The repayments on many loans 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. Many people have used them and got refunds – see the comments below.
If you win your complaint you will get the interest refunded or – if you still owe a balance – removed so you only have to repay what you borrowed.
The complaints here are for unsecured loans.
You can also use this approach for logbook loans and car finance. But for car finance you may have a better option than an affordability complaint, so first read HP/PCP car finance problems first.
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
Refunds from unaffordable loans – what is unaffordable?
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 applies to most forms of loans except mortgages, including large, long term loans, logbook loans and car finance.
It isn’t just for “bad credit” loans – you can win a complaint about an unaffordable loan from a high street bank. But as bad credit loans have very high interest rates, they are more often unaffordable.
For payday loans, it’s hard to get a refund if you only had one or two payday loans. That is because those loans are usually small so the lender doesn’t have to make good checks for the first few loans.
But the good news is that for larger and longer-term credit, the lender should have made better checks at the start!
Making a complaint and asking for a refund
Email addresses for lenders
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 some of the larger bad credit, large loan lenders. There are a lot of small lenders including Credit Unions. If your lender is not listed you can still complain, look at the lender’s website to find how.
Anico complaints@anicofinancialservices.com
Avant Credit emailcomplaints@avantcredit.co.uk
Bamboo Loans complaints@bambooloans.com
Everyday Loans complaints@everyday-loans.co.uk
Hitachi/Novuna ComplaintsTeam@NovunaPersonalFinance.co.uk
Koyo loans info@koyoloans.com
Lendable complaint@lendable.co.uk
Lifestyle Loans info@lifestyleloans.co.uk
Likely Loans loans@likelyloans.com
LiveLend support@livelend.co
Loans by Mal (Monthly Advance Loans) Complaints@loansbymal.co.uk
Loans 2 Go ps@loans2go.co.uk – also read Loans2Go’s interest rate – “outrageous” – how to complain
Moneyline headoffice@moneyline-uk.com
Moolr admin@moolr.co.uk
MyJar in administration but you can still send in complaints – email myjar@harrisons.uk.com with CLAIM as the title
Progressive Money complaints@progressivemoney.co.uk
Quick Loans customerscare@quickloans.co.uk
Satsuma now in a Scheme – see Provident and Satsuma Claims for what to do.
Savvy info@savvy.co.uk
Sunflower customer.relations@vanquisbank.co.uk put “Sunflower affordability complaint” as the title
Vanquis customer.relations@vanquisbank.co.uk
118 118 Money complaints@118118money.com
Here are some logbook lenders and bad credit car finance lenders, some of them also give normal unsecured loans:
Advantage complaints@advantage-finance.co.uk
Blue Motor complaints@bluemotorfinance.co.uk
CarCashPoint complaints@carcashpoint.com
CarFinance247 customercare@carfinance247.co.uk
First Response johnf@frfl.co.uk
LoanOnYourCar customerservice@loanonyourcar.com
Loans 2 Go ps@loans2go.co.uk
Mobile Money complaints@mobilemoney.co.uk
Moneybarn complaints@moneybarn.com
MoneyWay complaints@securetrustbank.co.uk
MotoNovo Finance customercare@motonovofinance.com
Motor Kitty customercare@motorkitty.co.uk
Oodle customer.relations@oodlefinance.com
Oplo/1st Stop complaints@myoplo.co.uk
Paragon bank.complaints@paragonbank.co.uk
Ramsdens (logbook loans) customerservices@ramsdensforcash.co.uk
Specialist Motor Finance complaints@smfmotor.com
Varooma complaints@varooma.com
If your loan has been sold to a debt collector, you send your complaint to the original lender
Start the complaint – ask for personal information & get your credit record.
Get a copy of your current credit report now and download it as you may need this later. You can get one from TransUnion. Do this first thing as sometimes the details change, so you want a full one saved to show the Ombudsman later if necessary.
Then email the lender and begin your complaint. 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.
I also want the CCJ that I have for this debt set aside. [delete if you don’t have a CCJ!]
I attach copies of my bank statements and credit report from the time I applied for this loan/these loans. [delete if you don’t yet have them, but they help your case if you do. Even if they show gambling, that supports your argument the loan was unaffordable.]
I didn’t know that the lender was supposed to check that I could repay the loan without having to borrow more. I only found out in [2021] when I saw a newspaper article in the Sun/an advert on Facebook for refunds/a friend said they had made a complaint/whatever. So I am complaining within 3 years of having found out that I have cause to complain. [delete if all your loans are less than 6 years old. This explains why you haven’t complained before. It’s only an example so don’t copy it, change it so it really covers what happened to you!]
Add extra information if you want – see below for some ideas – you don’t have to do this.
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.
SARs are often sent out by post, make sure the lender has your new address if you have moved.
If you want an affordable payment arrangement now, add a sentence to the complaint saying this:
- this is often a good idea as these complaints can take a long while to sort out so a payment arrangement gets your finances into a safe place while this gets sorted
- a payment arrangement shows on your credit record, but if you win the complaint all negative marks will be deleted
- talk to a debt adviser such as National Debtline if you want to know more about payments arrangements
- a payment arrangement for car finance or a logbook loan puts your car at risk, so you probably have to keep paying this.
While you are waiting for the lender’s reply, try to get copies of your bank statements from 3 months before a loan to three months afterwards. Do not wait until the Ombudsman asks you for these, you want them ready to hand.
Also read 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 may have applied to you.
Other details you can add if you want
The template above is fine, you don’t have to add a lot more details. I am not even sure some lenders read what you write.
It is better to write a short complaint summarising your problems than send pages telling the lender stuff they already know. For example, the lender doesn’t need a list of your loans.
But if you want you can include extra points in the initial complaint above. Or send the lender another email afterwards to add to your case.
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.
Here are some points that may apply to your case:
- my bank statements and credit record (attached) show that I was unable to afford the loan repayments.
- 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.
- During a telephone call, your agent talked me into agreeing that some figures should be lower in order to get my application accepted.
- 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 made deductions straight from salary/had my child benefit paid to you which has caused me difficulty when I have needed to ask for a payment arrangement.
And some examples of points about top-ups:
- a credit check would have shown that my finances had got worse since the first loan
- 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.
Don’t be put off by a rejection! Or if the lender saying it was your fault because your loan application wasn’t accurate.
Sometimes a lender will send a long, complicated reply designed to make you look as though you should give up.
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.
I suggest you rely on your gut feel – if you know repaying the loan caused you a lot of problems then it is worth sending the case to be looked at by the Ombudsman.
If you aren’t sure, ask what other people think in the Comments below this article. You only have 6 months to send the complaint to FOS, so it’s best to do this as soon as possible.
It isn’t usually worth trying to negotiate with these lenders, you are just wasting your time – two exceptions are Bamboo and Loans2Go.
Send to Financial Ombudsman Service (FOS)
It’s easy! 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 your complaint. 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
- Trans Union statutory 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.
“What about a bank loan?”
The affordability test is the same – could you repay the loan without getting deeper into debt elsewhere. But the interest rates are lower than “bad credit lenders” so it’s harder to show that the smaller repayments are unaffordable – unless the loan was very large.
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 letter here.
These affordability complaints do not apply to secured loans or mortgages. If you have a problem with one of these, talk to your local Citizens Advice.
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.
Can you get an overdraft refund?
Refunds from cards and catalogues
Gambling & affordability complaints
Andrew says
Hi Sara
Had a credit union complaint upheld for 8 loans at adjudicator level and company have agreed
They are
March 2013 £3500
April 2014 £500
October 2014 £2000
April 2015 £2100
Jan 2016 £4000
July 2017 £2000
Nov 2017 £1530
May 2018 £6000
The adjudicator was quite critical of the paperwork provided as they migrated computer systems so couldn’t provide what they had or hadn’t done etc so my question how will they begin to work out my redress ?
I owe them 3000 but have 1300 savings so you pay through payroll and they take some in to savings which you can’t touch rest goes to interest payment other goes to principal worried they will just pluck a figure out of thin air
Sara (Debt Camel) says
Do you have, or can you obtain, details of the amounts you have paid them?
Were all of these loans “new” loans or were any refinancing previous loans?
Andrew says
Well no I have a app which shows old loans last entry shows what was credited to close that loan down and them my bank account which shows what was paid out to me
The last loan still shows 3100 owing but with 1400 in savings to offset against amount owing
It’s decreasing interest as more payments are made so I pay 203 permonth 20 is to savings think around 42 per month to interest rest is principal
I tried a amortisation table which shows around 3 1/2 grand paidn on last loan so far
Andrew says
No Sara I have no details I have checked 6 off the loans and the amounts they have stated is the amount of money that hit my account I did not ever pay off any off the loans I paid a bit off then re borrowed I suspect the Apr was around 15 percent
Lee says
unfortunately my complaint to 118118 as not been upheld by the ombudsman so i guess thats the end of the road for this one. he concluded that
“I think that a reasonable and proportionate check ought generally to have been more thorough”
“I think 118 118 Money should have done further checks to assure itself that Mr XX would be able to repay the loan in a sustainable way over the 24 month term and carried out a more thorough review of Mr XX’s finances. As I can’t see that this was done, I don’t think that the checks carried out before providing Mr XX with this loan were reasonable and proportionate.” However , I can’t see anything that would have clearly indicated that its loan was likely to have been unaffordable
Very bizarre findings do you think?
Sara (Debt Camel) says
To win an affordability case, two things are needed. First that the lender failed to check affordability properly. Second that proper checks would have found that the credit was unaffordable.
In this case the Ombudsman doesn’t agree the loan was unaffordable for you.
Shireena says
Hi, has anyone recently had a complaint with creative finance t/a Motorkitty?
My complaint was upheld by the ombudsman and I received the final decision on 21st April but have still had no contact from them. I’m meant to hear from them by 19th may but they’ve been so incompetent, I don’t feel like I’ll get any contact. I emailed them the same day I received the decision as my contact details had changed since I had the logbook loan with them. Still no response to that email either and it’s been almost 3wks. It seems they are no longer trading as the phone just divert to voicemail! I’ve been trying to call them for the past week. Anyone had any issues or know where they have disappeared to? Thank you
Ananda Classens says
Sorry to say, but you won’t get the money from them via FOS. I had to get it via a court order, Ie. Warrant of control and send bailiffs. It was a long and very frustrating situation. Ps. The FOS can’t actually inforce their decisions…
Shireena says
I had a feeling this was going to be the case!! How long did the enforcement process take for you? Did they have to pay you extra interest as they didn’t settle within the 4 week period? Also, how long ago did you go through this? Thank you x
Sue Kay says
Hi Sara
I have a log book loan with Varooma which I discovered today have gone into administration. I have been paying reduced payments as I have been seriously ill and have been unable to pay the full monthly amount. Do I carry on making these monthly payments to the Administrators and will they now have the log book for my car ?
Many thanks
Sue
Sara (Debt Camel) says
yes, your loan carries on as normal. Was this your first loan from them? How much do you still owe?
eds says
Hi Sara,
Please could you advise me on what to do with this dilema? I took out loans with car cash point from 2015 until 2019 and as I was a compulsive gambler the money went on that. They did not look into things properly and I sent them a template email (as advised by yourself) around 5 weeks ago giving them 6 weeks to respond. I thought I would remind them that they had a week left to respond before I took things further and received an email yesterday saying the following:
Thank you for your email. Please note we responded to you on 29 March; this letter was posted to your address. We can of course forward you another copy of our letter. At that time we offered you interest redress of £7,100.93 for the concurrent loan agreements. You have of course settled your final agreement now.
I asked for a copy of the letter to be sent again but I worked out that the interest I paid back on all loans totals £29,483.00. I have all the documents saved so it is an accurate figure of just interest paid back. I do not want things to be delayed only for them to go into administration like many companies have done and get a fraction of the money back which is much less than what they have offered me. Any advice, please?
Sara (Debt Camel) says
So this is a difficult decision and I don’t think I can say anything useful as you are aware of all the pros and cons.
£7k is a decent amount of money to risk, even if it isn’t a good offer on your complaint.
I have no particular reason to think car cash point is in financial trouble but Varooma went into administration recently so it must be a worry.
eds says
Hi Sara, Firstly many thanks for the information. I told Car cashpoint that i did not agree with what they offered me and asked for an explanation, they refused earlier loans due to the timescale of 2015 and that i waited to put in a claim. They also mentioned other stuff but I know I had a very good chance if I went to the Ombudsman, but it takes so long and companies could go into administration so I asked for a better offer and was told £10000 so I accepted this today and have already been paid out. I know it is not even half of the interest but at least I have got it in my account!
Katie says
Just wanted to update on my complaint to FOS about Moneybarn. They’ve said I should never have been lent the money, and that no more should be paid, and all interest should be returned to me and adverse markers removed. Awaiting confirmation from Moneybarn 😊😊😊
If agreed, I’m looking at approximately £6k back. Will update when I hear back.
Mike says
Hi Katie. Well done on having your complaint upheld. Good news. Could I ask please, I’m currently awaiting a decision from the FO about Moneybarn, how long was it from when the adjudicator picked your complaint up to receiving your decision. I know all complaints are different but mines dragging on a bit now and it will just give me a rough timescale. Hope you don’t mind me asking.
Katie says
Hiya
They picked it up last week. I sent it to them almost a year ago.
When the adjudicator contacted me, I sent him everything I had from my SAR, which I think helped 🤞🏻
becca says
I commented previously about an irresponsible lending claim against Creation Finance Ltd. Well just wanted to say, the fos and then also ombudsman have agreed with me and i am due to be refunded anything above the original amount borrowed with simple interest on top. They have 4 weeks from me agreeing with the decision which was the 28th April. Has anyone any experience with creation in this sort of scenario. Ive contacted them
By phone to prompt them into action and they have stonewalled me with none answers and silence. Is it realistic to be thinking due to this they will leave it until the end of the timescale? Its driving me mad the lack of communication
Gary says
Hi
I got a complaint going through FOS about 118.
I had three loans with 118 1)2500 2nd) 2700 3rd) 3200
FOS said that the first two uneven though wrong they can’t is it unfair but 3rd loan shouldn’t haven been given
And recommend all money used should be rolled in it one and payments should be deducted and interest and charges should be refunded.
Could you please explain if that’s all payments on loans to be deducted
And the process on refunded etc
Sara (Debt Camel) says
Was this a decision from an adjudicator or an Ombudsman?
Did you have more than one loan at a time, or did the later loans pay off the earlier ones? Do you still owe a balance on the last loan?
Gary says
It was a adjudicator
They were top up loans
So original took out £2500
Then 16months later took out a top up loan of £1500 which took the balance too £2700 and then 8 months later took other top up loan of £850. went to 3200 obviously without interest so £6009 with interest
Still owe £5100 on it
Yes last loan
Sara (Debt Camel) says
how much have you paid to the last loan so far? Just the cash payments. ignore if they are interest or principal.
gary says
About £900 so far
As done two payments before entering in to dmp
Sara (Debt Camel) says
ok then your balance should drop to 3200 (what you borrowed) less 900 (what you have paid – that should include any payments in the DMP) = £2,300
A big improvement for your DMP!
BUT do you think the first top up was really affordable? Why did the adjudicator think it was?
gary says
Oh definitely big improvement thank you
Lack of information, as no bank statements and wage slip can’t be found at present time. He didn’t say they should’ve done more but can’t see that it’s unfair at the moment
Sara (Debt Camel) says
how long ago was the 1st loans and the 1st top up? Why can’t you get bank statements, you can get them even from closed accounts.
Andrew says
Hi Sara
So voyager credit union agreed with 8 loans the adjudicator told them to refund I am a bit confused about the workings out
March 13 3500, Apr 2014 500, Oct 2014 2000, Apr 2015 2100, Jan 16 4000, July 2107 2000, nov 17 1500, may 2018 6500
All the amounts bar the last one is what hit my account I never repaid any in full always taking another one so it looks like they have calculated interest on just the principal not principal plus interest if that makes sense only the last amount looks correct ie so you borrow 500 and its 750 say with interest , you pay 300 back you owe 450 balance if you then take a further 1000 put surely thel loan isn’t for a 1000 its 1450 minus early settlement etc
Am I getting confused with front loaded interest or is it standard
Sara (Debt Camel) says
“All the amounts bar the last one is what hit my account”
are you saying that for the first loans you received cash payments of 3500, 500, 2000 etc?
But for the last loan you received less than 6500?
I can help you work this out but you need to know for each loan:
– the amount borrowed (not including interest)
– the amount of cash you received
– the amount you paid to this loan not including the final settlement when you took the next one out.
The term “front loaded interest” is not helpful in trying to work out what your refund should be.
Peter says
Hi sara can I still get a redress from myjar?
Sara (Debt Camel) says
do you have a current loan?
Peter says
I payed off my loan in 2015
Sara (Debt Camel) says
well you probably still can make a claim but you need to do this asap and it’s possible it may be too late. Also Myjar is expected to only pay out a very small amount.
jason hunter says
Hi Sara is this worth sending to the ombudsman?
Dear Mr Hunter
Thank you for contacting us on 18 May regarding your existing complaint. I’m really sorry to hear you’re unhappy with the service we’ve provided.
I understand you feel the bank encouraged lending.
I’m sorry to hear you recall feeling this way. I appreciate you have only recently found out you can raise an irresponsible lending complaint, but I’m afraid as the matter happened more than six years ago, this is not something we are able to investigate further for you.
As detailed previously, your complaint falls outside the time limits set by the Financial Conduct Authority for us to review complaints.
These being if what you’re complaining about happened more than six years ago, and if you’re complaining more than three years after you realised that there was a problem.
The lending happened in 2011 and 2012 which is more than six years ago. The products could have been closed if you had decided they were not right for you and if this was done within what’s known as the “cooling off” period, they wouldn’t have affected your credit score.
I regret the information outlined in my previous correspondence is correct and the bank’s stance on your complaint.
Sara (Debt Camel) says
who is the lender? What sort of credit was this?
jason hunter says
This was RBS it was loans, credit cards and overdrafts they used to ring me up to refinance every couple of months offering a better deal on interest rates and ended up being over a £10000 loan I ended up in a dmp
jason hunter says
Well maybe not every couple of months but regular
Sara (Debt Camel) says
I think that is worth persevering with.
FOS will often look at older debt cases – it is their decision not RBS’s. You know this credit made your life worse, so take it as far as you can!
jason hunter says
Thank you Sara
Justin says
Good morning, I submitted a complaint back in 2017 with 118 money, after I submitted the complaint my financial situation got much worse, I lost access to the email account that I made the complaint with, which I was never issued with a final response that I recall, I resubmitted my complaint and explained the situation this was the response,
As we’ve already investigated and issued our final response on your previous claim of irresponsible lending, we will not be reinvestigating this issue. Our final response was issued on 11/09/2017.
As you’re now outside the time frame in which you have the right to escalate the complaint to the Financial Ombudsman Service (FOS), we will not consent to them reviewing this case.
Where do I stand regarding this situation,
Thanks
Sara (Debt Camel) says
I’m sorry but it’s too late. What is you4 current financial situation like?
Justin says
Thank you for your reply, finally debt free after several years Using this site for many years which I can only thank you for all the advice you post here for those in need
Dale says
Hi All, for anyone wondering about affordability claims and timescales at the FOS i can now share my timeline of events.
22nd June 2021 – Complained to the business
23rd July 2021 – Business rejected my complaint
23rd July 2021 – Sent to FOS
7th January 2022 – Case assigned to an adjudicator who gets in touch to ask for the usual info (bank statements, credit file etc)
21st January 2022 – Upholds in my favour, gives the business the standard 2 weeks to respond
4th Feb – Deadline day and the business queries the decision, granting them a week extension
11th Feb – Business never bother to respond so it is passed to an ombudsman for a final decision
23rd May – Ombudsman agrees with adjudicator, upholds in my favour, business now have up to 28 days to settle with me directly.
as you can see from the above this is a timely process, be patient, the finance companies will try every delay tactic possible. be proactive, get your bank statements and credit report ready, to not hold up the process any more than it already will be.
Expect for the complaint process to run 12 months from start to finish, any sooner and that is a bonus.
Good luck everyone and thank you sara.
Sara (Debt Camel) says
Who was the lender?
Dale says
Motonovo
Richard says
Hi Sara
I put in an unaffordability complaint to 118 and also
My jar 24/7 money box and ferratum on th 5/5/22
I received a reply from 118 (saying sorry I felt that I had felt this way and my jar (redress of £365)
I have know received a debt letter from azzuro associates for 118 money saying I owe £ 940
My last payment too 118 was in 2018 on a payment plan
I actually thought that I had payed it off
Has you can see I’ve had numerous loans over the years
I was just wondering what to do about azzuro they said I need to reply in 14 days about this matter
Your help is much appreciated
Richard
Sara (Debt Camel) says
You have received money from MYjar?
I suggest you send the 118 complaint to the Financial Ombudsman – 118 often rejects a lot of good complaints.
And ask Azzuro for a statement of the account as so far as you were aware it had been repaid in full.
Richard says
No not yet this is what they sent me
2114274
£ Redress Value
Redress – Balance Reduction £2.27
Redress – Unsecured Claim £329.57
Total Combined Redress £331.84
Balance Reduction
You do not need to take any action in relation to the reduction in the balance of your loan as this has automatically been applied to your account and no further monies are due from you in respect of your loan(s). We would therefore urge you to cancel any standing orders or other payment methods that you may currently have in place. For the avoidance of doubt, any monies received after receipt of this email and before you may have had an opportunity to cancel any standing orders or other means of payment will be refunded to you. My jar
Anon1 says
Hi Sarah, I’ve done a bit of an experiment and needing some advice please? My credit record has never been great and I check clearscore and credit karma daily. Over the last couple of months I’ve had 4 credit cards approved and 3 high interest loans. I had a lendable loan for £4750 in Oct 21 which I was OK with the repayments. On 19th May I was approved for a £5250 loan from novuna through clearscore which I used to repay the lendable loan and have some extra money. I’ve now been approved for a £6250 loan from novuna through credit karma. I have 14 days to cancel without any charge.I’ve paid off the lendable loan with some left over and now have the extra £6250 on the way.
As I said, a bit of an experiment as I have 14 days to cancel without charge. I didn’t fill in any additional details for any of the loans nor provide any evidence of income/expenditure etc.
My question is, should I cancel the third loan or keep the money and raise an irresponsible lending complaint after a couple of months? (Both loans from novuna are £215 a month, first over 3 years, second over 4 both at 30.4%) there’s no way I could actually afford both repayments but think its out of order that the company has so easily authorised both loans through 2 different brokers without any additional checks.
I know I should cancel the second loan but after reading so many comments on here I would love to keep the money and pay back only what I borrowed (without additional interest) over the 4 years!
Sara (Debt Camel) says
Well it’s up to you. I can’t guess if you will win the complaint. Sounds a pretty stupid thing to have done to me and repaying the loan sounds sensible.
And why on earth have you taken out 4 credit cards?
Emma Wilson says
I have had my Everyday Loans complaint upheld by the Ombudsman. Could someone help me work out what I should be getting back? I took the loan in July 2018 and borrowed £2000. I repaid £4508.64. With the 8% extra recommended by the Ombudsman, what should I realistically be getting back from them?
Sara (Debt Camel) says
When was it repaid? What were the monthly payments?
Emma Wilson says
It was repaid in May 2020 and the monthly repayments were £187.86
Emma Wilson says
I will add that I paid off the balance of the loan in one go in May 2020.
Sara (Debt Camel) says
So you have paid £2508 in interest that will be refunded. Plus very roughly about £500 in 8% interest, – 20% tax will be taken off the 8% but if you are a basic rate taxpayer and this is your first refund this year you can reclaim that tax deduction back from HMRC
Emma Wilson says
How do you go about reclaiming the tax deduction please?
Sara (Debt Camel) says
See https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
Hitch says
Hey Sara
I have had a car finance in 2016. The car cost £6500, and I have paid in total £12800. Paid £6300 interest. Made a complaint to the car company, and they rejected my claim. Sent to the FOS , and the adjudicator uphold in my favour. She asked them to Refund all interest including adding 8%.
I just want to know how much roughly I will get back from them.
Thank you ever so much.
Sara (Debt Camel) says
When was the finance paid off?
Who is the lender and have they accepted the decision.
Hitch says
The loan was paid off July 2020. Lender was The Car Finance Company. My adjudicator contacted the Liquidators. First they disputed the outcome, and sent in more info. My adjudicator rejected their finding and upholds my case again. She gave them until the 30 of this month to decide.
Thank you
Sara (Debt Camel) says
If they accept, you would get back 12800-6500=6300 in interest plus about 1000 in 8% added interest.
I hope they accept and don’t drag this out to the Ombudsman level.
Hitch says
Ok, thank you so much Sara
Hitch says
Hey Sara
They disagreed with the adjudicator. Now the case is the Ombudsman 😕
Hitch says
The loan was paid off July 2020. Lender was The Car Finance Company. My adjudicator contacted the Liquidators. First they disputed the outcome, and sent in more info. My adjudicator rejected their finding and upholds my case again. She gave them until the 30 of this month to decide.
Thank you
Rebecca says
Hi Sara, I need some advice again. The company Have been instructed on the 29th of April to contact me “to set things right” does this mean that they have 28 days to contact me to say they are calculating the refund. 28 days to calculate it and tell me or 28 days and they should have refunded me? Im a bit unclear on this part of the process. And is it calendar days or working days?
Any advice appreciated
Sara (Debt Camel) says
Is this decision from an Ombudsman? Who is the lender?
Rebecca says
Yes final ombudsman decision was made and i agreed with it on 28th april sent to creation finance on the 29th april
James says
Oakbrook finance rejected my claim, so I went to FOS and they’ve contacted me saying they’ve contacted Oakbrook and that Oakbrook will be contacting me!! What should I expect???
Sara (Debt Camel) says
Hard to guess!
Simon says
Hi,
So, I complained to blackhorse about unaffordable car finance using your template. Surprisingly they have upheld my complaint straight away and admitted that there checks did show that the finance was unaffordable for me.
They have agreed to write off the liability of £2,045 and pay me £1,135 (cash deposit and payments made towards liability, 8% interest)
They then state ‘I have not refunded any of your monthly full contractual payments made prior to voluntary terminating the agreement and handing the car back as you have had full use of the vehicle during this time’
My question is, should I just except my lot or send this to the ombudsman? They have admitted fault after all?
Sara (Debt Camel) says
How large were the monthly payments?
Simon Gutteridge says
£250 per month