The repayments on many loans from bad credit lenders are too high to be manageable so people get deeper into debt trying to repay them.
If you have an unaffordable loan, you can complain and ask for interest to be removed from your balance. If the loan has been settled, you can ask for a refund of the interest you paid.
This article describes how to complain, with templates. It is a variation on the standard approach for payday loan refunds – this works better where the loans are very large, longer term and you only had 1 or 2 loans, possibly with top ups.
NB the complaints here are for “normal” unsecured loans and HP/PCP car finance. You can also use this approach for logbook loans. If you have a guarantor loan, read Refunds from guarantor loans as it’s very different, and the guarantor may be able to complain as well.
Contents
Like payday loan refunds – but you can get a refund for just one loan
A lender should have checked when you applied that a loan is affordable for you. The regulator says “affordable” means:
you can make the repayments without hardship or having to borrow elsewhere.
This is the same test as for payday loan refunds. It applies to most forms of credit, including large, long term loans and logbook loans.
The payday loan refund template letter has got tens of thousands of people refunds. That letter emphasises the problems that repeat borrowing caused. Because payday loans are usually small, it’s hard to get a refund if you only had one or two payday loans.
That sounds like bad news for these complaints about large loans, where you normally only have one loan plus possibly a top up or two…
But the good news is that because these loans are larger and longer-term, the lender should have made better checks before giving you the first loan!
So the letter here is for large loans.
Making a complaint and asking for a refund
This is what you need to do:
- Get a copy of your personal information from the lender and a copy of your credit record.
- Put in a detailed complaint.
- Consider lender’s response.
- Send the complaint to the Financial Ombudsman.
Send your complaint by email – here are the addresses
It’s easiest if all communications are by email – free, instant and you have a copy with a date stamp to show the ombudsman. So here are the email addresses to use for the main bad credit, large loan and lenders:
Avant Credit emailcomplaints@avantcredit.co.uk
Bamboo Loans complaints@bambooloans.com
CarCashPoint complaints@carcashpoint.com
Everyday Loans complaints@everyday-loans.co.uk
Likely Loans loans@likelyloans.com
LoanOnYourCar customerservice@loanonyourcar.com
Loans 2 Go (and their logbookloans.co.uk brand) ps@loans2go.co.uk
Mobile Money complaints@mobilemoney.co.uk
Moneybarn complaints@moneybarn.com
Moolr admin@moolr.co.uk
Motor Kitty customercare@motorkitty.co.uk
MyJar (including Myjar Plus) generalcomplaints@myjar.com
Progressive Money complaints@progressivemoney.co.uk
Quick Loans customerscare@quickloans.co.uk
Ramsdens (logbook loans) customerservices@ramsdensforcash.co.uk
Satsuma onlinecustomercare@satsuma-loans.co.uk
Savvy info@savvy.co.uk
Vanquis customer.relations@vanquisbank.co.uk
Varooma complaints@varooma.com
1st Stop customerservices@1ststop.co.uk
118 118 Money complaints@118118money.com
I have included a couple of payday lenders there – Myjar and Satsuma – because they often give very large loans. If you borrowed a lot from those lenders, use the main payday loan refund letter. But if you just had a few very big loans, use the letters on this page.
For guarantor loans, there is a different approach – see guarantor loan complaints by the borrower and guarantor loan complaints by the guarantor for details
Stage 1 – start the complaint – ask for personal information & get your credit record.
Get a copy of your current credit report saved immediately. You can get one from Credit Karma. Do this first thing as lenders may later change the information on there, so you want a full one saved to show the Ombudsman later if necessary.
Then email the lender and begin your complaint. The clock is then going and the lender has 8 weeks to respond to you. Put AFFORDABILITY COMPLAINT as the subject of your email.
You probably already know when you took out the loan and any top-ups. But it’s good to ask the lender to send you a copy of all the personal information they have about you. This will give you a lot of information that can be useful later if you have to send the complaint to the ombudsman, so ask for it right at the beginning.
Sample email:
I am asking you to refund the interest and any charges I paid, plus statutory interest, and to delete any negative information from my credit record.
[add extra information if you want from the stage 2 email – you don’t have to do this]
[delete if you have repaid the loan] I would also like an affordable repayment plan to be put in place if I still owe a balance after this refund.
I am also making a Subject Access Request (SAR) for all the personal information you hold about me including, but not limited to, my applications, all credit and other affordability checks, a statement of account for my borrowing, and a record of all phone calls. I understand you are not allowed to charge me for sending this information.
SARs are often sent out by post, make sure the lender has your new address if you have moved!
NB The template says you are asking for an affordable payment arrangement at the end of your complaint. If you want, you can ask for an affordable payment arrangement immediately unless you have a logbook loan, where you have to keep up the payments or you may lose your car.
While you are waiting for the lender’s reply, assemble some other information that may help your case:
- copies of your bank statements from 3 months before the first loan.
- your free Transunion Statutory Credit Report
Also read Payday lender says I lied. That looks at the various reasons why your application may not have been accurate. People have won complaints where they lied because they were desperate but there are other reasons too, so think what (if any) may have applied to you.
Stage 2 (OPTIONAL) – add more details
This step is optional because your complaint has already started. Many lenders don’t seem to think about what you write, they just do some internal check on your borrowing before sending you a response. So you may decide it’s not worth spending time to send them more detailed information which they will ignore…
But here is what to do if you want to write more. It helps you to understand how good your case is and this is the sort of information it is useful to send to the Ombudsman.
When you have the SAR back from the lender, you can look for things that the lender knew but chose to ignore or didn’t ask about. See How Subject Access Request information can help an affordability complaint which has details about what to look for.
Change the template below so it reflects what happened to you. Where I have given some options, you can delete them all and put in another one if that is more accurate.
No-one will include all these points!
It is better to write a short complaint summarising your problems than send pages telling the lender stuff they already know eg the lender doesn’t need a list of your loans.
You can see from my bank statements and credit record that I was unable to afford the loan repayments. [Delete if not relevant] [For example, I had to borrow from X payday lender and I defaulted on my Y debt.]
When I completed the loan application, I understated some of my expenses. This was because: [put what actually happened! this could be something like] I wasn’t very aware of the amounts I was spending and completed the application hastily. OR I wanted to hide the fact I was spending a lot of money on gambling/cigarettes/alcohol. OR I was desperate and wanted to make my expenses sound low so you would give me the loan.
The FCA says that you should not accept an application where you ought reasonably to know the figures are not truthful, you can’t rely solely on the information on an application, and that you should not accept information which is inconsistent with what you know.
This was a large loan, you knew I had poor credit and may have been in a difficult position so you should have tried to verify details. If you had done this, you would have rejected my application.
For example [delete or add to these as appropriate]:
- You should have noticed that some figures were too low, for example: x,y,z
- I didn’t include amounts such as [delete/add as appropriate]: car insurance, TV licence, opticians and dental costs, presents]
- My bank statement would have shown that I was spending more than the application said. Either you saw my bank statement and ignored this or you never asked for my bank statement to verify this.
- During a telephone call, your agent talked me into agreeing that some figures should be lower in order to get my application accepted.
- Your application didn’t ask me for details of my other credit commitments and I didn’t realise I had to include them.
- I didn’t include payday loans as credit commitments on my application as I thought that was for long term credit, but you could see I had several from my credit record.
- You should have seen that the figures I put in for other credit commitments were inconsistent with my credit record.
When I applied for a second loan/a top-up [delete/add as appropriate]:
- you ignored the evidence on the credit check that my position had got more difficult OR you didn’t do a new credit check. If you had done this you would have seen the new credit I had taken out and the new problems showing on my credit record.
- you didn’t ask if my income or expenses had changed, and they had.
- you didn’t ask for bank statements so you could check if the new repayments were affordable.
- I had said the first loan was to consolidate debt, but you should have seen that this hadn’t happened.
- you increased my interest rate, showing you realised I was in a more difficult position but you did not check whether I could actually afford the new repayments.
The lender replies – go to the Ombudsman if a poor offer
You should get a response from the lender within 8 weeks. If you don’t, phone them up and ask when you will get it – a couple of days is worth waiting for but many responses are rejections, so don’t wait weeks for one, go to the Ombudsman straight away.
Normally you can tell straight away if a response is acceptable or not good enough. If you aren’t sure, ask what other people think in the Comments below this article.
Don’t be put off by a rejection. Or if the lender saying it was your fault because your loan application wasn’t accurate.
Lenders are obliged to do checks. For one small payday loan, these checks could have been brief. But for your large loan, the lender should have made sure they knew enough to be confident you could afford it, even if was your first loan from them. If they didn’t, send your case to the Ombudsman.
It isn’t usually worth trying to negotiate with these lenders, you are just wasting your time.
Send to Financial Ombudsman Service (FOS)
I suggest you use the “do it online” option to send a complaint to the Ombudsman. It asks you for all the details they need.
The main part of your complaint can be a version of what you sent the lender in Stage two. Add any more details you want, including pointing out if you think there are errors in the lender’s reply. Also attach:
- the reply from the lender
- Credit Karma credit record
- bank statements starting 3 months before first loan.
Your complaint will first be looked at by an adjudicator. If either you or the lender rejects the adjudicator’s decision, it will then be looked at by an Ombudsman.
“Is this really going to work?”
Here are some recent comments from people who have had refunds for this sort of loan. They show how some people get a good result directly and others have to go to the Ombudsman. Don’t assume a rejection by the lender means you can’t win!
Andy: A flat out refusal from 118118 Money. One loan (£1,000) plus one top up (£2,500). Stating they had done nothing wrong, all payments made on time and paid top up loan off early. Saying I had a good income, verified by a bank statement and they had phone call recordings that I had made it clear the repayments were affordable.
Sent to FOS as I was in loads of debt at the time, loads of repeat pay day loans etc. Didn’t hold out much hope but thought I may get a positive decision on the top up loan. Adjudicator held in my favour on both loans. 118118 accepted decision and offered circa £800. I had my loan statements and the total interest (plus 8% interest) was nearer £1,300. Adjudicator queried this for me with 118118. They agreed with my calculations. Adjudicator gave them 28 days to pay. It was in my bank the very same day.
Dan: I had a complaint upheld by the adjudicator at the Ombudsman against Avant Credit: Refund of all interest and 8%, £75 compensation, removal of loan from my credit file. Avant Credit agreed with the adjudicator.
Louise: Have had my response from Everyday Loans and complaint upheld. All interest been removed and I only have to pay back what they lent. Excellent outcome. Lent 5000 and have paid 3k so just 2k left to go. On my DMPthe balance was showing at 6.5k still left. Took them 5 weeks to uphold my complaint a lot of emails going back and forth.
Soph: Had 2 loans from Avant Credit. Rejected within 2 days, sent to FOS Jan, upheld in March, Avant agreed with FOS and refund in the bank within 7 days.
Robert: I was successful in getting all interest wiped from my topped up loan with 118 118, didn’t go to the FOS or anything.
“What about a bank loan?”
The affordability test is the same – could you repay the loan without getting deeper into debt elsewhere. But there are two problems with normal bank loans:
- their interest rates are lower so it’s harder to show that the smaller repayments are unaffordable; and
- if your credit record was OK or even good, the bank wouldn’t have been alerted to the fact you may have difficulty.
So it can be harder to win a case involving a typical bank loan, especially if your credit record was OK. But if you know the loan was unaffordable then give it a go and use the template letters here.
Need some help?
If you need help to complain, go to your local Citizens Advice, they will help for free.
Don’t use a claims management company. They are expensive and often incompetent. And if you still owe money, then you may just get the interest removed so you owe less… which is great, but you don’t want to have to pay a claims company in cash when you never had a cash refund to pay it from.
Payday loan refunds if you owe money
What to put in an affordability complaint
Examples of gambling & payday loan refunds
Ruth says
Some good news finally against 118. After being a priority case at the Ombudsman level since May 2020, they have finally ruled in my favour! Huge relief. Does anyone know how long it takes for them to pay?
Scott says
Hi Ruth,
They have 28 days to action the resolution so best to set your diary for then.
Anything less than this is a bonus.
Scott
J.smith says
I am wondering just how much things have slowed up with this lockdown etc. I first complained about a logbook loan nearly 2 years ago! The adjudicator ruled in my favour 6 months ago, and the company refused it so it been in an ombudsman queue. It feels never ending! It was meant to be a urgent case too as my car was involved.
Lea says
I have been wondering the same. I’m also in a ombudsman final decision queue , as adjudicator upheld but company refused , been 4 months now In that queue, my complaint in total has been with fos since August 2019 so 1 year 5 months nearly . Really hope it gets sorted before 2 year mark! I do wish they could at least tell you your place in the queue so you have some idea how many they have to deal with before you. ( I get they can’t give you a time frame as cases take different times). Is anyone else in similar situations?
E says
Hello, FOS upheld 1 of 2 loans yesterday with 118118 money, they have given 118 till the 14th to reply? How quick/slow are they at getting back? Any one have any luck with quick reply’s from 118. Thanks
Steve says
Hey. I just wanted to let you know I had a loan upheld as well by the FOS for my friend and she is still waiting for a response from 118 despite them having until the 5th. I am on the call to them now so will keep you updated. It’s weird this comment has just come through. Lol
Steve
E says
How annoying! I don’t understand why they don’t just get it over and do with! Who did you call, 118 or FOS?
Good luck and fingers crossed she gets her money she is owed soon 🤞🏼
Zoe Johnson says
Hi Sara
I put in unaffordable complaint against Bamboo Loans using your samples. I received a response to say they are not upholding. But they have offered me £500 as I was unhappy and to resolve things swiftly and amicably. Do you think they are offering this so I do not escalate this to FSO?
Here is the some of the summary as I had to remove some as kept saying the post was too long.
Summary
In summary, Bamboo believes it made a fair lending decision in approving your loan after carefully considering your circumstances and affordability and we are therefore unable to uphold your complaint.
We are however disappointed to hear that you are unhappy with Bamboo agreeing to lend to you and in view of this, and in an effort to resolve things swiftly and amicably with you, we would like to offer you the sum of £500.00 in full and final settlement of your complaint.
We hope that you fully understand the outcome achieved. However, if you have any queries regarding our response then please do not hesitate to contact us. You have the right to refer your complaint to the Financial Ombudsman Service free of charge, but you must do so within six months of the date of this letter. If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.
Sara (Debt Camel) says
Do you think they are offering this so I do not escalate this to FSO?
yes.
Has this loan been repaid?
If Yes, when and how much interest did you pay?
If No, what is the current balance and are they offering to clear that and give you £500
Zoe Johnson says
Hi
I repaid the loan in December. My brother offered to pay it off so I was not paying all the interest as it was but due to end until 2023.
But I’d been paying it since 2018 and I’ve just worked out the interest and it’s approx £5280.14 I’ve paid until I paid it off in Dec 2020.
Sara (Debt Camel) says
Well that is the amount you could potentially get from a FOS complaint.
You could go back to Bamboo and say you are interested in settling this quickly but as you paid over £5000 in interest £500 is not acceptable, but you would be happy to compromise on £2500… or whatever amount you would settle for now. If you ask for it all they will just say No.
Zoe Johnson says
Thank you I will go back with an offer and see what they say. If no joy I will escalate to the FOS.
Thanks also for your speedy response as well.
One thing with Bamboo they respond to this complaint within 4 weeks. I’d seen a lot of company’s not responding in the 8 week timescale.
Johnny says
Hiya, I had the same reply from Bamboo offering £984 off my balance. My balance is just over £2200 which is now just interest as I’ve already paid them over £2000 to date since Sep 2018. I haven’t been offered to release my guarantor or adjust my credit file. Should I reply asking again what I initially had asked for in my complaint which was interest on current loan, release of guarantor and adjust credit report for missed payments!
Sara (Debt Camel) says
At this point you either have to reject the offer or propose some form of compromise – repeating your original demand is not likely to get you anywhere. If you want the full refund, you may as well go to FOS now – which may be a perfectly reasonable option for you!
You borrowed £2000? How much have you paid them to date?
Johnny says
Yes Sara, borrowed £2000. Paid over £1800 so far and have £2900 left to pay. Total loan plus interest was £4730. £2730 in interest alone. So even with £900 off it I still would have £2000 left to pay Bamboo.
Sara (Debt Camel) says
So you could reply that you would be happy if they increased the amount off your balance to £1500 and agree to release your creditor as a compromise, or you will go to FOS and ask for the full refund.
Johnny says
I will give that a go Sara and let you know how it goes. Seems reasonable enough if they want to avoid a complaint to FOS. They also have to pay the FOS for each complaint. Is that correct?
Sara (Debt Camel) says
yes it is. But there is no need to point that out to them – they know!
PM says
Hi, just looking for some feedback on people’s experience with 118, Bamboo and Likely Loans. I had complaints rejected by all 3, and referred them to FOS 9 months ago. Still not been allocated an adjudicator. Are other people having a similar experience?
Matt says
Hi. I referred a 118 complaint back in March and it was picked up by FOS just before Christmas. Hopefully on that basis you shouldn’t have too much longer to wait.
PM says
Thanks Matt, that’s reassuring to some degree. I’ve spoken to FOS today and was told that the current timeline is anything up to 12 months, so hopefully some progress in the next few weeks.
Steve says
Hi Matt. My mrs had one picked up by an adjudicator just before Christmas after being rejected by 118 in September. FOS upheld the complaint and gave 118 a week to respond and because they didn’t I called them and said they had not responded as per FOS terms. And they have come back with an offer on Monday which they have said they will pay in 14 days she can now clear of all her other debts which is a great feeling. Considering they were originally saying telling her no. Makes you wonder how many other people are getting intimidated by the letter of response. Which my mrs was going to accept. Keep at it hopefully will get there in the end.
Kyle H says
Hi Sara,
just wanted your opinion on the below, before Christmas received the below offer through my adjudicator from Likely Loans, i queried with my adjusicator as the 8% seemed very low (these loans had been ongoing since April 2017 and had been running pretty much concurrently until around June 2020). The adjudicator told me that “If you are happy to accept their offer, but dispute their calculation of the 8%, this is something that I would encourage you to pursue with them directly.” so i advised that this was what i would do. I expected them to contact me directly before making payment but having checked the payment has been made on my account, so i am going to email asking for their calculations on the 8%. Would you agree it seems very low?
Loan 1-4 Total amount borrowed £4500.00
Loan 1-4 Total amount repaid £7626.89
Total overpayment £3126.89
8% simple interest per year £ 88.87
Less Tax @20% £ 17.77
Total amount of interest due £ 71.09
Total redress £ 3197.98
Sara (Debt Camel) says
Were the loans repaid in June 2020? How large were the monthly payments at the end?
Kyle H says
loan details are below :
Loan 1 (Apr 17) £1500 @ £113.94 per month.
6 Payment made and then a final payment of £1437.61 – Total Paid = £2121.25
Loan 2 (Jan 18) £1000 @ £65.53 per month.
6 Payments made and balance of £860.30 (top up to £1860.30)
Loan 3 (Aug 18) £1860.30 @ £98.24 per month
5 payments made and balance of £1748.70 (top up to £2748.70) –
Loan 4 (Mar 19) £2748.70 @ £145.19 per month
17 payments made and final payment of £2054.79 (final payment actually Sept 20, rather than June 20) – Total Paid = £4523.02
Kyle H says
Not 100% sure, but even looking at the first loan which was paid off October 2017. There was £621.25 interest paid on this alone and over 3 years since the loan was cleared until the adjudicator found in my favour. So feels like even just the 8% on this one alone over 3 years should be more than the total they offered for all loans?
Sara (Debt Camel) says
even if they argue you still owed them money at that point – which I don’t think is a good argument – they have still got the calculation wrong because you must have stopped owing them money about 2 years ago…
Kyle H says
Thanks Sara, i will get an email to them and ask them for details of their calculations.
Kyle H says
Hi Sara,
Had a response from Likely Loans and just wondered it you had any advise?
They have pointed out theat the Ombudsmans decision stated they should add up the total amount received (£4500), deduct the amount paid (£7626.89) and then that if this results in Mr H 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).
They have claimed that as i only started overpayments 20/1/20 they have only calculated from then. I kind of get what they are saying, but as loan 1 was a seperate loan altogether and was totally paid off a few month before the next loan (loans 2 to 4 were loan plus top-ups) does it seem right that they should use this to calculate when overpayments were made?
I’ve had complaints before but never seen the 8% calculated like this, usually it is based on each individual loan.
Sara (Debt Camel) says
I suggest you point out that loan 1 was not part of a continuous series of borrowing so they should calculate the 8% on that seperately.
J.Jones says
I just want to thank Sara and this website again. After receiving a win with Amigo loans I decided to complain about my logbook loan with Motorkitty. It had got to the stage where they had taken my car away. It has taken 2 years for this outcome as the adjudicator found in my favour, but Motorkitty disagreed. Friday I had a final decision from the financial ombudsman who found in my favour. Motorkitty have been instructed to refund anything paid over the initial £1000 lent with the 8% added, and also have been instructed to deliver my car back to me (as it hadn’t been sold at auction yet)
I am beyond happy as this situation caused me so much stress and anxiety.
Thank you for all of your work Sara
Sara (Debt Camel) says
shame it has taken so long but what a great result!
E says
Hi Sara. If you could just give me advice on the 8%? FOS upheld loan 2 but not 1, I have accepted there offer and waiting to hear back from 118 if they agree. Loan 2 was for £1,527.07 (was a top up loan) loan was taking out in January 2016 and in total I paid back £2,927.04. I finished paying in June 2018. How much likley am I to get from 8% interest? Thanks.
Sara (Debt Camel) says
Loan 2 was for £1,527.07 – was this the amount you received in cash? Or the total amount, included the amount to settle loan 1?
E says
Feb 2015- Loan 1 was for £1500 I paid back £2,379.24
Jan 2016 – loan 2 £1,527.07 then £777.07 paid off last loan and I received £750 in total I paid back £2,927.04.
FOS said they need to refund me anything over the capital on loan 2 and then an 8% on top? Hope that helps thanks
E says
Also would my estimate refund be on the full amount for loan 2 or just the £750 I received? Thanks
Sara (Debt Camel) says
Then you paid 2927-1527=£1400 in interest on loan 2. Plus very roughly £300 in in extra 8% interest
E says
Thank you for your help!!
Steve says
Hi Sara
How far back can you go for a claim? Please could you let me know. As I presume there is an expiry date.
Thanks
Sara (Debt Camel) says
April 2007
Steve says
Wow ok thanks. I have a debt from 2011 this is around the time when everything started to spiral so didn’t know if that could be put through and I have no where near enough to pay for mortgage at the time let alone anything else. I was struggling with everything.
Mike says
Hi Sara ,
Thanks for this site I have managed to get few thousand back with few lenders and as of now 4 pending with FO.
I have just recieved a reply from an adjucator regarding one of my complaint against CARCASHPOINT , I had 3 logbook loans with this company totalling £7000 (Total paid £15000 with interest) the adjucator has uphold my complaint and given carcashpoint until 26th January to reply . My question is , how good are carcashpoint with the adjucator decision ?
Sara (Debt Camel) says
Not many carcashpoint cases have been discussed here. Looking back the last person in your situation had them accept an adjudicator decision – but that was over 6 months ago so not very recent.
Fingers crossed for you that they do!
Andrew says
Hi glad you got a good decision CCP agreed with decision and I was paid out within 10 days I believe
No complaints there
RS says
Do 118 normally pay out within their advised timescales of 14 working days once they have accepted an adjudicators decision?.
E says
Hiya, I am still waiting for 118118 to reply to the FOS, how long did it take for them to reply? There last day to reply is tomorrow and I am not holding out much hope! Thanks and hope you receive your money soon 🤞🏼
Steve says
Hi I have just responded to another post but just to let you know FOS gave 118 until the 5th January to respond to my mrs so I contacted 118 a couple of times and it was only when I said to them they had missed the FOS deadline that someone responded back with the offer. So it may be something to consider if you don’t get a response. I also said to them we want them to make a note on the account that this was the case. For records. Hope that helps
Steve
E says
Thank you, I did email today to say the deadline is tomorrow and I have not heard anything yet and how long will it take and they replied saying I need to contact FOS not them as they will not be responding to me! Was a very rude email when I was simply asking. Fingers crossed they reply tomorrow, hope you both get your money soon.
RS says
They had until 30th December to reply to FOS for me. With the christmas break they did not meet this deadline but did respond on 4th January accepting the decision and with a breakdown of my redress which I accepted on 5th January. I am still awaiting payment but they have said it will be made within 14 working days.
Pn says
Once accepting the adjudicators decision how long do avant usually take to get in touch are they one that drags it out to make payments
Chris says
Hi Sara,
Firstly apologies if this is a stupid question, the adjudicator has upheld my complaint on the 2nd loan (top-up loan) with Likely Loans but not the first loan, the details of the 2 loans are:-
Loan 1 was agreed on 26 February 2018 for £3,000. The loan was repayable in 24 monthly
repayments of £195.58. The total repayable was £4,717.92.
Loan 2 was agreed on 30 August 2028 for £3,691.49. The loan was a ‘top-up’ of loan 1. The
outstanding balance of loan 1 was repaid and included in the amount borrowed. Mr P
borrowed an additional £1,200. The loan was repayable in 18 monthly repayments of
£291.34.
Will the interest that likely loans have to be refund be based on the £3691.49 or the £1200 which is the amount I actually received on the top up loan?. I still have an outstanding balance of around £2200 so if it based on the £3691.49 this will go along way to clearing this balance.
Appreciate any advice you can offer.
Regards
Chris
Sara (Debt Camel) says
The interest will be the difference between the total you have paid to loan 2 and the £3691.49 amount you borrowed.
How many monthly payments have you made to this?
Chris says
Thank you for the fast response Sara, I have made repayments every month albeit at a reduced monthly payment, my current balance is around £2200 so have made around £1500 of payments since loan 2 was issued. Do you have a rough idea of what the interest would be?
I am really trying to decide whether to escalate to the ombudsman to try and get the first loan included, I think I do have a case for doing this but also appreciate it will take many more months to get to a decision, if the interest due to be refunded would be enough to almost clear the £2200 it would really help freeing up the £130 monthly payment I am currently making.
Thanks
Chris
Sara (Debt Camel) says
You need to add up the payments made – you can’t work it out from the balance.
Chris says
Okay thank you Sara, so add up all the repayments I have made since I took out the top up loan and subtract this from the £3691, and that figure will be the interest due, is that correct?
Sara (Debt Camel) says
Yes
Colin says
Has anyone had any lucky getting refund from Savvy.co.uk
Njw says
Yes, I complained and savvy rejected it, adjudicator found in my decision and savvy rejected it then ombudsman found in my favour. Savvy paid but argued about the calculation of redress, I had to re involve the ombudsman but finally got my money. I now have another complaint about the with FOS about their conduct. Look up my trust pilot review under the same user name
Colin says
Thank you for advice only had one loan with Savvy. The reject my complaint today. At the time i took this loan oug i was in an IVA as i had a serious gambling addiction, fong know if this is worth pursuing or not. Any advice would be welcome.
Sara (Debt Camel) says
how large was the loan?
Colin says
It was for £1000
Sara (Debt Camel) says
ok well they should definitely have checked your credit record and affordability for loan that large.
However you did breach your IVA by taking a loan over £500 without permission from your Insolvency Practitioner. And if the IVA firm is informed about it, they may try to claim the refund.
It is hard to know what to do in this situation.
Colin says
Thank you Sara the IVA has now been completed as this was a few years ago. I was just looking back through bank statements from around that time
Sara (Debt Camel) says
in theory the IVA firm could still claim this. Whether Savvy would tell them or the Ombudsman I have no idea.
RD says
Hi Sara. Firstly I would like to say thank you. My complaint with Bamboo was upheld. The loan was sold to TBI before I complained. I still owe money, so all interest has been removed and TBI acknowledged the reduced amount. I am currently receiving Universal Credit and back in Sep I offered to pay £5 per month until I am back in employment. After numerous back and forth emails they have now told me that they do not have to accept any offer I make considering the amount owed £1119. They have been holding my account for review for almost 4 months now and it is still under review. They had asked for proof of benefits, which I sent straightaway.
Are they in any position to refuse my payment plan? Even the small amount, I want it to be seen that I am trying to repay it.
Sara (Debt Camel) says
do you have any other problem debts?
RD says
Yes I have 8 other loans that I am paying back. They have agreed to a £5 per month payment plan. TBI are refusing to accept my proposal and they are not willing to move things forward.
Sara (Debt Camel) says
Well you could just shrug – what are they going to do?
Paying 8 loans £5 each is a lot out of your UC. You could seriously consider telling them all, including TBI that you can only afford £1 a month.
How much do the debts add up to overall? Do you think you are likely to be able to get a job and make serious repayments within a year?
Tyler N says
Just a post about Drafty if anyone has an account.
I complained about the account being unaffordable after they increased my credit limit multiple times from £320 to a £1000 when i was using it for gambling mainly.
They rejected my complaint in early 2020.
FOS adjucator decided they shouldn’t of gave me the first increase or any of the other increases as i was drawn the first £320 within 4 days and all further increases within 2 days aswell as defaults on my credit file within the last 2 years should of made them aware of potential concerns later down the line (which was true).. FOS decided they had to refund all interest since May 2018.. and Drafty agreed!.
Better outcome than i expected! £1019 refund on this one. On top of the £6000+ of debts refunded so far this year! Thanks Sara for the millionith time all these articles are the reason i had the confidence to fight my unaffordable debts!
And finally my FCA regulator complaint is progressing about their management of PDL companies and lack of protection for consumers when companies go into administration like Sunny, why isnt there a scheme similar to the PPI claims and a few other items. They emailed me today i should have their response in around 4 weeks they are still gathering information and investigating. Should be interesting
Sally says
Hi, in people’s experience, how long does it take 118 to send redress after giving bank details please? Thanks
E says
I just read below someone said it was only 11 days!! Can I ask how long did it take for them to agree with FOS? (If it went to FOS) there deadline was yesterday and I still have heard nothing! Starting to give up all hope.
Timka says
118118 take their sweet time to agree with ombudsman and go over deadlines easily. My investigator had to work on them for couple of weeks after the deadline to make them agree. Initially they even disagreed but the investigator told me, just wait a little, I am negotiating with them and then they agreed. Do not know how he managed to persuade them but my investigator was brilliant. But, once they have agreed to pay out, they pay out fairly quickly – for me it too about or just less than a week.
Matt says
My adjudicator gave them until 4th January to respond and they still haven’t. Really hope to hear something soon!
RS says
I provided my bank details on 5th January and received payment today.
RS says
Just to provide people with some guidance on timescales, 118 accepted FOS decision on 4th January and emailed me the same day with a redress figure. Funds have been received today. Other than a couple of payments I am awaiting for from pay day companies which are in administration, this concludes all of my complaints which have taken just under 12 months to complete (including FOS complaints). This website is a life saver, thank you Sara.
E says
Glad you received your money! Can I ask, did 118118 accept from FOS within time scale? FOS gave them till the 14th to reply (yesterday) and I have still heard nothing. 😩
RS says
They were required to respond by 30th December but with the christmas break they did not meet this deadline but did do so by 4th January. I would suggest letting the FOS know who can chase them.
Timka says
Just want to note my experience with Everyday Loans as I know people in the same situation are interested to know how it goes. I had one loan with them and it was fully repaid in 2018. In fact, due to their crazy interest rate, I repaid early by borrowing from some other company (not sure Bamboo or 118118 as their rates were cheaper). I sent affordability complaint to EDL on 10/11/2020, they replied on 23/12/2020 and said that they upheld my complaint, they also said that the “loan was affordable at the time but repayment schedule was not sustainable”. So they agreed to return all interest plus 8% statutory. They did deduct the 20% tac off the interest. I got paid yesterday 14/01/2021.
My experience with them has been good regarding this complaint. They were very professional, I did not have to go to ombudsman.
Holly says
Does anyone know how long it takes for avant credit to pay your refund when the ombudsman agree in your favour
Pete says
I’m in the same position as you they’ve told me 14days from agreement with the adjudicator to get calculations and payment
Tim says
Hi sara. How do you calculate the 8 % simple interest. Does it start from your first payment or does the calculation start after you have paid the capital off? I mean does Provident deduct capital and interest together from the very first month . If you had a loan of 1000 pounds with 800 pounds interest. Does the the 8 % start after paying the 1000 ? This is hard to work out. Ta
Sara (Debt Camel) says
Bizarrely there is no simple answer and different firms do different things. Provident seem OK about this – not something to have to worry about.
Holly says
Can I ask what happens if it’s not all completed by then what is the next process, or do they have to legally have to arrange this
Sara (Debt Camel) says
Tell your adjudicator if you haven’t been paid in 28 days.
Lottie says
Hello Sara, I have had a response from FOS today regarding my complaint about the interest and irresponsible lending from Loans 2 Go/ Logbook loans. I had 3 loans in total from 16.11.2011 – 28.08.2013. FOS agreed they were irresponsible and should never have been loaned. They have advised them to pay all the interest plus 8% stat interest back. The interest is as follows.
16.11.2011 – Just interest £1036
25.07.2013- just interest £1526
28.08.2013- just interest £4790
Are your able to advise is the 8% from date of loan to YTD (ie:Jan 2021) and do you have any idea how much I would roughly get please?
Sara (Debt Camel) says
when was the last loan settled?
Lottie says
August 2015
Many thanks
Lottie
Lottie says
This was last paid August 2015.I also have a loan with £10.800 just interest, this started August 2015- and last payment was: April 2018 being last payment that I have been told needs to be paid back with 8% interest.. do you know how much I am likely to get back.