The repayments on many loans and car finance are too high to be manageable so people get deeper into debt trying to repay them.
When you applied, a lender should have checked a loan would be affordable for you – often they did not check properly and you should never have been given this loan.
This article describes how to complain, with a template to use. Many people have won complaints using this. If you win, you will get the interest refunded in cash. If you still owe a balance, the interest is removed so you only have to repay what you borrowed.
These complaints do not hurt your credit record if you carry on making the loan repayments while the complaint goes through.
Contents
A quick overview
What types of loans?
- this includes high cost, bad credit lenders, bank loans, and credit union loans;
- you can complain if you are still paying the loans, it has already been repaid, it has defaulted, or you have a payment arrangement/DMP;
- a consolidation loan may have been cheaper than the credit cards it cleared – but it could still have been unaffordable for you!
- you can also use this approach for car finance. But if you are still paying car finance, you may have a better option than an affordability complaint, so read HP/PCP car finance problems first. And then read Car finance affordability – what you get if you win a complaint
- if you have a guarantor loan, read Refunds from guarantor loans as it’s different and the guarantor may be able to complain as well;
- the complaints here do not apply to mortgages.
What is “unaffordable”?
The regulator says “affordable” means:
you can make the repayments without hardship or having to borrow elsewhere.
This isn’t just for “bad credit” loans – you can win a complaint about a loan from a major bank. But as bad credit loans have very high interest rates, they are more often unaffordable.
For large loans, a lender should have made adequate checks at the start. The larger your loan, the worse your credit score and the more other debt you had, the closer a lender should look.
If your loan was fine at the beginning and only caused problems later when you lost your job or your mortgage repayments went up, you are unlikely to win an affordability complaint as this could not have been predicted at the start.
How does this work?
You first make a complaint to the lender saying the loan was unaffordable and ask for a refund of the interest.
There is a template here you can adapt to say what happened to you. Send it by email.
The lender has up to 8 weeks to reply. Lenders reject many good complaints, so you can send a rejection to the Financial Ombudsman.
Complain to the lender
Email addresses for lenders
If your loan has been sold to a debt collector, send your complaint to the original lender not the debt collector.
It’s easiest if all communications are by email – free, instant and you have a copy with a date stamp to show the ombudsman.
For banks, see this list here: email complaint addresses for banks.
For car finance and logbook loans, see this list: email address for car finance lenders
Here are the email addresses for some non-bank lenders. There are a lot of other smaller lenders, including many Credit Unions. If your lender is not listed, ask in the comment below for an email address.
Abound (used to be Fintern) complaints@getabound.com
Admiral loansquality@admiralgroup.co.uk
Anico complaints@anicofinancialservices.com
Avant Credit emailcomplaints@avantcredit.co.uk
Bamboo Loans complaints@bambooloans.com
Better Borrow enquiries@chetwood.co
Creation customercare@creation.co.uk
Everyday Loans – for loans after 31 March 2021 complain to complaints@everyday-loans.co.uk using the template in this article. It is no longer possible to make complaints about loans before that date
Fair Finance complaints@fairfinance.org.uk
Finio Loans (rebrand of Likely Loans) complaints@oakbrookfinance.com
Fluro (used to be Lending Works) cx@fluro.co.uk
Koyo loans info@koyoloans.com
Lendable complaint@lendable.co.uk
Lifestyle Loans info@lifestyleloans.co.uk
Likely Loans – see Finio
LiveLend support@livelend.co
Loans by Mal (Monthly Advance Loans) Complaints@loansbymal.co.uk
Loans 2 Go read Loans2Go – how to complain
MBNA mbnaonlinecomplaints@mbna.co.uk
Moneyline headoffice@moneyline-uk.com
My Community Bank complaints@mycommunitybank.co.uk
Novuna (used to be called Hitachi) ComplaintsTeam@NovunaPersonalFinance.co.uk
Plata complaints@plata.com
Plend complaints@plend.co.uk
Progressive Money complaints@progressivemoney.co.uk
Quick Loans customerscare@quickloans.co.uk
Reevo complaints@reevomoney.com
Salary Finance (Neyber) complaints@salaryfinance.com (for loans, not “pay advance”)
Savvy info@savvy.co.uk
Shawbrook Customercare.team@shawbrook.co.uk
Snap Finance customer@snapfinance.co.uk
Tandem pl@tandem.co.uk
TM Advances info@tmadvances.co.uk
Updraft complaints@updraft.com
Vanquis customer.relations@vanquisbank.co.uk
Zopa complaints@zopa.com
118 118 Money complaints@118118money.com
Use this template
Email the lender to begin your complaint. Put AFFORDABILITY COMPLAINT as the subject of your email.
Template for you to adapt:
Please confirm the date this loan started, the amount, the interest rate and the monthly repayments. [don’t include this if you already know the information]
I am asking for a refund of the interest and any charges I paid, plus statutory interest, and to delete any negative information from my credit record. [the refunds for car finance can be a lot more complicated than this, see but this is all you need to put in your complaint]
I also want the CCJ that I have for this debt set aside. [delete this sentence 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 yet, 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 [2024] 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. [only put this paragraph if some of your loans are more than 6 years old. It explains why you haven’t complained before. It’s only an example so 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.
Do you need a payment arrangement now?
If you want an affordable payment arrangement now, add a sentence to the complaint saying this. These complaints may take months to sort out – a payment arrangement can get your finances into a safe place:
- 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 payment arrangements
- but don’t risk a payment arrangement for car finance or a logbook loan – one would put your car at risk.
Other details to add if you want
The template above is fine, you don’t have to add a lot more details.
But you can add extra points if they apply in your case, for example
- 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 my income and expenses. If you had done this, you would have rejected my application.
- during a telephone call, your agent suggested some figures should be lower to get my application accepted.
- if the lender was your bank – you should have seen from my bank account that I was in financial difficulty, I was using my overdraft a lot, I was only making minimum payments to my credit card from you.
And some examples of points about top-ups:
- a credit check would have shown that my finances had got worse since the first loan
- I had said the first loan was to consolidate debt, but you should have seen that this hadn’t happened.
While you are waiting for a reply
Try to get copies of your bank statements from 3 months before a loan to three months afterwards. You can get statements from closed bank accounts, normally going back 6 years.
Also get a statutory credit report now and download it. You can get one from TransUnion. Do this as soon as possible as sometimes the details change, so you want a full one saved to show the Ombudsman later if necessary.
Do not wait until the Ombudsman asks you for credit records or bank statements – you want them ready to hand. They really help your case as they prove your financial situation when you took the loan out.
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.
Go to the Ombudsman if you don’t get a good offer
Don’t be put off by a rejection! Or if the lender said it was your fault because your loan application wasn’t accurate – the lender should have made checks.
Sometimes a lender will send a long, complicated reply designed to make you look as though you should give up. If they say the loan was over 6 years ago, see below for “time limits”.
I suggest you rely on your instinct – if repaying the loan caused you a lot of problems then send it to be looked at by the Ombudsman.
If you aren’t sure, ask 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.
Send to Financial Ombudsman Service (FOS)
It’s easy! 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 mistakes 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
- do not worry if you don’t have A copy of your credit or finance agreement – lots of people don’t. The lender will supply a copy to FOS if FOS asks for it. Don’t delay sending a complaint to FOS while you try to get this from the lender.
Other information that may help your case
Don’t delay sending a case to the Ombudsman while waiting for this information.
If you don’t have the bank statements from the time of the loan application, get them now. You can get these going back at least 6 years even from closed accounts. And you can often go back a lot further with an account that you are still using.
This is a good point to ask the lender for a Subject Access Request (SAR) if you are missing information that may come in useful at the Ombudsman. This could be your loan applications, all credit and other affordability checks and assessments, and a statement of account for the loans, and – if you think this will help – a record of all phone calls.
Your lender will have details of how to ask for this information on their website – it’s often included in their Privacy Policy, with a link at the bottom of web pages.
“Is there a time limit?”
You can’t complain about a loan that started before April 2007 – that is when the law changed to allow these complaints.
Lenders will often reject a complaint if the loan started more than 6 years ago.
But the Ombudsman can look at a complaint about older loans where you complained within 3 years of finding out you have a “cause to complain”. So if you have only just heard that a lender should have checked the affordability, you can take your complaint to the Ombudsman if the lender rejects it as too old.
The Ombudsman also has a 6 month rule. You must send a complaint to the Ombudsman within 6 months of getting a reply from a lender. So don’t delay!
Need some help?
Don’t use a claims management company. They are expensive and often incompetent and use a similar template to the one in this article.
Instead ask a question in the comments below.
Can you get an overdraft refund?
Refunds from cards and catalogues
Get a car finance commission refund?
simon says
Hi Sara,
I was wondering if you could advise if Im able to claim on log book loans or not? I had two from two different companies. The first one I got 2 loans at the same time with them and paid these off the second one I had 3 loans at the same time and ended up losing my car because I was unable to pay them. I was in an IVA at the time as well which they knew but were happy to lend as they said it didnt matter with it being secured to the car?
Thank you.
Sara (Debt Camel) says
The affordability rules are the same for all types of loans including logbook loans. Has your IVA finished?
simon says
Hi Sara,
Yes the IVA has finished, should I go about it the same as the Payday loan claims?
Sara (Debt Camel) says
yes, you have to prove that the monthly repayments to the loans were unaffordable and that the lenders should have realised this. The fact that the lenders knew you were in an IVA suggests they should have looked closely into the affordability and I guess they didn’t…
simon says
Hi Sara,
Thank you I will put a complaint in and see where it gets me.
Brad says
118118 money have written off all interest from my current loan and deleting it from credit file. Just had a response 8 hours before the 8 weeks was up. Happy with that though.
Freddie says
Great Brad, was it a normal loan or a payday loan? I had one with them a couple of years back and am awaiting a response.
Brad says
Just a normal loan. I had one in 2014, took out another in 2016 and then refinanced it in 2017. They wrote off all interest on the last two which was £3,650. Said they could have done more checks.
Ian Bland says
Hello, ive currently had a response from 118 money who agree they should not have lent me the money. I currently owe them roughly £2200 which is £1800 in interest and £400 principal loan. I had made 8 repayments prior to this. The loan was originally for £2k. They have offered to remove all the outstanding interest which leaves me £400 left owing to them. They are quoting this figure as I have already paid £1600 off the loan with the original 8 payments, which means in total I will only be paying back the £2k principal that I borrowed. The FOS states that 8% interest should be applied to any redress. So my question is, I have asked for the 8% to be added to the interest that has been removed from the loan (I believe it should be for just the 8 months I paid on time) however 118 have said no and because they have removed the interest and taken it off the total rather than refunding me. Am I asking for too much here? Or do I keep fighting for the 8% to be taken off as well?
Sara (Debt Camel) says
8% interest is only added where a firm is refunding money.
That isn’t what is happening here, they are just removing the interest they added, there is no refund. This is what the Ombudsman would typically say do if the loan should not have been given in a one loan case and I suggest you accept 118’s offer.
Louise says
Sorry its me again – development. I requested my statement from Everyday loans and they sent that to me no problem and explained it was only one loan. Yes it was or is as I am still paying it at a reduced amount due to non affordability. However, it wasn’t rolled over but they were aware of my other loans at the time and unaffordability – do I still have a chance to claim? I have paid to date £2600 loan is £5000 and interest to date is £2460 on the figures I have.
Sara (Debt Camel) says
Yes you can still complain and take your case to the Ombudsman if it’s not upheld. A good result here is to get the interest removed so what you owe is reduced to what you borrowed 5000 less what you have paid 2600.
Louise says
Thanks Sara – Yes, That is what I want to be honest! they were also my thoughts? they were so quick getting back to me saying it was one loan and I said yes but you knew I had others etc then wrote my complaint in detail. Explaining the interest and the amount I have paid back 0- they are still wanting on their information £7000 plus. I am on a DMP with step change and I pay them per month but they are still putting all this interest onto my account.
Thank you!
Annie says
Hi, I noticed a while ago a few people were complaining to likely loans, I was just wondering if anyone has had any luck with them? I have put my complaint in to them and just awaiting their investigation. I took out a £2,000 loan with them while also having multiple payday loans with multiple different lenders. I have missed lots of payments and since defaulted. I’m hoping I win the complaint more for the mess it’s left my credit file in than anything else really. I still owe them over £1000
D says
Anyone had dealing with loans to go? They are charging 900% interest.
A 300 loan will result in paying a total of almost 1300.
Is this enforceable due to the payday loan rate cap that was Introduced?
Nicki says
I just complained directly to them about unfair interest. I requested to pay early and even though I have paid £1300 towards this loan my early settlement figure was £580 the original loan was for £500 will keep you updated. The interest is legal because we were told about it but they are using the entire payment each month to pay off the interest and none of the principal amount and that is not mentioned in the credit agreement at all.
Sara (Debt Camel) says
This is a logbook loan. I think a cap on their interest should be introduced but it’s not there at the moment. BUT the affordability rules are exactly the same for logbook loans as payday loans so you may find it better to complain that you were given an unaffordable loan and ask for a refund if the interest than to complain that the interest rate was unfair. Take the standard payday loan template letter (in article above) and adapt so it’s clear there was only 1 loan and that it was a logbook loan. Expect complaint to be rejected and send it to the Ombudsman.
Nicki says
It might not be a logbook Loan they do personal unsecured loans now. That’s what mine was anyway but definitely complain if it’s unaffordable. They still haven’t got back to me but I will keep you updated
TV says
I have been helping my sister, Loans2Go responded but they did not deem unaffordable when I think it is.
I have taken it to the FO.
Steve says
Good Evening Sara
You helped me through a forum with a logbook loan problem and I have took the complaint to the FOS
The adjudicator has awarded in my favour stating all interest to be returned , 8% interest, bill of sale to be cancelled and all negative credit records to be wiped but the lender refused his decision and sent more info to back up their decision.
However, the adjudicator has said that he sticks by his original decision and we now await if the lender accepts this
My question is I have a payment due to be paid this Friday which I don’t really want to pay (I can’t afford it tbh) but am I right to say they cannot do any recovery/legal action whilst being investigated by FOS?
Kind regards
Steve
Sara (Debt Camel) says
I think you should tell your adjudicator of your difficulty. He may be able to get the lender to agree not to repossess the car whilst the complaint continues. It may help if you can pay something, not the full amount. If the lender refuses to co-operate, ask the adjudicator if it is possible to get this fast-tracked through the Ombudsman level.
Steve says
Thanks Sara for advice and thanks for help previously
Louise says
Has anyone had any dealings with On stride Financial?
Sara (Debt Camel) says
They are the longer loan brand of QuickQuid. A few people have complained, I think they have settles some claims at the adjudicator level.
Like all the high cost large loan lenders such as 118 Money and Avant Credit, change the template letter so it’s clear you are complaining about just 1 loan and remove the word payday.
One loan complaints can be harder but as these loans are much larger and longer, On Stride should have done careful checks that you could afford it.
Louise says
Thank you Sara. I had 118 118 money all going with avant at the same time.
I have complained to on stride and they have sent me a statement. I have paid 1548 interest on a 2000 loan. I owe 740 in dmp. Thank you for advice.
Andy says
Hi Sara , I have had my bamboo loan upheld by ombudsman, they are refunding the interest on the loan until I paid it off with family borrowing, which now allows me to repay them, they have said the ombudsman has not required them to pay the statutory 8% , is this correct if I haven’t requested that they should , also I would like to thank you for your site and help through gaining this refund and will make a donation when cash arrives to the CAB , thanks again andy
Sara (Debt Camel) says
The Ombudsman normal adds “pay statutory interest” as part of the award. Can you check this with your adjudicator?
Andy says
Ok thanks I will ask adjudicator if they have added this to refund , thanks again , good luck to anybody trying with this type of loan, as I got a long rejection letter and then another to adjudicator but was still upheld at ombudsman andy
Kaz says
Update: 118 118 Money agreed to my complaint. Issued a full refund of interest and has taken the defaults of mt credit file.
Really pleased with the outcome.
kayleigh says
How long did they take to reply to you? I have a complaint with them, emailed 3 weeks ago.
Kaz says
Hi Kayleigh, they took the full 8 weeks to respond but were really helpful! One of the best I dealt with and only had 1 loan with them :)
louise says
Hi, I received mine today from 118 and going to Ombudsman.
I have two rolled loans and they have stated that it is up to myself to ensure they are affordable – took 8 weeks also.
I personally think they pick and choose and I asked for the call they mentioned in loan 1 sent a copy and now they can’t?
louise says
Hi Sara,
Can you help? I have had a horrible email off 118 118 – I had two loans (the first wasn’t paid and they settled and added to the next loan) not upheld and went onto say it is my responsibility to say both loans were unaffordable and highlight other lenders as I signed the agreement stating this and so If I have lied it is fraud??????? I never lied at all I received other loans between the first and the second along with payday uk prior to them and swift sterling. I have since asked for the call to listen to and provide now she emailed back and said she cant provide me with that. It was the initial loan she hasn’t got it for the 2nd. in the final response she admits that they were done via the website which they were.
They are in my DMP and my payments continue – I am disheartened and they haven’t once mentioned my monthly payments and the jump from the 1st to the 2nd loan -took 8 weeks and I am being blamed that I am in this mess!
Sara (Debt Camel) says
I suggest you send the case straight to the Ombudsman to consider.
You might also want to read https://debtcamel.co.uk/payday-lender-says-lied/.
Liam says
Good Morning
I should start by saying I have a serious gambling addiction which I’m on the road to beating, 2 months clean.
I’ve taken out numerous payday loans with various companies over the last 2/3 years which I’ve put in complaints to but I was wondering if 118118 fall into the same category as these regarding complaints? I borrowed £1,000 back in March 2017 paying back monthly £110 for 18 months. I came clean to my family in December who helped me clear a number of these loans but I’m ashamed to same I wasn’t strong enough to stop and fell straight back into gambling. In January I received numerous texts from 118118 saying I was a great customer and that I could borrow another £1,000 (1/4 of what I owed in other debts) but I thought it would help ease my monthly payments so I took out another loan, less than 40 days paying back my other one.
I claimed my expenditure was less than it was to make sure I got accepted but if they done a check on my credit file they would of seen over 80+ payday loans and roughly 5 personal loans in the last 2/3 years.
Jemma says
Update on complaint about my 2 loans with 118 Money.
I took out my 1st loan of £2000 on 31/01/17 and then on the 18/09/17 they offered me an extra £1000 additional borrowing as a new loan.
It took 8 weeks for them to reply to my complaint and they said;
‘You will note from the above that I have not upheld your complaint regarding agreement 957417 (the second agreement), however, I do have concerns over the application for agreement 850575 (the first agreement) and the reason I say this is because I feel that we could have asked more questions of you to be able to fully assess your circumstances; I appreciate that this is not ideal and for this I am sorry, however, it is important to note that I don’t agree that our loans solely contributed to the position you have now found yourself in but I do feel that we could have done more.’
So basically they took the interest off the 1st loan but dont agree with the 2nd top up loan complaint.I have sent this to the FOS as i dont agree with them.How could they have not asked me enough questions on the 1st loan but then gave me a topup second loan.
Will update with FOS response.
Louise says
I sent mine to FOS Jemma they didn’t agree that either of mine were lent irresponsibly they did the same with me first was for £2000 then the 2nd loan was 10 months later for a further £3000 and they paid the balance off and added to my second loan – I will take them all the way as I feel that they are totally inaccurate. No checks were done with me.
Jemma says
I cant believe they said we didn’t ask you enough questions for the first loan but then gave me a second loan and only refunded the first loan. Doesnt make sense hopefully the FOS will sort it for me! Good luck with yours.
Andy says
Has anyone had reply’s from advant credit for refunds , as rejected within one hour of complaint
Louise says
Seems to be their standard – go to Ombudsman I did and partially upheld – mine was a difficult scenario however, I found them to be horrendous – even when I called them.
Soph says
Hi Andy, yes I had 2 loans with them. 1 for £1000 repaid after a few months by further borrowing from 118118 and another for £2000 a few months later again repaid by further borrowing. They rejected my complaint within 24 hours. I sent them to the FOS in January, it was picked up by an adjudicator in March who upheld both loans. Avant agreed and refund received within 7 days.
Andy says
Hi soph, I am in exactly same boat, borrowed 2,000 repaid with 118 , it was picked up by adjudicator last week , so fingers crossed as had 8 other payday loans before this larger borrowing , thanks for the reply guys ????
Jasmine says
Hi Sara
I have Email from FOS decide about my complain to Everyday loan it seem like not been sccseful please give me advice
Dear Mrs W
your complaint about Everyday Lending Limited (trading as Everyday Loans)
Before deciding to lend to a customer, Everyday Loans has to carry out an affordability check.
I appreciate your bank statements do tell a different story. You had a number of loans out with other payday lenders. A considerable amount of your income was being spent on other loan repayments. Unfortunately, the payday loans you had at the time weren’t reflected on your credit file. This means Everyday Loans wouldn’t have been aware of them, unless you made it aware. I can’t see from the information that this was the case. As I said above, we can only expect a business to take into account information it is made aware of at the time of the application.
I think the checks carried out by Everyday Loans were proportionate in this instance as the amount being lent and the monthly repayments were relatively low. Also, the results from the checks that it did carry out didn’t suggest the loan would be unaffordable. Because of this, I don’t think Everyday Loans had to go as far as checking your bank statements.
my conclusions
Based on what I’ve said above, I won’t be recommending Everyday Loans does anything further to put things right.
Louise says
Hi Jasmine – I had a large loan with Everyday loans however, they upheld my complaint so I didn’t have to go to FOS. They stated in my final response that they didn’t complete the necessary checks and was not affordable at the time.
You can say you don’t agree and ask the Ombudsman at the 2nd level to review.
Jasmine says
Thank you so much for your advice Louise
I really disappointed with FOS decision .
The time I took the loan from everyday loan I have more that 1. Ferratum 2. Quick quick 3. Mr lenders 4.my jar 5. Sunny 6.satuma 7. Wage day advice 8. Money box payday loan to pay back I very disappointed with decision
Sara (Debt Camel) says
That looks as though it is a decision from an adjudicator. You can ask for your case to go to the Ombudsman – this will take several months.
One thing you could do now is send Everyday Loans a Subject Access Request asking for a copy of all the personal information they had about you. You don’t have to pay for this or explain why you want it. It will take about a month to come.
It’s hard to say if there will be anything useful in what you will get. You are looking to see what your loan application said and what checks they made.
Jasmine says
Thank you Sara
The information about my wages from adjudication it not right my wages is only £1400 /month but only that month I get pay £1600 because I have to cover holiday off people .if they look back 3month before and after they can see .
Thank you so much for your help will be update for any news
Tim says
Hi
Has anyone had any success getting a refund from 118money . I am just wondering if it’s worth pursuing?
Robert says
Hello,
I was successful in getting all interest wiped from my topped up loan with 118 118, didn’t go to the FOS or anything
Jen says
I was successful they refunded interest on 1st loan but not the second
Andy says
Hi
I had a flat out refusal from 118118 Money. Went to FOS and Adjudicator has recently ruled they should refund interest on original loan and my top up loan. He is now waiting for their response. I didn’t hold out much hope when they flat out refused my complaint but based on my experience it’s well worth considering referring it to the FOS if they don’t make you a decent offer direct.
matt says
UPDATE
Well this is one I didn’t see coming. After all the payday loan disasters I was forced to take out a couple of loans from Bamboo, one of which is current and has around 3 years left to pay (About £8500). I thought I would send an affordability complaint, so did so on the 9th July.
Had this reply today! …….
It IS confirmed we uphold your complaint and are prepared to accept the capital back on both of your loans.
It was discussed on your first repaid loan under reference GC3B57; you are due a refund of £1,169.09 in interest. Due to a balance remaining on your current loan under reference GC42AP we will offset the interest amount to reduce the current balance owed and will then apply an interest reduction which will then reduce the balance owed to £2,123.95.
What a result, I see my debt mountain reducing and it is all thanks to this site, thanks Sara.
Andy says
Hi All
Update on my 118118 Money Complaint. One loan (£1,000) plus one top up (£2,500).
A flat out refusal from 118118 Money. Saying they had done nothing wrong, all payments made on time and paid top up loan off early (by taking out a lower interest loan with someone else). 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 disputed the decision. Adjudicator went back and explained his reasons again and supplemented them with further reasons. 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.
The two messages of advice from me would be, don’t let the companies put you off making a complaint to the FOS if they completely refuse your initial complaint. Don’t trust them to offer the correct amount if the FOS finds in your favour.
Sara, many thanks for all of your support and advice.
Dan says
Hi Sara quick question, I had a complaint upheld by the adjudicator against avant credit all the usual bits advised
. Refund of all interest and 8%
. £75 compensation
. Removal of loan from my credit file
Avant credit agreed with the adjudicator,
There is still a balance on the account of around £2000 (was a 5k loan to start with) it was sold to a debt collection company a while ago if they were to accept a partial settlement this would never show on my credit report as avant credit have been told to delete it, is this correct ?
I have 7 outstanding pay day loan complaints logged in March so is a long process how ever I just want to know if the creditor is told to remove the loan from your credit report and then you agree a full and final settlement on a outstanding balance this will never show on your credit report. Or even just carry on making monthly payments to a payday loan where a complaint was upheld and removed from your credit file,
even though your making payments this doesn’t show in your credit file.
Sara (Debt Camel) says
That’s right, if Avant has to delete the loan, then the debt collector also has to. And then it shouldn’t reappear if you mak a partial settlement. Or if you carry on making monthly payments.
(It is still a legal debt and the debt collector could go to court for a CCJ which would then go on your credit record, so you can’t ignore the debt – I know you weren’t suggesting this, I’m just saying in case someone else wonders.)
Bob says
Hi Sara, do the ombudsman normally agree with the adjudicator? An high interest loan company?
Thank you
Sara (Debt Camel) says
Yes, agreeing with the adjudicator is MUCH the most common decision. Who is the lender?
Bob says
AvantCredit, adjudicator put my account on hold while they done the investigation and now AvantCredit have put a late payment on my credit file. Hopefully this would be removed.
J says
Hi Bob
I am in the same position just now with Avant. The adjudicator did not uphold my complaint and it is now being passed to an ombudsman. Avant have put a default on my credit file. Can I please ask how you got on and whether the Ombudsman agreee with the Adjudicator?
Thanks
J
Dan says
HI Sara,
I have a question about my 118118 money agreement. I am due a refund of roughly £2800 in total which they have agreed to. However I still have an active loan from them which I am in a payment arrangement for and the total left to pay is £3200. I entered into this loan in August 2017 and it was originally for 24 months. I entered into a payment arrangement in January 2018.
This outstanding loan amount is front loaded interest and is due to end in August 2019. With this refund I will be paying off a huge chunk of the loan early despite the fact that I have been in a arrangement, am I due a reduction in interest because of this? or would I need to agree to pay it all off to get a reduction?
Regards,
Dan
Sara (Debt Camel) says
Yes there should be reduction because the loan will be being settled early. Ask then what the cost of settling the loan would be.
Jen says
Hi dan I just paid my 2nd loan off with 118, with a refund when u call and ask for a settlement figure I told them I could only afford this with a refund for irresponsible lending I received(didn’t say who from), ask them if they will accept £xxx (a few hundred less than their figure) to settle there and then by debit card, after they checked with a manager they said yes n I managed 2 get £350 off their original settlement they asked me 4, I checked my acc after call and loan was cleared.gd luck
Dan says
Hi Jen,
Thanks for letting me know. I will try and get a reduction, thanks!
Lee says
Hi, i have a £1000 loan with 118 and likelyloans but never topped up but I am currently in arrears with them both is it both trying this on the still?
Sara (Debt Camel) says
Yes definitely! People have had refunds for a single loan. Also whoever you borrowed from second should have seen the other loan!
Ljc says
Hi Sara
About 10 years ago I had a large loan of around 20k with welcome finance , they also put a charge on my property . When I sold my house in 2013 they accepted a payment of around 15k and removed the charge from my property so it could be sold . I still owe them around 7k and pay them a £1 a month , I think it’s to their debt collectors . During the period I had the loan , a lot of the monthly payments bounced or I had to pay reduced amounts because my finances were a mess , borrowing left right and centre . Could I use this for this as I would say it was irresponsible lending . Thank you
Sara (Debt Camel) says
After 10 years I think you will find it difficult to win an affordability compliant. The fact you had problems after the loan doesn’t prove it was unaffordable when it was given, and now Yiu may find that hard to prove.
Ljc says
Thanks for replying Sara but I’m not sure they should of lent me it in the first place as I had many debts then , payday loans , etc etc so I know some of the irresponsible lending complaints for pay day loans are over 6 years so doesn’t the same apply to this loan too ?
Sara (Debt Camel) says
I am just saying it would be really hard. With payday loans the one thing you KNOW the lender knew is that they lent or rolled over to you every month for a years or whatever – so you can argue after a few months they should have stopped and looked in more detail. But woth a single loan you have to show the lender knew the loan was unaffordable at the start, and after ten years there may be little evidence to prove that.
Ljc says
I see what you mean now … ok thank you
Dan says
Hi Sara
It’s great you’ve used my success story above :)
Couple of things that helped my complaint was my low credit score and having used a few pay day loans around the time of avant credit giving me the loan. The adjudcator felt this should of been a warning sign if they had carried out the proper checks. And decided the loan was unaffordable. This was a 1 loan case.
Dan
Carl says
About a year ago I had a totally unexpected letter from NatWest saying that there had been an irregularity with an old, settled loan and that they were crediting my account with just over £1k. Too good to be true? I thought so but upon checking the account the money was there.
I had £1700 overdraft, 2 £500 credit cards all maxed out and they offered me a consolidation loan of £2800 to be paid at £80 a month. At the time it was perfect and I had no choice. It did take 4 days for the loan to be authorised, probably because of my abyssmal credit rating.
To cut a long post short, NatWest refunded mine without even asking! Check all credit not just “bad” lenders.
Sara (Debt Camel) says
if you had missed payments to this loan, the odds are that this generous credit has nothing to do with the loan’s affordability but arose because of a technical issue known as NOSIA – notice of sums in arrears – a formal annual notice which they probably forgot to send to you.
Carl says
I did miss payments but the amount seems high for missing an annual notice.
I might see what I can get for the interest etc from them.
Kaz says
Hi first thing I need to say your website is amazing has helped me already- everyday loans gave me loan knowing that I had a gambling problem 2 years , they saw my banks statements and everything- do you think I have case of irresponsible lending or not please can you email asp thank you again
Kind regards
Sara (Debt Camel) says
I think giving a large loan if a lender is aware you have a gambling problem is irresponsible. So as Everyday Loans saw your bank statements, assuming that there was a lot of gambling showing, then this sounds like a good case!
Some people are reluctant to tell a lender they had a gambling problem when they complain, thinking they will be blamed for not being able to afford the loan. But you should make this point strongly, saying that EL should have refused you the loan because of what they knew about your expenditure.
Kaz says
I got a reply from everyday loans they refused my case they said that they did all
Check ect ,do you recon I should not FOS ?
Sara (Debt Camel) says
I think you should send this to FOS – they saw your bank statements so they knew you had a gambling problem.
Kaz says
I’ve sent to FOS- hopefully they can get all the interest removed, she said the advisor saw gambling problem and told me to stop will that go against me ?
Chelsea Armstrong says
Hi,
I got a 2k loan from Everyday loans 3 month ago. I have several loans with several Payday loan companies at the time and this loan was to ‘consolidate’ my debt. I am in a worst situation now. They looked at my bank statements but ignored all my spending and only looked at the outgoings. Do you think this is worth making the complaint?
Sara (Debt Camel) says
what sort of spending did they ignore? did you pay off other debts with the money?
Chelsea Armstrong says
Well they didn’t seem to take notice of where my money was going or what my income was at the time. All they asked for was who else I owed money to and when. I was experiencing a lot of anxiety at the time and couldn’t use public transport therefore I was spending at least £200 a month of taxi’s.
I paid off most of the small payday loans I had at the time with the £2,000.
There are still several I Am still paying from that time as well as new loans taken out since. They also ignored me when I told them I have another large loan (£2000) from Ikano Bank.
Sara (Debt Camel) says
£200 a month on taxis is a lot – they should have queried it or taken it into account.
Well if you told them on the phone then they should have a recording of that. As the article above says, start of my sending then a Subject Access Request for a copy of all your personal information.
Tony says
Good afternoon,
I raised an affordability complaint with 118 last Sept, to which they gave what I thought was quite a comprehensive response and as such, I didn’t raise to FOS which after reading this I feel was a mistake.
Is there any chance that if I raise this now, as the 6 months is well and truly up, that it would still be considered?
Cheers
Sara (Debt Camel) says
Very unlikely. Unless they said something in their reply that was factually wrong and misleading. Or they failed to tell you you could go to the Ombudsman. Or exceptional circumstances eg major health problems.
Cal says
Hi all,
I have a £2k loan with everyday loans. I have had this for 5 months and missed one payment date but paid later in the month. At the time of applying I had 2 defaulted accounts that weren’t settled and 4 active credit cards that were maxed out. They offered £1.5k initially but said they’d stretch to £2k if I promised I could definitely make the repayments. I’ve paid back £1,425.5 to date as it’s only over a 12 month period of repayments. My question is, would they argue that I’ve paid 4/5 times on time therefore it is affordable?
Many Thanks
Cal
Sara (Debt Camel) says
The fact you made the payments does NOT prove they were affordable.
The regulator’s definition of affordable is that you should be able to make the repayments on time without hardship and without borrowing more. So how have you managed in the last 5 months – have your other debts, including your overdraft usages and arrears on essential bills such as utilities, gone up? If they have, then that shows the loan isn’t affordable.
“said they’d stretch to £2k if I promised I could definitely make the repayments” I think I will dub that the scout’s honour approach to affordability checking – it’s not normally recommended, people desperate for money will obviously say of course they can afford it.
Cal says
Thanks Sara. I still have the 4 credit cards that are highly utilised and have an overdraft that is predominately used. I’ll begin my complaint with them.
Sara (Debt Camel) says
If you are struggling each month, I suggest you also talk to StepChange about a debt management plan: https://www.stepchange.org/how-we-help/debt-management-plan.aspx in addition to making affordability complaints. It can take months for complaints to be resolved, a temporary DMP will put you in a safe position during this period.
Antony says
Hi Sara,
What should I do if the companies do not reply to my complaint within the specified 8 weeks? I’ve emailed again (no reply) and tried calling (no answer). 118118money is the company I’m referring to. They replied 4 weeks ago saying it’s likely to take the full 8 weeks. Many thanks.
Sara (Debt Camel) says
So has 8 weeks passed?
Antony says
Yes. 8 weeks has passed.
Mark says
Antony,
118118 were brilliant at dealing with my complaint (which they upheld and refunded all interest, which was deducted from the existing loan balance and the remainder is being paid off at £10 p/m interest free. They also removed from my credit history), without needing to go to the FOS), so it might be worth dropping them one final email advising them that the 8 weeks is up and if you don’t get a resolution/final response letter within 5 days, you will have no alternative but to refer to the FOS. I know every case is different, but worth a try. Good luck.
Sara (Debt Camel) says
I agree with Mark. I would try again to contact 118 Money.
Antony says
Thank you. I called 118118 Money today and they have said that they are in the process of upholding my complaint and will be in touch within the next 48 hours.
For your information, I’ve also spoken to Wonga today. They have told me that they are awaiting an update from their administrators and are hoping to provide me with a final decision in the next week. Having said that, they also asked me to call again in a week’s time if I had still not heard back from them – I assume everything they told me was the standard reply to the phone calls for overdue final responses.
Dan says
Has anyone had any experience with a company agreeing to a refund but then their calculation for the 8% statutory interest seems really low?
118 118 Money have just agreed to a refund of £2505 across 3 loans over the last 3 years and the figure they have come up with is £46.
Sara (Debt Camel) says
Some people have had problems. They usually happen with the large loans where there is a balance outstanding. £46 sounds low! Can you ask how they calculated it.
Dan says
Hi Sara,
Yes I have a outstanding balance of £3200ish. I have asked them to tell me how they calculated it. The interest is front loaded on this loan so I have also asked them to take into account that I am paying off the loan 12 months earlier than the original agreement.
Hopefully they come back with figures that make sense!
Tom says
Just received an email from AvantCredit offering a full refund on interest and any charges +8% interest. This loan was settled in 2016 and was one of the ones I wasn’t expecting anything back on. Thanks Sara
Sara (Debt Camel) says
Nice one!
Tom says
Still waiting on an reply regarding refund amount etc. Very strange as they are stalling for no reason. Their phone lines have now been cut off. Starting to get a bit worried
Squeak says
Just had a reply from 118, full refund on interest on my top up loan of £3800 (which is still being paid back in my DMP so just a reduction on what I owe) and removal of the loan from my credit file but they rejected it on the original loan. Interestingly they only upheld the complaint as “unfortunately, due to a technical issue we are unable to view the credit file that was used to make a decision on this application and therefore, we cannot fairly defend this aspect of your complaint. Please note that this aspect of your complaint is being upheld purely because we cannot obtain the information needed to review this part; not because we have done anything wrong.”
But I’m very happy with the outcome, It’s slashed a quarter off my debts :)
Ross says
Hello! I’m in need of some help! For the past 2 months I’ve been struggling with my 118 loan repayments. I have emailed them informing them and have filled in a budget sheet and done everything they had asked me to do. When I phoned them to confirm my direct debt details they basically told me there was nothing they could do and yo phone another number and ask for advice. The emails I received heading upto this phonecall told me they could give me a repayment plan but now they seem hesitant to do anything. Yesterday I sent them an email complaining using the template s above and asked for the information they had on me. I received an email with a statement for my current loan but they told me my old loans were closed so they couldn’t provide any details on them but I could access them from the website. Nothing about a payment plan, nothing other then the attached statement of my current loan.
What do I do now? Do I press then harder about a payment plan and for more information? Help!
Sara (Debt Camel) says
Go back to them and say “I have asked you for a copy of 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. This is a Subject Access request. You are obliged to provide me with this information or I will register a complaint with the ICO.”
Also cancel the DD or CPA to 118 Money with your bank. You are not ASKING them any more for an affordable repayment plan you are TELLING them you can’t carry on making the loan repayments.
Ross says
Thanks Sara, I had asked for an SAR in the original complaint email yesterday but I will email them again insisting they look at it. I’ll sent that today and I will keep the page informed on what happens.
I will go down to the bank and speak to them iver the weekend as well and have the payments stopped. I’ve asked them for the payment plan for about 2 months now and nothing has happened.
Thanks!
Veera says
Hi I’ve had the same response from 118 118 saying my other loan was closed down I’ve emailed again for an SAR what can I do in the mean time I can’t afford this loan at all in way over my head with debts
Sara (Debt Camel) says
Cancel the CPA to 118 Money. And Talk to StepChange about setting up a DMP, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx. If you win any affordability complaints, this will really speed up your dmpa, but the DMP will get you in a safe financial position right away, which is important as affordability complaints can take a long while to resolve.
Ross says
Any idea how long it takes for 118 to supply the details I have asked for? I emailed them in the 24th of September saying pretty much exactly what you had suggested Sara, all I’ve had back was an email saying their DPO will be in contact in due course. It’s been 2 weeks and I haven’t heard anything back about my SAR or my payment plan.
Sara (Debt Camel) says
No point in worrying about this if you have cancelled the CPA. Just sit back, the SAR etc will arrive.
Veera says
So 118118 got back in touch today saying due to techical issues they didn’t know if they did the proper checks as I had rolled over one loan to the second they are willing to remove interest so I will only pay back principal of 2490 is this good? Would init be entitled to interestpaid for 1st rolled over loan?
Sara (Debt Camel) says
So you had 1 loan and that was then rolled (and topped up) to a second one? How much did you borrow for th first one and how much did you pay to it? Then how much was the second loan and how much of this was paid to you, as opposed to paying off the first loan? How much have you paid to the second loan and what is the current balance on it?
paula adam says
i had a 118118 loan for £2500 at 78.9 % interest i took out a credit union loan to pay it off as the interest was so high , i then took another from 118118 a month later and got in such a mess i had to go on a dmp would i be entitled to start a complaint for a refund
Sara (Debt Camel) says
I think it sounds as though the first loan was unaffordable for you. And 118 Money should certainly have looked closely at your second application so soon after repaying the first.
Karen says
Hi Sara
I am looking for advice regarding Everyday loans. I have submitted an affordability complaint to their head office and asked to arrange a repayment plan. I have filled in an income and expenditure form and told them how much I can afford but they are refusing to set up the plan without seeing bank statements. Do I have to send these?
Thanks,
Karen
Sara (Debt Camel) says
Sending bank statements will make it easier to show what you can afford. Have you stopped making the normal monthly payments? Some firms want take a request for an affordable arrangement seriously until you do!
.
Laura says
Hi,
I got a loan from Bamboo earlier in the year, asked for £3000, but allowed me to have £2300. So all together £2396.86 in interest (more than the loan itself lol) and total of £4696.86 to pay all together. Have made payments since March of this year, 3 years of £130.47 a month. Already owed £13,800 before taking out the loan (to pay off some payday loans and home improvement). Extreme struggle to pay this loan payment without getting payday loans etc due to other debt commitments. Complained on 23/08/2018, 8 week deadline was 18/10/2018. Had a phone call from Bamboo today, they missed a payment when they did credit and affordability check so complaint upheld. All interest removed and just have to pay what I borrowed (minus payments already made). Have to send an income and expenditure form to adjust monthly payments, as can’t afford them, but am so pleased. Only took them a month and no going to FOS :-) and the lady I spoke to was lovely.
Sara (Debt Camel) says
what a good result for you!
Bill says
Hi Sarah, try to be brief, had a £1000 loan of likely loans in 2017 to pay of payday loans, 12 months on I applied for another loan of £2000, although had 2 months payments to pay off the first loan they incorporated in the second loan, so began with a loan of £2,248, the second loan paid off Mr lender £800 and sunny £600, likely loans never asked me for bank statements for both loans, do they ask for bank statements for all their loans?
Sara (Debt Camel) says
This sounds like a good case. Ask for a refund for both loans.
You took the first loan to pay off payday loans, but when you applied for the second you had more payday loans – Likely Loans should have realised this and looked more closely into your case, eg by asking for bank statements,as this suggests the first loan had not helped you and was probably unaffordable.
Send the complaint as described above, the SAR will show what they actually knew, then Yiu can point out:
– any bits in your application they should have tried to verify but didn’t
– any information they knew but ignored.
And send the case to the Ombudsman if they don’t at least offer to remove interest from the outstanding loan.
Bill says
Hi Sarah,
Applied for a loan from 118 today to clear the last of my payday loans, Mr lender and sunny are with the FOS, I ASKED FOR £100 over 12 months, they return with an acceptance but 18 months to pay for the loans, over £900 in interest! Now I did not think I would of been accepted as I have a loan with likely loans, also 4 payday loans, plus really low credit score, I was truthfull in my outgoings and incombe which isn’t a lot! I was tempted to pay it back today but it meant paying £350 to clear the monthly payments for the above loans so I decided to clear them off, but still leaving me to pay off likely loans of £137, plus now I have £107 to pay 118 in October, it look like am back to normal keeping the wolves away a bit longer! May also point out, they contacted me by phone, asked two questions- 1, DO YOU HAVE ANY DMP’s OR CCJ, answered no! 2, CAN YOU AFFORD THIS LOAN, answered yes! Not asked me for wage slip, evidence if I worked for an employer or wage slips…… when we these lenders start to do affordability checks?
Sara (Debt Camel) says
Um think again? Return the money to 118 and ask for affordable payment arrangements with Sunny and Mr Lender. The cycle of taking out credit to pay credit repayments needs to stop.
Bill says
Hi Sarah,
The moral of the story is 118, likely loans and all other payday lenders are still continuing to lend irresponsibly even today, after all the new regulations and thousands of people complaining against them, plus overloading the FOS! It it still continuing, it will only stop if they asked for bank statements to prove borrowers are deeply in debt with payday loans still active! Or proving they gave gambling problems, I look at it this way, the payday loan companies are like drug dealers, they know there will alaways be somebody to buy the drugs!!
Ps I paid my payday loans with the 118 loan, as I said earlier it was much easier to pay one lump sum rather than keeping up with who you have to pay…3 loans to be exact, I don’t have debts with sunny or mr lender, as settled them courtesy of likely loans! but both of them together I borrowed over 35 times in 18 months, hence its with the FOS..ITS A SPIRAL I KNOW,am sure am not alone!!
Mr and Mrs C says
Has anyone had any success in claiming against Welcome Finance, we took out a loan secured against the house in pure desperation that still doesn’t finish for another 5 years (it was a 15 year loan for 15k) we were already in a mess when we took it out and this massive loan made things worse, resulting in the payday loan spiral and then debt management. We have never missed a payment for fear of the repercussions.
Sara (Debt Camel) says
Not that I have heard.
Mr and Mrs C says
Thanks, I think the same should apply as for a guarantor loan, since they are just using your home as a “threat” in case you don’t pay. The loan wasn’t affordable.
I will try anyway – nothing to lose as they say…
Mark says
Hi,
“I think the same should apply as for a guarantor loan, since they are just using your home as a “threat” in case you don’t pay.” – If I were you I would read the FCA handbook. I’m no expert but I THINK there was a section regarding “securities/secured loans”, so the rules might be different, I don’t know.
Elaine says
Did you have ppi ?
We had a refund from welcome approx 3 years ago for missold ppi.
Hope this helps
Chris says
Hi again,
Wondered if anyone has had any dealings with Everydayoans? I’ve read a couple have though I think they were commenting on something different.
I had a loan with them back in 2015 for £1500 interest was 99% and all had to be paid back within 12 months. Bearing in mind I had a lot of payday loans at that time too, alot had been repaid and some not so fortunate enough to have been. I’d like to ask if it’s worth me placing a complaint against Everyday Loans for unaffordable/irresponsible lending. I was paying off this loan whilst at the same time obtaining other credit to pay it as the monthly repayments were seriously crippling me. Though, I never missed a payment with this as I just wanted it paid but the interest to which now I realise is extortionately high. I wasn’t really informed fully about the interest but asked to sign various documents and the usual ID checks.
Is it worth pursuing do you think?
Sara (Debt Camel) says
I doubt arguing you weren’t properly informed about the interest will work, but Everyday Loans may well have not done adequate affordability checks.
Steve says
Hi everyone,
Firstly thanks so much for all your comments and advice on this website, so far it’s helped me claim refunds from both Sunny and Safetynet credit for loans that were given to me despite being in a DMP and having to borrow from other lenders to make repayments each month.
I am now contemplating making an affordability complaint against TM Advances who gave me a loan of £3000 despite all these issues.
Having said that, there does not seem to be any examples of success stories that I can find online.
Is it worth attempting this? They don’t seem To be the most honest or above board company according to reviews online and the interest I’ve paid them in repayments so far is absolutely ridiculous.
Thanks in advance for any advice you have! 0
Adam b says
Good morning
I wonder if anyone can advise, last Friday I won a ruling against a loan that was issued in December 2015 against Avant credit. I have paid back approximately £1900 to a loan that was £3200. I complained to the FO as at the time I have a lot of payday loan debt and even the £129 a month repayments we’re leaving me very short.
The FO have agreed the loan shouldn’t have been issued and have instructed Avant to payday full interest and charges. The problem is I still have an existing balance for the owed capital, I have asked that Avant pay me back the interest and charges separately rather than just taking it from the owed capital. They have refused to do this, I have explained that things are still very tight and this would enable me to payback so other immediate debt leaving me in a position to payback a healthy sum to them to clear the debt. Does anyone know if they are legally entitled to this. It feels like Avant are saying cause you still owe we will decide what to do with your refund which is kinda annoying. Surely they owe me this interest back, they were in the wrong, I have agreed to payback the loan ASAP. The adjudicator said that normal practice is that the loan is either repaid or partially repaid with the refund but she didn’t know if this was a lealgal requirement. Any advice would be great! Thanks Adam
Sara (Debt Camel) says
Here are extracts from FOS’s technical section on PPI refunds which are similar in many ways:
We take into account the law, which allows people to “set off” closely connected debts. This means that one person (A) can deduct from a debt that they owe another person (B), money which that person (B) owes to them (some businesses also refer to the “banker’s right of set off”, which is simply an expression of the legal right of set off – which may or may not apply depending on the circumstances).
We often decide that it is fair for the business to “set off” the compensation payable for the mis-sale of a PPI policy against the consumer’s arrears on their account – and remove or reduce those arrears.
There may be other circumstances where we might decide that a business should pay all of the compensation to the consumer. We might decide to do this, for example, where the consumer is able to demonstrate to us that they have arrears on other debts that are more serious or that pose a greater threat to them than the debt to which the PPI is attached.
So this set off is absolutely normal. In practice the only cases I have seen where FOS says set off should not apply are where someone has immediate priority debts eg rent/mortgage arrears without an arrangement in place to repay and with serious threats of eviction. I’m not saying it couldn’t happen in other cases but I haven’t seen it.
What I would say is that in addition to removing the interest (and well done on winning the case!) Avant should also agree to an affordable payment arrangement, reducing your £129 a month to something that will not leave you struggling. If Avant haven’t offered this you should ask for it and tell your adjudicator you need it.
Victoria says
Have just received a reply from Likely Loans that the checks were carried and nothing indicated i could not afford the loan blah blah.. Took my first loan in October 2015 for 2000GBP for 24 months. Was getting close to paying it off, but on my 22nd repayment month had to apply for top up. Applied for 1830GBP to cover rent, bills as well as the repayments for Wonga and SafetyNet.
Have also earlier received a flat refusal form Pounds to Pocket. Took the loan in December 2015 (just over 1 month after the Ll) for 1200GBP for 12 months.
Will need to chase up the response from Wonga though I’m aware it will be slow and painfull process.
I’m all eager to forward the cases in regards to LL and P2P to Ombudsman, BUT! I am with TSB and that is my only bank account (previously LLoyds TSB). TSB was in shambles around April/May this year when it was transitioning to new platform. I have found out when asking for statements that TSB has lost all my data from year and 2014 and 2015. There is literally not a single transaction and looks like my account was dead from two years from 31st December 2013 to 1st January 2016. Have the complaint logged and now I need to wait for TSB to retrieve the data!
I’m panicking because I do not want to miss the 6 months timeframe for dispute. At the same time I realise that it is sort of pointless to send the cases without any bank statements to support me.
Rob says
Hi,
Could i please as your opinion on my case with On Stride?
I have taken 3 loans with them between February 2016 and December 2016. First was for £1,200, the second was for £1,000 and my 3rd and current was for £1,600. My complaint is more about the 3rd loan but the first two were paid off early with help from my family. I paid loan 2 off on November 30th 2016 and applied for the £1600 on loan 3 on December 15th. A higher amount and only 2 weeks after my previous loan. I used this in the basis for my complaint and On Stride rejected so i sent to the FOS.
On Stride did not ask to see bank statements, all they required was an email from my work email address and a screenshot of my wages being paid into my bank. I emphasised this in my complaint to the FOS. On Strides main reason for rejecting was because of the income and expenditure i declared, obviously i didnt include everything in my expenditure as to the desperate situation i was getting into with payday loans and gambling.
Anyway the adjudicator has come back today and not upheld my complaint because she feels On Stride lent to me correctly based on the I&E i declared. She doesnt seem to have taken notice of the fact that i gave the evidence showing On Stride did not want bank statements just the email and my wages being paid in.
Is it worth going back to the FOS asking for this to be looked at again or do i just have to accept that the I&E i supplied is the reason why i cant get this interest back?
Rob
Sara (Debt Camel) says
I think for the third loan in a year, and the largest, On Stride should have looked more closely. It’s not just that they didn’t ask for your bank statements, what about your credit records – would the debts showing on there have got worse (larger? more payday loans? missed payments or defaults) during 2016? On Stride can’t rely on your application if your lending history suggests something is wrong and your credit record suggests your application may not have been completely accurate.
Rob says
It was around the last quarter of 2016 where i started using payday loans more as my gambling got worse, my statements from the bank at the time reflect the increase in these transactions and the more borrowing from Wonga and other high interest loans like Avant and 118 118 Money. I hadnt defaulted on anything or missed a payment and the adjudicator mentions this in her decision, i just feel that loan 3 was given at a time when it was clear from my bank statements that i was borrowing a lot more and gambling a lot more. And the checks OnStride did were poor in not even asking for bank statements.
Ive thankfully stopped gambling and borrowing from payday loan lenders thanks to your help, but i feel like this decision is a disappointment as im still paying £99 a month to OnStride when i feel this loan contributed to the spiral of payday loan debt and gambling
Sara (Debt Camel) says
I think they should have asked for bank statements for the third loan. So when you applied for loan three, there would have been a lot of recent payday loans showing on your credit records? I suggest you go back to the adjudicator and say this and ask for it to go to the Ombudsman if the adjudicator won’t change their mind.
Rob says
Hi Sara,
I went back to the adjudicator with my points and the fact On Stride didnt ask for a bank statement for loan 3 and she has still said her decision stands and explains that its down to the Income and Expenditure i declared showed i had enough left to pay the £99 a month payments to On Stride. I emphasised the payday loans i had at the time and the other high interest loans with 118 and Avant and my worsening gambling problem but she has insisted the information On Stride had on me and the checks they did were enough and they weren’t to know of my gambling issue.
I am disappointed because i do feel more checks of at least asking to see my bank statement should have been done but i dont know what else i can say to the ombudsman if i wanted to progress it to them.
Just thought i would keep you updated.
Sara (Debt Camel) says
I think you should ask for this to go to an Ombudsman. It is the fact this was your third loan that means On Stride should have looked in detail even if your application suggested it was affordable.
J says
Hi Rob
I’m in a similar situation with On Stride. The adjudicator did not uphold my complaint and I have asked for an ombudsman to look at it. Can I ask how you got on at ombudsmen level?
Thanks
J
heather says
hi, I had 3 loans from bamboo loans I wrote to them saying that I should not have been allowed to have these loans, and they replied to me as a Mr, (I am a Miss) when I checked my 3 loan agreements they were all put as Mr?
Sara (Debt Camel) says
Apart from suggesting a certain sloppiness, that won’t really help your case.
heather says
Hi Sara
I was just wondering if anyone had requested a refund from Hitachi Finance?
paula says
Hi
I was giving a loan by a credit union when i was on DMP , do they do credit checks.
Derek says
Hi Sara,
I’ve been reading your website for the last few months and submitted various complaints to pay day lenders amongst other types of lenders. I’ve had some success so far with MyJar and also Ferratum so a massive thank you for that. I’m currently checking whether I have a case against Likely Loans. I got a £1000 loan in 2016 and I’m my application incorrectly filled in my annual income (by 10k!). I’ve had a final response letter from them not upholding my complaint but within their response I note it says that they reviewed the application and did not see any details being incorrect. My question is, would they not have noticed the income was incorrect through conducting of various checks?
Thanks in advance.
Derek
Sara (Debt Camel) says
Have you send LL a request for a copy of all your personal data? That should show what checks they did, eg with a credit reference agency or your bank statements, before they approved your loan. If they saw anything that suggested your income was lower than you said, they should not have approved the loan.
And if they didn’t do any checks at all, you can argue to the Ombudsman that this was a large, long term loan and they should have made checks before approving it.
Let me know if LL say they can’t give you the details of the credit chances they have done.
Derek says
Hi sara,
Thanks for the reply and yes I did ask for copies of personal data but I didn’t receive anything specific apart from their final response which indicates they carried out various checks but nothing specific.
The said that they used my application details and checked those using their internal system to check whether a loan approval could be given. Surely if they had conducted full checks they would have noticed the income didn’t match up. They also advised that they reviewed the application and could not see anything to suggest the application was incorrect
Sara (Debt Camel) says
OK, I suggest you ask them specifically, saying “you have not sent me details of any credit checks or other verification checks you made before approving my application. Does this mean you didn’t do any?”
Nat Garvey says
Hi there, in July 2018, I filed an affordability complaint to 118118 Money – using the template provided by Sara. They came back to me and upheld my complaint – saying that they could have asked more questions about my circumstances at the application stage etc.
Original loan was £2000 with interest of £1785. They agreed to remove all the interest from the loan and remove it from my credit file credit file. I now have a balance of around £650 to pay off.
Most of my complaints are with the FOS now (at least another 8 or so).
Thanks
paula says
i have a credit union loan that comes off my wage plus some of it get put aside for savings but the credit union refuse to let me withdraw any of it i have £440 in the 2nsd account and owe £2000 in loan. I was giving this loan to consolidate another loan with 118 and i was also on a DMP can i put in a complaint against this
Sara (Debt Camel) says
The affordability rules are the same for all lenders. If you can show that the monthly repayments on the CU loan are not affordable, then complain.
But realistically you probably have an easier case to complain about 118 money, which will have been charging higher interest rates. Also presumably taken out while you were in a DMP. If you get a refund from 118, you can use that to pay off some of the CU loan.
(PS please don’t submit the same comment several times!)
neil says
hello
I am all new to this, I have just sent 118118 and email asking for my SAR, this loan was taken out in 2015 I think and has been paid back in full. do you think that I have got a chance of getting anything back from them? it was for £2000
I also have a load that is running at the moment with Likely loads, am I able to ask for a refund on this while it is still active?
any help would be great
Sara (Debt Camel) says
Yes to 118 – if you think the loan was unaffordable – making the repayments meant you were struggling and getting into more debt – then it is worth complaining.
And Yes you can complain to Likely Loans even though the loan is still running.
neil says
thank you Sara,
I have sent the emails off to them, and will wait and see what comes back. I have also done some of my payday loads as well, so fingers crossed I will get something back from them too. as there were a few loans over the last 7 years with different payday loan companies
Ross says
Looking for some advice about 118 118 Loans. I’ve just received my SAR back from them (little confusing to look through) but how im looking at it is as follows:
– Loan 1
-credit report
– loan 1 top up
-credit report
-loan 2
-loan 2 topup.
So im guessing they didnt do a credit check on me when i got the second loan and the topup? Has anyone else had this on their information received from 118?
Sara (Debt Camel) says
Without being able to see what you are looking at, what you are saying sounds right. Which is your credit report had got worse (more borrowing? recent missed payments, defaults?), or you had said you were going to use loan 1 or its top to consolidate debt and you didn’t is a good reason for the second loan and its top up to be irresponsible lending.
What does the two credit reports show – anything which contradicted your loan 1 application – like borrowing that you didn’t mention?
Ross says
Loan 1 has a credit report and it seems to match up to my Equifax report pretty well. Loan 1A was a top up loan 6 months after the first loan. The credit report they have for 1A shows my outstanding debt had doubled in the space of 6 months and it shows extra missed payments and card utilisation.
Loan 2 and loan 2A (top up) have no credit reports after them at all so all i can assume is they didn’t do any.
Loan 1 was taken out for Debt Consolidation and it states that in the SAR. Loan 1A was also taken out for debt consolidation but in the 6 month window between the loans my debt had double and they could see that on the reports they had.
Rachel says
Hiya, I’m paying off my debts via step change, I’ve only got a year left to go now. Can anyone tell me if I can email 118118 with the affordability complaint letter while I’m still repaying them through stepchange.
Thanks
( Ps, Youre all so full of brilliant advice 😀)
Mark says
Yes, yes and YES!
I was in EXCATLY the same situation.
118118 (who I have to admit were superb throughout the whole complaint process), upheld my complaint at the first possible opportunity, refunded all interest, which they deducted from the existing balance and agreed to remove the loan from my credit file (which I haven’t checked yet). They then setup an interest free agreement on the terms of the existing DMP payment.
Hope you get the same good/fair treatment…..
Rachel says
Aww brilliant, thankyou for that. I’ll get onto it tomorrow.
I’m pleased you had a good experience with them . 😀
jen says
Remember to ask 118118 for a lower settlement figure for an outstanding loan, I called them & offered to pay xxx, if they can accept this as a full & final payment they did & this knocked a few hundred pounds off, told me there & then after talking 2 a manager. Paid that day, credit report said settled within a week
Sar says
Hi Sara
Do you know if I can make a affordability complaint against Juo Loans? I borrowed 1700 off them I paid off 1000 to likely loans and also a couple of payday loans with this money (payday lenders was wageday advance and ferratum I think) . I haven’t seen anyone mention them that is why I am asking?
Sara (Debt Camel) says
Yes you can – they are the large loan brand of the firms that owns Wageday Advance. Use the template letter above (assuming it wasn’t a guarantor loan?)
Sar says
No it wasn’t a guarantor loan. I have currently made 3 payments on this and have a further 21 left to go shall I also ask to reduce my payments I am paying them 139 pounds a month?
Sara (Debt Camel) says
If you can’t afford the 139 a month (and that is what an affordability complaint says) then yes, suggest what an affordable amount would be.
ClaireR says
The majority of my complaints 8 weeks is up tomorrow.
Just had a final response from Bamboo, a very very lengthy email.
Not upholding the complaint as they feel they did thorough checks.
They are declaring my disposable income way above what it is.
They are asking for an income and expenditure form to be returned
so that we can work out an affordable repayment schedule.
Not sure if I should take to the FOS or not.
Sara (Debt Camel) says
These cases should be taken to FOS – with large loans they should have done better checks and wouldn’t have got your disposable income so wrong! Have they sent you all your personal information? Then you may be able to see why they got your disposable income so wrong – did they ignore information on your credit record about your other debts?
But getting an affordable repayment agreement is also good, you can do this while your case is at FOS. If your complaint is upheld this won’t mean you get less, if your complaint isn’t upheld you will be in a more manageable position.
ClaireR says
Thank you Sara
They sent me by post all the DSAR info, which was a good inch and a half thick.
In their reply they have stated lots of figures for how they worked out affordability.
The disposable income figures are hugely out, they havent taken into account lots of other monthly outgoings.
It does also say the following
“At this stage, it was also a requirement that you ticked the boxes to confirm that within the next two months you would settle and not need any further payday loans, you also did not expect your financial situation to get worse in the near future and you also ticked to confirm you had provided accurate financial information.”
I do not remember the bit about settling payday loans!
I will send to the FOS, but also set up a repayment plan with them in the meantime.
Thank you for your help.
Sara (Debt Camel) says
ok, then make your FOS complaint detailed. “I do not remember the bit about settling payday loans!” say this! Mention all the monthly outgoings they haven’t taken into account – travel? clothes? other normal payments?
Mark says
Hi,
118118 Money upheld my complaint in August and said they would remove the loan from my credit record within 60 days.
I’ve just looked (85 days later) and it’s still on there.
I have complained and 118118 Money they have said that they requested Call Credit remove the loan and CC have confirmed they have done that, so if it’s still on there, that’s between me and CC.
In other words, they have rejected my complaint as it’s “not there problem”.
Is that right????
Tony says
Hi Sara,
Just sent off the first email to 118 118 money. From 2015-2018 I have had 5 loans with them. Each time they have offered me additional money which is then used to pay off the other loans. The loan amount has been higher each time. During this period I have had loans from several other payday lenders.
While this complaint is ongoing, do I need to contact them about a repayment plan. Need to get out of this debt cycle.
Ps. your website is great and the work you do is brilliant, so thank you!
Sara (Debt Camel) says
5 loans sounds like a good case! Yes I do suggest asking for a repayment plan – get yourself into a safe financial situation where you can manage without borrowing more. It can take time for these complaints to go through especially if they have to go to the ombudsman
Kev says
Hi need some help put a complaint in with 118 118 on the 8/10/2018 I am currently three payments behind and on the 26/10/2018 I had a letter off them say my account is terminated and the full balance is now due I have not received a default Notice. What should I do?
Rachel says
Has anyone had a complaint upheld by 118 likely or on stride? Thanks :)
ClaireR says
Hi Rachel,
I had a complaint in with 118118, I had 3 loans with them over the last 2 years, consolidating one with another.
(as well as numerous other payday loans and 2 longer term loans)
Yesterday, 12 days after their 8 week time limit I had a response from them, not upholding first 2 loans, but
due to a technical error i.e they said they could not look at the credit files used on the 3rd application, they have upheld
the 3rd one, and have wiped off the interest from the balance, reducing my balance from £3,600 to £1375.00 and the loan
has now been removed from my credit file.
I am quite happy with that outcome, and grateful it’s not gone to ombudsman.
Am now setting up affordable repayment plan with them.
Good luck.
Rachel says
Thanks for your reply :) that is good news, i am still waiting on them it’s a bit over the 8 week mark so should be any day