refused to hand over my case as they are saying it falls under their scheme. I told the financial ombudsman that i referred it to them before i was notified of the scheme and it seemed GB were continually delaying responding to my claim. So i am now waiting for it to be handled by an investigator, but it seems that what with all the delaying tactics when i sent my complaint to them and now this, they are going to make it very difficult even for claims that were passed to the financial ombudsman before they launched their scheme.
Sara (Debt Camel) says
The FOS statement says “It won’t affect complaints referred to us before 17 March 2023, so we are continuing to progress those complaints for now.”
I am not sure if your complaint was referred before 17 March?
natalie says
Hi Sara, unfortunately, it was referred to them on 22nd March. It could have been referred before but they wrote to me saying it was being looked at but they needed more time. I was uncomfortable with that as they had already had 8 weeks and i hadn’t had any feedback ,so after another week i decided to refer it to the financial ombudsman. The ombudsman have told me it is not for GB/EL to decide what is under the scheme or not and that they will make their own decision. They didn’t mention the 17th to me and they are of course aware that it was referred to them on 22nd. So i guess i’ll just have to hope for the best. I have been reading through some of the other comments and wanted to ask if it does fall under their scheme and the funds are held by a trust, if my case is upheld will i receive the interest back from the start of their scheme? or all the interest ive paid back? i know with the other schemes it says people have received a lower percentage but is that of the statutory interest on top or of the interest itself? its all a little confusing to me. i took out a 7k loan in 2014. it was unaffordable and by 2015 i couldn’t manage the payments so they doubled the term of the loan which halved the payments. As it stands now i still owe about 3.5 k even though i haven’t missed any payments. I have a lot of debt so need to look at how to manage that. Thanks for all your advice. I wouldn’t have known what to do if it weren’t for your very helpful site.
Lou says
Hi Sarah,
I have emailed over my 2 x complaint letters today am i in time with sending these in?
Sara (Debt Camel) says
sent to EL? or sent to the Ombudsman?
Lou says
Send to the two email address
Contact@nsfclaims.co.uk
complaints @everyday-loans.co.uk
Are these the right one?
Sara (Debt Camel) says
yes that’s fine.
Daniel says
Did you use the template Sara has put on to copy?
Lou says
Just copied the top bit then weote in my own words how i felt they were unaffordable
John says
Sara, I have just read this report, am flabbergasted … we too have a loan from EL, I have just sent an email to both email addresses,
am I in time?
Sara (Debt Camel) says
Your claim will go 8k to the Scheme. But putting in the complaint now will me that the payments you are making go to a trust fund so you should get those back in full rather than at some low percentage if your claim is upheld.
Daniel says
Hi Sara I currently have a loan with everyday loans do I need to or should I do anything? I’ve had one of them in the past too which has been paid off thank you in advance.
Sara (Debt Camel) says
When did your current loan start?
Daniel says
Hi Sara my current loan was taken out in January this year .
Sara (Debt Camel) says
Ok so if you feel the current loan is unaffordable – making the payments leaves you so short of money you have to borrow more eg by using your overdraft or credit card or get behind with bills – then you can make a complaint as normal as this recent loan will not form part of the EL scheme. See https://debtcamel.co.uk/refunds-large-high-cost-loans/ which has a template you can use. If EL reject this you can still send your complaint to the ombudsman and I suggest you do so as soon as possible – do not allow EL more than 8 weeks to think about your complaint.
If the previous loan was given after March 2021, the same applies to that – make a complaint aboth both your loans now.
If the previous loan was before March 2021, then a complaint about it will form part of the Scheme.
John says
HI Again Sara,
could I ask your advice, we have a loan taken out in 2018 with EL, after 3 years i was having medical issues and was off work we asked EL to reduce our payment from £350 to £150 / month which they did, though we are still 2 years later waiting for details of what the revised payment means in terms of how long it is over, a statement of the outstanding balance and if the interest rate has changed. I have also recently written to ask for a balance / statement as the original repayment schedule would have cleared the debt now, we have no idea how much we owe right now.
i’ve also asked them to again reduce the payment to £50 month, as we will start to struggle to pay our energy bills now, will this have any effect our claim that the loan was unaffordable?
Thanks
Sara (Debt Camel) says
You aren’t the first person to say how poor EL’s communications are.
How much was the original loan and how much interest was to be added? How much have you paid them in total so far?
Have you ever had a letter which has the words Notice of Sums In Arrears.
John says
hi Sara,
Original Loas was £7500 Sept 2018, Int Rate was 41.9% . Total amount paid thus far is £12135, Never had a Notice of Sums in arrears Letter.
We have asked them to reduce the payments further to £50 / Month, I’m now on my pension, aged 68, so a fixed income.
kind regards
John
Sara (Debt Camel) says
So in 2018 you were already coming up to State Pension age. That suggests that the original loan may have been unaffordable so making a claim now is a good idea.
Needing to reduce your payments should not affect this claim.
If EL refuses to let you reduce the payments, you can put in a complaint about this and send it to the Ombudsman if EL rejects it. That complaint is not related to affordability when the loan was given, so FOS will still look at it.
John says
Thanks Sara,
just to confirm, I’ve sent the unaffordability complaint to EL, is there anything else (other than what you have said above) that I should do at this stage?
Sara (Debt Camel) says
no, just say you need the payments reduced, not because of the complaint but because they are unaffordable
Ahmed says
Hi Sara, I too received this message. I took my original loan out over 10 years ago. I over the year got a top up loan from them and my last one was 2021. Ive repaid over £40,000 since then and have six month left. Do I just wait for the scheme to start or should I too send in a complaint.
Sara (Debt Camel) says
Send in the complaint now! It could significantly increase what you get back.
Lisa says
Hi could you tell me what this means please I had a the decision off the ombudsman today and they’ve upheld my complaint………………… remove all interest, fees and charges applied to the loan including any of the third party charges and fees, and, treat any payments made by Miss R and Mr S in respect of this loan as payments towards the capital amount of £6,000, If Miss R and Mr S have paid more than the capital then any overpayments should be refunded to them with 8% simple interest* from the date they were paid to the date of settlement, But if there’s still an outstanding balance, EL should come to a reasonable repayment plan with them. remove any adverse information about the loan from both Miss R and Mr S’ credit files…… Does this mean anything over tje £6000 loan we have repaid, needs to be refunded? Thanks
Sara (Debt Camel) says
It sounds as though there was just one loan.
Yes if you have paid more than 6k so far, the balance should wiped and the payments over 6k refunded. There will be some 8% interest but it’s usually not a lot.
Well done, this is a “full” refund.
Lisa says
Thankyou for reply it was 1 loan for £6000 we have paid £13,858 so far.. so does that mean the £7858 in intrest they would have to pay us back.. Thanks
Sara (Debt Camel) says
yes :)
horribly expensive debt.
Lisa says
Thankyou yes it was and we struggled for years to pay it, but couldn’t do it anymore, that’s when we decided to.put the complaint in..
Lou says
Hi Lisa, could i ask what steps did you take to get this to the ombudsman? I had a £10K that finishes next April with GB and i want to try and claim the interest back
Thank
Sara (Debt Camel) says
I think Lisa’s claim was already with the Ombudsman before the 17 March.
Lisa says
Thankyou wad just about to say that.. My complaint went to the ombudsman in January, the adjudicator upheld complaint in March but ELL disagreed and was then passed on to the ombudsman to make final decision
John says
Hi Sara,
Would you say that most complaints are being upheld by the Ombudsman and do EL ever settle before it goes to the ombudsaman?
thanks
Sara (Debt Camel) says
About 60% were.
I’m sure they must have settled some directly with the customer.
Ahmed says
Hi Sara,
Following the advice given, I have also submitted a letter to Everyday Loans. However, I am seeking clarification on whether the date of submission of the complaint letter. Will FOS take complaints further if submitted after March 17th as stated on the Financial Ombudsman site?
Regards, A
Sara (Debt Camel) says
FOS are not taking affordability complaints now (except for the recent loans that are not included in the scheme.)
Naj says
Hi, I got loan in 2017 from everyday loan £3000 paying back £7000 in 2 years. Unfortunately I couldn’t pay it on time only pay them £30 a month until now. There is still £2800 outstanding balance .please let me know what is the best option . Ed
Sara (Debt Camel) says
I suggest you send them a complaint now as the article above says. This will be a long slow process but complaining now protects the payments stepChange are making from now on.
Jim McDonald says
Sorry Sara, I’ve skim read the above comments – so just to get things clear in my head:
I had a couple of loans from Everyday Loans – both were repaid on time – but at the time I had several other payday loans and no doubt every month I made those repayments there would have been an element of using other payday loans to make at least part of the monthly repayment to Everyday – so in terms of the advice above, it suggests waiting until the scheme is approved – and then possibly “complaining” – isn’t it weird that they are not following others who basically did the “unaffordability” check automatically – eg. Satsuma/Provident – and then paid out (peanuts admittedly!) to all those customers – but are you saying/confirming that this scheme will not be an “auto check” and it will be down to individuals to complain?
I guess if the scheme is approved, it won’t make any different to the company – as there will be a “fixed amount available” to payout – and extra claims is just likely to reduce the payout for all both in terms of spreading it across more customers and possibly/probably by deducting any costs for any “new” claims that come in after the scheme is approved (if it is).
Thanks
Sara (Debt Camel) says
Satsuma/Provident did not do an automatic check – you had to make a claim.
Nicholas says
I had 3 loans from 2011 too 2015 borrowed 10000 payed back 17000 . Will I get any money back,if so how much roughly..Thanks Nick
Sara (Debt Camel) says
You should make a claim if you feel any of the loans were unaffordable – making the payments left you so short you could only manage by borrowing more or getting behing on bills.
Did any of these loans refinance or top up the previous loan?
Michael says
I got an email yesterday from ELL stating I should stop making any further payments towards my loan. They stated they made a provisional assessment which they believe would be a successful claim. Spoke to them to confirm and they told me to cancel my direct debit.
Julie says
Hi Sara
I’ve had a two loans from everyday lending the first one was paid in full and the 2nd one we are still paying and we are struggling
Sara (Debt Camel) says
Then send EL a complaint now. And talk to National Debtline on 0808 808 4000 about whether you should stop paying – if your debts are increasing as paying EL leaves you with too little this may well be your best option.