UPDATE: Amigo are proposing a Scheme of Arrangement, see Amigo’s Scheme – how to vote & how it will work. If you haven’t already put in a complaint, it is now too late to send one in by email using the template on this page.
Guarantor loans are very expensive. Often the lender didn’t check properly that you will be able to manage the loan repayments without having to borrow more.
If proper checks would have shown that you couldn’t afford the repayments, complain! There is a template letter in this article to help you.
You can get an existing loan reduced so you only repay the amount you borrowed, or get a refund if your loans have been repaid
If your complaint is rejected you can send the case to the Financial Ombudsman (FOS) who is upholding a lot (90%!) of guarantor loan complaints.
If you are the guarantor not the borrower, read Complaining if you are a guarantor which has a different template letter to use.
Contents
What is an affordability complaint?
A loan is not affordable if paying it left you so short of money you had to top up the loan, or borrow more from another lender or get behind with bills.
Does this sound like you? Then make an affordability complaint.
Just making the payments doesn’t prove the loan was affordable! You may have been repaying with difficulty, taking out other loans, because you didn’t want your guarantor to be affected.
You can complain if you are still paying the loan or if you have repaid it all.
If you win your complaint:
- interest is removed from a loan you still owe, so you only repay what you borrowed;
- your guarantor is released from the loan; and
- you can arrange to pay the remaining balance at a reduced rate.
When your loans have already been settled, you get a refund of the interest you paid.
What should the lender have checked?
Guarantor lenders should have checked the loan was affordable for you before giving you the money.
The lender should have made sure you were likely to be able to make the repayments for the whole length of the loan.
Guarantor loans are large financial commitments. So I would expect a lender to have asked for evidence of your income, to have checked your credit record, and to have verified your expenses.
Some things a lender may have got wrong:
- It doesn’t matter if your guarantor is well off, the loan has to be affordable for you!
- You may have given said your expenditure was lower than it was, because you were guessing or desperate. The lender should have checked your figures.
- If you were self-employed or had wages that varied, the lender should have looked at how your income went up and down.
- The lender should have checked your credit record to see all your debts. If you had recently taken more loans or missed payments/defaulted, the lender should have been careful as your position was getting worse.
- When you top up a loan, the lender should check the new larger loan is affordable. If the current loan was causing you problems or your finances had got worse you shouldn’t have been given a larger loan.
If you feel there was something else unfair about your case, add that into your complaint as well!
What would a “fair solution” be?
If the lender or the Ombudsman decides the loan wasn’t affordable, this is what happens:
- The loan has been repaid, then any interest you paid should be refunded to you.
- The loan is still outstanding, then interest should be removed from the balance that is owing, so you only repay what you borrowed. Your guarantor should be released from the loan. The lender should accept an affordable monthly payment from you to repay the rest.
- Any payments made by the guarantor are refunded to the guarantor, not to you.
Will a complaint affect your guarantor?
Complaining won’t affect your guarantor if you carry on making the payments. The guarantor shouldn’t be told you have complained unless your complaint is being upheld.
If you stop paying the loan when you make a complaint, the lender may decide to get your guarantor to pay it. If you don’t want this to happen, you have to somehow carry on making the payments even though it’s hard.
If you can’t afford to carry on paying and you don’t want to hurt your guarantor talk to a debt adviser about your options in this difficult situation.
Making an affordability complaint won’t make things worse, and it may help in a few months time, but it isn’t an immediate escape from your problem.
Think about whether your guarantor also had a good reason to complain – see Complaining if you are a guarantor for details. If they win a complaint, they will be removed as a guarantor, which would take a lot of pressure off you.
How to complain to the lender
A template complaint to use
Send your complaint by email – here is a list of lender’s email addresses.
Use SAR AND COMPLAINT BY BORROWER as the email title.
Here is a template. Change it to describe what happened to you and delete what doesn’t apply.
Only put this in if it applies to you: I took a top up of [£2,500] in [March 2018]
Add a reference number for the loan or give some other details such as your date of birth and your address when you took the loan out.
Please send me a copy of all the personal information that you have about me, including but not limited to all credit record checks, a copy of my loan application(s) and recordings of all phone calls from me. You have 30 days to reply to this Subject Access Request (SAR).
I am making an affordability complaint. This loan was/These loans were unaffordable for me and you would have realised this if you had checked properly before giving me the loan(s).
Delete or change any of the following so they are right for you:
[You would have seen from my credit record that I had recently missed payments/had defaults/was in a DMP/IVA.]
[I was on a low income/My only income was my pension/benefits.]
[You did not ask me for proof of my income or expenses and you did not ask about my expenses in detail.]
[I get ESA/PIP/DLA but you did not ask me if I had any extra expenses because of this.]
[I had a gambling problem which you could have seen from my bank statements.]
If you topped up the original loan: When I topped up the loan you should have seen from my credit record that my financial situation had got worse. [delete if not relevant: You ignored the fact that I had made several payments late to you.]
If you still owe money:[I am asking you to remove the interest from the balance so I only have to repay what I borrowed, release my guarantor and allow me to make lower monthly payments.]
If the loan has been repaid change that to [refund me the interest that I have paid plus 8% statutory interest.]
If you don’t want your guarantor to be told: [I want to carry on making the normal monthly payments because I do not want my guarantor to be affected. Please note I do not want my guarantor to be informed about my complaint unless my complaint is upheld.]
You have 8 weeks to respond to my complaint before I send it to the Financial Ombudsman.
If you would like some help with this, then go to your local Citizens Advice.
Definitely send bank statements!
It’s good if you can attach bank statements to your complaint. Send three months of statements before each loan or top-up and two months afterwards. So if you had a loan in August 2017, send statements for May-September 2017.
These statements will show how unaffordable your loans were. Don’t worry if there is gambling showing on the statements – that helps your case!
Don’t delay starting a complaint if you are trying to get your bank statements – just add them later. But now is a good time to get the statements as they can help your case.
What to do with your personal information (SAR)
Copies of personal information (SARs) are often sent out by post, so if you have moved, make sure the lender has your new address. You should get the information within 30 days. It is often sent on a CD with a password.
This information is not the lender’s response to your complaint. Most lenders will send that separate from the SAR, usually a few weeks later.
You don’t need to do anything with the SAR, just keep it safe. You have asked for it now so that you have the details in case the lender rejects your complaint or makes a poor offer so your complaint has to go to the Ombudsman.
Taking a complaint to the Ombudsman
If the lender rejects your complaint, go to the Ombudsman
Don’t delay in sending a case to FOS – it has to go within 6 months. And while you have an “open” complaint at FOS, the lender cannot take you to court.
Lenders seem to reject many complaints and hope you give up! So don’t be surprised if a lender says No, the loan was affordable or We based our decision to lend on your application which was inaccurate.
If the lender says No, or you haven’t had a reply 8 weeks after sending your complaint, send your case to the Financial Ombudsman (FOS) the best way to do this is by using the FOS online form.
This is free to do and easy – you don’t have to quote laws or regulations. You can just send FOS the complaint you sent the lender. And if they have replied and said something that’s wrong, mention that as well.
You don’t need to go into details – a short FOS complaint is fine. If you want to add more details, read How Subject Access Request information can help an affordability complaint. But you don’t have to do this.
If only some loans are refunded, is this fair?
Sometimes a lender will say that just a few loans are unaffordable and remove the interest. Which is good, but should it be better?
If the rejected loans caused you difficulties and led to you needing a top-up, send your complaint to FOS and say you think the earlier loans too should be refunded.
Are you likely to win your Ombudsman complaint?
The Financial Ombudsman is agreeing with the customer on 90% of cases!
It is much simpler to win a case at FOS than a court case. If a lender has already started a court case against you, Citizens Advice can help you get the court case “stayed” (that’s legal jargon for put on hold) while you take an affordability complaint to the Ombudsman.
Complicated cases & help with guarantor loan complaints
If you want help with these complaints, Citizens Advice can help. Every Citizens Advice has access to the national Specialist Debt Advice Service if this isn’t something an adviser has come across before.
Leave a comment below this article to discuss what to do or talk to Citizens Advice if:
- your guarantor has made a lot of payments.
- you have been bankrupt, in an IVA or a DRO – read guarantor loans & insolvency .
- you have a CCJ from the guarantor lender – read guarantor loans & CCJs.
- if your debt has been sold to a debt collector.
Do not use a Claims Firm or a solicitor that is acting as a claims firm. There are two good reasons why you should avoid them:
- they will probably do a very poor job. They are not experts. They won’t put time into looking at your personal case.
- if you win a case but still owe a balance, this is usually just reduced. But the claims firm will expect you to pay their high percentage fee immediately even though you have not received any cash refund and still have the rest of the loan to pay.
Amigo Scheme – timetable & voting
Is your credit or overdraft limit too high?
Complaints about large high cost loans
JR says
Hi,
I sent an irresponsible lending complaint to TrustTwo/EDL a number of weeks back on a loan and subsequent top-up loan 2/3 years back. They got back to me this morning saying “As a responsible lender, we are obliged to carry out a number of suitability and affordability checks on all loan applicaons. These include credit, employment, affordability and identy checks. I have found evidence that all the necessary checks were carried out when this loan was given to you…. This was verified using Call Credit, meaning no bank statement or payslips were required…. I have also carried out an affordability calculaon, in which we used ONS data (office for naonal stascs) to work out your living expense as approximately £510. Including the financial commitments from your credit file it shows you would have had approximately £170 of disposable income remaining.”
I replied directly to their final response saying they didn’t check my bank statements and had they done that, I doubt I would have been approved for the loans – and attached bank statements from 3 months prior to the first loan being taken.
Just looking for advice on whether I should escalate to FOS, or am I just flogging a dead horse here? What would you do in this case?
Many thanks!
Sara (Debt Camel) says
You could email them to say your case goes to FOS in a week if they haven’t reconsidered their decision?
Lottie says
Hey, has anyone had any redress from Buddy loans? I got my FOS decision from the adjudicator who said they were wrong and they need to put it right. Just wondered if anyone was successful or if they passed to ombudsman regardless of FOS decision!
Andrew says
Mine was passed to ombudsmen as buddy did not agreed with the decision. Waiting for review since August 2020.
pol says
Hi lottie, my complaint with Buddy has been ongoing for 2 years now. Adjudicator ruled in my favour in July last year, Buddy rejected it so has gone to ombudsman for final decision. Just hope it gets looked at before they end up in a scheme
Lottie says
Hey Pol, thank you. Yes that’s what I think will happen. The same with one I have on going with loans 2 go. Bet they take at least a year with the ombudsman, by which time they will be either in administration or in a scheme. It’s so wrong and not fair at all. The ombudsman are so behind which completely works in favour to the company in question. Thank you , and I hope you get your claim before this happens. But I don’t think I will get mine in time!
Wayne says
Has your loan finished or still live
Laura says
Hi Sara,
I’ve finally got a figure from TFS. It was quite a chore. Because my guarantor paid off the loan for me, TFS have gone to them and offered them the full redress. I know with other companies, they ask the guarantor if they want to accept. TFS haven’t given this option, however, my guarantor has written back and said this has been paid back to them and therefore, the full redress should come to me.
Is this going to be a problem? This whole thing has caused me so much stress, and I really need this money for apts ASAP.
Thank you!
Sara (Debt Camel) says
I think TFS should listen to your guarantor and refund you. But if they don’t, can your guarantor not just send you the money?
Laura says
Yes, they would have no problem doing that, but I get all confused and worried that if they do that, they’ll open up my loan again? Or am I getting confused? It got paid off six years ago. But I’ve seen people, where their guarantor has been refunded, their loan has been opened up again?
I might be getting confused here.
I’m hoping they do listen to her, because it would be odd not to.
Thank you.
Sara (Debt Camel) says
If they open up the loan, you just repay them from the money your guarantor gets.
This can seem confusing but think of a loan where you borrowed 5000, the principal, and 3000 interest was added by the time it was settled.
If you get the refund, you get the interest back – 3000.
If your guarantor gets the refund, they get back all the money they paid – interest and principal – 8000.
Then the lender reopens your loan and says you owe them the principal 5000.
If the guarantor gives you the 8000, you pay off this 5000 and are left with 3000. So it’s the same as if you get the refund.
(There are some complications around the 8% interest but they are pretty minor.)
This only goes wrong where the guarantor refuses to give you the money back.
Laura says
Okay, thanks for that.
So, they’re not offering the guarantor the principle loan and the interest, only the interest paid plus 8% – which is the same that would come back to me. So, therefore, because the loan was paid off and they’re not offering the principle and interest, I guess there would be no chance of opening up the loan again?
It’s so complicated, isn’t it. Hopefully, they’ll just listen to my guarantor and pay me.
It is odd, because they’ve offered less than my guarantor paid to settle the loan outright, so I guess they’re not doing what other companies are doing in refunding everything the guarantor paid.
Thank you!
Sara (Debt Camel) says
they’re not offering the guarantor the principle loan and the interest, only the interest paid plus 8%
That is absolutely wrong. Are you sure?
In that case it’s best to get the refund paid to you otherwise there could be a lot of arguments ahead.
Laura says
Yes, it’s strange, but I’m absolutely sure.
The amount I paid in interest, with 8% comes to just over 5k, and my guarantor paid £5500 to settle the loan. So all together, if they were offering everything paid and interest, they would be offering her over 10k. Instead, they’re only offering the interest and 8%. Which is why I think it imperative to come back to me.
If there is any problem, I’ll have to point this out to them.
Thanks for your advice!
Daniel says
Morning , anyone know how long bamboo normally take to investigate? Do they take the full 8 weeks , sent bank statements with complaints had confirmation email to say they don’t need anything else from me .
Sara (Debt Camel) says
expect them to come back with a poor offer – but they can often be persuaded to increase it.
Daniel says
Are they normally quite quick at getting back to customers ? Or the ones that just ignore abs end up with fos ?
Jax says
They responded within 5 days of my complaint agreeing it was unaffordable. Sent my bank statements on day 4 as they requested them and got their final response the next day. Removed all interest and default.
Jacqui says
Hi Sara
So I complained to buddy loans 8 weeks ago I was supposed to get a final response yesterday and didn’t so they’ve gone over the 8 weeks what should I do as that’s a breach in there t and c
Sara (Debt Camel) says
Have you asked them when they will reply?
Jacqui says
Yeah I emailed they told me would be yesterday emailed them yesterday and today and have been ifnored
Sara (Debt Camel) says
phone them! Really this is worth trying to sort out, going to FOS is a slow process. If there is even a 10% chance of a phone call getting them to give you a good offer, it’s worth a try.
Ricky Dewitt says
Hi Jacquo, just to let you know the FOS upheld my complaint against Buddy loans.
They are not the greatest in communication, I am now waiting for my redress email from them.
Good Luck
Jacqui says
Did they take 8 weeks to reject you at first ?
How long did fos take as well.
Ricky Dewitt says
They come back within 5 weeks, rejected it, I then took it to the FOS who took another 3 weeks.
FOS since contacting me have been very quick
Wayne says
Have you had a response yet
Sara (Debt Camel) says
You could tell them it goes to the Ombudsman on Friday morning if you haven’t had a satisfactory offer by then?
Jacqui says
Hi all
So my buddy loans was accepted didn’t have to go to FOS and they paid out same day refund
Ricky says
That’s great news
Same day refund too. That’s brilliant
Waiting for them to reply to mine now
Michelle says
Good morning ,
So I had a final response from bamboo , they haven’t upheld my compliant but are offering me £150 as a good will , the loan is all paid off last year , the loan was for £3000 over 36 months i paid £3515 in interest , why would they offer £150 if they don’t believe they did anything wrong ?
Yanks
Sara (Debt Camel) says
they are trying to buy you off cheap and hope you really need £150 right now?
You can offer to compromise, say you would be prepared to accept say £2000 now to settle the case speedily? It’s up to you what you think is reasonable here. It is likely these cases may go through FOS rather faster now.
Michelle says
We are however disappointed to hear that you are unhappy with Bamboo agreeing to lend to you and whilst we are happy that we acted appropriately, there is considerable cost to administering complaints such as this.
We are therefore prepared to offer you £150.00 in full and final settlement of this complaint.
This was their offer , so in other words they don’t want to pay them fos ??
Sara (Debt Camel) says
yes. £150 is obviously a very poor offer if you feel the loan was unaffordable.
So you can either go to FOS now. Or go back to Bamboo and try to negotiate a much larger settlement amount. Some people have had luck with doing this with Bamaboo, but it is a compromise so if you want the full refund you will have to go to FOS.
Paul says
Hi Michelle, what did you end up doing in this situation? I have just had the same response from them I have paid the £1,000 borrowed and still have another £1,300 interest to pay and they have offered £128 as a full and final settlement. The reasoning for this is that they checked and I did not have a CCJ and that I have not missed a payment yet. any advise on what I can respond to this would be helpful.
Sara (Debt Camel) says
I did not have a CCJ and that I have not missed a payment yet.
That is NOT a good reason to reject an affordability complaint. Don’t take from that that you have a weak case.
Bamboo will often negotiate higfher. If you have already repaid the £1000 you borrowed and still have a balance of £1300, you could get all that balance written off at FOS. And it would cost Bamboo over £600 in a FOS fee. So would you be happy to settle for reducing your balance to say £1000? or £750? Don’t offer too low, as they will probably come back and suggest less.
Ann says
Hi Sarah I had a phone call from the adjudicater saying he didn’t think my loans were unaffordable I had ccj and other loans and have been struggling since taking them it has now been passed to the ombudsman in dec 20 and still waiting do you think I have a chance off winning I am still on reduced pay due to covid I’ve had 6mths break but still can’t pay my loan getting desperate.
Sara (Debt Camel) says
The decision on affordability is your situation when the loans were taken. You won’t win an affordability complaint because your situation has got worse since.
Who is the lender here? how large were your loans?
what is the situation of your guarantor like?
Handsome be wonderful says
My bamboo loan has been sold to debt collocter, what happens now?
it’s a guarantor loan
i paid one back of £5000 with £3765.18 interest at £243per month, then i top up with £5847.72 with £4403.54 interest, paid £1140 but due to domestic abuse from ex i was not allowed in house or make any payments after the 4 months of £285. default Oct 2020.
ive complained and had final response already
we therefore agree to waive all of the £4,403.54 interest due under your current agreement, together with the interest paid on your first agreement of £1,341.66 and we will also remove any negative information from your credit record. Overall, we will arrange for dca to reduce your outstanding balance by a total of £5,745.20.
Sara (Debt Camel) says
OK so you now owe the debt collector some balance. You can make a payment arrangement o repay it an affordable rate.
Do you have a lot of other debts?
Handsome be wonderful says
there was no mention of the first loan of £5000 with £3765.18 interest (paid), all my other debts have been write offs or defaults with no court action.
i will decline offer
Sara (Debt Camel) says
But they said “ together with the interest paid on your first agreement of £1,341.66”, are you sure you paid 3765 interest on the first loan? Or was that the interest at the start, but you settled this early with a top up?
Handsome be wonderful says
laons of 8765.18 and 10251.26
Sara (Debt Camel) says
But the first loan was settled early when you took the second loan, so the interest you paid would have been massively reduced..
The Bamboo numbers may be correct. BUT they could be wrong…
Do you know how many payments of £243 you made to the first loan.
The second top up loan., how large was the loan not including the interest they added?
And how much in cash did you get when you took the top up loan,
How much have you paid to it so far?
Handsome be wonderful says
8 payments
£5847.72
£1350
4 months
the loans were taking out in april 2019, in jan 2020 i was taken out of my property due to domestic violence against me and i became homeless. i did not receive any paper work that the debt was defaulted or assigned to a dca. i have now sar bamboo, the dca are chasing me for £9000ish under a Contingent Liability, i cant afford to repay the outstanding balance of £4506 to dca. surely they have to serve me noa they have a legal right under statute or equity , that said they cant claim due to contraventions of section 136 and 196 of the law of property act 1925 and section 82(a) of the cca 1974 (just saying)
Sara (Debt Camel) says
ok, so there are a lot of number there, to check I have understood…
Loan 1 you borrowed 5000, made 8 payments of £243
Loan 2 you borrowed 5847, received 1350 in cash, the rest settled the top up. You then have made 4 payments of £285.
Is everything there correct (ignoring the pennies)?
If it is, on my calculation you should still owe a balance of £3266
But Bamboo say you now owe the debt collector £4506? That does sound wrong.
If I have understood all the numbers right, then I suggest you go back to Bamboo and ask for an explanation about how they calculated the redress as it doesn’t look right. Say the case will go to the ombudsman if they don’t explain in detail.
Handsome be wonderful says
ive settled with bamboo but why are dca still chasing for a debt which was sold for £9,681 under a Contingency Liability. u cant change amounts owed has bamboo accepted under a deed of assignment
Sara (Debt Camel) says
“under a Contingency Liability”
“u cant change amounts owed”
“under a deed of assignment”
this sounds like you have been reading some stuff on the internet which isn’t helpful.
Instead concentrate on the facts – what did Bamboo say would happen to the debt with the debt collector?
Mr f says
Hi Sara
Quick question, do you know how these type of redress payments effect benefits, would they count as capital (I’m assuming they will but any find anything anywhere)
Sara (Debt Camel) says
Yes it’s capital, not income.
For most benefits unless you are retired the limits are under 6k no effect, over 16k no benefit, between 6 and 16k benefit reduced on a sliding scale.
You are allowed to reduce capital by using it to clear debts, bills arrears, make essential purchases (keep receipts!) and of course for everyday living expenses.
Your local Citizens Advice can help advise.
Peter says
Hi Sara ,
I need your advice once again , iv made a complain to George Banco and had my final response this morning , they am not upholding my complaint due to having plenty of disposable income at the time , there response states I had no rent to pay as I was living with parents !! I am 64 years old so that would be unusual lol , I am a private tenant and have been for 15 years at the same address , I checked my SAR they sent me and it clearly states I put down in my application I am a private tenant and how much I pay in rent and how long iv been renting that property for , so don’t know where they for living with parents and paying not rent from , what should I do ?
Thanks
Sara (Debt Camel) says
haha.
I suggest they may have mixed you up with another customer. I normally tell people to go straight to FOS as George Banco doesn’t negotiate, but in this case as they have clearly made an error, I suggest you try to phone them up and explain and say your case goes to FOS in a week if they haven’t sent you a new decision.
Peter says
Thank you Sara I will do that ,
Just quickly they done some figures in my response to justify there findings
They claim
Wages £1300
Debts and expenses £546
Their payment over 3 years £187.51 per month
= £566 disposable income
Do I sent them a email correcting their figures by added in my rent £550 so in fact my disposable in was £16 a month or let them figure it out on their own ? Ha ha
Sara (Debt Camel) says
are the 1300 and 546 figures correct?
Peter says
The application was 2.5 years ago and they stated that a advisors on their side has verified theses figures so I’m assuming yes they are correct , I haven’t looked at That part of the SAR yet but sounds about right
Sara (Debt Camel) says
Then I think your suggestion to ” correcting their figures by added in my rent £550 so in fact my disposable in was £16 a month” is a good idea.
Sounds like a good case to go to the ombudsman if they wont refund you.
Lamar says
Hi, I recently (1 week ago) used your template to file a affordability complaint with Bamboo loans (Guarantor).
I applied for a £7000.00 Loan in 2016 which I settled in 2020. I based my complaint on Low income at the time of application, Gambling addiction and not having to provide proof of expenses.
I received a reply today from Bamboo loans stating that they believe to have made a fair lending decision but are disappointed to have received my complaint and therefore are prepared to offer me £300 in full and final settlement for the complaint.
I am happy to take the settlement because I wasn’t expecting anything initially. However, this seems all to quick and easy for me. I may just be in shock that I received a response so quick with a settlement amount. But of me feels like I could get more.
What do you think????
Sara (Debt Camel) says
Bamboo will often negotiate, this is just their first offer. So how much would the max you could get be? and how much should you offer to compromise for?
How much did you pay in total to the debt – the monthly payments plus the settlement?
Was it difficult to repay the loan? Did it mean you took out more debts?
Lamar says
I paid back £14,338.66 for the loan over 48months – monthly instalments of £298.72.
Interest was £7338.66 so I would like to get at least half back. Id ask for £4000 and willing to compromise £1500-3000
I paid on time but the repayments were hard to live with which resulted in taking out extra credit and getting into more debt which lead me to DMP’s
Do you have any advise on how much and how I should counter offer in a email?
Thanks
Sara (Debt Camel) says
I don’t see why you should accept less than 3000! Your suggestion of asking for 4000 seems an ok starting point. In your reply, point out the repayments led to you taking more debt and a DMP.
of course you may well get the lot back if the case goes to the Ombudsman. And I am hoping Ombudsman cases will go through faster with staff being taken off Amigo cases… But it’s your decision what is acceptable for a fast settlement.
Lamar says
Thank you for your quick response.
I will reply with a counter offer of £4000.00 and keep you updated with the response.
kind regards
Lottie says
Hi Sara,
Or anyone else.
Buddy have agreed with FOS findings and said they will put things right to what FOS suggested.
Anyone got any experience with Buddy and how look this stage took ? They only came back to me today FOS to say Buddy will be in touch with me. Typical my DD for my payment into went out today too.
Many thanks
Lottie
Lottie says
Hi Sara, Buddy have confirmed my guarantor will be released and have said I will get the interest over what I have paid over the original capital which is £5839.00 plus 8% interest. Do you know roughly how much the 8% will work out at? Loan was over 60 payments – starting July 2017 – @ £296.44 a month, and made 45 payments so far. Up to and including 1St April 2021. Not sure how I would work out the 8% on top of the £5839 – do you ? Many thanks Lottie
Lottie says
Hi Sara
The 8% doesn’t seem right, do you think it is ?
Sara (Debt Camel) says
What have they said?
Lottie says
They said the 8% is £334.26 – against a interest refund of £5581.64.
The loan details are as follows;
17July 2017 -£7500 @£296.44 over 60 months. No payments missed. So I have paid £5581 over the capital borrowed. The interest seems really low. Do you know if it’s correct?
Regards Lottie
Sara (Debt Camel) says
My back of an envelope rough method makes it about £334.
So it isn’t far out and if that figure is net of tax it is fine.
Lamar says
Hi Sara,
I sent a counter offer of £4,000.00 to bamboo loans on 01/04/2021 and they replied today offering me £2095.00 out of good will to settle the complaint today. I accepted the offer which is a massive jump from their original £300 good will offer and is more than I could have imagined to receive from a hopeful complaint.
Thank you for everything you do on this site. Your advice has really blessed me.
Laura says
Hi Lamar,
Would you be willing to share with my your response when you declined their initial offer. I am currently in the same position with Bamboo?
Lamar says
Hi Laura,
No problem at all.
My response,
“Good Afternoon Bamboo,
Thank you for your offer. However, I am not satisfied with this offer.
Although I made payments on time, the loan repayments were very hard to maintain which led me to taking out more debt and entering into a DMP.
I paid over £7,000.00 worth of interest on the loan and would like to counter your original offer for a settlement amount of £4,000.00.
Kind regards”
They got back to me after 3 working days.
I hope this helps. Let us know how you get on.
Laura says
That’s great thank you, will let you know how I get on.
Lottie says
Hi Sara, I just wanted to give you an update along with anyone else whom may be looking at a claim against Buddy Loans – FOS upheld my complaint and Buddy agreed with their findings, which was to refund any interest paid over the capital borrowed plus 8% interest. Buddy would owe me around £13k which would be amazing. However …….
buddy have now come back and said: they will pay me, but the guarantor is now liable for any money outstanding, which is the interest over the capital and all remaining payments. They claim FOS didn’t mention the guarantor in their findings, so whilst they have agreed with FOS upheld complaint against myself, there was no evidence it wasn’t affordable to the guarantor therefore they will refund me but pursue the guarantor for all the refund and remaining loan.
The problems is my guarantor will not be involved in making an unaffordable claim as it would of be affordable to them, it will also cause a breakdown in a relationship.
Therefore I just wanted to give you the heads up incase anyone else has this problem, and also ask if you have had this situation happen before?
Any help will be appreciated
Many thanks
Lottie
Sara (Debt Camel) says
I have seen Buddy refuse to release the guarantor.
But I had only seen it when there was a balance remaining. Not when the balance was cleared.
Tell your guarantor to immediately put in a complaint saying that the loan was unaffordable for you, the loan should never have been made so they should be released as guarantor. And also say that as your loan has been settled they no longer have any obligation to pay anything anyway.
Also tell Buddy you want your refund now. Don’t let them tie all this up in knots for months and risk them going under and you not getting your money.
And tell your adjudicator what is heppening.
Lottie says
Hey Sara,
That’s great advice , thank you so much. Adjudicator has been informed and she said it’s not right and will look into it too.
Thanks for the tip about my refund now, that’s great advice yes you’re right before they go under or in a scheme.
The stress this has caused the guarantor is unreal over the last 5 days and has caused relationship problems – so hopefully once I start doing these steps they may come back with a positive.
I have one of the claims which is £5833 interest and 605 days to claim the 8% at do you know roughly what would be owed? I have worked out the others as I had a breakdown but not on this one I can’t work it out do you know? The 605 days is the days since the capital was paid. Many thanks
Lottie says
Hi Sara,
So Buddy loans have confirmed my refund amount at £5581.64 for the interest over the loan amount borrowed, plus clear the remaining 16 payments @ £296.44 that would have been due.
They have confirmed that because there isn’t a balance left to pay the guarantor will not be liable for any of the remaining payments or the interest they are refunding like they said they were going to do last week.
The 8% interest is very low though, is this correct – £334.26 ? The loan was taken out on the 17th July 2017 no missed payments @£296.44 over 60 payments. Original loan amount was £7500- I had paid so far £13.081.64. So I assume interest will be from when the £7500 is paid back? Is this correct? It seems really low. Many thanks
Peter says
Hi Sara ,
I wrote to you last week about George banco not upholding my complaint but they had made a mistake saying I lived with parents and paid no rent , when on my SAR it clearer states I private rent , you advised to call them but they apparently they don’t have a direct line to a compliant team has to be email , on your advise I sent a email giving them 1 week to review their decision with the correct information , well the week was up yesterday and had no further communication from them , should I send another email and give it a few more days coz of the bank holidays or sent to fos ? Thanks
Sara (Debt Camel) says
I see no reason to waste any more time – send it straight to FOS.
Charlie H says
Hi Sara,
Could you give me your opinion please. I have a complaint sitting with FOS (UK Credit) still waiting for the Ombudsman to make a decision about the 6 year time limit. Its been with FOS for 1 year 4 months and with the Ombudsman for almost a year. So my question would be at what point would you expect the Ombudsman to look at my case? I’m worried that if it takes this long just to make a decision on the 6 year rule, if they say “yes it can be looked at” and the adjudicator finds in my favour but UK Credit disagree, does that then mean i might have to wait another 1 and a half for it to be considered by the Ombudsman again. It just seems such an unreasonable amount of time to wait and although not currently likely, UK Credit may cease trading and it will have all been in vain. Thank you as always
Sara (Debt Camel) says
I think that is an unreasonable amount of time to wait. I suggest you phone up and say you want to make a complaint about it.
Peter says
Morning Sara ,
After your amazing advice I send George banco a email to get them to relook at my compliant after them doing their own figure of my expenses incorrectly, they upheld my complaint and are refunding me £2034 , they said they would send this by bacs once they have received my bank details , I sent this to them Friday , do you know how long they tend to take to pay out ?
Thanks
Sara (Debt Camel) says
Excellent!
Sorry no info on timings. Someone else here may have some recent experience
NAG says
Complained to TFS in Feb 2020 which was rejected for being over 6 years old. Went to FOS.
Adjudicator said they could investigate in Oct 2020 which TFS rejected. Ombudsman said they could investigate in Feb 2021. TFS were actually quite quick in rejecting my complaint after investigation and took only a week. I sent it to FOS again and the adjudicator upheld the actual complaint in early March and TFS have until the end of this week (April 2021) to Agree or Disagree. I suspect they’ll disagree as such is how they have been.
It’s a slam dunk as far as I’m concerned if it goes to Ombudsman. TFS just keep me hanging on (for well over a year). Now I read on here that they don’t pay you redress for 28 days. Despicable company.
Has anyone had any experience of actually getting paid by TFS after successful complaints? Grateful for anyone sharing their experiences, thank you.
AR says
I finally got my redress from TFS a couple of weeks ago. They are a nightmare – throughout the whole process – late / no reply to adjudicator etc (I originally complained to the FOS about them in April 2020) Once it had gone to Ombudsman for final decision they were good at responding, but took the full 28 days as they say that is when they work out interest to. Stay positive & fingers crossed for you
C says
I’ve had my complaint upheld by an Ombudsman against TFS as well but heard nothing yet. Do they take 28 days to send redress amount and then another 28 days to pay out? Thanks
AR says
Assume this is common knowledge for any one complaining against LendFair – but it appears they are in the process of closure.
I have had an Ombudsman’s final decision in my favour – with the 28 days ending next week to pay a redress of £1600+.. unfortunately when chasing – I received an email from the company who are in charge of overseeing the liquidation of the company, so obviously won’t be receiving my redress, which is a shame, and also feel bad for any employees that have lost their jobs.
Sara (Debt Camel) says
oh sorry to hear that, rotten timing for you.
... says
Hi Sara,
Was hoping to get your advice on an active complaint I have with a guarantor lender.
In short, there’s was a loan of £1k taken, then topped up a few months later to around £1800 total borrowed. I’m making an affordability complaint as I already had a large loan with another lender which I had struggled to make several payments on.
The case has been referred to the FOS and an offer has been made to compensate by £200. They are claiming that all their checks were appropriate but they make this offer a gesture of goodwill. Their main counter against the affordability complaint is that the information I provide plus the use of ONS data showed I would have been left was a small disposable income. The reality is it’s simply not true and taking the loan meant I spent 12 months begging and borrowing from friends and family to get by.
Speaking with the FOS they seem to be advising that the offer is as good as I’ll get, which I find odd. Surely they should support my original claim of a refund of interest + 8% if I’m in the right?
By my calculations I would be due around £600, so we are arent talking huge sums. But I can’t decide whether to just take the offer or if under the circumstance I should be standing my ground?
Thanks in advance, and thank you for this amazing site. It’s taught us so much and given us real hope, I just wish we found it last year.
Thanks
Sara (Debt Camel) says
they seem to be advising that the offer is as good as I’ll get, which I find odd.
It does sound odd if the adjudicator hasn’t yet made a decision on your case. Did FOS say why? is this in writing?
... says
They said this over the phone in conversation with one of their advisors. It wasnt a firm confirmation in writing, but its made us feel we should just stand down. Given the situation I’d rather fight on, but if the odds are against us I dont want to waste our time.
Sara (Debt Camel) says
It’s not just a question of your time – it’s a lot of money! I suggest you say that unless there is a reason why FOS think you will not have your case upheld, you would like a decision from an adjudicator.
Luke r says
Hello I have been reading alot of comments and would just like to see if anyone has claimed back from a company called buddy loans?
Michelle says
I made a buddy complaint 5 weeks ago and heard nothing from them , would be interested in other peoples experiences too
Sara (Debt Camel) says
Look at the comments on this page. A couple of good recent decisions in Buddy loans cases. One direct from Buddy, one from the ombudsman.
pol says
Hi Luke,
I made a complaint against Buddy loans nearly 2 years ago now against a loan and 4 top ups. They rejected my complaint. It went to fos and an adjudicator upheld my complaint against all loans, this took about 10 months. Buddy rejected their decision so it went to an ombudsman for final decision. It has been with an ombudsman now since July 2020 and still waiting to hear. Just hoping it gets sorted before they go into a scheme
Peter says
Hi Sara ,
I made a compliant to buddy loans , today they have rejected my complaint based on my income , they have taking into account a pension I receive but that runs out in august so I wouldn’t of been receiving that for the whole term of the loan , and also my son who rents a room from me , but again he can leave when ever he likes as there is no such tenancy agreement or anything I place , they have agreed I had some adverse credit , and high amounts of debt but as they said I told them I would pay off some debt with the loan, my argument was , the extra income they have added isnt guaranteed for the duration of the loan term and they also couldn’t guarantee I would pay off existing debt with the loan , is it worth sending to ombudsman?
Sara (Debt Camel) says
what sort of pension runs out? Did you tell them about the pension and the rental income when you applied for the loan?
do you agree the loan is affordable with that extra income? Or has paying it already been a problem/
Peter says
The pension for a pay out for 2 years as I’m over 60 instead of when I retire , told them my son lives with me , the loan was definitely not affordable, I now have 10 defaults and 62 missed payment over all my debts , have got everything on payment plans , at the time if taking the buddy loan I had 5 payday loans 4 credit cards 2 catalogs and 2 guarantor loans ( won both other guarantor complaints)
Sara (Debt Camel) says
Then send the case to the ombudsman – the extra incomes seem irrelevant as it has been unaffordable even before they have stopped!
Peter says
I was really disappointed to get that result from them , as iv won every other compliant on loans I took out around the same time on the same income !
Jajabinx says
I have just had a preliminary response from the ombudsment upholding my complaint to TFS. They have given them until 13th May to respond.
What usually happens now?
Sarah says
TFS will usually disagree with what the adjudicator has said so you’ll go into the queue for the ombudsman to make a final decision. Mine is in the queue at the minute. Not sure how long it will take.
NICO says
Hi – what are the FoS saying in terms of timescales please? I am in the same position where FoS have upheld and TFS have rejected the decision. It’s now in the final decision phase – the wait is agonising
Steffy says
Hi Sarah,
If the ombudments have said to refund interest with 8% , what does the have …and have use of mean?
My loans are below:
Loan 1: £7500, paid 17x £304 topped up to …L2
Loan 2: £8500 received £2377 , paid 42 x £349.
How much would I be estimated to be refunded? Thank you
Sara (Debt Camel) says
Which lender is this?
Steffy says
The lender is Tfs
Sara (Debt Camel) says
On those numbers you have paid the following interest:
loan 1 3791
loan 2 6158
So the last loan will be cleared if there still is a balance and you will get a total interest refund of £9949 and over £900 in 8% interest.
Was this a decision from an adjudicator or from an Ombudsman?
Steffy says
Adjudicator. I’m expecting TFS to reject this, they have until mid May and then i guess I’ll be put in the queue for an ombudment decision. How long does this usually take approx?
Sara (Debt Camel) says
It seems to vary a lot.
NAG says
Hi Steffy, I feel your pain. Adjudicator upheld my complaint with TFS after over a year of to-and-fro, initially over whether TFS could investigate as my loan was over 6 years ago. TFS say ‘No’ at every step. They have disagreed with my adjudicator so I’m now in the queue for an Ombudsman – been told it might be 6+ months.
TFS seem to take every complaint to Ombudsman level regardless of how strong it is in the customers favour. It’s like they’re doing it out of badness.
NAG
NICO says
I have had a couple of FoS complaints not upheld, has anyone has any experience of or do you know if the FINAL FoS decision may be different to these initial FoC ones please?
Sara (Debt Camel) says
Were your complaints rejected or were they upheld and the lender did not accept them? You have mentioned TFS, who is the other lender?
NICO says
TFS upheld – now with FoS for final decision after TFS rejected it.
UK Credit and EverydayLoans – not upheld by FoS so I took it to a FINAL decision with FoS – I am looking to see if these decisions ever change?
Thank you again.
Sara (Debt Camel) says
The Ombudsman agrees with the adjudicator in most cases but people have won cases by insisting on an Ombudsman decision. Have you sent a short explanation of why you disagree with the adjudicator decisions?
NICO says
Hi – I have yes, outlined the financial situation and personal circumstances (including my health). fingers crossed.
Sara (Debt Camel) says
if there were any bits in the adjudicator’s decision you disagreed with or where you thought information you had supplied was not taken account of, you should mention these specifically. Send this to the adjuidicator and ask for it to be passed to the Ombudsman when the case is assigned. Do not wait and expect to be contacted by the Ombudsman, do this now.
Daniel says
Hi , I am a guarantor for my father In law on a buddy loans , he made a complaint to them and they rejected it , he’s now sent it to the fos , I was wondering if I can make my own complaint to buddy even though my father in law has already been reject for his one and it’s now with the fos ? They accepted me as guarantor without me having to send any pay slips or bank statements, all I did was fill in a expenditure form and have a call from them , I earn good money but my credit is massively high , I couldn’t get a loan of my own as I pay out more then I get in on credit agreements , do I have a shot at making my own compliant , my father in law’s rejection response just basically said “ you told us that’s what you paid on rent, bills and other credit “ so they took that as gospel and didn’t feel the need to check
Sara (Debt Camel) says
Yes you can. And it’s a good idea as you too have a good reason to say the loan was unaffordable for you. But use the template over on https://debtcamel.co.uk/amigo-complaints-by-guarantor/ and ALSO complain it was unaffordable for your dad as well – two chances to win.
Sam says
Hi Sarah,
I am hoping you can help!
I took out a £5k loan from UK credit back in 2016. My 22 year old friend who was only on 23k at the time was accepted as my guarantor.
At the time I had high apr finance out on a car totally over £9k along with multiple payday loans and overdue credit cards. I was working 4 days per week and was on roughly £24k plus benefits as I was a single parent to 1.
realistically I should never have been given the loan nor should my guarantor have been accepted.
Back in 2019 I paid nearly £2k off the loan thinking it would clear it but I still owe over £3k! I have paid over £10k at this stage and with COVID I have had to take payment breaks which they accepted but have added extortionate interest to.
Do you think I would have a case? It just seems never ending
Sara (Debt Camel) says
From what you have said that loan sounds unaffordable. You can complain using the template on this page. And it may be a good idea for the guarantor to complain that they could not have afforded to make all the payments and still been able to pay their own debts, bills and living expenses – there is a template for that on this other page: https://debtcamel.co.uk/amigo-complaints-by-guarantor/
Also look at affordability complaints about your other problem borrowing at that time.
Sam says
Thank you so much for the quick response. I will get in to it straight away.
Steffy says
Hi Sara
The adjudicator gave TFS until 17th May to respond, and has now informed me that TFS have asked until 21st May? A difference of 4 days… is this how they usually work? Just delaying before it can go in the queue for ombudsment?
Wish they would just reject already so it can move on to the next stage.
NAG says
Yes Steffy, it is. TFS seem to delay at ever single stage. See my experience above.
They know that the queue for the Ombudsman is 6+ months and so even though you may have a perfect case for redress, they will delay it. There’s nothing that you can do because the FOS have to give them the option and the time.
On thing that I’ve found is that their reason for rejecting adjudicator decision in my case was pure rubbish – they have said that whatever my bank statements say is irrelevant because my declared disposable income was enough to cover the loan. Despite me having countless defaults, CCJs etc… when applying for the loan.
Keep faith with the process and it will all come good in the end. It is frustrating and easy to drive yourself mad thinking about it.
Steffy says
Thank you. It’s a pain.
Just read your story above. Hopefully you get the desired outcome. A year and a half Is a long time.
AR says
I’ve had a similar frustrating experience with TFS – my adjudicator at FOS was great though & explained that whatever delaying tactics they try, you go into a queue for Ombudsman from your original complaint- not when it gets escalated, so any delaying on their part shouldn’t affect when yours gets picked up – although they are incredibly busy from what I’ve seen. Stay patient and hopefully it pays off for you
Steffy says
Thank you. I’m not holding out for them to respond and it just be a waiting game.
What was your outcome or are you still waiting?
Sara (Debt Camel) says
COMMENTS ABOUT AMIGO are being moved to the Scheme page: https://debtcamel.co.uk/amigo-scheme-timetable-approval-how-work/
If you can’t find your recent comment about Amigo, have a look on there!
Dianne Giles says
A few years ago, I acted as guarantor for a friend, with Amigo. She defaulted on the loan, so I paid it off, forgot about, and moved on. Last year she put in an affordability claim, which was upheld. They made me a repayment offer which I accepted, plus the 8%. They were a little slow to pay up, but I finally received the money a couple of weeks ago. I now find that they are trying to recover this money from my friend.
My question is, surely by returning the money to me, they’ve implicitly admitted to an error. Can they really have a genuine case to recover the money from her?
I have requested paperwork/terms and conditions from them to justify this, but have yet to receive anything of this nature back.
Sara (Debt Camel) says
What Amigo have probably done with your friend’s account is remove the interest from the debts and deducted any payments she had made to it before defaulting. She no longer has a guarantor so she should be able to make an arrangement to pay at a lower, more affordable rate.
This is what would have happened if she had complained before you settled the debt – she is no worse off because Amigo has refunded you.
If she has other problem debts as well, she could put them all into a debt management plan, including the Amigo one. And if the total is too big to be realistically affordable then she should talk to a debt adviser about her other options, including insolvency.
Wayne says
Ive just had my response from the fos he recomends they uphold my claim so just waiting on the response from buddy loans
Gail says
Hi Sara,
Not sure if you remember but I told you about my adjudicator saying he felt amigo were using stall tactics ect and giving the run around.
You advised me to complain to the fca- I did and they replied, the obviously couldn’t disclose details and I don’t know what happened but it worked! I sent emails from.my adjudicator and also my call and email records showing that the FOS and myself had both tried to accept but amigo had been playing games, after a few emails and amigo embarrassing themselves I finally got a reply from amigo and a telephone number, called up today and redress paid! Thank you so so much, the FCA also asked to be kept updated on how things proceed, I’m glad I raised this!
Sara (Debt Camel) says
excellent!
Amanda Clarke says
Hi Sarah my fos has said i shouldn’t have been given a loan by buddy loans and they have until the end of May to reply now im 26 months into a 5 year term @ £198 per month which is £5000 ish or just over im in a catch 22 do i continue with the payments until they make a decision or stop all payments in case they go into a scheme.
Also if they uphold my claim with they chase my gaurentor for the balance.
Sara (Debt Camel) says
So you have already paid more than you borrowed. If Buddy Loans accept the decision. your balance will be cleared, you will get a tiny refund. There will be no remaining balance to chase your guarantor for – BL have been known to make an error in this situation but they back down when challenged.
IF BL do not accept the decision it will go into the queue for an Ombudsman.
If you cancel your payments, you will need to get your guarantor to cancel their direct debit or continuous payment authority as well.
Your credit record will be harmed, but if you win the case in the end, the negative marks will be removed from your credit record.
Is it causing you hardship to make these payments? Are you having to borrow more elsewhere?
Amanda Clarke says
It just leaves me with hardly any money left each month i just dont wont to keep paying if its going to take another 8 weeks to get a reply if it goes to tbe Ombudsman. If i carry on paying and they enter a scheme i wont get the payment back
pol says
Hi Amanda, hopefully they agree with the adjudicator because they didn’t with my 4 loans and it has been waiting for final decision by ombudsman for 10 months now. Good luck
Amanda Clarke says
Have you still been carrying out payments on the loan or has your finished. Also have you chased the Ombudsman.
pol says
Hi Amanda, it won’t let me reply to your comment below, yes I’ve still carried on paying as I don’t want my guarantor to be affected, I’ve chased the ombudsman every month since September and just get told the same thing that its in a queue and due to high number of complaints its taking longer than usual. I’ve got my fingers crossed they don’t go into a scheme
Ruth says
Hi Sarah,
I went bankrupt back in September 2019, Amigo has been included in bankruptcy and remaining balance being paid by guarantor, but he is one month behind with payments. And Amigo keep reporting to credit reference agencies missing payment to my credit report account.
Is there anything can be done?
Thank you.
Regards,
Ruth
Sara (Debt Camel) says
Your Amigo loan should be marked as defaulted on your credit record, with a default date of the date of your bankruptcy. See https://debtcamel.co.uk/credit-file-after-bankruptcy/ which says what to do – complain to Amigo and then take your complaint to the ICO if Amigo does not correct this.
Is your guarantor going to put in a claim to the Amigo Scheme? They can complain if the loan was unaffordable for them. And also if it was unaffordable for you. If they win the complaint they will be released as guarantor and they will get a small refund of the payments that they have made. See https://debtcamel.co.uk/amigo-scheme-timetable-approval-how-work/
Ionut says
Hi, Sara i had an loan with UK Credit the loan has been paid off but i think they didnt check my credit score at all. I had a friend guarantor for me and i think that they took his credit rating
Sara (Debt Camel) says
Was the loan affordable? Could you make all the repayments and still be able to pay your other debts, bills and living expenses? Or did your other debts rise because the UK Credit repayments left you too short?
Ionut says
I was struggle had late and missed payments and my credit has gone over the 3 years. At the time i had gambling problems which now are over.
Kind Regards
Ionut
Sara (Debt Camel) says
So do you think if UK Credit had looked at your credit record and your bank statements at the time you applied for the loan they should have turned you down?
These loans are intended for people who have a poor credit rating – no-one else would be foolish enough to take one. But what matters if your credit report when you applied for the loan would have shown a lot of outstanding debt and recent problems.
Ionut says
Yes i just had a look on my old statements and its show i couldnt afford.
Sara (Debt Camel) says
Then I suggest you send UK Credit an affordability complaint. You can use the template letter in the article above. Do attach your bank statements for 3 months before and 3 months after the start date of the loan with your complaint – they are your evidence that it was unaffordable.
Emy says
Hi Sara I have been following this page for a long time now. Atleast 2 years , I had two guarantor loans one with amigos and one with bamboo. After following ur advise and going through the comments I have managed to sort out with amigos, firstly affordability complaint and than financial ombudsman and it was sorted.
I am stuck with the bamboo loan I had done a complain in 2019 and today I got a reply from financial ombudsman which is not as I had expected.
Please if you can advise on it.
Sara (Debt Camel) says
is this from an adjudicator? what does it say?
emy says
The reply is from the investigator.
I wish I could forward you the email but because it’s so big it doesn’t allow me to post
Sara (Debt Camel) says
Can you summarise it?
Emy says
Lone one taken on sept 2018 for an amount of 4500 . At that time I was really badly addicted to gambling and was not even earning half the amount I stated in the application as I was so desperate to get the money I was earning only 700 to 800 at that the me which clearly states in my bank statement also my gambling addiction is clearly visible . She said she thinks reasonable and proportionate checks had been done by bamboo. Bamboo verified my income using their income verification tool.. Bamboo used the Office of National Statistics Data (ons);to check monthly rent.
Sara (Debt Camel) says
Then I suggest you reply that for a loan that large the lender should have made detailed checks and https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/unaffordable-lending says that for guarantee loans better verification would be appropriate. Ask her to reconsider and say you would like the case to go to an Ombudsman if she does not change her mind.
Emy says
Loan 2 was a top-up taken in July 2019 for 5200
Same at that the time too . I was so desperate to get the money but only difference was I was working at that time and earning around 1400 , but I was still into gambling than . But I had still given a wrong figure in income which was much higher and unrealistic, I also had another loan from a different company which showed on my credit file.
the investigator came up with the same decision for loan 2 too and said that bamboo doesn’t need to do anything further
Nazia Bibi says
Hi sara it was the court hearing for amigo loans today what was the result of it
Sara (Debt Camel) says
the hearing was on Wednesday. We are still waiting for the judge’s decision.
Mrs Nazia bibi says
How long do you think it will take for the court to give a decision and in your opinion what do you think the outcome will be thanx
Sara (Debt Camel) says
I hope it will be soon. I dock now what the judge will decide.
Cperry says
Hi Sarah,
Have you heard of TFS accepting investigator decision in favour or have they all been rejected?
C says
Hi Sara
I had an actual Ombudsman rule in my favour last week against TFS loans but I’ve noticed on their website today they’re no longer accepting new loan applications. Is this a sign they’re about to go the same way as Amigo do you think?
Sara (Debt Camel) says
I haven’t heard anything about this.
ThankYouSara says
Sara, please could you help me with one more situation? UK credit have accepted the ombudsman’s review (the rejected the adjudicator’s), however, they’ve sent an email saying that they have written to my guarantor to ask if they would like the amount the guarantor paid included in my figures? 🥴 this seems like a very sneaky way of not paying what is owed? I’ve written back and said it is for UK Credit to provide figures for my guarantor to accept, or reject, and not for my guarantor to decide before these figures have been sent. Is this correct? Many thanks!
Sara (Debt Camel) says
Have they said they will be paying your guarantor?
ThankYouSara says
They said:
“We have written to your guarantor and asked them to respond to us within 14 days, letting us know if they are happy for us to include the payments that they have made to your account on your behalf, in our calculations.
Once we have received a response from your guarantor, we will be able to provide you with the details of the amount of the loan amount you originally borrows which you still need to repay, if any, and the basis on which this has been calculated.”
After me saying they needed to send the figures owed to my guarantor before she made a decision, they responded saying once she said replied to the above, only them they will send the figures. This doesn’t not seem right. Ombudsman guidance states the guarantor should be offered everything they paid, plus 8% interest. So it seems odd they want her to respond before seeing any figures.
I’ve said if they disagree, I’ll go back to the ombudsman.
Sara (Debt Camel) says
How much has your guarantor paid? have you repaid her for any of this?
What do you want to happen?
ThankYou says
My guarantor paid off the loan and it might be better off her receiving the payout and helping me pay back any principle that is still owed, after she is paid out. But we can’t establish that (or what she paid, cos it was many years ago), until we see the figures.
I thought as a general rule, the guarantor was offered first, and then they could accept or reject, but UK Credit want her to make that decision without seeing any figures?
Thanks, Sara. They’re confusing me now.
Sara (Debt Camel) says
It generally is better for the guarantor to be and for you two to then sort it out between you. Make sure your guarantor will say the same.
She can ask how much she has paid but I am not sure why that makes a difference to her decision?
TYS says
Thanks. What they’re saying is, they want her to decide whether they include all the payments she made in the figures, or just the amount above the principal amount, before they work out the figures. I find this a bit ridiculous, and surely not what the ombudsman advise?
Could you also let me know why it’s better (money wise) for the guarantor to receive the money and help me pay it back? I’m getting a bit confused.
Sara (Debt Camel) says
It is normally better for the guarantor to say they want the lot back because they should be paid 8% statutory interest on it all. But the only amounts that should be deducted from your account are the principal amounts… not the 8%.
Say she paid £2000 in principal and £1200 in interest 2 years ago. She should get 3200 + 16% = £3712.
£480 of this is 8% interest on the principal bit.
In the calculations on your account, you do not get the principal bit refunded so you don’t get this 8% on the £2000.
I can’t be sure this is what TFS will do but it is generally the case. I don’t think there is any chance of you getting TFS to show you what the guarantors refund and your account would be in all the different situations (she gets all the money, she gets the amount paid over principal, she rejects it all).
Jojo says
Hi I took out a loan of £700 back in 2019 with the company Loans2go
They made my monthly payment 160£ and I have been paying ever since they texted me that my loan arrears is now £1489.83. I told them i cant make afford £160 I can afford £30 but everytime i pay the £30 the loan arrears goes up because I’m not making the full payment of £160.
Sara (Debt Camel) says
Hi Jojo, read https://debtcamel.co.uk/worst-loan-in-britain/ which is a page about these horrible Loans2Go
Andrew says
Hi Sara,
I have two complaints with FOS. They were previously approved and upholder by the investigators but both lenders disagreed. Now both cases are in the FOS que for over 18 months.
I’ve try to push them for a response but they always. Replaying that your car is in the Q.
Would be FCA a good place to complaint about the FOS delay?? Thanks.
Sara (Debt Camel) says
No, you can’t complain to the FCA – but you can complain to FOS itself. Phone up and ask to speak to a manager and say you want to know the delays are so long and you want to put in a complaint.
L says
Hi Sara, thanks for your explanations. Can I ask how the 8% is figured out? Is it from the date the loan is settled? Because mine was settled 6 and a half years ago, but payments were made as long as 8 years ago, yet the interest added seems nowhere near this.
My guarantor is being refunded 4000, and the loan was settled October 2012. Please could you let me know what you think the interest on this should be?
I work it out to be at least 2080, and that’s only if I work it out from the day it’s settled.
Thank you so much, as always.
L says
Sorry, it was settled October 2014!
Sara (Debt Camel) says
Then 6.5 years interest is as you say about £2080. They may be deducting 20% tax from this? That would be about £400.
What do they say it is?
The 8% is from when the payments were made. If most/all of the guarantor’s payments were at the end, then that is easy – just use the end date.
L says
Thanks! That could be it – the 20% tax. The bulk of the payments were made eight years ago. Seven years is when things started to go wrong and payments were lessened. But if I’m working it out right, I’ll go through the payments. And try not to confuse myself! Because, actually, I understand what you’re saying – the overpayments and payments made by the guarantor would be at the end.
Thank you Sara! You’re a hero.
Sara (Debt Camel) says
she can claim back £200 of tax deducted if she is a basic rate taxpayer – more if she doesn’t pay tax.
Sara (Debt Camel) says
Because mine was settled 6 and a half years ago,
Oct 2012 is 8 and a half years ago?
L says
Sorry, I meant October 2014.
Stacey 1377 says
Hi
So I am not sure what has happened and I am not going to complain, I submitted a com3ro Amigo early last year they of course declined it so I sent it FOS in May 2020 it was picked up by an investigator in December 2020. I did not hear anything back until maybe 2 months ago when the investigator said they won’t be handing the complaint now due to propssed scheme of arrangement, I was gutted to say the least. anyway on Monday 24th out of no where I got an email from FOS say amigo agree I should not of been offered any of the loans and will offer redress I had to call to accept. I called and said I would like to take the redress off which cleared. My current balance and still paided me 3400.00 I was very mind full that Amigo court case was dismissed and have not said what they They ate going to do. Fast forward 1 more day and the money was paid into my account and my account with Amigo is now closed
I am in total shock and can’t believe that I finally somehow have amigo out of my life xx
Sara (Debt Camel) says
How brilliant for you!
Sandra says
That’s fantastic so happy for you my complaint has been with them nearly a year well in July will be a year and with the fos 7 months and they more Aless told me there is nothing they can do till this scheme is sorted, I really won’t be holding my breath I stopped paying back in July also as what I had paid them was 3 times more than I and originally borrowed just madness, love seeing people get the outcome they deserve delighted for you Stacey
Stacey1377 says
Thank you the refund cash payment was a bonus to be honest just the fact that it is gone and I dont ever have to worry about it again 400.00 a month better off xx
Amanda says
Hi sarah im awaiting for buddy loans to reply to the financial Ombudsman services they have until tomorrow. As the financial Ombudsman adviser says i should only have to pay back the “money borrowed and has the use of”
What does have the use of mean…
Sara (Debt Camel) says
it means what you borrowed – because you had the use of that money.
Amanda says
Am i correct in thinking i wont get the 8% interest
Sara (Debt Camel) says
do you still owe a balance on this loan? Will removing the interest still mean there is a bit to pay or will Buddy owe you?
Mo says
Hi All. I just got a reply from the FOS about a complaint I made about TrustTwo. The Investigator has agreed that it was unaffordable and instructed them to agree and settle my complaint. They have until the 11th June to respond. I just wanted to know if there is anyone that has been in the same position as me and what had happened or is it still going? I have a feeling they might reject it and then I will have to wait for a final decision. Or they accept it and then drag their feet to settle. Just would likt to know how TrustTwo are going to behave. Thanks all!
Sarah says
I complained in the January had a response quickly and they admitted they didn’t do the correct checks and settled. I received over 4 thousand pound back. Good luck
Mo says
Thanks for replying Sarah. That’s a great result for you, I hope I have the same swift outcome! Fingers-crossed :-)
Mo says
So Trust Two have agreed with the FOS and have sent me their calculation for a refund.
However, I think they have incorrectly calculate my statutory interest of 8%. Here is what the investigator had said: –
Adding up the total amount of money you received as a result of having been given this loan and deducting the amount you paid on each loan so that you only pay back the amount you had use of. Where it is found that you paid more than the amount you borrowed, we will add the statutory interest amount of 8%
And this is what Trustwo have calculated: –
Payments made over £7000: £2,284.03
Interest @ 8%: £335.15 (This is subject to 20% HMRC tax deduction)
Total Refund*: £2,619.18
Refund due: £2,552.15 (£67.03 deduction as per legislation going to HMRC)
Is this correct??? Loan was 1st issued Jan 2018. I have gone back to TT and asked how the calculation was made for interest.
Sara (Debt Camel) says
has the loan been repaid? when? what were the monthly payments?
Mo says
Hi Sara. Loan was repaid on the 20th September 2019. Monthly payment amounts were £512.19. The contract was for 18months, However, due to missed payments it took longer than that.
Sara (Debt Camel) says
It looks a bit short but by less than £50. Up to you if you want to argue about this.
Mo says
Thanks Sara. My worry was that they were shorting me quite alot more but if its only £50 short then I will just take what they are offering. Much appreciated for all the help. :-)
Sara (Debt Camel) says
if you are a basic rate taxpayer you can claim back the tax deducted, see https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
Charlene says
Hi , I issued a complaint to UK credit last November. They came back in January of this year not upholding my complaint. I then sent the complaint to the FOS who wrote to UK Credit on Monday 24th may on my behalf saying they are complaining /writing on behalf that the loan was unaffordable and that I should have interest refunded and negative marks removed.
UK credit then came back the same day asking for bank statements. I sent these and they showed I had 3 guarantor loans at the time and gambling transactions.
They then came back 2 days later to they were upholding my complaint and refunding the interest paid. The loan is fully paid and completed in 2018.
I accepted this on Thursday 26th May
My question is, do they normally take full 7 to 10 working days to pay.? They have calculated the 8% interest until 10th June so I’m working on the assumption that they will pay then.
Kind regards
Charlene says
I also, complained to TrustTwo who did not uphold my complaint.
The adjudicator has asked for my credit record and bank statements which I have sent.
When speaking with the adjudicator and giving him a run down of my situation at the time I took out the TrustTwo loan I already had 4 guarantor loans and gambling and the loan was for £10k. It is all paid now.
The adjudicator said he could make a decision based on what I have told him that the loan was unaffordable and that appropriate checks were not done. I shouldn’t have been lent to with some much debt and gambling, as well as suffering ill mental health.
If the adjudicator finds in my favour do TrustTwo normally accept the decision and make an offer?
Or am I likely to have to fight this one.
I have successfully claimed from
bamboo
Amigo said my complaint would be dealt with in the scheme.
And I have also referred my GLO loan but due to the proposed provident scheme don’t expect the FOS to do much on this one for a while.
Sorry this was all but long winded. But any help on my queries would be most appreciated.
Kind regards
Charlene says
Hi – In regards to my TrustTwo complaint. The adjudicator has found the loan unaffordable and has given TrustTwo 2 weeks to 25th June to respond. Just hoping for a speedy response and agreement. The loan was £10k and I paid it off early and I remember when I paid it off, I paid them over £9k I was shocked the settlement was so high, as I had already paid them 13 months of £ 401.07. £5,213.91 I couldn’t believe I had made all these payments and the loan hadn’t reduced much.
I will await their response if they agree. Once I hear I will come back with an update.
Sam says
I had 2 loans from Amigo ruled as unaffordable and refunded in December and was waiting on the outcome of another from TFS that was taken out in between these. Was fairly confident as the loans either side had already been found to be unaffordable. However the adjudicator looked at only my income and regular outgoings and decided I had close to £300 a month available after my outgoings so said it was affordable
I rejected this and used the response from .y amigo loans as the reason why and he has looked again and found I had just under £30 a month disposable income as he had ‘missed’ things first time round, such as overdraft usage and 2 direct debits and regular payments made to a family member.
Still expect TFS to reject his decision and it to go to Ombudsman but just to make people aware it’s worth not accepting if you dont agree as they can clearly make mistakes too!
Nazia Bibi says
Hi sara how long do you think it will take amigos to announce what the next step will be from them ,is it going to be administration or not? as all claims have been paused at the fos.
Sara (Debt Camel) says
I really don’t know!
Wes says
Has anyone had any luck on trying to receive any kind of acknowledgment or response from 1plus1loans?
I’ve emailed multiple times but had had nothing.
Sara (Debt Camel) says
How long ago did you complain? Have you tried phoning?
Wes says
I sent my complaint back in late feb/early March. Had even received a generic email to say they’ve received it kind of thing.
Nope ill give that a go this morning. I only had one loan but it was about £2000. My guarantor was the same one as my amigo one, which was running at the same time. All this while still paying off various payday loans.