UPDATES:
Do not use the templates on this page for the following lenders, instead see the specific page:
- Amigo has set up a Scheme of Arrangement. The deadline for making a claim has now passed, see Amigo’s Scheme for details.
- Buddy Loans went into administration in September 2021, see Buddy Loans goes into administration.
- George Banco & Trust Two set up Scheme of Arrangement, the deadline to make a claim to this has passed, see Everyday Loan Scheme for details
- TFS Loans went into administration in February 2022, see TFS Loans goes into administration.
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 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
Don’t use this for Amigo of Buddy – see the update at the top of the page.
For all other guarantor lenders, including ones that have stopped lending, 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.
Also get a copy of your credit record if this will show defaults, that your debts were increasing, that you had a large overdraft etc. Download this and keep it.
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 may 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.
Can you get an overdraft refund?
Card limit too high? Ask for a refund
Complaints about bank & other large loans
C says
Hi Sara,
I’m wondering if any of the documents TFS are filing on their .gov account indicate collapsing?
Sara (Debt Camel) says
what documents?
C says
-Resolution of allotment of securities
-Resolution of adoption of Articles of Association
-Memorandum and Articles of Association
-Statement of capital following an allotment of shares on 21 December 2021
Nicholas Edwards says
I have claimed through the portal for 3 loans. They are doing the 3 but doesn’t include all the interest that I have paid for example georgobanco loan was £10.000 I have paid nearly £17.000 back. Does the repayment back to me will include interest or just the loan amount
Sara (Debt Camel) says
If your complaint is up held, you get a refund of interest paid (or a reduction in the balance). You do not get a refund of the loan amount.
Nicholas Edwards says
Thank you for your reply
Sara (Debt Camel) says
ok so filings at Companies House. Have you looked at them?
Andy says
Is there any update on TFS administration, they have filed documents for 21 Dec
Sara (Debt Camel) says
They are NOT in administration. The recently filed documents are a “qualified” audit opinion – during 2021 there was a financial restructuring and the auditors seem (I am not an accountant, this is my understanding as a layperson) to be saying they haven’t seen some final documents about the restructuring which they would have liked to have seen. The directors say that the business is a “going concern”.
Andy says
Thanks Sara, I have also read these reports on the company status but wat does thus mean for the business and for any future payments to complaints being upheld , I am in a queue now as not responded to my adjudicatir decision thanks
Sara (Debt Camel) says
it appears they intend to continue in business, in which case they will have to pay out on final Ombudsman decisions. Whether they will start accepting adjudicator decisions is a different matter.
AM says
Andy I am in same position as you been in the ombudsman queue since August. Spoke to my adjudicator last week and he said cases should start being picked up soon
Andy says
AM mine went in early November , so probs ahead a bit in the the queue , but keep me posted if you’re complaint is picked up and I will do the same , thank Sara for this brilliant site
L says
Hi Sara,
Just had confirmation ombudsman has upheld my complaint. Could you help me understand what I should expect regarding redress please?
£6000 loan in 2016
Paid back 26x £234.55 then my dad paid off early settlement of £4921.55
Thanks very much for your help on this site.
Sara (Debt Camel) says
Then you paid £5019 in interest and will have about 3 years of 8% interest added so about £1,200 extra, but 20% tax will be taken off that, so in all about £6000.
You can reclaim the tax taken off, see https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
L says
Thanks Sara.
One more question sorry- so I replied to Ombudsman confirming I accept their decision (in my favour) reading comments I understand that TFS now should pay out within 28 days, is that 28 days from the ombudsman ruling or 28 days from the date I needed to accept by? I’m tempted to make contact with TFS direct, can I do that? Thanks
Sara (Debt Camel) says
I don’t think this is written down anywhere. As they don’t have to pay unless you accept it, I would start the clock running from then.
I suggest you wait a couple of weeks and then contact TFS if they haven’t contacted you.
Cperry says
Hi L
Can I ask what your timeline was please? I’m fed up of waiting now :/
L says
Sure, escalated to FOS in June 2020 after I had complaint rejected. Heard nothing from FOS until email from Adjudicator who upheld in October 21, TFS rejected 3rd Dec and went into Ombudsman queue, didn’t chase at all expected a long wait then email from Ombudsman upholding again 14th Jan. Very long wait almost 18 months in total with FOS although lots of progress in last 3 or so months- but glad to finally see the light. Providing TFS don’t go bump in next 4 weeks that is! How long have you been waiting?
AM says
That was picked up so quick by ombudsman, very happy for you. I just do not understand how they work it out mine has been in ombudsman queue since August 21 as a priority case and still not picked up. Hopefully not much longer to wait. Please keep us updated on how TFS respond to you now.
Margaret says
I also have had mine in a queue since August 2021. I disagreed with the adjudicators decision and was sent to ombudsman. I phoned yesterday and was told there was an excessive amount of complaints with this company and they were working through them.
Wesley Field says
Hi Sara, I called buddy they said I’ve paid £7200 back so far and that I have £7000 left to pay which is interest but will only go down to £3500 do you think I should
Pay the partial
Settlement of wait to see what happens ?
Sara (Debt Camel) says
This is just rewording what I said before – it is complicated, I am sorry there isn’t an easy answer.
I don’t know if you will be able to make a claim to the scheme – I hope so but as you missed the window to send it to FOS I can’t guarantee you will be able to. But your partner definitely can claim.
The best outcome for you is if you don’t settle the debt now but make a claim which is then upheld.
The worst outcome is if both your claim and your partner’s claims are rejected – then you would probably prefer to have settled.
In between is the option where either you cannot claim or your claim is rejected, but your partner’s claim is upheld. In that case the guarantor loan turns into a standard debt for you and you can put it in a debt management plan or opt for a form of insolvency with all your other debts.
The fact that 2022 is going to be a very difficult year, with energy prices, national insurance, council tax and food prices all going up in the next few months argues that if you are finding things difficult now, a debt management plan of a form of insolvency may be the best option for you. In which case you do not want to have wasted this family money by settling this debt now.
Talking to National Debtline on 0808 808 4000 could help you talk through all these options.
Sarah says
Hi I received my final response today from UK CREdit. They are upholding my complaint and this is what they have sent Please find enclosed the redress calculation confirming what UK Credit is offering to refund. This amount is calculated as follows:
Original amount borrowed:
£3,500.00
Payments you have made:
£4,854.53
Overpayment of principal due:
£1,354.53
Net interest at 8% simple per annum:
£43.65
Loan balance:
£238.40
Total redress due:
£1,636.58
I am unsure if this is what I should be receiving ? Can you please let me know what I should do!?
Sara (Debt Camel) says
It isn’t totally clear but my guess is that they are planning to clear the remaining 238 balance and to refund you 1345+43=£1388 in cash.
I assume you agree that you borrowed 3500 (they didnt make any other deduction from the money they gave you)?
That your payments add up to 4853?
How much have you been paying a month?
Sarah says
I borrowed 3500 and I pay 124.11 every month and have done since September 2018. Should I not receive the full amount back with them agreeing they should not have let me haves the loan? Should I take it to the ombudsman or just take the offer?
Thank you
Sara (Debt Camel) says
The ombudsman says that is fair that you should repay what you borrowed, but not the interest. So they are refunding you the interest. I wanted to know how much you pay a month so I could check if the 8% is right, and it looks roughly OK.
So I suggest you take the offer.
Sandra says
I had this today from amigo In short, the Committee has reached agreement on a Preferred Scheme where Amigo will put £112 million into the Scheme for the benefit of redress creditors subject to certain conditions being met in the future. Amigo would then be able to continue lending. If those conditions are not met, then Amigo will go into a Wind-Down Scheme. It is not possible to say this agreement is the best agreement that could have been reached. This is because some of the elements are based on estimates and the deal also depends on the attitude of others (such as the bond holders and future investors). However, it is a much better deal than proposed by last year’s scheme and the original proposals for this new scheme. I have found Amigo to be transparent in its dealings with the Committee. I cannot advise you on whether to vote for the Schemes, you will need to make that decision for yourself depending on your own circumstances and your own views of the schemes proposed. The purpose of the video is to provide information to you to help you make your decision, and to encourage you to participate in the votes on the Schemes, so that your voice is heard.
Wesley field says
Are buddy loans now insolvent ? Hi sara
Sara (Debt Camel) says
yes, see https://debtcamel.co.uk/buddy-loans-administration/
Wesley field says
Is it recently they have gone insolvent
Sara (Debt Camel) says
Details in that link!
Charlotte says
Hi
Has anyone had recent issues with TFS ? I had a payment plan in place with them over the last few months, after recently loosing my job to Covid. It was fine and one issue. Now I miss a call from them today and then get an email demanding full payment of the balance. I missed an email from them last week, as my mother was been Ill ams they were asking for access to my bank statements. I’m now having issues with them, as they are excusing me of higher income (other than my universal credit) as they can see transfers from my current account to my savings ( they think I’m getting more money). I just wondered if anyone had any advice as this has really stressed myself out today, when there was not an issue before with them
Andy says
They are not lending anymore more, and trying to recoup outstanding debt , absolute sharks, they will hound and pester if don’t make payment on time , calling my guarantor twice a day 🤬🤬
Rich says
I had a call from TFS today. Had complaint upheld by ombudsman and was due payment of nearly 5k tomorrow. She said on the phone they have been advised by legal team within the last 24hours to stop any redress payments. Couldn’t give any more details and wouldn’t email me what she said. Said they are dealing with an issue at fos. Spoke to someone at fos and said he couldn’t find anything on it. I wouldn’t worry and certainly don’t give them any money. Sounds like insolvency to me but no idea. I’m half tempted to go to their office to get my money :p.
Sara (Debt Camel) says
which lender is this?
Rich says
Hi Sara,
Lender is TFS Loans.
Shouldn’t have got my hopes up really. Will update if I hear anything more from them
L says
:( gutted had finally just got given redress figures from TFS and started to get excited! Payment not due for another few weeks but can probably kiss goodbye to that!
AM says
Although I am not surprised by this it is very disappointing. What I find most frustrating is the length of time spent waiting for FOS to deal with the complaints. Mine has been waiting 6 months for ombudsman after adjudicator upheld last July. In total it has been 18 months at FOS. I did put my repayments on hold at TFS as I told them that as they had not repsonded at adjudicator level then the account should be held until ombudsman decision came. I am now waiting for a call.
Andy says
Please keep me informed as I have the same issue upheld and awaiting ombudsman decision, Sara do you think this is correct they will fold or just stalling as I assumed it was legally binding 28 days
Sara (Debt Camel) says
Sometimes this sort of info turns out to be correct. Sometimes it doesn’t.
If they do go into administration all payments are usually stopped, you will become an unsecured creditor in the administration.
Rich says
Gutter is correct lol. Yep will do, I asked on the phone about credit file update and she said it had been done on 12/01/22. They had to write off about 2.5k so still a little win I suppose. The number they called from was 01268 740753 if anyone was wondering.
If anyone else wants a timeline see below..
06/08/20 original complaint
10/10/20 TFS rejected
17/09/21 adjudicator upheld
15/12/21 ombudsman upheld
12/01/22 TFS accepted
17/01/22 redress figures
03/02/22 redress payment – not.
Andy says
It looks like they are using more stalling tactics as so many upheld complaints , I checked company house and states they not lending due to covid concerns , but still taking peoples payments , but now not giving legal redress does sound like going under ,
L says
See they’ve recently purchased their own shares from the little I understand on companies house. I would imagine they’d use that to leverage further cash flow with investors and maybe they’re holding back redress until they find some investors or they could genuinely be going into administration which would be odd given the purchase of shares. But I’m no expert in any of these fields.
Rich says
I contacted tfs and they advised the same thing as yesterday that they’re dealing with an issue at the FCA. I’ve also spoken to my case handler at FOS and he advised that he’s had calls from people in the same position. He said he’s unaware of anything at least at his level but he’s escalated it. He seems to think that it may be an issue with how they’re calculating settlements and that he doesn’t think means that redress won’t be paid. Will just have to sit tight. I sent an email to FCA about it as well just in case but sounds like it’s a legit delay rather than a stalling tactic. Will let you know if I find out anything more..
L says
Appreciate it’s only been a few days but any news on this yet? Due to receive my redress Friday and haven’t heard anything from TFS to say otherwise. Thanks
Rich says
Nothing yet, FCA got back to me saying..
I appreciate you understanding that we cannot get involved directly in individual consumer cases and as such you should remain in direct contact with The Ombudsman about their next steps forward in this matter. However, the fact you received a phone call from TFS explaining their ‘legal department’ has instructed that no further redress payments should be made is very concerning.
As such, I have shared the information you provided with my colleagues who supervise the firm. We expect financial services firms such as this to follow our rules and meet our standards when dealing with consumers. We appreciate members of the public raising their concerns with us, because this can be a valuable source of intelligence which better enables us to supervise the conduct of the firms and individuals we regulate…
Let us know if you get paid Friday please. Fingers crossed you get it
Andy says
I thought the decision was legally binding and that no excuses or more stalling tactics would be acceptable but I am in the same position awaiting decision , so any news duly appreciated
L says
Spoke too soon! Just had a call to confirm no payments being made they said it might be 2 days might be 10 days might be longer. Hopefully the FCA and FOS answer their queries asap!
Sara (Debt Camel) says
I am so sorry but there is now a notice on TFS website saying they have gone into administration. I will write a short article about this tomorrow.
Rich says
Thanks for the update Sara,
It is what it is. I’m glad they wrote off the remaining balance so I won’t complain too much. I feel for those who have waited so long for decisions just to find out the bad news though.
I’ll look out for your article.
Thanks again
Andy says
Hi Sara as my complaint was with ombudsman after adjudicator ruled in my favour , and TFS froze the account until decision was made, will they now demand payment from me or my guarantee as this is slightly worrying me now thanks andy
L says
Cowboys but not hugely surprised! Pee’d off with FOS since they took nearly 20 months to deal with complaint but guess either way it would have accelerated the administration. Luckily for me I wasn’t banking on it but I hope those who were waiting and had banked on it are okay!
Sara (Debt Camel) says
I suspect you are right. If FOS had pushed cases through much faster, company woul£ hav3 just gone under sooner. It is the FCAs fault that TFS was allowed to make these unaffordable loans and trade with insufficient capital to cover redress costs to clients.
Margaret says
Totally agree with you. TFS would not look at my complaint as over 6 years old. Has been with FOS since August. When I phoned last week it was still to be allocated to a case handler. Is that why FOS has been so slow with dealing with TFS complaints as they knew it was going under and they would save them wasting their time?
Sara (Debt Camel) says
If FOS had gone quicker, TFS would probably have folded sooner.
Carl says
Hi Sara
Could you please send a link to the page regarding Vanquis credit card irresponsible lending upheld case so I can write you a message and also read about how others got on with complaints with them and redress etc.
thank you
Sara (Debt Camel) says
here you are: https://debtcamel.co.uk/refunds-catalogue-credit-card/
Andy says
Any info on TFS as mine was upheld an not getting hopes up with this if stating they cannot pay out redress , does anyone know if they will go under
Sara (Debt Camel) says
I don’t have any news at the moment.
Sara (Debt Camel) says
TFS is now in administration, see https://debtcamel.co.uk/tfs-administration/ for details. Please ask any questions over on that page, not here.
Amy says
Good Afternoon
I have just had a complaint upheld by an ombudsman case handler for a loan I was a guarantor on. They have suggested £300 compensation payment, refund all payments and to pay 8% interest.
I’m just wondering if you had any idea of how many cases usually get rejected by the company and have to be reviewed by the ombudsman? The company is George Banco (Everyday Loans). This has been going on since Nov 20 and the thought of it going on longer after having positive news is torture.
Thanks
Amy
Sara (Debt Camel) says
I’m sorry but I don’t remember a recent GB case, so I have nothing to base a guess on
Wesley field says
Hi Sara spoken you before about buddy loans and my claims who is there I can ring for advice, there customer time administrators and head of complaints saidmowh the short settlement or lose it basically
Sara (Debt Camel) says
Please see my previous reply to you https://debtcamel.co.uk/buddy-loans-administration/#comment-468177.
if you want to talk through the options you can phone National Debtline on 0808 808 4000. I am sorry but this isn’t an easy decision.
Kyle says
Hey, I’ve sent off my case to ombudsman. I have a loan out with George Banco and I took it out when I had a lot of debt and pay day loans. My spending was erratic to which I was always maxing out my overdraft and my money didn’t last till my next pay day. The ombudsman said in initial look he thinks They didn’t do enough checks to see if I could afford it. I’m wondering if they only take into account the outgoing bills and not my erratic spending? Or would it have been irresponsible for them to give me the loan knowing that I’m maxing out my overdraft each month? I’m wondering if they will look at it and say you had money to pay off the loan but just didn’t use the money wisely? But I have BPD so that’s why I didn’t spend wisely. I told the ombudsman guy that I know it’s not their job to know that but had they asked for bank statements they would have seen that each month my money wasn’t lasting so I would have been worse off. And I know some of the loan as to pay off another loan and one other pay day loan. But I would have still been £-50 worse of even still. Just wondering if my case is ok? Coz had they checked my bank statements they would have seen that I can never make my money last. Surely that’s grounds for irresponsible lending on their part?
Sara (Debt Camel) says
I am glad your case is being looked at. This sort of case always depends a lot on the details, but as a generalisation I will say that if GB calculated you have £500 spare a month so you could easily afford the £220 loan repayments (I am just making these numbers up as an example) then if your previous credit history suggest that you don’t have much money spare a month GB should have wondered what was wrong. After all if you had £500 spare a month why would you max out your overdraft and why are your other debts increasing?
HAve GB sent your the SAR information that you will have asked for if you used the template letter in the article above?
Kyle says
Hey thanks for the prompt reply. Nah I didn’t use the template and didn’t ask for the SAR. I only sent my bank statements that the ombudsman asked for, as well as their correspondence to say that they carried out enough checks in their opinion. Should I ask GB for the SAR and send it to the ombudsman? And also they didn’t ask to see proof of my income or my guarantors income, just word of mouth. I told them I had loads of depts and such.
Thank you :)
Sara (Debt Camel) says
yes ask GB now for the SAR – you want this, don’t send it to FOS.
It will take several weeks. You won’t need it if the adjudicator upholds your case and GB accept, but it is getting prepared now in case the case has to go to the Ombudsman.
kyle says
Ahhh okie doke, thank you very much :)
Nicolle says
Hi,
I am guarantor on a Amigo loan and the main borrower is really struggling to pay it. I’ve already had to pay once and it seems to be going the same way this month. Can you please confirm whether defaulting on this (as a guarantor) affects my credit rating? I’ve been working hard to improve my credit score in order to apply for a mortgage this year and I’m really concerned about this.
Also, the borrower hasn’t put in a complaint, even though I believe she should as she clearly couldn’t afford the second loan (she topped up), so can I raise a complaint and again how does this affect me credit score wise?
Thanking you in advance,
Nicolle
Sara (Debt Camel) says
First you need to read https://debtcamel.co.uk/amigo-new-scheme-2/ as that describes what is happening with the proposed Amigo Scheme and how complaints can be made. The template letter on this page is no longer relevant…
But to answer your questions, if you default as a guarantor, this will not appear on your credit record – but if Amigo were to take you to court and get a CCJ, this would appear on your credit record but whether Amigo threatens, this is not going to happen at the moment while they try to get a scheme in place.
If you make a complaint this does not in itself affect your credit record. It only will if you refuse to pay and Amigo gets a CCJ.
You could complain as guarantor that the loan was unaffordable for YOU at the time it was given. A loan is only affordable if you could make all the payments and still be able to pay your other debts, bills and everyday expenses, without having to borrow more.
You can also complain that it was unaffordable for the borrower, but this is a much harder complaint to win as you usually do not have evidence to prove this. It is MUCH better to persuade the borrower to also make a complaint. You can point out to the borrower that you are making a complaint and if you are removed as guarantor, they will have to pay the full amount, so it is in their interest to also make an affordability complaint. A topped up loan is often a sign that it was unaffordable for the borrower.
karol says
Hi Sara
I’ve received response from FOS regards my unaffordability complain would you be able to translate the below into plain English for me..
Loan one on 20/03/20 Amount: £6500 Term 60 months Monthly Rep. £256.22 APR Total repayable: 49.7% £15372.98
To settle complaint Bamboo Limited should do the following:
To add up the total amount of money I received as a result of having been
given this loan. The repayments I made should be deducted from this
amount.
a) If this results in having paid more than he received, then any
overpayments should be refunded along with 8% simple interest (calculated from the
date the overpayments were made until the date of settlement). †
b) If any capital balance remains outstanding, then Bamboo Limited should attempt
to arrange an affordable/suitable payment plan with me.
To remove any negative information recorded on my credit file regarding this
loan
† HM Revenue & Customs requires Bamboo Limited to take off tax from this interest.
Bamboo Limited must give me a certificate showing how much tax it’s taken off if I asks for one. SHOULD I ASKFOR THIS CERTIFICATE?
Bamboo Limited have time until 10th of March to response.
Sara (Debt Camel) says
do you still owe a balance?
how much have you paid them in total so far?
karol says
Balance : £9,736.14
Paid: £5,636.84
Sara (Debt Camel) says
Then your balance will be reduced to 6500-5636= £864
Bamboo should let you pay this at a lower, affordable rate.
There wont be any 8% interest as you still owe them money after this refund. So the tax certificate is irrelevant as i5 only applies to the 8% interest.
Bamboo should release your guarantor – if they don’t, tell your guarantor to make a complaint that the loan should never have been given as it was unaffordable for the borrower and so they should be released as guarantor.
Karol says
Thanks so much Sara I wonder what their response will be and if the agree of the FOS proposal. Can they refuse in anyway the proposal?
Sara (Debt Camel) says
If this is a first decision from an adjudicator/investigator, then Bamboo can reject it and it will have to go the second “ombudsman” level for a decision. An Ombudsman’s decision is legally binding on the lender.
karol says
Hi Sara
I just want it to so massive thank you for all your responses and for the advice on this web.
Please see below note from FoS regarding my case, I couldn’t be more happy now.
I’ve heard back from Bamboo Loans and they agreed to my recommendations so have advised they will remove the interest and any charges from the loan.
Once again thank you so much.
Sara (Debt Camel) says
Well done!
Ryan says
Hi Sara – hope you are well – it’s Ryan from All Bets Are Off (you appeared on our podcast last year). Absolutely gutted about this whole situation. Began this process 18 months ago. First delay was TFS taking 6 months to get their paperwork over to FOS. Around six weeks later FOS ruled in my favour only for TFS to appeal (standard)… then it took a senior ombudsman EIGHT months to re-affirm their original decision. On 28th January this year I get this confirmation of final decision and I accept. On the 3rd Feb TFS write to me for my bank details and I was due to be paid next week.
Frustratingly, I had moved around payment and re-prioritised debts based on this expected income of several thousand pounds redress – only for them to go into administration. As a gambling addict in recovery this hit me really hard and I’m now having to go back to debtors to explain the situation. It’s appalling that they don’t consider the mental health implications of such actions. In fact, this really impacted my performance at work over the proceeding days and I’m still finding it all pretty difficult to stomach if truth be told.
Sara (Debt Camel) says
I agree. Lenders are allowed to get away dragging things out for far too long.
Nazia bibi says
Hi sara whats happening about amigos as i thought it was a court date on the 8th march havent seen any update thanx
Sara (Debt Camel) says
the judge said on Tuesday that he will be publishing the decision in the next few days. It is expected the voting will go ahead. This court day wasn’t to consider the fairness of the scheme, just the voting arrangements.
Margaret says
Has anyone had any dealings with GR Finance Ltd? I have had affordability issues with them for over a year. Adjudicator ruled in my favour and gave them until 7th March to agree. They have came back disagreeing with decision now to go to ombudsman! On the website they are not giving loans due to covid. Are they the next company to go bust and stalling on payments?
Stacey says
I’ve actually already received an email from amigo today regarding my complaint. Strange because they said they weren’t going to look at them until the vote had gone through.
Sara (Debt Camel) says
what does it say????
Stacey says
Thank you for your email, I have added this information to your account to be investigated as part of your complaint.
I am sorry to hear you are struggling with your mental health and thank you for opening up about this and letting us know. We understand this could be a difficult time for you at the moment and so we want to help you in any way we can throughout your journey with us. If you are happy to, we would like to discuss this further in order to establish if there is any further support we can provide you. If you wish to discuss this with us, please contact us on 01202 629161.
We would never expect you to make a payment you can’t afford and there may be alternative arrangements we can agree to.
However, before we can agree to any formal arrangement our Collections Team needs to understand your circumstances in more detail so we can ensure we have the best resolution in place. This means we need to have an in depth discussion with you so that we have a clear understanding of your current financial situation.
Sara (Debt Camel) says
If you are going to do that you may as well just ask for equitable set off – then you don’t have to run through your finances with Amigo!
Stacey says
I haven’t actually asked to do anything this is the thing. I just put an affordability complaint in 2 days ago because in the vote it says if you have a current loan complain now and this was the reply
Sara (Debt Camel) says
ok so you can ignore what they have said if you don’t want to talk to their collections team.
It’s up to you – you can carry on paying, you can opt for Equitable set off (pause paying, guarantor not asked to pay, harms your credit record but not guarantor’s), or you can talk to their collections team about paying a lower about (which will probably harm your credit record).
Stacey says
So if I just ignore them and continue paying as usual will my complaint still go though?
Sara (Debt Camel) says
yes it should. They aren’t saying they won’t t4reat it as a complaint if you don’t talk to them, are they?
Stacey says
Not that I am aware of thats the only email I’ve received up to now and it doesnt say that.
Sandra says
Hi Sara I had this text today from amigo I haven’t voted yet as I’m unsure what to do for the best? Hi Sandra, did you have or guarantee an Amigo loan that was not affordable for you? You may have a claim for cash compensation. Amigo recommends you vote in favour of BOTH Schemes because Amigo believes they will provide you with a better financial outcome than an administration. See this video https://youtu.be/4IChN41Kp58 and head to amigo.me/ZV7X7H8J for more details and to cast your vote. You can vote online until 5pm on Tuesday, 10 May 2022. Thanks, Amigo
Sara (Debt Camel) says
Our previous conversation about this was on this other page: https://debtcamel.co.uk/stop-paying-amigo-set-off/comment-page-2/#comment-476072
roy says
if i have mental health issues and have had since before i took my loan out and this was not checked am i able to make a claim
Sara (Debt Camel) says
Not for that reason on its own, unless the lender(who was it?) knew you had a mental health problem.
But the loan may have been unaffordable for you, see the article above.
Jax says
I had a loan with bamboo that defaulted. I raised an irresponsible lending complaint last year. They agreed to remove the interest and for me to just pay the capital off. They said they would update my online account once I had paid the capital. I made the last payment at the end of January this year. They have sent me a letter confirming it is paid in full but the online account is still showing as open nearly 3 months later. I’ve emailed them on numerous occasions asking them to rectify this. I emailed again saying I wanted it sorting immediately and that I wanted compensation for the distress it is causing. They said a few customers have had this problem recently and if I want them to ask their IT department to manually update it they will but it can take 4 weeks. Also offered me £25 for compensation. I won’t believe they won’t chase me for the interest they removed until that online account shows it as closed. I feel like they’re fobbing me off and 25 quid is a joke! I don’t know what option I have other than to just accept. Does anyone have any thoughts please?
Sara (Debt Camel) says
It’s annoying but I expect this will get sorted. You could say you will accept the £25 if your credit record is resolved within a 4 weeks, but if it isn’t you will be sending the complaint to the Ombudsman and asking for additional compensation.
Jax says
Thanks Sara, the credit record is updated. Its the online bamboo account that they’re taking ages to update. I really don’t know why it is taking so long. Other lenders are able to update within a week of settlement.
Sara (Debt Camel) says
Ok well I don’t really see that matters. No other lenders can see it.
Kirk Stevens says
Hi
I’ve just received a letter from UK Credit regarding a complaint of a guarantor loan I have recently complained about. I’ve realised that they clearly hadn’t followed proper affordability checks due to my financial circumstances at the time.
They have replied advising me that the Financial Conduct Authority complaint handling rules (DISP) state that the Financial Ombudsman Service
cannot consider a complaint where it is referred to them outside certain time limits. It defines those limits as a complaint made more than:
(a) six years after the event complained of; or (if later) (b) three years from the date on which the complainant became aware (or ought reasonably to have become aware) that he had cause for complaint.
In addition to this, they have asked me to respond to the following questions:
1. Please confirm when you first became aware that there was a problem with the affordability of your loan?
2. Were you aware that it was UK Credit’s responsibility to ensure that the loan repayments were affordable to you, before agreeing to grant the loan?
I don’t see how the questions asked have any relevance to the ‘Next Steps’ section. I’m also not clear from what I have previously read that time limits for complaints is in fact true. I only became aware of the improper affordability checks having read about Amigo loans recently which made me look into this with UK Credit.
Any advice on this and how to proceed would be very much appreciated
Sara (Debt Camel) says
In answering the first question, you could say that when you were repaying the loan you knew this was causing you problems and led to you getting into more debt but at that point you were unaware of the concept that a loan was only affordable if you could repay it and your other debts, bills and living expenses so at that point you had not identified there was a problem with the affordability of the loan.
In answering the second question, you can say No and say when (roughly) and how (read an article about Amigo’s proposed Scheme?)you became aware that UK Credit should have checked the loan was affordable.
Kirk Stevens says
Perfect thank you.
That’s exactly were my thoughts were going with this. Just wanted to seek confidence in whether this was the right approach.
Thanks
RD says
Hi Sara. I had a complaint upheld by FOS for irresponsible lending with George Banco. They agreed with FOS to remove all adverse info from credit file and to remove guarantor. Nearly 18 months later those terms were not carried out by GB. My guarantor, who’s is brother is no longer speaking to me as he believes I lied to him about him being removed, he continued to receive emails and text stating they were going to request payment whenever I missed mine. I complained again to GB and they agreed and said human error caused this, they agreed to compensate £100. Would £100 sound right to you?
Sara (Debt Camel) says
When did you go back and complain to GB again about this? Did thewy not agree to accept a lower affordable amount from you?
RD says
The new complaint was about 5 weeks ago. We did negotiate a lower payment, but at times I wasn’t able to pay. The repayment wasn’t the reason for the 2nd complaint. It was that they didn’t remove negative info from credit file, when they agreed with FOS 18 months ago. Also they said they would remove my guarantor, but they didn’t and they continued to send him text and emails stating that they would take a payment on his bank card. My brother has fallen out with me over this and we haven’t spoken for over a year now.
GB offered £100 as compensation as they admitted to both faults, but I don’t think that is fair as their mistakes have caused my brother and I to fall out.
Do I have any grounds to go the FOS? Or is the £100 compensation the best I will get?
Thanks
Sara (Debt Camel) says
I don’t think £100 is adequate at all. But what I am trying to work out is, if you and your brother fell out a year ago as he was getting warning texts, did you complain at that point?
Rd says
Oh sorry. With FOS instruction, they agreed to remove him from the loan and reduced payments from 260 to 200. I thought this was affordable but it wasn’t. Missed a few payments soon after and he received text and emails this was straight away. I called and emailed numerous times to ask them them to remove him and they said they had, explaining my brothers and I relation was being effected. I had emails off GB saying that he had been removed when he hadn’t. During this time we fell out. I complained 5 weeks ago as I thought I had been treated unfairly and my personal life has suffered as a result of GB.
Sara (Debt Camel) says
That’s fine. If you had only just realised, then it would be hard to say that you had been badly affected by their mistake, but you have a paper trail of this.
What do you think would be fair?
Can you count up the number of emails you have had from GB saying he had been removed?
And the number of emails you have sent them?
Rd says
So there has been 4 emails and two phone calls between myself and GB confirming that he had been removed from the loan.
I’m not sure what is fair? The reason why it took me 18 months to complain was due to not knowing this was an issue I could complain about.
Sara (Debt Camel) says
I suggest you ask for £600 – a £100 each for the letters and emails.
They basically lied to you without bothering to check what had actually happened.
I don’t have any basis for that number but what they have done is outrageous and has cost you a lot of trouble.
Also ask for GB to send a letter of apology to your guarantor saying they contacted him in error and he should have been removed as guarantor on the loan in month/year.
Say your complaint goes to the Ombudsman if they do not agree.
Cath says
I sent a complaint to FOS about trust two for a guarantor loan. They’ve upheld the complaint I was just wondering how much I’d be looking to get back.
Only 1 loan for £5000.
I’ve paid £6909 in total.
They also said any overpayments should be refunded along with 8% simple interest (calculated from the date the overpayments were made until the date of settlement). My payments were £236 a month.
Thank you 😊
Sara (Debt Camel) says
Then you paid 1909 in interest and charges. How long ago was the debt cleared?
Cath says
The debt hasn’t been cleared. I’m currently just paying interest. I’m not sure the date the £5000 was paid by. I’d assume it was at some point last year.
Sara (Debt Camel) says
then there won’t be much 8% added interest. But your balance will be cleared and your guarantor will be released as well as the refund in cash of the interest paid.
Cath says
Thank you so much for your help!
k says
Hi, I have a £15000 guarantor loan with george banco, I managed to pay off what i borrowed and now owe the interest of around £17000. I’m now at a point where I haven’t been able to pay anything back since September last year. I made an affordability complaint to them as they never checked any bank statements for income which i exaggerated and also was on a probation period with my job that I didn’t tell them about and ended up losing my job a few months after getting this loan. I also have gambling transactions on all my accounts which they also didnt check. I also had a small loan with another company which I told them I would pay that off using the loan they give me but didn’t end up doing this either but I managed to pay that one back fully. However I did have a good credit score when I took this out and these were my first 2 loans I’ve ever taken out and never missed payments until now. Do you think I have a good case to win this complaint?
Thank you
Sara (Debt Camel) says
That is a huge loan – they should have verified your income.
Have they asked your guarantor to pay? What is your guarantor’s financial situation?
k says
it is a very big loan which is only getting bigger as its in arrears and nearly at the stage of defaulting now.
And yes they’ve asked for a payment plan but saw I couldn’t afford anything and is currently asking for my guarantor to complete an income form too. She is retired and can’t afford any more than £50 a month which I had already offered to them back in September which they have been taking but now have come back and still wants to go through an income form with her. They also didn’t check any bank statements from her either.
Sara (Debt Camel) says
Then both of you need to make a complaint that the loan was unaffordable for you. Here is the page for complaints by a guarantor: https://debtcamel.co.uk/amigo-complaints-by-guarantor/
If you win your complaint, she will be released as guarantor and you will get a small refund.
If you lose your complaint but she wins her complaint, she will be released and you can just offer what is affordable. It is definitely worth making both complaints.
Anna says
Hello,
I have taken a guarantor loan with Future Finance.
I will definitely make a complaint because nor mine nor my guarantoor finances has been properly checked.
But there’s a question I can nowhere find an answer to- Future Finance company has got liquidated and they passed all the loans to Asset Link Capital (No.9)
Does it impact me in any way? Am I still the same obligated to pay off the loan?
Sara (Debt Camel) says
This loan still legally exists, but the creditor is now Asset Link Capital.
It isn’t clear to me who you should now make a complaint to. I suggest you make an affordability to complaint to both FF and ALC and see what each of them say.
Rochelle says
Hi Anna,
I hope you don’t mind sharing.
What happened with this?
I am making a complaint for unaffordable lending as well.
Did you sent to asset link capital? And what was the outcome?
Anna says
Hi Rochelle!
I haven’t done it yet.
Do you know how to apply and what steps to follow?
Rochelle says
Hi,
I started off with a complaint to future finance through resolver. Though since they are no longer in business I’m not sure I’ll get a response. This was only 3 weeks ago.
I then sent the same complaint to asset link capital enquiries email. No response yet.
Anna says
Hi, I have sent a complaint to Asset Link Capital through email and they have responded me with all procedure they are taking for resolving complaints. They have stated there that there should resolve it within 4 weeks, if they will be unable to do so, they will inform me about it and after 8 weeks I am entitled to pass the complaint further.
Chris says
I had a loan with Buddy who have liquidated. Could i put a complaint in with 1plus1 loans who took on the loan?
Sara (Debt Camel) says
The Buddy administrators developed a Redress Scheme which determined which of the open loans may have been mis-sold and they have reduced the balances on those loans.
If your loan was not determined to have been mis-sold, I think 1plus1 will reject any complaint.
What is your current financial situation?
Natalie says
Hi Sara
I’ve been assigned an investigator with FOS. Have sent off all documents he asked for. Loan company said loan was affordable but it wasn’t. Many missed payments. Car repossessed. Priority bills in arrears. Sent all this as proof.
Can you tell me likelyhood of it being successful.
If successful can you tell me what il get back
Oct 21 took out £5k guarantor loan. With interest it was £8710. I have £1864 left to pay. Loan is due to end nov 24
Sara (Debt Camel) says
Is this car finance? Or a guarantor loan? Who is the lender?
Have you Ben asked for bank statements from around the time the loan started?
Natalie says
This is a guarantor loan with guarantor my loans.
Yes been asked for bank statements 3 months before and 3 months after.
Sara (Debt Camel) says
ok then I hope you win! There is no point inme trying to guess what the chances are.
If you win you will get back the total of payments you made LESS the 5k you borrowed. And your guarantor should be released. And your credit record should be cleaned of the guarantor loans problems
The car repossession – have you looked at an affordability claim about that?
Natalie says
I got the car finance in April 2022. Car was £7k including interest the total is 13500. Monthly payments of 220. I know this was definitely given when I couldn’t afford it.
The car was repossessed. Had to pay over 1000k in arrears to get the car back just a few months ago.
I’m afraid to take the further as they will want the car back. Can you advise.
Sara (Debt Camel) says
are the payments affordable at the moment?
Natalie says
Not in the slightest. I’m currently on maternity allowance £174 a week. £60 a week goes on guarantor my loan. 220 a month on car. My priority bills are in arrears.
Sara (Debt Camel) says
If you complain now about the car finance, you are right you are likely to lose the car even if you win the complaint. You need to wait until you have almost repaid the amount you borrowed before make the complaint.
If you win the guarantor loan FOS case, that will be a major improvement. Hopefully that will let you carry on with the car finance? If not, then it’s hard to see how you can manage to carry on with the car finance…
Wes says
Good afternoon, I have a quick query inregards to amigo.
I had a redress for thousand years ago, seen on here about a possible scheme. Managed to get a complaint in and upheld.
There was a payment they’d take off the readdress about ‘tax’? Or something like that.
I’ve had an email saying I’m being given some more back, with whatever the p in the £ will be.
Is there anything I could do in regards to the tax payment they took off from the original complaint?
Sara (Debt Camel) says
See https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/. Amigo will send you a Certificate of Tax Deducted with the new figures you need
Wes says
Thanks for the reply.
I can’t quite remember what the deduction that took off was called, I do remember commenting it on this website before and you mentioning that it was odd that amigo were doing this to upheld complaints. A few others had had it aswell.
I’ve emailed them querying again, but as I said it was a few years ago now.
Sara (Debt Camel) says
Ah that was nothing to do with tax. That was a deduction for unpaid interest. Please as on the Amigo Loans Creditor Facebook group about this.
Lynne Byrne says
As a guarantor I have been released from an Amigo loan however the person I was guarantor for and who subsequently took up a top up loan on top of the original loan, has not been released from the original loan however should have been on grounds of affordability.
” Partially upheld. Your Scheme claim will be used to reduce your outstanding loan balance due to Amigo
We have upheld your claim on some of your loans. This means that for at least one of your loans we have concluded that we cannot be confident that the loan agreement(s) was affordable for you, at the time it was entered into. This means that your claim regarding this loan(s) has been upheld.
However, in respect of any remaining loan(s), we have concluded that we are satisfied that the loan(s) was affordable for you at the time it was entered into. Therefore, your claim regarding the loan(s) has been rejected.
Sara (Debt Camel) says
I suggest they need to appeal (“escalate”) the decision – Amigo is losing a lot of these appeals.
Lynne Byrne says
Thanks Sara I will tell him to do so.