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
Christine says
Hi, my son took out a loan for £2500 even though he had a dreadful credit score. He had a meltdown and went missing with police searching for him surviving on the back of this loan. I have been managing his money for the last 12 months to try to reduce his debt and take the pressure of debts away from him due to his fragility.
After receiving the proposal from EDL and them offering 22-28% of the compensation due I decided not to pay them any more until the outcome of the process. Is it the case that if they get wound up there is no company left to pay and the debt is writren off?
Yet, having now missed the 1st May payment, I very quickly received a letter from their solicitors asking for the money. Am I within my rights to offer them only 22% of the regular monthly payment given the cost of living crisis. That is, after all, what they are offering my son for the miss-selling of the loan. Everything has gone up in price and with rail strikes my son has had to pay for taxis to keep his job going which has been an additional burden.
Your thoughts gratefully received.
Sara (Debt Camel) says
Have you made a claim to EL for unaffordability?
Does your son have other debts as well? A dreadful credit score suggests that he has. Have you looked at other affordability claims about those – there you may be able to get a full refund.
Alternatively have you looked into a Debt Relief Order (see https://debtcamel.co.uk/debt-options/dro/) or Bankruptcy to give him a clean start?
Is it the case that if they get wound up there is no company left to pay and the debt is written off?
No. The debts will be sold to a debt collector who will then expect them to be paid.
Am I within my rights to offer them only 22% of the regular monthly payment given the cost of living crisis. That is, after all, what they are offering my son for the miss-selling of the loan.
It doesn’t work like that. If the loan has been mis-sold, then interest will be removed and he will be able to pay the balance remaining at an affordable rate.
If he cannot afford the current repayments – or the repayments on his other debts – then he could look at a debt management plan with StepChange, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Making an affordability claim to EL and getting a DMP in place should stop the letters from their solicitors. A DRO or bankruptcy of course solves this and all his other debt problems.
Christine says
Thanks for the advice.
Many of his debts are now paid off. Some by me and some by him where I have been managing his finances to clear them. The Everyday Loans one is the last one outstanding.
I guess I will just have to see how this all plays out.
Sara (Debt Camel) says
I’m not sure what you mean by “see how this all plays out”.
If you haven’t already made an affordability complaint you MUST do this now. there is no reason to delay and doing this safegulards any further payments you make.
Christine says
Apologies for delay I have been away. We have already made a complaint following your advice.
When I mention “see how this plays out” , I mean see what the court and vote decide is the way forward for EDL and how much is still outstanding at the end of the process.
Spacecat says
Received an email saying plan A rejected and plan B accepted etc
Lisa says
So I’m still waiting for my settlement letter off them 2 weeks since I accepted the ombudsman decision, and I’ve heard nothing at all. I phoned them today and then the woman that I’d spoke to said that they will need to review incase we don’t agree. I thought the ombudsman decision is binding on them and couldn’t?? I just feel like they are just delaying paying anything out. Frustrating
S says
Hi, I still have a current loan- took it out in 2020. I have complained and voted but I cannot afford to pay over 4k over the next 18 month. I’ve paid over 12000 already for a 5k loan. Stupid mistake but needed money back then due to wage loss and covid. I have tried to ring my
Branch and they were no help.
Sara (Debt Camel) says
do you have other problems debts as well?
S says
No. I’ve managed to pay everything on time. But it feels ridiculous for this all to be happening
Sara (Debt Camel) says
when you say you can’t afford to pay 4k more over the next 18 months, do you mean that you don’t want to waste that money if you don’t have to? or that you will not be able to make these payments because of the cost of living, other debts etc?
S says
Being the only one who works in the household- I am struggling to keep my head above the water and I need to know whether I can get some resolution from
Everyday lending considering the circumstances. I have voted for the scheme and also emailed them as advised.
Sara (Debt Camel) says
ok so having made a complaint is good but it may still take a VERY long while to get a resolution.
The Amigo Scheme began last may. That was after getting through the slow approval process. So far as i know, so far a few people have had their claims rejected and no-one has yet had one accepted. It is hoped there will be some Amigo payout late this year and the rest will follow in 2024/
So you cannot assume this scheme will be of any immediate help to you this year. I suggest you should talk to National debtline on 0808 808 4000 and ask for advice on your situation.
Also consider whether there are other debts where you could make affordability complaints, see https://debtcamel.co.uk/tag/refunds/
Adam says
Hi Sara,
Will payments made to a debt collection agency be ring fenced? My pre march 2021 loan with edl was sold on to town and country?
Sara (Debt Camel) says
No. This loan is already defaulted, you could consider stopping payments until your complaint to the scheme has been decided. I assume you have complained.
Adam says
I have complained around 8 weeks ago to no reply, I did state if the loan could be bought back in the complaint if that’s any help for me?
Sara (Debt Camel) says
No they aren’t likely to do that now. You have to assume the payments you are making will not be protected so consider reducing them.
Craig says
Hi had a loan which I took out before March 2021. Is there anything I need to do right now or is it a case out waiting for the outcome of the vote and then submit a claim?
Sara (Debt Camel) says
Do you still owe a balance?
Craig says
No, it was cleared
Sara (Debt Camel) says
Then there is no orgency to submit a claim. Make a mental note to check back in a couple of months.
Greg says
Hi, did you make an updated post? We have a current, long term loan with GB and are unsure which way to vote and would appreciate any more advice.
Sara (Debt Camel) says
are the loan repayments affordable? Have you made a complaint?
Greg says
Hi, the repayments are unaffordable for the borrower – I sometimes have to make the payment as guarantor but would be unaffordable if I had to pay every time. We haven’t complained – we didn’t realise we were able to until we were notified of the scheme by NSF, and since then had assumed the scheme would be our best option but wondering if voting for the scheme would mean we get less back than if we voted against the scheme (22-28% would be less than if the remaining balance were cleared in the event of administration).
Sara (Debt Camel) says
Both you and the borrower need to make a complaint now, as the article above says. There is more protection for payments made after a complaint than before so do this now.
For people with an outstanding loan, there is generally little difference between the redress you could get in administration and in a Scheme.
There may be less money to pay cash refunds in administration than in a Scheme. But for current loans the right of set off of redress against the current balance is the same in a Scheme or administration, so the balance is likely to be reduced by the same amount if your claim is upheld in either case.
The big unanswerable question is whether you claim is more likely to be upheld by administrators or by Everyday Loans/NSF in a Scheme.
Karen says
I have an everday loan (before 2021) and have received the letters regarding what they trying to do with the “Schemes”. I have a debt management in place with Stepchange. Loan has not been passed to debt collectors.
Does this affect submitting a claim or is it best to wait?
Sara (Debt Camel) says
You should make a claim asap. It won’t affect your DMP.
Karen says
I have gone to the financial ombudsmen but they are not taking on any new claims yet. So looks like its a waiting game
Sara (Debt Camel) says
This is about a loan that is expect to come within the terms of the Scheme?
John King says
Hi Sara,
There were 2 TV adverts for Everyday Loans yesterday, offering loans with a 99.9% APR, surely if they can’t meet the affordability claims they should not be offering new loans at all let alone at that interest rate, also if they are now not able to meet their own liabilities which would include the affordability claims then are they not insolvent and come under the insolvency laws?
Kind Regards
Sara (Debt Camel) says
I would agree with you. I don’t think the FCA should allow anyone who wants to continue in business to opt for a Scheme and may its borrowers les than full redress.
They are not technically insolvent at the moment if the Scheme is approved though.
Do you have a current loan?
John king says
Hi Sara,
Yes we have a loan, I’ve already made a complaint with them following your advice but have not had any response yet. We have asked them to reduce our payment, but as yet they have not agreed. We reduced payments previously, which they did but we have never had any confirmation of how long we will have to keep making payments to clear the loan
Sara (Debt Camel) says
Can you afford the repayments without getting behind elsewhere or having to borrowing more?
If the answer is No, you are Not asking them to reduce your payments, you are telling them. Cancel the direct debit and pay the lower amount manually. This will hurst your credit record but the negative mak will be removed if you win the claim.
June says
Hi Sara
I’ve had 3 loans all in the last 2 years. I’m in the process of asking for my payments to be reduced on loan 3 as I’m struggling. I’m also going to put in an affordability conplaint but in no rush as it was after the deadline. I’ve received a statement from them stating the balance and interest still owing but in small print it says if I reduce my payments then I will pay more interest over the longer term. Can they do this? Should I just stop paying and let it go into default and pay whoever buys the debt from them? I’ve also had a threatening email from an area manager saying they were going to come to my work, my home and contact my family! Are they allowed to send emails like this?? I’m so stressed.
Sara (Debt Camel) says
As you still owe a balance it is URGENT that you send a complaint in now – as the article above says, these provides some protection for the payments that you make from here on.
it says if I reduce my payments then I will pay more interest over the longer term. Can they do this?
If you cannot afford the current payments, you should ask them for a payment arrangement and for no more charges or interest to be added.
in practice if the last loan is decided to be unaffoprdable, all interest and charges will be removed, so it won’t matter how much they add on
I’ve also had a threatening email from an area manager saying they were going to come to my work, my home and contact my family! Are they allowed to send emails like this?
If this is a guarantor loan, then they are allowed to contact your guarantor.
In theory they are allowed to send a debt collector to your house, but (a) a debt collector is not a bailiff, they have no more right to enter your house than the postman does (b) I would be totally astonished if they send anyone round while they are setting up a Scheme if you have made an affordability complaint (c) they cannot send someone to you. And they should not threaten any customer who has told them they are in difficulty.
Sara (Debt Camel) says
I have sent you an email.
June says
Thank you for your response.
I’ll get the complaint sent today!
There’s no guarantor. The loan is in my name.
William says
I received this from lending stream. Asking me to click the link to fill out a questionnaire to determine if they were responsible is this correct? I have deleted the refrence numbers.
Hello William,
As part of a business review, we’ve been looking at some loans we made in the past.
One of the things we looked at was whether the information we had at the time we gave you the loan was enough for us to be confident that the loan was affordable for you.
It’s important to us, as a responsible lender, to make sure we only give loans to customers who we believe can afford to repay them.
We’ve identified a loan or number of loans we gave to you where we may not have had enough information for us to be sure that the loan we made was affordable for you
Loan 2014-12-27 £250.00
Loan 2015-04-02 £300.00
Loan 2015-04-16 £50.00
Loan 2015-05-07 £50.00
Loan 2015-05-13 £50.00
Loan 2015-05-18 £50.00
Loan 2015-06-11 £50.00
Loan 2015-07-01 £50.00
Loan 2015-07-23 £50.00
Loan 2015-07-30 £70.00
Loan 2015-08-07 £70.00
Loan 2015-08-17 £70.00
What happens next?
To confirm our decisions were appropriate, we’d be grateful if you’d give us some information to help us confirm the loan was affordable. please give us the information using this link.
Lending Stream Customer Service Team
Sara (Debt Camel) says
Are you asking if this is genuine? It may be, but you are the first person who has reported this. I suggest you phone Lending Stream customer Services on 0203 808 4440 to check.
what information are they asking for?
Liam says
Hi,
Just to clarify, I have had an upheld affordability complaint where interest and fees were removed. Am I correct in saying that I will not be eligible to be part of the scheme. I contacted the scheme provider who took my vote over the phone but later same evening received an email saying due to a previously upheld complaint I will not be able to be part of this.
Just looking for some clarification please.
Thanks,
Liam
Sara (Debt Camel) says
Did you have more than one loan from them?
Liam says
Hi,
Thanks for reply.
I had only one loan and outcome was that all interest and fees removed and guarantor removed.
Balance still outstanding but I am not in any position to pay this.
I just found it interesting the scheme were happy to take my vote over phone but Everyday loans confirm I am not eligible for the scheme.
Thanks again
Liam
CS says
After sending in my complaint about a GeorgeBanco loan i’ve received communication to stop my payments.
“We therefore ask that you immediately cease making payments towards your loan. ”
Is this a common response, I was expecting to have to keep paying and the amount be ring-fenced for me on successful claim.
Thanks CS
Sara (Debt Camel) says
See Nicholas’s comment below this one.
Patrycja says
Hi,
I have taken 2 Everyday Loans before March 2021, one has been paid off the second one I’m still repaying through debt management plan because I have other debts aswell. Can someone advise if I can make a claim and how to do it?
Sara (Debt Camel) says
Yes you can make a claim and you should do this now.
Just send them a brief email as the article above says
Sharon Fitzsimmons says
I have received emails from non standard finance about compensation for a George Banco loan I had paid odd but unsure if I have to do anything
Sara (Debt Camel) says
Was the email telling you there was a Scheme? Or telling you they were going to refund you some money?
Nicholas says
Georgo banco stopped my cpa. I phoned them and was told my loan was closed. I think I still owe £6000 and have 2 more years on my loan . Can you tell me what is happening please because when I phoned I was told my loan was closed
Sara (Debt Camel) says
There has been a review about NSF’s guarantor loans for a while. It may be that as a result they cancelling some of them? cS’s comment above this one suggests this may be happening.
Nicholas Edwards says
Thank you. I had 2 everyday loans before 2021 . I have paid them off would these come under this sceam aswell as my georgo banco loan which was taken out in February 2021
Sara (Debt Camel) says
yes.
Nicholas Edwards says
Thank you for your reply. I’ll just wait. I have complained
. So I will just wait and see. Probably won’t get anything back.
Nicholas says
I contacted a solicitor before this happened. Will this affect me as georgobanco contacted me after I got a solicitor involved
Caroline Gibbs says
Hi Sarah
I made an affordability complaint to Everyday Loans
as suggested above! This is for a current Loan. I have a previous loan (which was paid off) which is being considered in their new scheme. My complaint for my current loan has been ejected. My question is do I forward on to FOS now or wait until we know more about Everyday Loans future? I know I have 6 months to forward to FOS. My thoughts are if FOS agreed with the rejection am I likely to get the same result under the new scheme for my previous loan?
Sara (Debt Camel) says
Go now. I can’t see any reason to wait.
My thoughts are if FOS agreed with the rejection am I likely to get the same result under the new scheme for my previous loan?
The previous loan may be rejected anyway. You can over think this sort of thing.
Anne says
Hello Sara,
I have a credit card debt of £5,000, a paypal debt of £3,000, two loans from a company that amount to £9,000, my car finance and a loan from EL. The EL loan was for £3,000 but with £10,000 interest on top. I was desperate. I took the loan about three months ago. Everywhere else declined me.
I have emailed an affordability complaint and I asked for help to see if I could stop making payments whilst they investigate and no one is getting back to me. What do you suggest? I am so stressed it’s making me sick. I’ve never been so low on money and I have asked them that all I want is to go back to my financial position before taking out the EL Loan as prior to this I was keeping afloat :(
Sara (Debt Camel) says
I think you should talk to StepChange about a debt management plan for all of your debts except for the car finance, so including this EL loan, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx. And cancel the direct debt to EL.
Also consider affordability complaints about the company that has given you two loans (template in here https://debtcamel.co.uk/refunds-large-high-cost-loans/) , and the credit card and paypal (template in here https://debtcamel.co.uk/refunds-catalogue-credit-card/). Winning any of these will really speed up your DMP.
Ann says
Would cancelling the direct debit to EL cause for any of my assets to be recovered? I’m terrified of any debt collectors :( I am going to phone Stepchange tomorrow! :)
Sara (Debt Camel) says
Bailiffs can’t be sent until a creditor has got a CCJ. EL are not going to start this lengthy process if you have a complaint in until it is resolved, including going through the Financial Ombudsman if EL reject you complaint.
And it is very unlikely they would if you are in a StepChange DMP either.
Stopping payments will harm your credit score but
1) if you can’t afford to pay them, you have no practical alternative. Borrowing more just makes your situation worse
2) win the affordability complaint and all negative marks on your credit record will be removed
3) your credit score must be poor anyway to only be able to borrow from the likes of EL
Ann says
Thank you so much for all of your advice. It’s really appreciated. One final question, do I inform them that I’ve cancelled the direct debit? My accounts are all in minus. This has never happened to me before getting the ELL loan.
Sara (Debt Camel) says
yes tell them, and tell them you are talking to StepChange too
Ann says
Thank you so much Sara! No one at ELL is helping me or responding to my emails despite me being told they would forward my emails on to the team who can help with payments during the investigation period. I’m beginning to think ELL is a massive scam/dodgy company and that I’m deeply regretting getting credit from them?!!
Ann says
Well after telling them I am in my unarranged overdraft I just had a seriously nasty call from them to say because I have only made two payments (I have made weekly payments of £45 for two months) I am not covered to make smaller payments or take a payment holiday. I am gutted at their treatment of me
Sara (Debt Camel) says
Tell them they should have made better affordability checks.
You can’t pay them money that you don’t have. A lender has to take account of your situation when asking for lower payments, they can’t operate a blanket refusal because it is too soon in the loan.
But much better cancel that DD and talk to StepChange and get this debt included in a DMP – they aren’t going to argue with StepChange. Also your other debts need to be included as they were the problems that lead to you taking this EL loan out.
Ann says
I honestly feel like they’re a predatory company and I’m tempted to report them to the FCA. I’m classed as medically vulnerable and have told them I cannot even afford my medication. I feel like they are total bullies. I’ll tell them this information tomorrow when they contact me about the missed payment! I could cry but your advice is giving me the strength to get through, so thank you Sara!
Sara (Debt Camel) says
ok but talk to StepChange instead. Much nicer… and they will sort out the other debts as well.
Sara (Debt Camel) says
THE ARTICLE ABOVE has been update now that the Scheme has been approved and is live
Kat says
Got the email today to claim. Done … said it can take a week to be assessed.
Rich says
So the scheme is self regulated?
They are now in a position to refuse any claim they want out of hand without any come back. Ring fenced payments? If you are going to fall for that I’ve got a nice bridge to sell you.
They need to be back in court, this needs sorting out and a precedent setting.
John says
Hi Sara,
I have submitted my Everyday Loans Claim , as it was a joint loan with my wife, do we need to do a claim in her name as well?
thanks for all your help
John
Sara (Debt Camel) says
I don’t know – I suggest you email them at contact@nsfclaims.co.uk and ask.
Ann says
Hello Sara,
I just wanted to say thank you for all your help. I reached out to StepChange today and now have a plan going for my DMP.
Every loan/credit company I have informed about the payment difficulties and impending plan with StepChange have been FANTASTIC and so supportive… aside from Everyday Loans who are still ignoring my emails! I looked back on my loan, £10,500 for borrowing £3,000. Shocking.
I really do hope EL get checked out soon by some form of financial regulation I really do!
But now on way to help with StepChange and they even had a ‘are you disputing any of these creditors’ option – bingo :D
Hana says
Hi ,
I took a loan out with everyday lending in 2019 – loan was £5750 and total with interest is £11000. I have so far paid £6400 . I have submitted my claim and hopefully they will update me soon.. what would it mean if it goes through .. will my remaining balance be wiped off .. will I get any compensation ..I have paid my original loan balance and more .. it does not make sense to be charged £1100 for a loan of £5750 .. if anyone could advice
Sara (Debt Camel) says
if your claim is upheld and you don’t pay any more, then the rest of the loan will be wiped and you will get back some percentage (their guess is between 24% and 31% but that could be way out) of the £650 (thats 6400-5750) interest you have paid to date.
Karen says
Where did you put claim in (email)?
Ive tried but not accepting claim
Sara (Debt Camel) says
Have you set up a portal account? If you haven’t, that is what you need to do, then you submit the claim there.
Any problems in setting up a portal account, email the address given in the article above.
Lou says
Hi Sarah,
I submitted a claim via email (as above) do i need to do anything else?
Sara (Debt Camel) says
You don’t make a claim by email – you have to set up a portal account and submit the claim there. See the article above.
Karen says
Hi Sara
Sorry if I seems a bit thick but where can i set up a portal account? Or is it just a case of emailing the below email?contact@nsfclaims.co.uk
Sara (Debt Camel) says
read the How to send a claim to the Scheme section in the article above.
John says
Hi Sara,
We had a problem using our original reference for the Portal, but as soon as I put in the agreement number it worked, others may be having the same problem.
Also, under this scheme does anyone oversee the decisions that NSF makes regarding the claims? Can they just decide not to accept any of the claims without giving any rationale or be accountable to any third party?
Sara (Debt Camel) says
No one oversees the decisions. There is an internal appeal mechanism set up within the Scheme – if your claim is rejected you will be told how to appeal.
Karen says
Hi Sara
Thanks for your help. I’ve now managed to log a claim
Stressed Anonymous! says
Hi Sara,
Similarly to Ann above, I am unable to afford my repayments pretty early on into my loan. I have applied for a Debt Management Plan with StepChange and just like Ann above, have informed the team at Everyday of my situation with no communication returned from them.
I have only recently got my loan with them so I emailed a basic email stating I would like to raise a complaint for affordability.
I have not paid my loan for a few weeks now and am surprised no one from Everyday have attempted to contact me through telephone, letter or email.
This is actually causing some ‘fear of the unknown’ stress for me.
What is the most likely approach Everyday will take in terms of me not paying?
Sara (Debt Camel) says
The most likely thing immediately is they will accept the DMP payments.
Ihey have 8 weeks to reply to your affordability complaint – if they reject it, send this straight to the Ombudsman – as this loan is recent the Scheme doesnt apply to it.
What other debts will be going into your DMP? Have you looked at affordability complaints about them too?
Siobhan says
I am in a DMP and EL are accepting payments. All my creditors accepted except one so I just pay them a token amount outside of my DMP. Hope this helps
Sara (Debt Camel) says
which creditor hasn’t accepted the DMP?
Pat says
Hi,
Can I make a complaint for loan taken after 21 march 2021? Why they take complaints only for the loans taken before this time
Sara (Debt Camel) says
You can! And if EL reject it you can send it to the Ombudsman. This BETTER than a complaint in the Scheme.
Ann says
Hi Sara..
I got my debt management plan confirmed today but nothing on there suggests it’s going to EL and they still haven’t responded to my emails……
Looking like they’re potentially refusing the DMP?
Not sure where I go from here :(
Sara (Debt Camel) says
This is with StepChngae? and you have told SC about the EL debt?
Ann says
Yes StepChange.
I told them via the application form and said on there that I felt it was unaffordable lending and that I was arguing it. I also chatted to StepChange on the telephone about the EL debt and they were shocked at how extortionate the interest was, but they haven’t mentioned anything about it on the confirmation agreement plan that was emailed to me today :S
All my other debts are listed bar EL….
Sara (Debt Camel) says
Go back to SC and ask them to add the EL debt. EL cannot refuse to have this included.
Ann says
So ELL have refused to go on my DMP with StepChange and have still not responded to my complaint. Really do not know where to go from here :(
Sara (Debt Camel) says
Have StepChange told you this?
Sara (Debt Camel) says
Just let StepChange make payments to ELL. It is VERY unlikely that they will refuse to accept these.
Jennifer says
I have received a letter from NSF with a reference number and also emails. Not sure what i need to do and if this is a scam to be honest as all my loans are now cleared.
Sara (Debt Camel) says
This isn’t a scam. The scheme is really and NSF have to tell all past and present borrowers about it.
It sounds like you had more than one loan – was this from Everyday Loans?
Were these loans difficult to repay? If they were easy and your financial position got better because the loan helped, then you don’t have to do anything, you can ignore the Scheme.
But if repaying the loans proved hard, and you ended up having to borrow again from them, or a different lender, then the loans may have been “unaffordable” even though you repaid them on time. In which case you may be able to get a refund of some of the high interest you paid by making a claim to the Scheme. This is easy, you need the reference number from the letter and the article above these comments explains how to make a claim.
Spacecat says
Tried to register claim naf goes in a loop email registered .. nothing called telephone number says closed ?? Really how can I register my claim
Sara (Debt Camel) says
Try to phone on Monday?
Z says
Hi I was made bankrupt due to things spiralling out of control when everyday gave me a loan they knew I couldn’t afford (car payment hadn’t yet shown on bank statements so she said let’s pretend I do t know about that one) will I get compensation I paid over half of my loan then hit rock bottom
Sara (Debt Camel) says
I an sorry but if you went bankrupt after taking this loan, any refunds from a claim will be paid to the Official Receiver, not to you.
Z says
Does this still apply even though I have been discharged
Sara (Debt Camel) says
Yes it does – the right to make a claim was an asset you owned (even though you didn’t realise it) when you went bankrupt and it then became the property of the Official Receiver.
MKK says
Hi,
I submitted my claim via the portal and said i would hear a response in 7 working days.
Has anyone received an update on their claim at all?
Also, I submitted a complaint of my current loans with Everyday loans, I borrowed £5000 and now I am apart of a DMP with payplan, EL have agreed it was unaffordable and agreed to wipe off the interest and I just owe the remaining of what I owe which is about £2k, in the letter I would need to repay this in full – but i cant afford that. Will I just pay towards the remaining outstanding balance via the DMP or will it revert to the balance plus the interest if i can’t pay it in full now?
Sara (Debt Camel) says
The remaining 2k balance can be repaid in your DMP and no further interest will be added
MKK says
Thanks Sara :) x x
Rich says
Has anyone had the email from the portal
Your complaint will take longer to assess as we have had more complaints etc
Lou says
Yes i have recan email stating the same
Sam says
Has anyone had a decision yet? Submitted mine on 27/06 but still showing as decision pending
Sara (Debt Camel) says
The Scheme has only been running a month. It would be VERY unusual for anyone to have received a decision yet. And NO-ONE will have received a payments. Schemes are very sloooow, this doesn’t mean that things are going wrong.
There is some chat on here about loans beeing wiped and refunds but they refer to recent loans, after March 2021. They are being dealt with outseide the Scheme.
Rich says
I complained originally in April just after the first letters for the scheme, my complaint was ignored and I reissued my complaint using the claims portal on July 2nd.
I’m continuing to get emails and sms saying your claim will take longer because of unprecedented demand, it seems while others who have made claims/complaints after me have had their claims dealt with. I am starting to think something funny is going on, either delaying tactics or something more sinister. Is anyone else in the same situation and is there any way I can push them along or is there a complaint I can make as I originally forwarded complaint to EL prior to the scheme starting.
Rich says
I just spoke to the people running the scheme about the delays, they said they are waiting to make decisions until their appeal system is up and running.
I asked is it something that is being enforced/instructed by a court or is it something they are organising themselves. The lady said that it’s something they are instigating themselves.
She mentioned the first batch of decisions should be released next week and no one should have had a decisions under the scheme yet.
I am going to contact FOS anyway as I originally made a complaint in early may and never heard anything from them since, only emails about the NFS claims. I consider that I had put my complaint in before the scheme was put in place I should have a decision made by FOS or at least questioned by FOS
Hannah says
Hi there,
I’m also getting the email stating complaints will take longer to assess.. I did ring in and was told decisions will take longer but should hear next few weeks and that payments won’t be until April 2024 and that I need to make my payments till then or it will go third party ..doesn’t make sense I have to continue payments if it’s something that I will get refunded later ..very confusing
Rich says
Has anyone here actually had a decision under the scheme? Has anyone been paid any money out under the scheme ?
Call me paranoid or maybe even not trusting but this really is starting to look like at best robbing Peter to pay Paul or at worst delaying the inevitable insolvency and stringing creditors along.
Ring fenced payments until April next year, until they can afford to pay people back, it sounds dodgy as hell. We are being strung along, especially as we are in reality creditors to EL and not debtors.
Rich says
And I don’t think the word you are looking for is “confusing” I think “scandalous” or “scam” is more appropriate
Sara (Debt Camel) says
The Scheme has only been running a month. It would be VERY unusual for anyone to have received a decision yet. And NO-ONE will have received a payments. Schemes are very slow, this doesn’t mean that things are going wrong.
There is some chat on here about loans being wiped and refunds but they refer to recent loans, after March 2021. They are being dealt with outseide the Scheme.
John says
I have reduced my payments to ELL, and Told Them I was doing that, they wanted me to submit a financial statement plus bank statements to them so that they can decide what is affordable, which is a joke of course , they are incapable of deciding what I can and cannot afford, so I restated it in writing. I would rather a court decided than ELL
Sara (Debt Camel) says
you have made a claim to the scheme?
what are the rest of your finances like at the moment? Most people with one of these expensive loans also have other debts as well?
John says
Hi Sara, current finances not great, maxed on a couple of credit cards, total about £2000. A store account JD Williams, £2700, and paypal, about £2500. People just kept putting limits up.. stupidly I used them. I Retired last year but I’ve gone back to work now, in the NHS, it’s the only way I have to pay them. I’m 68 now, won’t be able to retire until I’m 70.
Sara (Debt Camel) says
ok, I think you should talk to StepChange about a Debt Management Plan (DMP) for all of your debts, including this EL one. That will get interest rozen on the cards, store account and paypal. And stop EL bothering you. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx
If your complaint is later upheld in the Scheme, the DMP will speed up.
Also look at making affordability complaints against all ofyour other debts that have increased your credit limits. See https://debtcamel.co.uk/refunds-catalogue-credit-card/. these complaints cab take a long while to go through and ypu may have to send many to the Ombudsman. Don’t be fobbed off. The DMP gets you into a safe financial place while all this goes through.
Ann says
Hi Sara,
I got my final response letter from EL – they will not be upholding my complaint as they worked my expenditure to leave me with £60 per month, they have not taken into account my prescription fees and missed days of work with no sick pay due to my health condition. They keep writing to me threatening to send someone to my home to talk to me about my account. I’ve taken it to the ombudsman – what are my rights whilst the ombudsman investigate my complaint? Cheers – a very worried Ann :(
Sara (Debt Camel) says
do you have other debt problems as well?
Ann says
Yes lots! I’ve set up stepchange but due to my ongoing complaint with EL they wont add them on just yet.
Sara (Debt Camel) says
Tell StepChange that EL have rejected your complaint so it will have to go to the Ombudsman and so you want the EL debt added into your DMP.
Dean says
Hello, all.
I’m not quite sure what is happening here with all this, but all I know is that I got out a £4500 loan about 8-9 years ago and Everday Loans never did an affordability check for me and offered me this money when I was at rock bottom and couldn’t get a loan from the bank. Over the following years, they kept contacting me with an offer to receive a further £1000 on the loan for being a loyal customer. Stupidly, I took it every time. Anyway, several years later I have paid back every penny and all of the extortionate interest they added and I have washed my hands of them.
I received this email out of the blue a few months ago to make a claim so I thought …. why not? …. you never know.
I don’t know why, but I think the people who paid all the money back a while ago are going to be the ones who get shafted. I think this because this money is in the distant past now and that money is, no doubt, gone forever.
I hope I am wrong though. Good luck to everyone involved.
Darren Seddon says
Everyday loans replied to my email I sent today
Thank you for your email, I do apologise the claims decisions are taking so long to come through.
We have been updated with a reason for this, we have legally got to have our appeals process in place on the portal before any decisions can be sent. The appeals are due to go live very soon so the letters/emails will shortly follow. My estimate would be in the next couple of weeks you should have received this.
I do understand the frustration with this, as a customer service team we share the frustration as we want this to be sorted as soon as possible our end also.
If you do have any further questions, please feel free to ask me.
Ann says
Hi Sara,
After EL refusing to uphold my complaint, the ombudsman has written to EL and told them that their loan to me was irresponsible and pushed me into more debt, for a longer term :D They have a short timeframe to agree to only making me pay back what I have had, and to agree to a small payment plan with me. Obviously StepChange have put EL on my DMP now – do I need to inform StepChange once EL make their decision?
Thank you for all of your help, you may have saved my life.
Sara (Debt Camel) says
No, wait until this is resolved with EL. Repaying the balance can be through the Stepchange DMP.
Dan says
I paid mine off in 2018, I made a coMplaint and was declined in 2019, this was for unaffordable lending and being taken for vulnerable as I was already in 8,000 debt and they gave me £3000 and had to pay back £7000,
I received email from nsf regarding scheme, will I be entitled if I already paid my loan off through stepchange?
Sara (Debt Camel) says
Yes you can still make a claim.
Jonathan Doherty says
I’m receiving a holding email every 10 days or so, advising that they are dealing with a large number of claims etc.
Wish they’d just stop and contact me when there is actually some news/progress.
Damian Del says
Hi, I have a loan with Everyday Loans and the NSF rejected my claim.
I have been self employed for over 15 years and my income has fluctuated before and after taking out the loan. There has been a few occasions when I have struggled to or not paid my bills on time.
I am now on a debt management plan with The Financial Wellness Group because my bills, mainly the Everyday Loans high monthly payment is more than my income.
Do I have a eligible reason to appeal their decision?
Sara (Debt Camel) says
how long ago was this loan taken out?
how long have you been with FWG?
Damian Del says
Thank you for your reply.
The loan was started in March 2019 for £7000 and I’ve been with FWG for 13 months.
Sara (Debt Camel) says
ok so that date definitely falls within the Scheme.
Yes you can appeal this within the Scheme. What did the your bank statements show for the months before the loan was given to you?
is FWG still charging you DMP fees?
Damian Del says
Thats good news.
My statements showed that I was constantly using my overdraft before applying for the loan.
Yes, since the start of my debt management program I’ve been paying FWG every month.
Please can you help me write my online appeal message?
Sara (Debt Camel) says
No sorry. I dint have time to help with individual appeals. You should attach your bank statements and explain how they show the loan in unaffordable.
Also look at affordable complaints about the overdraft (https://debtcamel.co.uk/get-refund-overdraft/) and the other debts in your DMP https://debtcamel.co.uk/tag/refunds/. You may get far more back from other complaints where there isn’t a scheme and you can Send thos to the Financial Ombudsman if they are rejected.
And look at a complaint about FWG who hasn’t been charging DMP fees since February for new DMPs but hasn’t told its existing clients like you that that switch to not paying fees. Exactge same DMP but no fees see https://debtcamel.co.uk/gregory-pennington-fwg-dmp-fees/
Damian Del says
That’s fine as I already sent the appeal this morning.
I included information on the negative affects the high repayments had on my finances, proof of my debt management plan and bank statements showing that I was heavily using my overdraft when I applied for the loan.
Damian Del says
And thank you for the information about FWG fees.
I’m writing the complaint letter today.
Rich says
Hi,
What started the ball rolling with the affordable loans claims, was it a precedent or was it a decision by the ombudsman?
If it was a precedent has anyone ever taken EL to court over the matter?
Sara (Debt Camel) says
Affordability claims started in about 2015 with payday loans, and it was the FOS decisions that determned how these claims are assessed and what the redress is.
So far I am aware there has only been 1 court case, this one https://debtcamel.co.uk/kerrigan-elevate-credit-unfair-relationship/ about large scale payday loan relending, where the end decision was very close to what the Ombudsman does.
Rich says
Thanks for the reply,
I’ll have a look at that case.
Jonathan says
Received an email today, informing me that my claim under the scheme has been rejected. What a load of…..nonsense! I took, and ultimately repaid my loan in full, at a time when I was up to my eyes in an overdraft, credit card debt and payday loans. Grrr!!!!!
Sara (Debt Camel) says
Appeal it.
How long ago was the loan?
Jonathan says
2014. Unfortunately I don’t think I have documentation to support an appeal at this late stage.
Hannah says
Just received email to say my appeal has been rejected .. my loan was 2019- and paying almost £11000 for a £5000 loan .. this not right .. I will be making a appeal .. must be a scam they trying to do
Ash says
Hi there, I received a rejection to my claim today. My loan was from 2013 and I have fully repaid this. At the time I had a CCJ, tonnes of payday loans, debt, couldn’t afford my rent etc. have I been rejected because it’s more than 6 years ago?
Sara (Debt Camel) says
I don’t think so. You can appeal this.
J B says
I have also received a rejection, I called them (got through within 2 minutes so not bad) where they couldn’t give the exact reason for the rejection, but confirmed that it would go off what we told them at the point of taking out the loan along with our bank statements etc. If you had other circumstances in play, do the appeal and attach as much information as you can (I found my DMP with StepChange and sent that over).
Rich says
I’m wondering if we are going to get adverts on the TV over the next few weeks from Leigh Day and the usual suspects “Had your claim rejected by EL join our group action to take them to court”
I’ve got legal advice as a perk of my job, I think I’m going to be making use of it, what’s going on here seems like a complete stitch up.
Anyone who has been refused, have you had any reasoning or an email explaining why? How can people lodge an appeal not knowing how the original claim was assessed what criteria was used etc.
Anyone who has been refused any news on your “ring fenced payments”
Sara (Debt Camel) says
“Had your claim rejected by EL join our group action to take them to court”
Not after a court approved Scheme of Arrangement
Rich says
High court or Supreme Court decision? There are other courts, if you can persuade them to revisit it decisions can be reversed/changed and they can also force compliance.
The FCA has also made guidance how these schemes are to be ran, for example they state.
“ We would be concerned if a firm proposes a compromise which pays customers less than their full redress entitlement but continues to trade, where such redress liabilities have been caused by serious and/or deliberate misconduct by the firm.”
The court that made the decision and the FCA need to be informed of these refusals their reasoning and why what differs from previous cases FOS has upheld, I don’t think people should lie down and take it.
Sara (Debt Camel) says
A Scheme is an arrangement under Part 26 of the Companies Act that allows a firm to vary the rights of some or all of its creditors and/or shareholders.
Creditors have to vote to approve the Scheme and it has to be sanctioned by the Court, see Practice Statement (Companies: Schemes of Arrangement under Part 26 and Part 26A of the Companies Act 2006).
If someone thinks that a firm is not abiding by the terms of the Scheme, then a case can be brought in the High Court. But the NSF scheme never said it would take decisions in the way that FOS would. Nor has it said that it expected the same uphold rate as at FOS, so it is not at all clear that it has breached the terms of the Scheme.
Look, I don’t like Schemes. I they are an outrage and i wish the FCA had the guts to say that no firm proposing a scheme would be allowed to carry on lending. But there is no point in me sympathising which what you are are writing when I think it has no practical chance of success.
People should pursue the appeal process as far as they can. And I encourage everyone to look at other possible affordability complaints against other lenders.
John says
Hi Sara, like mist people I’m expecting an email that says my claim has not been upheld, its pretty clear they have very little intention of being honest.
I have made the unaffordability complaint etc, but I would also like to make a complaint on the basis that when ELL agreed to reduce my payments because i could not afford the original amounts, they have never given me any recalculated payment stream, no definitive number of payments, no indication of what the total interest would be nor when the last payment would be, just told to keep on paying, this is over 2 years ago. I have asked both the local branch and the Head office for those details, never got an answer
ould my case be heard by the FCA,
Sara (Debt Camel) says
Yes you can. But I suggest you wait for the scheme decision first.