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?
Brian says
Hi..I made a complaint against 1st stop/ now oplo, who have rejected. However the finance was arranged with carfinance 247. should i escalate to ombudsman as is against oplo? or contact carfinance 247?
Sara (Debt Camel) says
carfinance 247 were the broker? Which is the legal entity that provided the car finance?
brian says
yeah..carfinance 247 were the broker. can I approach them for call recordings? oplo claim they only hold for 3 years and cannot provide them. I’m not sure there was income/expenditure carried out at all.
Sara (Debt Camel) says
Well you can ask. But they may not hold recording for along while.
But you complaint is not against them but the car finance company. If you know the loan was not affordable, I suggest you escalate to FOS.
PM says
My complaint against Bamboo has now been with an adjudicator for 10 weeks (12 months wait prior to this) and I’ve been told it will take a further 4 weeks as they “have changed the way that they work these cases”. I’ve had to provide 6 months statements (3 before and 3 after) for each loan, and asked for payslips from 5 years ago. Does anyone know what this “new process” is and whether I’m likely to be asked for more info? I had a complaint with Amigo which was dealt with significantly quicker and the reasons for the complaints were identical to this one.
col says
My complaint against Bamboo has been with the Adjudicator now for 11 months!! he has been telling me since Dec that “he is awaiting further Guidance”. I will give it another month then ill email again. I had a similar complaint against Avant both sent at same time to FOS and that was settled back in October. It can become frustrating.
Sara (Debt Camel) says
Phone FOS up and say you want to make a complaint about the time this is taking.
lynne Byrne says
Hi Sarah, I emailed an affordability complaint to Likely Loans on 7/2/21 for a loan of £5,000 for which they have added interest and are now saying I owe £9,148.
This email has been completely ignored and they continue to make harassing phone calls and texts.
I presume that my next port of call would be to make a complaint to the Ombudsman?
Sara (Debt Camel) says
Have you asked them why they have not responded to your complaint?
lynne Byrne says
I haven’t done this and so will do so before complaining to the ombudsman to give them the chance.
John says
I had a similar problem, sent an email to them and got no reply, after a few weeks I did a complaint through a link on the website and got a reply to that a few days later
KH says
I raised a complaint with the FOS in July 2020 with Moneyway which has not yet been picked up by an adjudicator, I know they’re really busy but is 10 months a normal length of time to wait? I’ve had other complaints that seemed to get picked up much quicker – is there anything I can do?
Sara (Debt Camel) says
Phone FOS up and ask for an update.
Ali says
Hi regarding moneyway, just wondering on what terms you are complaining as my other half had a 5 year finance with them, always had bad credit payday loans etc before taking this out and still paying them the last few months payments but missed several as shouldve been paid off last year.
Thanks
Ali
Sara (Debt Camel) says
See the article above for affordability complaints about all loans.
Hazel says
Hi Sara
The FOS are investigating my complaint against log book loans dating back to 2011 and 1013 , they have now requested my credit report . Do you know if the credit report they want is the ones from when I had my loans or my present one , and will my complaint go against me as my present credit report is very good .
Sara (Debt Camel) says
Just send a current one – unless you have an old one hanging around? Most people don’t! FOS know this but they ask anyway. Your current good record will not be a problem.
Wendy says
Hi
I put my 118118 complaint with fos back in sept 2020 and just been waiting I get an email from them asking for bank statements and my credit file but said it still not been picked yet ,I have never been asked for my bank stuff etc before it’s been picked before ,do you think it will be much longer to wait?
Thanks for a great site
John says
I am waiting since April 2020 and not picked up yet ..
Kenny says
Hi I have escalated a complaint to ombusman for irresponsible lending against my loan company it is secured the loan company within one day offered me 7500 interest off my existing balance and I thought it very suspicious they did this so quickly how does the ombusman in general view these high interest secured loans thanks in advance
Sara (Debt Camel) says
Interesting, who the lender?
Kenny says
Evolution lending I took out a 15 k loan after already being in a trust deed and also at the time of loan was in a dmp for another debt cycle I had gotten into,they would only issue loan if I paid of my interest free dmp loan,6 years I have already paid 26k back and still over another 4 years have 20k to pay they offered me the interest off my current balance 7.5k
Sara (Debt Camel) says
How much equity is there in the house? Do you have a lot of unsecured debt?
Kenny says
Maybe 6k unsecured debt and possibly 25k in property equity
Sara (Debt Camel) says
I don’t know how this case would go at FOS.
If that is their first offer, you could try to negotiate for more?
Kenny says
I reply to them that I wasn’t satisfied and was intending to send it to fos and they never got back to me at all,I’ve had contact from a case worker asking me when I realised it wasn’t the right loan and if I had missed any payments on mortgage and this loan which I have but have always arranged an agreement,thanks for your responses I was just reading this thread and wondered if you had heard of any favourable out comes with this sort of thing
Sara (Debt Camel) says
No, I have heard a few reports of good outcomes with different sorts of cases against some secured lenders, but not with this sort of affordability complaint.
Kenny says
Thanks again for responding one more question is there a difference between unaffordable and irresponsible? I am saying although I can pay it its not without problems,my main point is given the previous terrible credit history I had and trust deed and dmo it was irresponsible for them to lend to me especially at such an interest rate thanks again
Sara (Debt Camel) says
unaffordable and irresponsible
I haven’t seen this sort of case go through FOS so I am not sure what I can say that will help you.
You have already focussed on the fact that paying off a DMP where interest is frozen with a high cost secured loan is not a sensible move – so why was this suggested to you?
Kenny says
Yeah this was my point that in itself was irresponsible not given my previous credit history so hopefully I get a positive outcome thanks for your help
Joseph says
I’ve got an open complaint with First Response finance and I’m confused by this response: “ In the interim, to ensure that all claims can be accurately responded to, we require you to provide us with supporting documentation to evidence how our lending decision caused you financial detriment. For example, an up to date copy of your credit report.” – They want me to prove the finance caused me financial detriment? My complaint is about irresponsible lending at the time of the application, not about what happened after? I’ve sent them my credit file from the time of the application (I had it saved) but I’m not sending them a credit file from today, as I’ve had multiple wins at the FOS, ALL of missed payments & defaults have been removed so wouldn’t really help my argument?
Sara (Debt Camel) says
Have you sent them bank statements from 3 months before and three months after the application?
Joseph says
Nope, but I could.. should I wait for them to ask or should I send now?
Sara (Debt Camel) says
I suggest you do, and reply saying they have your credit record at the time and these bank statements also show how unaffordable the loan was.
Jess says
Does anyone know who deals with the redress at CarCashPoint please? Like an accounts contact?
Bob says
Hi, my complaint was upheld and everyday loans agreed with the adjudicator. This was back in November last year and I’m still waiting for the adverse credit to be deleted off my credit file. The adjudicator emailed EL again in March but still nothing has been removed. Is the any other way to get them to remove the default?
Sara (Debt Camel) says
That is a ridiculous length of time.
I doubt going to the Credit Reference Agencies will speed things up.
You could email the FCA, but they don’t intervene directly in cases so I think one more try with EL is worth a go.
I suggest you email chioma.nwachukwu@everyday-loans.co.uk with the subject “Complaint – EL has not repaired by credit record”.
Say EL accepted the adjudicator decision on November – attach that decision – so you think the negative marks should have been removed by the end of January at the latest. In March the adjudicator wrote to EL again about this. But so far nothing has been done. As k for a date when this will be resolved and for compensation for the hassle and stress this is causing you in trying to get this resolved. Say you will be sending this new complaint to FOS after 8 weeks if this has not be resolved.
Dan says
What’s the average time for a decision from the ombudsman? Made a claim a few weeks ago with my Everyday Loans loan, just want to know how long people usually wait for their decision (and taking the pandemic into account!)
Yve says
Hi Dan I waited just over a year. Hope that helps.
Regards
R says
Hi Sara
A Registration of Charge was registered against the parent company for Everyday Loans yesterday, does this mean they are in trouble?
Many thanks
Sara (Debt Camel) says
Where have you seen this?
A charge is pretty normal for some secured loans.
R says
Hi
It is on companies house, and actually looking at it further, there have regular charges placed. I am just getting anxious as they agreed to a complaint I made and worried it seemed a bit too easy for them.
Sara (Debt Camel) says
which legal entity?
R says
Against Everyday Lending Limited. And the loan is for Everyday Loans.
GD says
Hi Sara and everyone else,
I recently complained to Bamboo for 1 unaffordable loan which they gave me while I was repaying 2 other loans and with a history of over 90 payday loans in 2-3 years.
They said they are investigating my complain which was a few days back. Today I received an alert from Credit Karma that my file has been searched by them, a hard search. In my understanding this is illegal as I have not authorized it or applied for any further loans with them so I do not understand why they have done that?
I have really been trying to improve my credit score and have not applied for anything in nearly a year and now a new hard search has appeared on my file which is not great.
Has anyone else had this problem and what do I do about it?
Sara (Debt Camel) says
I suggest you wait until they reply to your complaint. If they make you an OK offer, then you can just ask them to remove the hard search. If they don’t, add this to the tings you complain about at the Ombudsman.
GD says
Hi Sara,
Thank you for your response.
I asked them why it was and they responded with their Privacy Policy which states that a credit check is carried out during a complaint procedure or when the loan is settled.
However, the Privacy Policy they shared with me when I took out the loan which looks exactly the same, does not include that line at all so they must have added it recently, probably to protect themselves from complaints. This is all quite sketchy to me that they would do this in the first place, let alone without any notification at least or asking permission, and it really is just another negative thing added to my file.
My worry is that my complaint was about the unaffordability of the loan when I took it out last year hence why I sent the report from then (I had it). Since then I have cleared up my credit record quite a lot and have had a good chunk of loans removed from my file, and with help from family I have stayed away from applying and taking out loans, hard searches etc. I believe the reason they have done it is to prove that their loan hasn’t caused me further hardship but that’s not due to the loan itself, it’s due to all the help I have had and the hard work I have put into clearing my file and improving my finances.
Anyway, let’s see what they come back with. Thanks for your help :)
GD says
Hi again Sara,
Bamboo have just come back on my complain and they said they will wipe off the remaining balance of £219 as a goodwill gesture but they are not removing the loan from my credit file, just the new hard search.
Should I accept or decline this, what do you think the FOS decision could be? My problem is that I wanted to clear my file as I am looking to buy a house in a year and was not sure if this loan will have an impact on my mortgage? It does appear as an unsecured loan rather than payday on my file so I am unsure if it would matter if it is there or not?
Thanks in advance
Sara (Debt Camel) says
I don’t think the fact you have cleaned up your credit record is relevant for what FOS decide on this complaint.
How large was the loan and how much have you paid to them so far? Bamboo will simetimes negotiar=te if you go back and offer a compromise.
GD says
Hi Sara,
It was a £1000 loan, paid back in 12 repayments of £109. I have paid back 10 months and their offer is to settle the 2 left over payments.
Sara (Debt Camel) says
If you have only paid £1090 on a £1000 loan and they have offered to clear the balance, that sounds like a good result for you? If the loan does not show as a payday loan on your credit record?
Tom says
Hi Sara,
A quick question! I have mentioned on here previously about a £30k loan I had/have with HSBC.
I submitted a complaint about their collection practices when it fell into arrears. They rejected my complaint, so I sent it to the Ombudsman.
Having then looked at it a bit more closely, I came to the view that I also had a fairly robust affordability complaint so further submitted that to HSBC and they responded fairly instantly dismissing it. I haven’t yet submitted the affordability part to the Ombudsman but did intend to.
The Ombudsman has just responded to the complaint about their collection practices and has agreed with HSBC that they should pay me £325 in compensation and erase 11 of the 15 missed payment markers.
I am happy with this – so the question is, can I accept this whilst simultaneously asking the Ombudsman to look at the affordability issue? I don’t want them to not uphold my affordability complaint and to then lose the offer of removing the 11 missed payment markers, and the £325 in compensation.
To my mind, in making this offer and accepting they have not behaved correctly, an affordability complaint shouldn’t prejudice the issue around their collection practices, but want to be sure that I don’t shoot myself in the foot!
Any advice gratefully received. Many thanks!
Sara (Debt Camel) says
I think they sound like two separate complaints. I don’t see why you can’t accept the offer on the collection practices and still take a complaint about affordability to FOS. You could talk to your adjudicator about this if you are unsure.
Moobo says
Hi. Can I ask what the complaint was about? Considering a similar complaint with Natwest.
Jo says
Hi, I made a complaint over a year ago to the ombudsman relating to a loan with TM Advances. The case has been assigned to an adjudicator however when I called for an update yesterday I was told that all unaffordable lending complaints are on hold with them. They are reviewing the process on how they investigate these complaints to eliminate delays when a business disagrees with their decision. They don’t know how long these cases will be om hold for and I was told it could take months. Does anyone know anything about this?
Chris says
I made a complaint to 118118 money regarding irresponsible lending last year. They responded on 19th September saying they needed more time to give me a final response and that if they still hadn’t decided in 8 weeks then they would email me anyway outlining this and how to contact FOS.
It’s now May and I still haven’t heard anything. I rang them up today to ask and they said they would email the complaints team to say I’ve been in touch and they would contact me. She confirmed no other correspondence had been sent out which I might have missed. What should I do next? They are well over the 8 weeks they stated originally.
Sara (Debt Camel) says
I suggest you email them and say unless they have made you a reasonable offer, the complaint goes to the ombudsman in a week.
Neil G says
Hi Sara
Recently the Ombudsman upheld 6 loans i had with Auto Advance a car loan company. Auto Advance have responded that they would be willing to pay out on loans 1-3 but feel that as they went through a different method to assess my loans for loan 4-6 they would not be upholding it.
PS Loans 4-6 were just top ups of loan 4
As the Ombudsman has upheld all 6 loans initially would you advise to let Auto Advance take it too the review or should i go back with a counter offer?
Thanks
Neil
Sara (Debt Camel) says
How much has Auto Advance offered? How much do you think the full refund would be worth?
As AA have agreed with 1-3, that amount is not “at risk” if it goes to an Ombudsman level final decision – the Ombudsman will usually just look at 4-6 in this situation.
Normally where there have been top ups, if the first few loans were unaffordable, so the top ups are (unless the top ups were small). I am not sure that AA’s argument that they changed their assessment process is that relevant – if the loans were unaffordable, how good were the new checks!
Neil G says
Hi Sara
AA have offered £3k, I have tallied loans 4-6 and I think thats £5.5K.
Thats great news that the £3k is safe and as you say I am confident that the other 3 loans were unaffordable.
Thanks for all your help :)
Katrina says
Hello Sara,
Please can you help me to calculate the 8% simple interest on car payment that I am due to be refunded. I filed a complaint with Financial Ombudsman and they have decided that the company needs to cancel any future payments and to refund me:
– my deposit together with 8% simple interest from the date of payment to the date of settlement (£3,500)
– any monthly payments since 3 November 2020 plus 8% simple interest from the date of payment to the date of settlement
(£105.45 x 11 months = £1159.95).
I have yet to hear back from the company to give their calculations, but I want to be prepared and know what sort of amount to expect.
Many thanks,
K
James Burry says
I still have a welcome loan belive it was only for 6k secrued. Cabot bought it in 2014 been paying £1 per month. Cabot say its 16k
Sara (Debt Camel) says
Ask Cabot for a Statement of account for the debt.
James Burry says
I have asked for sar! I ve got proof that 6k was paid by welcome. In Jan o8 they cabot say June o8? Also can they buy sercuerd personal loan on property
Sara (Debt Camel) says
yes a secured loan can be sold.
James Burry says
OK can they still be liable then for irresponsible lending as if its 16k never going to pay it off as they bought debt in 2015.and still no a position to clear it?
Sara (Debt Camel) says
I think you should find out the facts – how much interest has been added? Is interest still being added?
James Burry says
Just found out that I complained in 2015 and they put the account on hold until now. I was and still paying £1 per month. Surely if they took over from welcome to they have to follow same guidelines. Also welcome never had this on my property as secrued loan. But cabot registered it in 2016.aftet one year
Sara (Debt Camel) says
Are you saying this was not a secured loan when you took it out? Did Cabot get a CCJ?
James Burry says
Well? I thought it was. But checking land registry yesterday it wasn’t on there from welcome back 2007. But there’s a entry from cabot in 2016. Also have asked for original loans details from welcome but liquidator has no details off me and loan. And have asked for S. A. R but all cabot at present are telling me they bought a package from welcome
No ccj only charge on land registry
Sara (Debt Camel) says
I think you should talk to National Debtline on 0808 808 4000 about your situation. the article above does not apply to secured loans and mortgages.
Lamar says
Hi, I sent affordability complaints to some creditors on 25th March 2021. Which they replied with acknowledgment but no decision.
What do I do if I haven’t received a decision from them after 8 weeks?
Thanks L
George says
Does anyone have any experience of an affordability complaint with Savvy? I am almost certain they shouldn’t have lent to me, I had obtained a loan within the 3 months prior to lending, they lent to me without confirming my income which I exaggerated as a result of gambling.
They have until Monday to respond and the only other review I’ve seen said they replied pretty quickly. My next payment is due Monday so I would assume they are going to wait until my next payment goes out before they respond – bad timing on my part really!
Anyone? :)
Sara (Debt Camel) says
how large was the loan? just the one from them?
George says
£1,500 – just the one. But my bank statement shows me having drained my account and carrying on when I got the loan. This month will be the last capital pay off if I were to win.
Sara (Debt Camel) says
That is OK as £1500 is a large loan so they should have made checks.
Karen says
This is the redress response from money shop (ICL)
Potential Redress Amount £ 727.76
Actual cash payment to you £ 31.37
Really a travesty !
Pete says
Hi Karen,
It could be a lot worse….
Potential Redress Amount £ 5612.65
Actual cash payment to you £ 241.91
I’m fortunate that I have won several cases with big lenders (Wonga, 24/7 Moneybox and most recently Everyday Loans) before they went under so my financial situation is a lot better. I had kind of written off the likes of ICL and Satsuma (Provident) as it’s clear these schemes are there to protect them rather than the consumers that they have put in an unfortunate position. In all honesty, I’d rather see them go out of business than me take my £241, but I know that’s not going to happen.
Sara (Debt Camel) says
You can always vote against the Satsuma Scheme.
Pete says
That is very true Sara, but the chances of the scheme being rejected are very low. Most people want to get some money rather than none, which is totally understandable.
Sara (Debt Camel) says
The Scheme has to be approved by the court. The court will consider how customers voted but they will also consider the fairness of the Scheme. The FCA has said it doesn’t think the Provident Scheme is fair.
More customers voting against the Scheme may out pressure on Provident to increase the money it puts into the Scheme.
Even if you vote against the Scheme, you are still submitting a claim to it.
It’s up to you…
Pete says
Thanks Sara. I’ll still be voting against the Scheme, but I don’t hold out much hope.
Out of interest, did the FCA think that the ICL Scheme was fair?
Sara (Debt Camel) says
The ICL Scheme was very different because they had ceased trading and were heading for liquidation- there were no bondholders or shareholders who could put extra money in. Essentially there was little reason to oppose it as there were no alternatives.
Ashley says
Hi Sara,
I was misold an affordable Amigo loan when I was a student in which my non-working mum was my guarantor. I finish paying it next year.
I just wondered, where would best to raise my appeal to – I.e. Where would I have most chance of success. Or can I only go to Amigo now? Sorry, I am just slightly uncertain on it all.
Thanks for your advice,
T
Sara (Debt Camel) says
Do you mean the loan was unaffordable?
LB says
Hi Sara,
I followed your advice and have had a success after complaining to Likely Loans with having the interest removed from my £5,000 loan,which I took out in March 2017.
This is great and I have your helpful advice to thank for that.
However,I had been making token payments since May 2017 and notice that the default letter was dated August 2020.
The date of default should have been May 2017 when I ceased to make contractual payments and because it was issued late, will stay on my file for three years longer than it should.
Likely Loans are asking me to confirm acceptance of the decision regarding removal of interest, however I would like the default date changing to May 2017.
Should I ask for this before accepting their offer?
Sara (Debt Camel) says
are they not removing the default completely?
LB says
On re reading the letter, they said the following:
“However, as part of my investigation, I have reviewed the outcome of the checks we undertook, and I have concluded that further checks should have been undertaken at the point of your application to ensure that the loan was affordable for you.
My decision
I conclude that your complaint has been upheld on this occasion. This is because my investigation has revealed that further checks should have been undertaken at the point of application to ensure that the loan was affordable.
In resolution of your complaint, I am therefore proposing to remove all applicable interest from your loan. I can confirm that we will also be removing all historic negative markers from your Credit Report. We ask that you allow up to 60 days for these changes to be reflected on your Credit Report.
Total Principal Loan £5,000.00
Interest to be removed £4,507.96
Total Payments received £363.11
Total outstanding balance £4,636.89
Next Steps:
Please confirm that you accept this offer of redress in full and final settlement of your complaint by replying to this email with the following information:
confirmation of acceptance”
I presume that by this they mean the default?
Sara (Debt Camel) says
Yes they do :)
How much do you think you can pay to this going forward? Do you have other problem debts?
LB says
I can only continue with token payments for the forseeable future.
I have other debts but a lot have gone from my file now and most of the rest should be gone by the end of this year.
I am continuing to make token payments on all of them and will increase payments as soon as I am able.
Could Likely Loans potentially add further negative markers in the future if I can’t afford to make higher repayments?
Sara (Debt Camel) says
Can you say how much these other debts add up to? Beacuse if you have been making token payments they will never become statute barred and the creditors will be able to go to a court for a CCJ.
Obviously you have got a great result from LL but it still leaves you with a huge debt and if your debt total is unmanageable you need to talk to a debt adviser about your insolvency options. Long term token payments are not a good idea at all.
LL shouldn’t add negative marks in future but that is why I am suggesting you go back and clarify this with them now.
Sara (Debt Camel) says
But the term “historic markers” is odd and worth clarifying…
I suggest you ask Them to confirm that you will be able to make affordable payments in future and they will not add on any interest, charges or negative marks to your credit record.
This is just being careful, the offer is probably fine.
LB says
The debts are fairly large, however I may be able to resume full payments at some point. I do not wish to go down any other routes such as iVA etc as I have already looked into this and feel they are not suitable for me.
At the moment I am focussing on building up a significant emergency fund in case the worst happens and I feel that at the moment this should be my priority.
The creditors have accepted token payments for many years now and so, although it is a risk they may CCJ me, how much of a risk would that be and why have they not done this already?
Sara (Debt Camel) says
are you buying or renting?
LB says
I am buying at the moment.
Sara (Debt Camel) says
Then an IVA may be appropriate for you but you would have to be sure you could ake the repayments for 5 (more likely 6) years or an IVA would fail.
There may be other options. If the debts that have dropped off your credit record are loans or credit cards AND they have been sold to debt collectors, then you could look at https://debtcamel.co.uk/ask-cca-agreement-for-debt/ as if the debt collector cannot produce the CCA agreement you can simply stop paying.
It’s great to win these affordability cases but when you still have way too much debt it is better to get a plan for how to deal with it. Token payments are not a good long term option.
Kirsty says
Hi Sara
I had a 3000 loan from Bamboo in Jan 17 which was completely unaffordable, needed ro repay just over 7000 back. Managed payments for a year and then went into arrears. The loan was then sold to TBI financial. When tbi took it over there was a payment plan in place for this and several other debts that the C.A.B had put in place for me. Tbi are now pushing for an inhibition on my property, I am dealing with a debt advisor regarding this matter. All my other creditors are fine it’s just tbi that are the problem. My advisor is suggesting I do a moratorium then enter a DAS at the end of the 6 months. Would I be able to put an affordability complaint into Bamboo that would help me to not have to go into a DAS ? Like I said everyone else is happy apart from TBI.
Sara (Debt Camel) says
How large are your other debts?
Kirsty says
Approx 10000 not including Bamboo.
Anne says
Hi Sara re adjudicators decision re logbook loans limited bit confused re the chain of loans comment does this mean although loan 1 not withheld but 4 mths later loan 2 shldnt have been given and been upheld does loan 1 form part of the chain? And re award for trouble and upset is potential compensation for impact on me he hasn’t put an amount so is that up to logbook loans limited to decide?
They have till 8 th June to respond how likely is it that they would disagree as if they do it woikd then have to go to ombudsmen. It is a priority case. Amazing service only sent it off on 22nd March
.
Sara (Debt Camel) says
Did the adjudicator refer to the “chain” earlier in the email?
What does it say about the award for trouble and upset?
Anne says
thank you for all your incredible templates etc I wldnt have ever gone to ombudsman but for this site. If I get it I will be making donation to Cab perth branch
Annie Goodfellow says
That’s just it it’s at bottom just Says award for upset or trouble if relevant
Sara (Debt Camel) says
oh. That sounds as though the adjudicator forgot to complete that bit. Go back and ask the adjudicator what it means.
Also ask what they mean by the chain of loans – does this include the first loan or not?
Anne says
Thank you have done will let you know what his response is maybe its a template and forgot to delete the award for trouble upset op en bracket if relevant! Easily done well impressed with service communication empathy from fos adjudicators re provident I was priority done by March only escalated January full pay out and lbm 22 March already got a decision and so thorough
Katie says
Well surprisingly CashFloat and DotDot refused my complaints. Just submitted both to the ombudsman. Feel like these are going to be long haul ones.
GAO says
Oh no I’ve just put in for Cashfloat, did they wait the full 8 weeks before refusing you?
Sara (Debt Camel) says
Having to go to the Ombudsman is, unfortunately, a pretty normal thing.
If you know repaying the loans gave you trouble and your debt situation was getting worse, don’t be put off by a rejection – it doesn’t mean that you have a weak case.
Best advice is to just do the Ombudsman application straight away. It’s pretty easy, doesn’t take long to kick off.
Some of the saddest cases here are those where someone either just gave up or didn’t get round to sending the case to FOS. And only realised later when it was too late :(
Dave R says
Good news, Lloyds have fully upheld my complaint for loans two and three. They are refunding me everything I paid towards both loans (not just the interest) as well as paying the 8% stat interest for both. They’ll also remove both loans from my credit file. The first loan was outside the 6 years so they won’t look at it – but that will be dropping off the report next month anyway. I am absolutely over the moon, really wasn’t expecting this.
On top of this, they’ve said the my overdraft complaint they rejected doesn’t look like it was properly handled and was possibly handed to the wrong team and apparently the FOS have asked them to reinvestigate it. So hoping for some good news there at some stage!
Thank you so much Sara for all the wisdom and help
Sara (Debt Camel) says
Nice result
STEVEN MC DONALD says
Does anyone have issues with the Financial ombudsman? I had one decision in my favour and company disputed it and with an £8 yes £8 swing they got decision reversed. I appealed and said I’d forgot to include CMA payments of £290 and the ombudsman said wouldn’t be enough to change their decision????? How can £8 swing it but £292 cannot reverse it?
I genuinely believe the FOS is UNFIT FOR PURPOSE but they don’t seem answerable to anyone
Daniel says
Hi Sara , I didn’t know where to ask this question but hoping it’s ok here , I have a creation loan which I’m just about to put in a compliant for , but I feeling like I’m being harassed by them , I don’t have it on DD and if I’m late paying by a minimum of a few hours , they phone me constantly, like this morning I paid as soon I wake up and from then on I have had 11 phone calls every hour thought out the day , every time I have spoken to them I have said it’s paid please stop calling but they don’t they continue to call every hour , I feeling like they are harassing me can I also complain about this ? Thanks
Sara (Debt Camel) says
I assume you are about to make an affordabilty complaint? Yes you can add in an extra paragraph about the harasssment you are getting.
What is your financial situation like at the moment?
Daniel says
Yes am writing my affordability compliant as we speak , I’m in lots of debt but can just about afford it all ! I have made some complaints already but all been rejected due to my high earnings , but none of them will take into account I paid out more then I get in at the time of taking the loans out , buddy loans said YOU said you have £700 disposable income regardless of me proving this wasnt the case at the time , but coz I said on the application I had that amount left so I could get the loan
Sara (Debt Camel) says
have you sent these complaints to the Ombudsman?
It can take a long while for complaints to be resolved. If you are often having trouble making payments on time, I strongly suggest you cannot “just about afford it all” – I think you should talk to StepChange about a debt management plan – see https://www.stepchange.org/how-we-help/debt-management-plan.aspx.
A DMP will give you the mental space and time you need to sit back and wait for affordability complaints to be resolved. Each one that is will speed up your DMP.
And in a DMP all the harassment from Creation or other creditors soon stops.
Greg says
Looking to make a claim against Likely Loans (now wth Cabot) Couple of issues, I was under notice of redundancy at the time I applied and didn’t disclose this and I no longer bank with the same bank at the time in question and so cannot provide bank statements.
Is it even worth me making a claim?
Sara (Debt Camel) says
how long ago was the loan?
Greg says
Loan was taken in 2018. Making token payment £1/month to this and other debts having contacted creditors explaining my circumstances.
Sara (Debt Camel) says
Then you will be able to get bank statements from the closed acount. I suggest you get those before you make a complaint.
Lou says
I topped up a bamboo loan in jan this year, doubling my length of the loan for a measly amount paid to me (rest paid off previous) – I’m still making these payments but it’s a struggle
Is it worth trying to claim
Sara (Debt Camel) says
If you needed a top up loan that probably shows the previous loan was not affordable.
Definitely complain if you think the repayments were so high you caouldn’t manage to pay all your other debts, bills ans living expenses.
Also Bamboo sometimes give a poor first offer but can be persuaded to increase it… so come back here if you aren’t sure!
Lou says
Thank you! I’m still making payments though so does that make a difference? Do I need to word the letter differently? It’s worth a go
I think
Sara (Debt Camel) says
No it doesn’t make a difference, the standard letter is fine – a lot of people make these complaints when they still owe money.
Nikki S says
Hi Sara, i currently have a loan out with everyday loans, borrowed £1000 in july 2020, 1st payment of £125.40, came out direct debit end of july and ive paid same amount from then, i phoned them to query how long i have left to pay and last payment come out January 2022, can i ask for interest to be reduced? I have to date paid 10 months, which £1250 (around) has been paid back, I’m now just paying interest , thank you
Sara (Debt Camel) says
Do you think the loan was unaffordable? That means that you couldn’t make the monthly payments and still be able to pay your own debts, bills and living expenses. If your debts or arrears have gone up in the last year, the loan may be unaffordable.
Nikki S says
At the time of borrowing i was ok in paying back, but now im starting to struggle abit, im terrified of missing a payment on top of other monthly bills, i asked them for a settlement figure which is £840, i told them im struggling to pay the monthly figure could they reduce the interest but they couldnt care,
Sara (Debt Camel) says
they don’t care – bad credit lenders don’t make money by being sympathetic.
Do you have other debts as well?
Nikki S says
No thats the first ever loan i have taken out from i paid off all my other payday loans etc, i actually try to stay clear of borrowing but just back in july i needed it, im happy continuing paying back the loan, as i signed a contract with them so i fully understood to terms etc, but just find it disgusting that i have paid back loan in full n more already and still another 6 months to paying interest only, they really dont care, thank you
Kev says
Hi all,
I raised an affordability complaint with Moneybarn and requested the SAR. I am in receipt of this now and going through everything they have sent. There is a form in the pack which is titled “moneybarn payout summary sheet”.
This has my name and email address on it, but everything has not been completed. Further 2 this, they only have 2 of my wage slips at the time of getting the car and no bank statements.
They state they are still looking into the complaint, my question being, with what they have sent me as per my SAR, it certainly looks like it is irresponsible/affordability issue, what is the likelihood of them actually accepting they are at fault?
Thanks
Sara (Debt Camel) says
To win an affordability complaint two things are necessary – first the actual has to be unaffordable and second the lender has to have made inadequate checks.
Have you sent Moneybarn your bank statements for the three months before you took the finance?
KP says
Hi Sara,
I have sent no bank statements to moneybarn. They never requested these at the time the finance was approved either.
Do you think they will request them?
Thanks
Sara (Debt Camel) says
I suggest you send them now.
That is why the template letter above says
“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 will help your case if you do.]”
Kev says
Thanks Sara,
Will get them downloaded and sent across.
Thanks for all you do to help all of us!
Simon says
Hi
I had taken out a 5 year car loan in 9th November 2017 by Moneyway. I was wondering if anyone can give me some advice on affordability of this loan? In the past I was struggling financially and had multiple pay day loans and a very poor credit file with defaults under my name. I haven’t missed any payments at all for this loan and I am paying £335 a month for but it’s been a missive struggle keeping up with payments and also I’ve ended up in about £7k of credit card debt to keep myself afloat. I am in the proses of affordability claim against my credit cards but would like to know where I stand with my car loan?
Thanks Simon
Sara (Debt Camel) says
It is credit so you can make an affordability complaint. You have to keep paying the loan while a complaint goes through or the car may be repossessed. It may take a long while for the complaint to be resolved if it has to go to the ombudsman.
If you think you cannot carry on with the payments it is important you get debt advice now on this as it may be better for you to VT (voluntarily terminate) the contract rather than have the car repossessed and you lose the right to VT the contract if you default on it. Unless you are sure you can keep up the payments, I suggest you talk to National Debtline on 0808 808 4000 about your options.
J Anp says
So I have had the FCA come back to me about a £3500 loan I took with 118118 money, in it they said that they don’t have to look at bank statements to see if the loan was affordable, at the time I was gambling heavily and always in my overdraft and had several payday loans in and out of my bank. Is this case lost, as my credit report wasn’t that bad at the time I took out the loan.
Sara (Debt Camel) says
Do you mean FOS or the FCA?
J Anp says
Sorry Ombudsmen
Sara (Debt Camel) says
I suggest you say that this is a large loan from a bad credit lender and you think it would be reasonable and proportionate for 118 to have verified your application by checking your bank statements.
Also there must have been something wrong with your credit record or you would never have been reduced to borrowing from 188 … did you just have very large amounts of debt?
Krzysztof says
Hi Sara
Just need a bit of help.
I had total of 6 loans with 118 money
Loan 1) July 2015 initial loan was back in July 2015 for £2000 over 18 months total to repay £3285, when they issued this loan I had other pay
day loans, constantly in overdraft and with credit card empty, I managed to make payments but it meant that I carry on using pay day loans to get me thru the month.
Loan 2) April 2016
When I paid back half of the loan in April 2016, 118 send me a message to say that I can top up/take new loan (higher so I can pay full balance
of a old loan and take new one) which I applied for.new loan was for £2255 (£1255 to pay for old loan, and £1000 new loan) over 24 months total to repay £4266. again I was using pay day loans all the time, with bad credit score, overdraft and empty credit card.they approved the loan. I
was then still using pay day loans to make it thru the month.
Loan 3) July 2017
July 2017 – same message from 118 offering me additional loan of £2072(£1272 to pay for old loan and £800 new loan) over 24 months with total to pay £3978 same story like above – constant overdraft, empty credit card and plenty pay day loans before and after took the loan
Krzysztof says
Loan 4) February 2018 same story as above.loan for £2826 (£1826 to pay for old one and £1000 new loan)over 24 months with total to pay £5306 – don’t need to mention that my financial situation was still bad
Loan 5) August 2018 loan for £3137 (£2437 to pay for old loan and £700 new loan) over 24 months with total to pay £5932, same financial issues like previous loans
Loan 6) October 2019 loan £3843 (£1843 to pay for old loan and £2000 new loan) over 24 months with total to pay £5670 this is the last loan I
have with them, still paying this one back and have next payment tomorrow and my balance as of tomorrow will be £945 and 4 payments left.
July loan 2000 from different provider, in overdraft, empty credit card, and occasional pay day loan (however using them less as I started to
borrow from friends and working extra to get out of this circle – I was working between 90 to 120 overtimes hours every month (lucky my employer understand my position and allowed me to do this)
I just need help on how to approach this , should I wait till I pay last loan and then complain ?
or complain about loan 1-5 now and loan 6 once is paid off ?
Please advise Sara
Sara (Debt Camel) says
I suggest you complain now about all the loans. You can complain about a loan that is till being paid.
Jade says
Hi – [ ] paid off using 118 loan in July 2020
I took out a loan for £2700 in December 2019 for 12 months which I am in the process of submitting an affordability complaint due to the situation I was in when I took out the loan. I got into the bad cycle of getting loans to pay off other loans and got deeper into debt. I took out another loan with 118 in July 2020 to consolidate debts and when I paid my early settlement with Bamboo they charged me the full loan amount including the full interest, is that right or should I have had a interest rebate?
Sara (Debt Camel) says
how early was the loan paid off?
Jade says
Hi Sara, I had made only 4 payments towards it as I have 2 months hold due to covid so paid off 6 months into the loan but still have 8 months of payments to pay off and think that they added 2 months on to the end of the original agreement timeframe. Does that make sense?
Sara (Debt Camel) says
I suggest you ask Bamboo for a statement for the account and for details of how they calculated the settlement amount.
You could also make an affordability complaint to Bamboo – if you win that all the interest paid is refunded so you don’t have to argue about whether it was calculated correctly!
Jcm says
Hi, had a loan with 1st Stop, tried to claim loan not affordable, went to ombudsman who stated that now they are Oplo i cant claim, this correct?? Cheers JCM
Sara (Debt Camel) says
I am not sure that is right. Go back to the Ombudsman and point out that Companies House says they are the same company, they just changed their name : https://find-and-update.company-information.service.gov.uk/company/07213812/filing-history
Sally says
Hi Sara ,
I had a final decision in my favour from ombudsman on 26/04/2021 regarding mrlender loans ,
Since it has been more than 28 working days I emailed mrlender to find out as to when the settlement would be done , mr lender replied
Thank you for your email.
We have still not received confirmation of closure from the Financial Ombudsman, meaning your case is still active.
In order for or us to process any redress/ request any amendments to your credit file, we do require confirmation from the Ombudsman that your case has been closed.
It appears there may be a delay their end, we would suggest contacting them and requesting for them to provide this to us.
Once received, we will action any redress/ amendments in the normal timeframes.
I have already informed FO . Is this normal ?
Sara (Debt Camel) says
No. I’m not sure if you have just told your adjudicator the Mr Lender hasn’t paid, you need to be clear Me Lender says they haven’t been told by FOS.
Chirag Shah says
Hi
I have had a complaint resolved by the adjudicator of the Ombudsman for Everyday Loans, this was through a 3rd party acting on my behalf. This has been upheld by the adjudicator but Everyday are taking long to transfer the funds to the 3rd party and asking for further information, is there anything else I can do?
Sara (Debt Camel) says
what further information are EL asking for? If a debt was sold onto a debt collector then this can take time to sort out.
Chirag says
Sorry the debt was not sold one, one of them PPI company are dealing with the complaint on my behalf. They want me to confirm that I am happy for the funds to be transfred to the 3rd party acting on my behalf. The complaint was resolved 14th May 2021 in my favour.
Sara (Debt Camel) says
So you have told them yes, I assume?
Chirag says
Yes, they have replied should be in by next week as they do settlements weekly, so fingers cross
Peter says
Hi I have a load off likey loans for 4k started with a 3k and I had a top up ended up paying 8k back where do I stand with interest I paid ?
Sara (Debt Camel) says
Are you asking how much interest you paid? or whether you have a good affordabilty complaint?
Peter says
Interest paid and the complaint
Sara (Debt Camel) says
so interest paid. How large was the top up loan and how much did you receive from the top up loan in cash? When you say you paid 8k back, was that in monthly payments or were you including the settlement from the top up loan/
Complaint – do you feel the repayments were unaffordable? The regulator says a loan is only affordable if you could pay it and still pay your other debts, bills and living expenses – so if your other debts were going up it may have been because the LL repayments were too high.
The affordability test applies when you took the loan – and when you took the top up loan. If you later lost your job, that doesn’t mean the loan was unafforable at the time you took it out.
Peter says
The £3000 was a start loan but I had a top up of £1000
The loan was £4310.31
Total amount paid £8193.96
I was paying around £230 a month couldn’t afford that so my partner took out a bank loan with smaller payments to pay it off
Sara (Debt Camel) says
It definitely sounds unaffordable then so make a complaint.
Peter says
Regarding the interest do you think it was high ?
Sara (Debt Camel) says
their loans always are :(
Wendy says
Good Evening I was wondering if people were having there cases up held by adjudicator with 118 118 as mine was picked by an adjudicator today after waiting since last September thanks
PM says
I had my case upheld a week ago. Adjudicator gave 118 2 weeks to respond, and I believe from other people’s experiences that they hold off responding until the evening of the last day of the deadline. I had to go through 2 adjudicators though, which stretched my timeline out a bit, so took 8 weeks to get a decision.
Wendy says
Thank you PM
Glad you got there in the end ,I have probably got a few more weeks then, I have my fingers crossed they up hold my complaint
Jade says
Does anyone have any experience with Likely loans, I have put an affordability complaint in and they claim because I hadn’t missed payments on my file (I was borrowing more and paying monthly payments with credit cards therefore had made a number of credit applications) they claim that I could afford it and state that they had checked my salary which they clearly hadn’t because it was lower than their records
Sara (Debt Camel) says
send it straight to the Ombudsman – making every payment on time is NOT a sign that they were affordable…
Wes says
How long have people have complaints waiting at the FOS against 118 money. Been waiting almost a year and haven’t heard anything. Debt was sold to lantern, who i mentioned my query to. And they’ve asked 118 to send over the information of the checks they done, but they’ve not even co-operated with them either, that’s been going on a couple months aswell!
PM says
I waited a year for it to be allocated and then 8 weeks for a decision. Adjudicator wrote to 118 money and gave them 2 weeks, which for me, is up this Thursday. Waiting on their response. You should be hearing from them soon.
Joe says
I have been waiting for 14 months now. Still not allocated to an adjudicator..
Dean says
Hi Sara,
Can you make an affordability complaint about car finance from Moneybarn? My wife lost her job due to Covid and Hasn’t made the payments she should have because Moneybarn were difficult to deal with and only applied 3 months Holiday pay despite our requests for more..
Now they have sent a termination letter and will take the car back within 7 days despite my wife paying almost 8K towards it and only 4K remaining.
Do you think we have any options to stop this and if not what are the chances of winning an affordability complaint?
Thank you Sara
Sara (Debt Camel) says
Yes she can if she feels the loan was unaffordable from the beginning, not just because of COVID problems.
See https://debtcamel.co.uk/unaffordable-car-finance/ for the possible options for car finance. She can no longer VT the car as she has defaulted. A tine order is possible but these are very rare and she will need legal advice fast on this.
If she makes an affordability complaint she should also add a paragraph saying that Moneybarn refused to give her a second 3 month COVID-19 payment break.
The template above asks for a Subject AccessRequest including recordings of phone calls. If the discussions with Moneybarn about car finance were by phone she should check she is sent these astgey will help with the COVID-19 part if the complaint.
Kst says
Hi I just wanted to say thanks. 2 weeks ago today I put an affordability complaint into Bamboo. Last Thursday I got a reply saying that although they believe they did lead responsibly they would reduce my interest on my loan by 50% as a goodwill gesture. I had remember reading this comment so I went back that day saying I wanted 100% or would not hesitate to go to the ombudsman. Got a phone call yesterday saying they’d remove 100% of the interest which is £4095. Can’t believe how quick and easy the process was! Well worth taking the time to make the complaint !
Lc says
Well done! I’ve recently put in a claim with bamboo, I got an offer today which I feel is poor, I’ve emailed them back saying I’m happy to press on with the ombudsman if that’s their final offer. How long did it take for them to get back to you with their new offer? Thank you for any help
Kst says
2 weeks total start to finish. Said I wanted 100% of the interest removed on the Thursday. Following Monday I got the call to say OK.
Hope you’ve got a good outcome
Sarahd says
Looking for some advice re varooma, have a log book loan, I’ve been scrimping and scraping to pay for approx 3 years, its a reload as well they let me top up after 1 year, recently I’ve notnpaid the full amount but a reduced rate and still owe approx 500, can I still complain even thonive had payments reduced fell in arrears and the stillnhave the log book as its active???? Thanks for the help and support in advance with the matter its very much appreciated
Sara (Debt Camel) says
Yes you can – but you need to keep up the payments while the complaint goes through.
Sarahd says
They agreed a reduced mothly payment amount with myself, If complain can they force me to pay in full or even go back to the full amounts
Sara (Debt Camel) says
I don’t know the answer – it seems possible that if you carry on making the agreed payments you will be ok.
BUt how long until the loan is paid off? And are these payments affordable?
Sarah says
Another 5 months I may wait it out untill paid in full and the make the complaints.
Sara (Debt Camel) says
sounds like a plan
PM says
Complaints against Likely Loans, 118 Money and Bamboo all upheld within the space of a week of each other (12-14 months total wait time to get to this point). Likely loans accepted the decision and agreed to refund me within 14 days. 118 and Bamboo are dragging their heels until the end of the deadline before showing their hand. Above all else, I’m grateful that these will be off my credit file. Many thanks to Sara for the continued support on this site.
Jade says
Hi PM, I have complained to all 3 of those companies too within the last two weeks, I have already received a final response from Likely loans where they didnt accept and have forwarded to FOS. Issue with Bamboo was that I got a 12 month loan and paid off 6 months early yet was charged the full loan amount and interest and had no rebate at all.
PM says
Hi Jade, All 3 rejected my complaints too but the FOS upheld all my complaints against each of them. Some of my loans were also settled early but they were still deemed unaffordable. Good luck with your claims.
GAO says
Hi, congrats on getting your refund from Likely Loans – how did you complain as I’m having difficulties? Thanks :)
Sara (Debt Camel) says
What sort of difficulties?
GAO says
Hi, I tried to email the loans one listed here but there is just a response that the inbox is a no-reply inbox. They give you a link to enter complaint online which I did complete but then the screen would just go blank with no confirmation of them receiving it. I tried on safari and google chrome browsers. There is a number but it looks like it’s only for current customers?
Sarah says
So I contacted them just to see if there was anything I could do with my account and there first offer without even asking or rasing a complaint was to wipe the remining amount but no refund of intrest could be done???
I then mentioned about wanting a refund for intrest and they are looking to opening a complaint now.
Katy says
Hi,
I was after a bit of advice, I have just had a complaint upheld by FOS for a loan. The loan caused me to go into a DMP as I wasn’t able to keep up with 2 credit card payments and the loan payments. As the loan has been written off and interest reimbursed I have paid off the credit cards in full now. As the loan has been written off do you think it would be worth me contacting the loan companies and asking them to consider removing the defaults? My payments were always on time before I took the loan out. I have already complained to the credit card companies and Fos but it wasn’t upheld. As the credit cards were always paid on time previously and it was the loan that caused me to go into arrears is there anyway they could help?
Sara (Debt Camel) says
I think that is unlikely to work. So far as the credit cards are concer3end they have accurately reported your payment record to the credit reference agenceis and they did nothing wrong in giving you the credit.
Tony says
118 agreed with my compalint regarding an unaffordable claim, they agreed to reduce my balance on the account by the overpaid amount which had been sold to lantern as a default, and also to remove the default from my credit file. They balance was adjusted fine however my credit file still shows the default after nearly 6 months. Ive contacted both lantern and 118 regarding this, lantern say they need confirmation from 118 and 118 just keep saying theyre in contact with lantern. Is there anything i can do to get them to finally sort this?
Sara (Debt Camel) says
Say a complaint goes to the Financial Ombudsman if they haven’t got this sorted by the end of June. And you will be asking for compensation.