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?
James says
Hi, I raised a SAR request for all my information to Avant credit so I can look for discrepancies in their checks to prove they didn’t asses my application properly. I have just received an email with a 600+ page document containing all of the personal details and financial history for someone else, should I report this officially to someone?
James says
A lender is saying they used a call credit TAC report to verify my income, what is this as I didn’t think your income was stored publicly?
Sara (Debt Camel) says
Why don’t you send them a Subject Access request asking for a copy of all the personal data that they hold about you, including your loan applications, all credit checks and CallCredit’s TAC report. It will be interesting to see what you get back.
James says
Hi Sara, I did do that but they can’t seem to send me this TAC report, i have everything else.
This is for Avant Credit, they gave me a loan of £6000 and this is what I have found from the credit report they hold for me:
It clearly shows that my debt repayments exceed my income. I declared my income as £2,391, I declared rent & other household expenses as £542, my credit report shows that my debt repayments were £2,325. This would have left me with a disposable income of minus £476! I had 22 debts outstanding totaling £38k including payday loans, credit cards & loans.
It took 19 minutes from my application to receiving the money, do you think this is a strong case?
Sara (Debt Camel) says
Go back to them and say “You say you verified my income from a CallCredit TAC report. That report is part of the personal information you hold about me and you should provide me with a copy of it as part of the Subject Access request I have made. If you do not send me this within a week, I will be putting in a complaint about you to the ICO, in addition to taking my affordability complaint to the Financial Ombudsman.”
Here is how to report them to the ICO: https://ico.org.uk/make-a-complaint/.
From what you say you have a very good affordability case.
DM84 says
Hi Sara,
Received an email from 118118 today saying they need another 14 days due to complexity of the case.
Would you recommend holding out for the final response before I go to the ombudsman?
Sara (Debt Camel) says
I don’t know – I don’t think anyone has mentioned 118 saying they need extra time, so I have no feel for whether this means you are more likely to get a refund or whether it is a new delaying tactic.
Scott says
Hi DM84,
If the 8 weeks are up, I would log complaint with FOS now. If 118118 come back with an offer you can withdraw the complaint.
Personal experience is that 118 drag their heels then don’t uphold complaint.
Adjudicator upheld in my favour but 118 didn’t respond by date and 3 weeks later I joined queue for Ombudsman and now playing the waiting game.
There could be a lot of complaints joining the queue in 14 days so make sure you’re in it.
Scott
Emma says
Hi
I took out a unsecured loan with money way over 4 years ago and it is now in a DMP. The loan has been bought by aspire last year and I was wondering if I put in a complaint would i email aspire ? And also if anyone had any experience with them as I haven’t come across them before
Sara (Debt Camel) says
Was this car finance? How large was the loan?
Emma says
Hi Sara – no it was an unsecured loan of 3k with front loaded interest
Sara (Debt Camel) says
ok, they are still in business so use the template letter in the article above, including asking for all your personal details, but the complaint should go to Moneyway not Aspire. Because it was Moneyway who gave you the unaffordable loan. You can tell Aspire that a complaint is underway but its best to carry on making your DMP payments to them.
Emma says
Thanks ;) will keep you updated
cl says
Ive got two of these loans – Avant Credit and Likely loans both over 3k due to a gambling addiction which i am now seeking help for. Ive taken Avant to FOS no help at all rejected and said avant did correct checks and in addition Likely loans will not budge at all despite many e-mails and calls. They are not affordable and ive paid very little back on both maybe 600 total.
I have no idea what to do they are destroying my credit rating and i see no way out –
Sara (Debt Camel) says
Send the Likely Loans case to FOS. Just because you didn’t win the Avant case (was that an adjudicator decision or an ombudsman decision?) doesn’t mean you won’t win the LL complaint.
Do you have other problem debts as well? How much do they add up to in total? are you making any payments to any of them at the moment? are you buying or renting?
Cl says
It went to ombudsman in the end and still ruled in avants favour. I owe these two plus one other bank loan and a payday loan about 10k total.
I rent – I’ve even said I’ll pay them back just remove interest and get a no back
Sara (Debt Camel) says
Have you looked at getting money back from other payday lenders you had used before?
I think you should talk to StepChange about your options – depending on how much you can repay each month, a DMP, a DRO or bankruptcy could be best for you.
Joseph says
Don’t know if anyone has ever dealt with Creation Finance but they are an absolute joke – past the 8 week deadline and they said they’ve only just started to look at it, calling up every day to chase this but they are just so obstructive it’s unreal – has anyone had any success with this company?
Sara (Debt Camel) says
Give them a deadline – your complaint goes to FOS in a week if they do not make a satisfactory offer.
CarrieN says
Hi Sara
I had a loan with NatWest quite a few years ago. I complained about irresponsible lending as I was already behind with credit card and loan payments and they would have seen this on my credit file. They have come back with a final response stating that as the loan is over six years old they won’t consider it. I have only just found out that I could complain a few months ago so does the three year rule stand in my favour?thanks
Sara (Debt Camel) says
No, sorry, FOS won’t consider these older cases.
Lou7 says
I put a complaint in about 118 money in May 2018 and it still hasn’t been assigned to an adjudicator yet. Is this normal? I am waiting for an ombudsman to make decisions on Avant and onstride.
Cathy says
I have only just read up on affordability complaints.
I was successful in getting a redress from some payday lenders.
I had 2 loans from everyday loans / they were taken out in May/Dec 2012. As this is longer than 6 years ago – can they consider them?
I was still paying them back in 2015.
Many Thanks
Cathy
Sara (Debt Camel) says
You can try but this may be difficult at FOS.
Tim says
Hi Sara
So I’ve had a letter today from loans 2 go declining my complaint,despite the fact I haven’t sent a follow up email from the one requesting my SAR!
I’ve received the SAR with my application form and that was it,on it I put reason for loan was to move house and in the expenditures I put 0 for most things as was living with parents,surely given the fact I stated I was moving house for loan reason they should have asked all these amounts? Also I had 4 defaults around the time of the loan(all before) and also 20k+ of existing debt
I’ve emailed them again pointing this out and saying I want a response within 1 week (the refusal letter said that was the final decision)or’ll go to the ombudsman.
Have I done the right thing?
Thanks
Tim
Sara (Debt Camel) says
Sure, it’s only a week, why not ask them to look at it again.
I think your point about the zero expenditure is a good one! Also, how had you had problems leading to 4 defaults if you were living with your parents and not having any expenses?
Tim says
I had my hours cut in work (0 hour contract) and I split up with an ex girlfriend,so I moved back home temporarily it was literally for a couple of weeks till I found somewhere else.
Ok great I’ll wait to hear from them,I won’t hold my breath though,then I’ll go to the FOS
I’ll let you know how it goes but thank you so much for the help and this wonderful website without which I’d have never have known
Sara (Debt Camel) says
ah I wasn’t asking you why you had problems, I was suggesting that L2G should have stopped and asked those questions…
Tim says
Oh of course they should I didn’t think of that!
Well I’ve emailed them explaining this if not hopefully the ombudsman will agree with me,if I don’t try I deffinately won’t get a refund so fingers crossed!
Thanks again for everything
Tim
StevieC says
Hi,
Has anyone had any luck with complaints with Moneybarn? Or would that not be counted as it was for a car purchase?
Thanks
Sara (Debt Camel) says
Car finance should be subject to the same affordability checks that other loans are. Give it a go!
StevieC says
At the time I had payday loans with Unclebuck, SafetyNet Credit & Wizzcash all regular loans. I was also in £2000 overdraft maxed although was given a loan for £9,500 to buy a car (stupid me i know)
StevieC says
At the time I had payday loans with Unclebuck, SafetyNet Credit & Wizzcash all regular loans. I was also in £2000 overdraft maxed although was given a loan for £9,500 to buy a car (stupid me i know) I still owe £5,700 and hacvent missed a payment although I have taken numerous PDL’s out to get by and borrowed on CC’s
MM says
You sound literally like just the same situation as me. Have you complained? I have only missed a few payments which were down to the company changing my paydate incorrectly. What date did you take out the loan?
Paul says
Hi,
On stride financial have asked me to give them bank statements and payslips from when I took out the loan, should they be asking for these or should they already have them? I’m finding it hard to get the statements as I’ve been out of the country for a while.
Thanks
Paul
Sara (Debt Camel) says
Tell them to consider your case as it stands. BUT you do need to persevere with trying to get these bank statements in case you need to go to the Ombudsman. Was this just a single loan?
Paul says
Yes it was just a single loan, I will be able to get hold of the statements so I shall do that and ask them to consider the case as it is.
Thanks
CG says
Can anyone advise once an adjudicator starts looking at your case, how long do they roughly take to investigate and make a decision. The adjudicator picked up my case on 23/01/19, I was then asked for info on 4/2/19 and responded on 7/2/19, am I still looking at weeks/months?
MM says
Hi,
I currently have a logbook loan with Moneybarn and have a couple of years left to pay. When I took out the logbook loan in February 2016 I had at least 2-3 defaults, and a large amount of debt and missed payments – also a low credit score. I’ve still got another couple of years to pay this off – do you think it’s worth attempting to put in an affordability complaint? I had an income of about 17k, yet I was with my financial history allowed to take out this loan.
Do you think it’s worth putting one in? Has anyone complained about Moneybarn before?
MM
Sara (Debt Camel) says
I think you have seen the only recent comment from someone about Moneybarn.
Was this a logbook loan? That is a loan on car which you already own. Moneybarn generally do Conditional Sale agreements on a car you are buying? This doesn’t make a difference to your affordability complaint but it changes your legal rights if you want to end the contract early.
It is worth complaining if you feel the monthly repayments were unaffordable for you and MB should have realised that when you applied. Follow the 4 stage process described in the article above – and expect your complaint to have to go to the Ombudsman.
MM says
I took out the loan in Feb 16, and have two more years left. The car was valued around 4.5k, and the loan total is around 9-10k (I think). I’ve currently got about 3.8k remaining.
Either way, I’ve had SafetyNet Credit uphold an unaffordable lending complaint from a month or two before the date I took out this logbook loan.
One question before I go ahead and do this, if I was to go down this route do you think there is anything they could do to make my life more difficult? I need the car I’ve got to get to work etc.
MM says
Oh, also found this article here. Sorry, it’s from The S*n:
https://www.thesun.co.uk/money/5075751/moneybarn-investigated-over-claims-it-doled-out-loans-customers-couldnt-afford/
Sara (Debt Camel) says
the FCA still hasn’t completed its investigation into Moneybarn.
Sara (Debt Camel) says
If you aren’t in arrears they can’t repossess your car. As you are more than half through the contract, you probably have the right to hand back the car and not owe any more money or have your credit record harmed. But that would only work if you have an alternative way of getting a car to get to work.
MM says
I see. I either way would like to keep the car. Would you say it’s worth me pursuing them for Unaffordable Lending if I actually want to keep the car?
Sara (Debt Camel) says
Definitely go for an affordability complaint if you are struggling to manage the repayments! Handing back the car is just another option.
MM says
I’m not currently struggling though, but when I took the logbook loan out it was a little difficult I would say as my salary was much less.
Sara (Debt Camel) says
That’s fine, it is the affordability when you took it out that matters.
Dana says
Hi Sara,
So in November I complained to all 3 loan companies (118 118 Money, Avant Credit and Likely Loans), who I currently have large loans with (some I’m on my second and top up loan) and I’m struggling to pay them each month, even after explaining my situation about being out of work and being in the midst in a deep pay day loan trap when applying they all rejected my complaint saying they did the correct checks, they then sent my SARS after the final decision. I sent the complaints to FOS at the end of January and I have already been assigned an Adjudicator, which is a pleasant surprise as it took 6 plus months to get assigned with my pay day loan complaints (all refunded and taken off my credit file thanks to your website Sara).
However, after speaking to the FOS they said they don’t usually disagree with loans being issue if I’ve told the company I was working when in fact I wasn’t when applying, however, I’ve had to reiterate that I had so many pay day loans on my credit file (including outstanding loans) this should have been a warning sign to them.
Is there anything else I can say to the FOS to help my case?
Sara (Debt Camel) says
Have you sent all three companies a request for all your personal data?
For the first time you borrowed from a lender, you need to show that there was sometging wrong with your application that the lender should have noticed. For example:
– some of your expenses were unreasonably low (low food expenses? nothing for clothes or prescriptions//dentist/opticians) petrol for a car but nothing for other running costs such as car tax, insurance, servicing, MOT?)
– you hadn’t listed all your debts on your application – check what they saw on your credit record and point out that this was more than you said on your application.
For a second or top up loan, you can repeat all the above and also add:
– do your expenses seem to have dropped from the first application? That is a classic sign you are in trouble and just saying anything to get an application approved.
– has your income increased a lot? If so, why would you need to borrow more?
– have your other debts increased from your first application?
– did you put on your first application that you wanted it to consolidate debt, but it is obvious that you haven’t done that?
This is fiddly stuff, looking at exactly what lender A would have seen in June 2017 and what had changed by your top up in January 2018. But if you set it all out it canb be a very convincing case!
Dana says
Thanks Sara, fingers crossed, I requested the SAR files and explained to the companies it was evident I was in a pay day loan trap.
Do these large loan complaints tend to be quicker than the payday loan complaints?
Sara (Debt Camel) says
Yes, but they aren’t very quick any more.
Dana says
Hi Sara,
I got a response from the FOS today saying they won’t be upholding my complaint, even though it’s evident I’m struggling to make repayments and I was in a pay day loan trap when applying, they’ve gone in favour of the lender, as they apparently did the correct checks and it’s not there fault I provided the wrong information regarding affordability. I’m not sure what else to do but to carry on snowballing.
Any other advice would be much appreciated but this seems harder than dealing with payday loan lenders.
Bill says
Hi Sarah,
Had my 2nd response from the fos, kindly informing me my complaint against mr lender will not be upheld , had 7 loans in over 12 months, there conclusion was the loans where affordable although 3 should loans should not of been given to me as they where paid one day after loan was paid out! Adjudicator had told me if I had any bank statements to back up my complain! should he not have all the evidence first before making a judgement? Find it all very strange as had rejection from adjudicator last week,…..same again asking for evidence after already making a decision not to uphold regarding likely loans, the bank statements clearly show I was robbing peter to pay Paul on a weekly basis,
Bill
Sara (Debt Camel) says
Have you already sent FOS your bank statements or not?
bill says
Hi Sarah, yes I sent them to mr lender at the beginning but not the fos, I find it unusual they made a decision without looking at my statements, adjudicator also said payday lenders don’t have to look at credit files to make decisions on lending?
Bill
Sara (Debt Camel) says
Well send the statements right away! Don’t grumble at the adjudicator send them the evidence they need.
Mrs and Mrs C says
We had a loan with Welcome Finance (was sold to Prime Credit). We tried to go down the irresponsible lending route, but were told that because the loan was taken out so long ago (2009) that it was too long ago. I did challenge Welcome on some interest that was added to the account within and they have removed that – paying the money across to Prime Credit. We have been making small overpayments on the loan and are now £1000 overpaid – but they wont take this off the balance, it just sits as an overpayment, presumably so they can charge more interest on the higher balance – are they legally allowed to do this?
Sara (Debt Camel) says
Are you allowed to make overpayments? You need to phone them up and ask if you don’t have the T&cs for the account.
Mrs and Mrs C says
Hi Sara – yes when we were with Welcome they used to phone us up at intervals asking if we could pay more as it would clear the balance quicker by reducing interest charged each month, now that we are with Prime Credit the money is just sitting there and the term remains the same no matter how much we overpay by. It seems to be ran differently to Welcome Finance, have we just accepted their terms and conditions automatically when the debt was sold to them?
Sara (Debt Camel) says
No the T&C will remain the same. You need to ask Prime Credit why they are not reducing your balance.
Mrs and Mrs C says
Thanks Sara, I will call them today, if the T&C are not the same as Welcome Finance can I send to the FOS?
I have been sent a data access request from Welcome and in there are tel calls where WF have called us asking us if we can pay more and showing how many months we can knock off the loan, and how much interest we could save by paying more. We have had none of this since moving to PC and when I asked them when the loan finished she gave us the original date, and I didn’t click on that they weren’t working the same. We have been budgeting to finish the loan 36 months early and I fear this is not the case now since they are keeping our money as an overpayment.
Mrs and Mrs C says
I phoned them, they said they are applying our overpayments to the balance? They cant give us a new end date to the loan in case we don’t keep up the overpayments at this level. When we were with WF our end date was brought forward by 36 months due to the overpayments we have been making, yet PC still say we owe 10k, I have asked for a statement of all transactions to look at and will go through it all again. Something doesn’t seem to add up with me.
Tim says
Hi Sara
I’ve had no reply since from loans to go after giving them 7 days to respond,
I’m going to send my complaint to the ombudsman,but before I do, how many bank statements do I need,the account in question is now closed so I want to ask for the correct dates etc.
Also I’ve got a copy of my Experian report but I don’t think everything is on it,is noddle the best one to get?
Thanks again for helping
Tim
ClaireR says
I’ve had two decisions from FOS today for Avant Credit and Bamboo. Had 2 loans with each, whilst taking out numerous payday loans.
Both not upheld, same reasons for both, Although they could see I had short term loans there wasn’t any indication I was in trouble as repaid them on time etc.
Is it worth going back to FOS to say can they state again that I was using payday loans to help make payments?
Many thanks.
Sara (Debt Camel) says
Did you top up/refinance the first loan with each? Or pay it off and then borrow again, if so after what gap?
What you are looking for here are discrepancies – where your application didn’t match your credit record OR where your situation had got worse from the first loan to the second one.
For the first loans, did you application reflect accurately what the lender could see on your credit record?
Did you say the first loan was to consolidate some debt, but on your second application it should have been clear that you didn’t do this?
For the second loan/top up, had your financial position got worse? More debts, recent debt payment problems on credit record? Did your 2nd application show that you income had jumped or your expenses had dropped – either should have caused the second application to be looked at more closely.
ClaireR says
Hi Sara
Yes the second loans were within weeks of paying off the first. I did say they were being used to consolidate debts, which they were but was obviously still in that spiral of borrowing consistently.
I will go back to FOS with these points.
The second loans have both defaulted and are in payment arrangements.
Thank you for your comments.
ClaireR says
Hi Sara,
I went back to the FOS, and had the following response from the investigator
“I’ve only looked at whether the lending that took place was irresponsibly done at the time. My view has explained that there was no adverse information on your credit report prior to the loans being taken out that would have brought to light you were in or would be in severe financial difficulty to show the loans would be unaffordable.
The income and expenditure checks showed that you have sufficient disposable income to manage repayments. You also managed your previous loans in full with both lenders. So, I still find that the checks taken were appropriate and proportionate for the duration and amount borrowed at the time the loans were approved and don’t find that either business would’ve had reason to do any further checks before lending.”
“If I can’t resolve things then an ombudsman here can look at everything again and make a final decision”
Doesn’t sound great, but am guessing I have nothing to lose by letting the ombudsman make a decision.
Sara (Debt Camel) says
Well worth taking to the ombudsman if your credit record would have shown that yout position had got worse by the time you borrowed again from a lender AND if you bank statements would have showed that you could only get through a month by borrowing again.
You need to reply explaining why you think this bit “The income and expenditure checks showed that you have sufficient disposable income to manage repayments.” is incorrect and ask for this to be passed onto the Ombudsman.
Write a separate account for each lender. “My bank statement for the month before I applied to X for the first loan showed …. go into details about your expenses, debts, overdraft, and how you only got through the month by borrowing more, At the time of my 2nd loan (or was it a top up?) my credit record would have showed that …. go into detail about the amount of your debt increasing and payday loan borrowing taken out . My bank statement for the month before would have shown … same details as before and point out if any of them are worse than on your first application to X”
ClaireR says
Thank you Sara,
I will get this info together and pass it back to them.
Appreciate your advise and guidance.
ClaireR says
Sara
I have just replied to the Investigator with copies of all my bank statements, showing the loans being used to pay back
payday loans, and then borrowing again within days usually to make ends meet.
It has highlighted that in the 2 years of having the 1st Avant Credit loan, I had over 45 short term loans
before taking the 2nd Avant loan,(original loan was £1500, second loan was £1900) just one week after paying off the first.
The same with Bamboo, 25 short term loans between the 1st and 2nd loans, a year apart.
I do hope that this changes the Investigators conclusion.
I will keep you updated.
Thanks.
ClaireR says
Well, i have just had this back, so it now goes to an Ombudsman for a final decision.
Hope I have better luck on my complaints with Lending Stream and Sunny.
“Just to clarify, my view was based on my findings that each business was required to lend responsibly. It needed to make checks to see whether you could afford to pay back the loan before it lent. Those checks needed to be proportionate to things such as the amount you were borrowing, and your lending history, but there is no set list of checks it had to do.
I appreciate you feel the bank statements you provided show the income and expenditure checks were incorrect, but I think it is fair and reasonable to judge each businesses decision to lend based on the information it was given at the time. I don’t think the circumstances of the loan, including the credit checks results, suggested each business needed to dig deeper by asking specifically about other short term lending, or taking steps to independently verify any information it would have been provided.”
Dean says
Hi Sara,
How long does a decision take for p2p lending to be looked at by an ombudsman after an adjudicator has upheld?
I have been waiting since November and seems like a long time now.
Thanks
Sara (Debt Camel) says
Ombudsman waits are typically 2-4 months, sorry.
Anna says
Hello,
I had a Loan with TM Advance and after 18 Months paying them 4,230.00 ( borrowing £3.000) to close my account still I had to pay £3,111.00. They won’t tell you that they ‘front load’ the interest, meaning you pay all the interest before paying a single penny off the amount you actually owe them. I borrowed 3k 18 months ago, paid them 4.3k already and still owe them 3.1k? Essentially this means they are taking the interest for the final 18 months when in reality I want to settle it before then, plus they charge you interest for a period of time in the future that has not even happened yet! I can’t see anywhere on my contract that I will pay first interest only. Is this right? Can they do this not stating anywhere on the Contract?
I want to complain asking for some refunds, I paid my loan earlier (just recently) and still was to repay more than I took.
Sara (Debt Camel) says
If you want to query the early settlement figure, you should ask them to supply details of how that was calculated and a copy of your credit agreement, if you don’t have it still.
If you think the loan payments were too high for you to manage, so the loan was “unaffordable” and you had to keep borrowing more to pay it, then you can use the template letters on this page to ask for a refund of the interest.
JAC says
hi Anna,
did you submit your claim against TM Adanvces I’m in a similar position
Scott says
Hi all,
I had a single loan with 118118 and the complaint was upheld by an Ombudsman.
Don’t be put off complaining if you haven’t had a top-up loan, single loan complaints can be won.
Good luck all.
Scott
CarrieN says
Hi Scott
I see you were in the same situation as me I also had one loan with 118118. Did it take long when it was with the ombudsman?
Shaun says
I have had 2 loans with everday loans, one was a top up. Ive paid like 3 times the amount of what i originally borrowed however im in a dispute with them as they still say i owe 2.8k .do you think id have a chance in getting this closed? They have send me my statement of account. However the debt is now with a debt collector which i have said im disputing. Because originally i fell behind in payments. Do you think i have a case?
Sara (Debt Camel) says
So you have three possible complaints here.
First is that they charge a rate of interest that is unreasonably high. You aren’t likely to win this. The documentation you signed would have stated clearly what the interest rate was, what your repayments would be and the total amount that you would repay. So although the rate is high, you agreed to it.
Second is that they have made a mistake in their calculations. You could ask them to explain them in detail, in particular the “settlement calculation” when you topped up the loan. It’s not impossible they made a mistake but it would be unusual.
Third is that the loan – or possibly just the top – was too expensive for you to afford. The fact that you fell behind with the payments suggests this might be the case? This is more likely to be successful. Read the article above and think if you have a good affordability complaint. If so, send in the template letter to start your complaint.
Has your loan been sold to a debt collector by Everyday Loans? Or just passed to a debt collector for collecting?
Shaun says
Its just been passed onto a debt collector. From what i have received ive paid more interest than on their agreement.
MM says
I know from some previous posts Avant Credit get some bad press for being unresponsive but I have them to be pretty good in handling my complaint. They dealt with my original complaint, repaying £8534.44. Refunded all interest and fees charged on the loan resulting in an overpayment and awarded 8% flat rate per annum interest to the overpayment. They got in touch after they had made the repayment and said I was due a partial refund of £411.58 as they did not notify correctly me when I went into arrears. They made the payment promptly but made a small error and payed £380 rather than £411 (not including the statutory interest payment), they quickly rectified the payment. So all in all I found them pretty good to deal with. Good on e-mail and clear comms. Appreciate not everyone has had that. But just thought I’d give a but of hope to anyone who is dealing with Avant.
John says
How long do they usually take for them to do the calculation and make payment and do they transfer it to your account ?
They upheld my complaint on 15 March and I am just awaiting calculation.
Liz says
Hi there,
I was just wondering if your Avant refund had been processed and how long it took? I have received a letter yesterday from the FOS and returned the Settlement form to my Adjudicator.
Thanks!
Prefer not to say says
I’ve had a response from MYJAR today with a decision not to uphold. I’ve sent this off to the Ombudsman today. Basically MYJAR are staying because I only had two loans with them my complaint has been declined. Has anyone had any good news stories from MYJAR recently either directly or following the referral to the ombudsman. Also any indication how long the ombudsman take to investigate. Thanks
Sara (Debt Camel) says
How large were these loans? what was the gap between repaying the first and taking the second?
Prefer not to say says
The first one was 01/11/16 for 2000 and the second was 28/02/17 for £1200. I took out another loan to pay off the first which was paid off 14/12/16 and the second one I ended up with DMP September 2017 which has now cleared. I understand that the interest was stopped on the second one in September 2017 however I have paid in excess of £900 in interest
Sara (Debt Camel) says
For a refund on the first loan, you need to show that the monthly payments were unaffordable and myjar should have realised that. did you send Myjar a request for a copy of all your personal data including your credit record? You need to look at this and searching for discrepancies – did your application miss off debts that were showing on the credit record Myjar saw?
For a refund on the second loan, you can do the same as for the first loan PLUS you can look at whether your debt position showing on your credit record in 28/02/17 was significantly worse (higher balances? recent defaults?) than it was when you took the first loan on 1/11/16.
Prefer not to say says
Yeah I sent them my full credit report and bank statements for the months the loans were taken out. This also showed my gambling problem at the time. I have sent on all of the same to the ombudsman
Prefer not to say says
I have since had a response from my adjudicator to not change the decision on my complaint. The bank statement I provided clearly shows considerable deposits to skybet
I’ve thought about all of these issues in the individual circumstances of your case, and I don’t think MYJAR Limited irresponsibly provided your loans to you. I’ll now explain why.
I’m sorry to hear that you were struggling financially and that repaying these loans may have been difficult. But given your loan amounts, what was apparent about your circumstances at the time and your history with the lender, I don’t think it would’ve been proportionate to ask you for the amount of information needed to show the lending was unsustainable.
There wasn’t anything in the information you provided or the information MYJAR Limited should’ve been aware of, which meant it would’ve been proportionate to start verifying what you were saying.
For the later loan, I think the lender should’ve taken steps to build a more detailed picture of your financial situation. But I haven’t seen anything in the information provided which suggests the lender would’ve known that you wouldn’t have been able to sustainably make the repayments you needed to for this loan.
Finally, I don’t think that the number of loans you took, the amounts they were for or the period of time you were borrowing meant your loan history, on its own, should’ve shown MYJAR Limited you might’ve been experiencing underlying financial difficulty.
Sara (Debt Camel) says
Did you write out the arguments I suggested? For the first loan saying exactly what Myjar would have seen? It was a large loan and they should have looked carefully. For the second loans, can you show your overall financial position had got worse from the first loan?
Dean says
Hi Sara,
I mentioned on here before that i had a p2p loan with Zopa and had a decision with an adjudicator which was held in my favour.
I have had a provisional decision from the ombudsman saying they will not upheld my complaint unless i provide further information.
Some background on my complaint, at the time i applied for the p2p loan i had a over £25,000 of debt with no previous defaults/missed payments. I also had a gambling problem but this was not mentioned in the provisional decision.
The loan i applied for was for £13,000 plus a loan fee £3500 and interest of £3000. I said on the form the loan was for debt consolidation and that was a lie and the ombudsman have said Ratesetter had no other reason not to believe so.
I had 3 maxed out credit cards, overdraft and a loan amounting to over £25,000. I earnt £1700 after tax per month. They approved a loan of £19500 including interest without checking my bank statements. I moved in with my parent because my property was too far away and couldnt afford travel etc due to my gambling problem. My bank statements show my mortgage out but a friend was lodging there for a bit so was ok. Due to this, my expenditure was minimal and was paying min credit card payments and loan of £350. My travel was about £200 and other exp was not much but delayed paying my parents because i had no money left due to gambling.
It feels like i have no choice but to accept this provisional decision, do i have a leg to stand on? I am currently paying £35pm on a loan outstanding of £4500 which will take over 10 years to pay. Do i have a leg to stand on with my reply?
Sara (Debt Camel) says
How large were the Zopa repayments?
Has FOS asked for any specific infomration?
Dean says
They were £380 pm
They have not asked for anything specific and mentioned from the information he mentioned on the information gathered doent find this raised concerns.
Just need to provide them anything that can change their mind
They dont mention gambling in their decision, the adjudicator does.
Sara (Debt Camel) says
I think that is going to be very hard to win. it sounds as though the loan would have been affordable if you had used it to consolidate debt. Or if you hadn’t been gambling.
You could argue:
1) this is a very large loan in relation to your salary and Zopa should have considered how sustainable that level of debt would be
2) your credit record showed that your debts had gone up very fast in the year before your application [had they?]
3) it wasn’t clear from your application why your debts had gone up so much as they should have been affordable. [would they have been affordable if you weren’t gambling?]
4) so Zopa should have realised that there was some large piece of infomration that they were missing – if they had asked to see your bank statements it would have been obvious that you had a major gambling problem,
But I’m not saying that will be easy.
Dean says
Thanks Sara,
I will send them a reply and take my time with it. Yes to your point re debts going up very fast. I might have even applied for loans and credit cards before the zopa one that were rejected within that month.
I had withdrawals and deposits of over £10000 in that month in my bank statement. And 30000 the month before.
Lets see how it goes, thanks for your reply
Sara (Debt Camel) says
“I might have even applied for loans and credit cards before the zopa one that were rejected within that month.” they may not have showed on the credit search Zopa did. Do you have a copy of that?
Dean says
Yeah i have a copy of the application. I will include it in the file
Sara (Debt Camel) says
I think you need to do more than that. In difficult cases, you need to do as much as possible to make it easy for the adjudicator to take the right decision.
So you could say something like: “the credit check Zopa did (attached) shows that my debts 12 months before my application were £x (list them), 6 months before this had gone up to £y (list them) and when I applied it was £z (list them). There was no indication why by debts had risen as according to the I&E Zopa had, I should have been able to cover the repayments easily.”
The put some stuff in about how big the loan was and how Zopa were obliged to carefully consider what they knew about your situation and ask more questions if it didn’t look right etc.
Dean says
Good morning,
Thank you for your input, will send this over today.
Thanks again
CarrieN says
Hi everyone
Has anyone had any luck with 118 money I had a large loan from them last year and am now in a dmp. I sent them a complaint re irresponsible lending and they’ve not upheld my complaint should I take this to the ombudsman? Thanks
Sara (Debt Camel) says
If you think the loan repayments were too large to be affordable then yes!
CarrieN says
Ok thanks Sara
Chloe says
Hi Sara,
I had my complaint back from the FOS for Likely Loans and it has not been upheld. I then sent them a statement for the month I got the loan) showing I was paying a lot of other payday loans and advised this loan was not affordable. They have come back and advised;
‘Likely used credit reference agency Experian to conduct a credit check on you and the Payday loans you mentioned below were not visible. Some Payday lenders such as WDA do not use credit reference agencies but their own credit scoring system so there will be no information on a credit file about this. In this case I do not agree that they did not conduct proper checks. There are other credit reference agencies but they were not obliged to check them, only the one they used to ensure what you had told them about being able to repay was correct. And the large payments you made in Sept 2016 to P2P and early October 2016 to My Jar, Wonga and Payday UK look like final payments. If you say they continued into other months please provide further bank statements to show this. At present I do not consider that there was unaffordable lending to you by Likely Loans. I will be closing my file but if you wish to provide further information feel free to do so.’ I have sent further bank statements to show they were not just one off payments but monthly payments.
If they come back and still advise it is not upheld is there any point in going to the ombudsman do they ever disagree with the investigator?
Thank you :)
Sara (Debt Camel) says
how large was this loan?
what did you say you wanted the loan for?
how accurate was your loan application – did you mention the payday loan debts?
have you looked at your Experian record and seen what shows there?
Bill says
Hi, re: likely loans, I had exactly the same reply, although it appears to me the FOS are just whittling down the load of claims without actually looking closely, I had 8 payday loans at the time, I applied for a likely loan of £1000 to consolidate the loans I had, although I only paid half of them, 12 months later I applied for a further loan of £2000, although I still had two payments to make for the first loan, they deducted the final two payments from my second loan, even still had 4 payday loans when I applied! I have asked the adjucator to look at my complaint again with evidence of bank statements provided, although he did not ask for evidence when I started the complaint,
Bill
Scott says
I also had a complaint with Likely Loans that wasn’t upheld, similar response to yours.
I had payment arrangement’s and late payments in place but they weren’t showing on Experian. The annoying thing is they check Experian but only report to Callcredit.
Hopefully you get your complaint upheld.
Scott
Chloe says
Thanks Scott :) was yours upheld in the end?
Chloe says
Thanks Bill :) when did you ask him to look at it again? I am still waiting to hear back, good luck to you both :)
Bill says
Hi Chloe, I had my complaint not upheld coming upto 5 weeks, heard nothing, all a bit fishy really, I don’t hold much chance,
Bill
Luke Usher says
Good evening,
I made an affordability complaint for a high interest car loan with London & Surrey Motor Finance Ltd. I am currently still paying back the loan. The loan was sold to Auto Money a few months ago.
I received a reply from Auto Money, saying that they cannot be held responsible for the lending practices of London & Surrey Motor Finance and any complaint must be made directly with them. Is this the correct procedure or are they trying to wrangle out of it?
It may also be worth mentioning that the headed paper received from AutoMoney states that they were formerly known as London & Surrey Motor Finance.
Sara (Debt Camel) says
It is normal to complain to the original lender. But L&SMF’s website gives complaints@automoneymotorfinance.co.uk as the email address for complaints. And both L&SMF and AM seem to be brand names of the same FCA firm, Mobile Money, see https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000m5zUtAAI.
I suggest you talk to the Financial Ombudsman about this and ask who you are supposed to complain to. If you don’t get anywhere, come back here?
Are you in arrears on the loan?
Lucy says
Hello,
I got myself into a financial mess from 2009 to 2012, where I had multiple pay day loans and log book loans. I received refunds for the payday loans 2 years ago, but I was unaware I could claim for the log book loan until I received an email from you the other day.
I emailed mobile money immediately. I had 2 loans from them. £1,800 in July 2010, all 3 payments were late and then I repaid in October 2010. I then took out another loan with them in July 2011 for £2,000 and made 2 late payments before asking to borrow another £1,000 in November 2011, which they gave me, made 2 more late payments and then repaid in February 2012 when my mum lent me the money to pay them off.
I received a letter back from them today saying that because it was over 6 years old the complaint would not be upheld and that it is a final response.
Can I take it to the FOS? I would have done it 2 years ago with the payday loans complaints but I wasn’t aware that I could.
Thanks
Sara (Debt Camel) says
You can send it to FOS but MM have indicated that they will object to FOS looking at it.
FOS could take the same decision it has taken for payday loans – that it can look at these older loans where people have only found out in the last three years that they could complain.
But the only other situation where FOS is currently saying that it can look at the older loans is doorstep lending (ie Provident). I am not aware that they have decided this for any other sort of lending.
Lucy says
Thanks Sara. I think I will still send it to FOS and see what they say.
I asked for all information they have on me as per your template referencing the SAR, but they only sent me the loan statement as it is over 6 years. Are they allowed to do this?
Sara (Debt Camel) says
If they still hold any information they have to send it to you. I suggest you ask them where the rest of the information such as credit checks and a copy of your application and the credit agreement are.
Paul says
Hi
If I have a complaint in with 118 should I keep paying them? I have a payment due at the end of the month and it’s not looking likely I’ll be able to pay it this will be my first missed payment
Sara (Debt Camel) says
If you can’t pay it without having to borrow again, then no you shouldn’t pay it. Cancel the CPA with your bank and tell 118 you need a payment arrangement.
Power Ranger says
Hi
I’ve just had an email from avant credit stating they will be upholding my complaint and refund interest plus statutory interest. My loan was for £2000 with an interest of around £500 over 12 months. They have asked me to accept the outcome via email before they can let me know the redress amount.
Shall I accept or contact them to find out the exact amount ?
I am happy with the offer as I didn’t have issues paying it the monthly amount but I’m not sure if they had other problems when i applied for my loan?
The loan was taken in September 2015 and repaid by September 2016.
Sara (Debt Camel) says
“I am happy with the offer as I didn’t have issues paying it the monthly amount” but you made an affordability complaint? This email didn’t arrive out of the blue?
If the email is clear that they are refunding all the interest you paid + statutory interest, it is HIGHLY unlikely that you could get more.
They won’t have calculated an exact amount probably as the 8% has to be done when they know when they are paying you. But you should get another 20% or so.
Power Ranger says
Hi Sara
Thank you for your reply is the interested calculated on the inital loan amount ?
Sara (Debt Camel) says
No it’s on the interest that is being refunded.
Matt says
Hi
I took out a loan with welcome finance in 2002. I had 5 credit cards maxed out upto
20k at the time. Think I even had a CCJ
I realise it’s a long shot but is it worth a claim against them?
Many thanks in advance
Sara (Debt Camel) says
No, you have absolutely no chance of winning a complaint about a pre-2007 loan. the Ombudsman had no jurisdiction to look at consumer credit complaints before that date.
Mark says
Hi Sara,
I have an open ombudsman complaint with Lending Stream and I already had a payment plan set up but I had to call them again to set up a lower amount as I wasn’t going to be able to make the next payment, is this going to affect my ongoing complaint in any way? Thanks
Steve says
Hi Sara,
Need some advice please. I had a loan with likely loans and paid it off in January and received confirmation that it was settled. However, today I receive a notice of sums in arrears for that loan.
I’ve checked my account and this amount was actually put back into my account by them!! I’ve not realised this. Where do I stand? I won’t be in any sort of agreement for this surely? Any direction would be much appreciated I’m totally lost as to what to do.
Thanks,
Steve
Sara (Debt Camel) says
Have you asked them why there is a balance as you settled the account in January and received a confirmation it was settled?
You need to make sure your credit record hasn’t been affected too.
Louise says
Hi
I put in a complaint with everyday loans (among other payday lenders) on 12/03/19, I realise they still have plenty of time but so far just an acknowledgment no SAR info.
Today I have received a mass sent letter (I presume) stating I am a valued previous customer and they welcome me to apply for upto £15000.
When my complaint went in to myjar they closed my account straight away due to the nature.
Could I use this letter in anyway to add weight to my complaint? demonstrating the company is targeting/pushing their services on people unable to afford them?
If so would I email directly to them to add to my complaint or wait until/if it goes to FOS?
Thanks
Andrew Lammas says
Hi has anyone had any luck pursuing car cash point they are a log book loan lender?
Sara (Debt Camel) says
Yes successes against logbook lenders, but not that many cases. Expect your complaint to be rejected and to have to go to FOS with this one.
Tony says
I have had a complaint upheld from Avant, who sold the debt to asset collections and investigations ltd, they have been advised of the amended amount which should have been sold and after a few weeks offered me a refund of circa £400, great stuff.
However this did not include any stat interest, which they have now gone back to recalculate, this was a month ago.
I have chased multiple times and now am simply being ignored.
Can I send one final chase stipulating that I will be complaining about them? If so who would I complain to?
Or is there any other course of action you would recommend?
Cheers
Sara (Debt Camel) says
“they have been advised of the amended amount which should have been sold and after a few weeks offered me a refund of circa £400, great stuff.” who it the “they” here – Avant or Asset collections?
Tony says
Avant notified me, the FOS and asset collections that the amended amount should have been £94, after the loans were upheld and interest/fees refunded.
I paid asset collections around £500, clearing the balance at the time, therefore asset collections said I am due a refund of £400.
I then went back, via the FOS stipulating that no stat interest has been accounted for.
Avant have confirmed that “they have been liaising with asset collections in order to calculate the stat interest and then confirmed 3 weeks ago that asset collections have all the information they need.
I have chased weekly but have had zero response from asset collections.
I hope that makes sense, as the case is somewhat convoluted involving multiple parties.
Thanks
Sara (Debt Camel) says
how much do you think this statutory interest adds up to?
Tony says
The loan was from 2012, for £2000, so I’d think a few hundred pounds, though I have seen no calculations from any party, despite requesting them multiple times, so if I’m honest I’d struggle to say.
But I do think it’s worth pursuing.
Would you agree?
Sara (Debt Camel) says
on those figures yes! I was going to ask if it was worth it for £500 from 2017…
I think you should send Avant Credit )email to support@avantcredit.co.uk) and Asset Collection (email to dpo@assetcollections.co.uk) a Subject Access Request asking for all personal infomration they hold about you, including but not limited to all calculations relating to your affordability complaint.
Tony says
But who can I say I will complain to (in order to apply a bit more pressure)
For the avant case I detailed above?
They upheld in Feb, and have said for avant to liaise with asset collections directly to sort the refund amount.
Then it’s kind of been passed from pillar to post, I have cc’d in the adjudicator multiple times but unfortunately to no avail.
I have already requested a SAR, twice.
Thanks
Sara (Debt Camel) says
when did you request the SAR?
Tony says
Hi Sara,
I requested the SAR at the beginning of March.
Asset collections have been in touch today after re, re requesting the Sars as suggested, now saying that they never received any breakdown of calculations or information relating to stay interest.
Avant confirmed this had been sent 3 weeks ago!
It’s almost as if they;
1 Don’t want to produce the calculations
And
2 Don’t want to pay any stat interest
Or am I being cynical? 😂
Seriously though, I am at my wits end with this farce now
Sara (Debt Camel) says
So you have sent Asset Collections a SAR a month ago. Send them a formal Complaint to complaints@assetcollections.co.uk and say you asked for a copy of all your personal information on dd/mm, attach a copy of that request, and say you have not received any reply to this.
Have you sent Avant Credit a SAR? if they haven’t responded send them a formal complaint to.
Tony says
Will do, thanks.
I have commented on the stat interest query below, but I don’t know if it’s loaded up yet.
Your help is greatly appreciated
David Hawthorne says
This annoys me a bit, people should take responsibility for their own actions. Why not instead choose to NOT take out a loan in the first place, the terms and conditions are there to see if it’s too much to pay back. If someone told you to jump of a cliff because there was a pot of gold at the bottom you wouldn’t do it would you? No. Common sense people! I hate these payday loan companies who are nothing more than sharks and charge extortionate rates. But ultimately as a grown adult, old enough to vote, drink, gamble, I have to take responsibility for my own actions. No good eating a slice of pizza with mold on it, then complaining about the taste. Just don’t eat the pizza.
Sara (Debt Camel) says
If you are interested in the reasons why people with big financial problems make what you think (and they may later realise) are poor decisions to take on more high cost credit, I suggest you read a book called Scarcity
This website is here to help people in difficulty, not to judge them.
Lewis says
Just had a email from everyday loans almost a 2K refund plus statutory Intrest!
Didn’t even need the FOS! Thanks Sara. Just wonga and lending stream to go now!
Steve says
Hi,
I took out a 118 Loan for £3,800 around two years ago. I recently paid that back and took another one. At the time of both (certainly the second one – not 100% sure on the first) I had at least two payday loans at the time being paid back. I don’t believe that either time they checked my credit report correctly.
Secondly and perhaps proving my theory they didn’t check my credit report/affordability at all my address on their records is wrong i.e. they have me down as 32 The Street when I am actually at 40 The Street. This is an admin error on their behalf….My bank statements when I applied will have had the correct address on as well.
Do you think that’s a good enough reason to complain and claim back? The issue I have is that I have recently taken another loan (similar amount) I’ve only just realised about the address being wrong. I took it and clicked all the boxes of course but surely if my address was wrong they couldn’t have possibly checked my affordability?
Sara (Debt Camel) says
I think being given a loan you are struggling to repay is a good reason by itself to complain. I suggest you follow the template letter above and see what comes back in the request for your personal information. That will show if they found your credit record details despite the address mix up. If they did, then the admin error doesn’t help your case – but you may still have a very good case without it!
Chris says
Hi,
After 17 years of always having CC’s, loans and payday loans, building up a fair amount of debt, I have ended up going into a DMP with Stepchange who have really helped me get the situation under control and if anyone needs help, speak to them! Many of the lenders were companies featured above; Avant Credit, MYJar, Wonga, Lending Stream, Progressive Money. Many times using one to pay the other. Is it worth me challenging any of these companies on the interest they have charged me even though they have been paid off and some longer than 6 year ago?
Sara (Debt Camel) says
First, if you may ever have had PPI on credit cards or loans (that wouldn’t include payday loans, no PPI on them) look for a refund of that now as you only have until August this year to start these complaints. Don’t use a Claims Company – they are a disaster when you are in a DMP as your balances may be reduced (great!) but you would have to find the cash for their high fees. Use Resolver, which is free, so help you make the claims yourself. See https://www.resolver.co.uk/rights-guide/ppi-reclaim
Yes you can ask for refunds of interest after loans have been paid off. This is an excellent way to speed up repaying the rest of your debts. It won’t harm your DMP.
For Avant Credit and Progressive Money use the templates on this page. This probably won’t work if the original loan was over 6 years old.
For Myjar and Lendinf Stream if you only borrowed once or twice, use the templates here, but if you borrowed a lot, use the standard payday loan refund page letters: https://debtcamel.co.uk/payday-loan-refunds/. Do this even if the loans were over 6 years old.
For Wonga, the administrators will be publishing a page with a form to complete in the next few weeks, so wait for that, see https://debtcamel.co.uk/wonga-has-stopped-issuing-loans/
Tim says
Hi Sarah
Following on from my complaint to loans to go,I’ve gone to the FOS.
They’ve emailed today to ask me to send any more information I have,I have a copy(paper) of my Experian credit report but I notice on here you say to use Noddle,is that one better than Experian,I’m sure theirs a few things missing of my Experian report too.
Also the bank account I had at the time is closed,will I still be able to go to the bank and ask for the statements?
Thanks for all your help
Tim
Sara (Debt Camel) says
Yes a Noddle report is usually better. But did you ask Loans 2 Go for a copy of all your personal infomration? Can you see from that what credit record they checked?
You can usually get bank statements from closed accounts.
Sharper says
Hi Sara,
I have put in a SAR request from Likely Loans. They have sent me some material but when I asked for the affordability check carried out and what credit report information they used/had on me, they have refused to supply this. They have told me that it is confidential information and they do not need to give this to me! Is that correct?
Sara (Debt Camel) says
No, it is not correct. They have to supply you with a copy of all the personal information they hold about you. I suggest you reply saying that under GDPR they are the data controller for this data and so they have to supply you with a complete copy of all your personal information. Say you will be reporting them to the ICO if they do not comply and asking for additional compensation if your case has to go to the Financial Ombudsman.
Sharper says
Many thanks Sara. I thought this was the case.
Mark says
They did the same to me. Ombudsman adjudicator says the loan was issued responsibly. I’m clueless as to how they came to that conclusion. Tbey would not tell me who they carried out the credit check with and then the adjudicator said its not their fault if the credit reference agency does not display loans. They are issuing loans without assessing outgoings whatsoever and the ombudsman are letting them off with this. High interest bad credit loans and they seem to be allowed to issue them with a credit rating and salary figure. One check of my bank statements showed mmy management of mkney was horrendous at the time and the ombudmsan still back them up. I’m left disillusioned with the adjudicators as I have seen time and time again on here that they back likely. I will take it further for a final ombudsman decision but doubt it will change.
ClaireR says
Sara,
I have an affordability complaint with Bamboo, which was rejected by the adjudicator, and is now being put forward to the ombudsman.
I am paying the outstanding balance back on reduced payments.
I have had some texts about late payments, and default charges, although
the payments are set up to come out by standing order, and have always been paid on time.
I queried why I was getting these messages with Bamboo, and they came back with the following.
It is important to note that your reduced payment will not replace your contractual repayment of £* and due to your contractual payments not being maintained your account will continue to progress through our arrears process. This will mean that you will receive further statutory correspondence we obligated to send that forms part of your agreement. There are different types of communication that we use to inform you of your account status such as text messages, emails, written correspondence and contact by telephone.
We do need to make you aware that as your account will continue to fall into arrears each month this will have a negative effect on your Credit Report and you will also incur a £12 late payment charge each month, however if payments are continue to be made each month the late payment charges will be removed.
Is this correct that they can continue to register these defaults and late charges?
BellaB says
Hi Sara,
I took car finance out with Money Barn in Apr 2015, by Aug 2015 I had defaulted 2 times and a court arrangement was made for future payments that costed an additional £75 per month and eventually the vehicle was repossessed a few months later. This was a voluntary repossession, the vehicle was sold at auction and I have an outstanding balance with them.
When I took out the finance – my income was very up and down nothing stable, my credit report showed a defaulted vanquis card, provident loan & multiple other issues – It was a financial nightmare at this point in my life.
The strange thing is – since the repossession the only letters I have received from them is statement of account and courtesy letters regarding outstanding balance nothing regarding defaults or any demands. Also on my credit file it still shows as a open account with payments every month not one default ever recorded.
In hindsight the loan was completely unaffordable and I think MB are aware of this because they simply are doing nothing about the outstanding balance, not reporting any defaults or closing the account down. Would there be any other reason they would do this?
I am looking to complain regarding the affordability of the loan – however the bank account used at that time has been closed with satisfied debt so unsure if I can get statements from this account am I entitled to my information even though they closed my bank account?
Sara (Debt Camel) says
“This was a voluntary repossession” so you only owe half the total amount of the credit, less what you had paid?
“Would there be any other reason they would do this?” It could just be an administrative error. I suspect that is more likely!
You can get statements from closed accounts. I think you should try to do this now, whether or not you put in a complaint, as you may need them at some point in the future. The longer ago an account is closed, the harder it is, so get them now.
BellaB says
Thank you for replying,
The exact figures of what we owe is slightly confusing as the paperwork from them has been sparse but roughly it works out half less what we paid.
It does seem strange that for over 3 years I have been completely over looked by them and never had it picked up hence why I thought they didn’t want to officially put my account into default for some reason.
I will get statements now – thanks again for your advice
Ally says
Excellent work Sara,
Have fired off your templates to multiple.
First to crumble was avant credit (hopefully the start of them all) quick question with regards to avant credit upholding my complaint…
2 loans, 1- £3000 over 18months (£3744) paid back. On time.
2 – £3000 over 24months (£4448) paid back on time.
Seeing as they have upheld my complaint, and will get back to me within 30days once their team has calculated what interest and charges I’m due (no charges, everything was paid back on time. Is it as simple as expecting that the loan 1+2 interest (£744 and the £1448) should be offered? They’ve admitted the wrong doing and I can see clearly and evidently on my account that’s the sums? If they come back with lower than that then I should surely suggest they Pay the clearly evident fees paid?
Only took two weeks for a response, so they will offer me within 30 days from this date.
Sara (Debt Camel) says
That sounds like a good start! If they offer any lesser amount, ask them for details of how they calculated it.
Anita says
Hi Sara,
The adjudicator did not upheld my complaint regarding the car loan even though I was in DMP, had to borrow from payday loans and give the car back after paying back 50 %. Is it sensible and worth to refer the case to the Ombudsman?
Thank you for your advice.
Jordan Crawley says
Hi Sarah,
I’ve sent an email to TW Advances regarding an unaffordable high interest loan but have hear nothing back despite me emailing their contact us address and the individual at the company that worked on the loan.
Can you advise what I should do next
Sara (Debt Camel) says
How long ago did you send this?
Dan says
Sara ive had a complaint in with fos against 118118 for nine months .All the paperwork from both sides is with them .Two loans two top ups .Why such a delay .Others seem to get looked at very quickly .I don’t bug them phone about every 6/7 weeks .How long is the queue ? Maybe something going on were not told about??
Sara (Debt Camel) says
No there is nothing in particular going on about 118 so far as I know – except that FOS are getting more complaints about them. Start calling FOS every month is my suggestion.
Lou7 says
Hi Dan,
I am in exactly the same boat. Sent my complaint to the ombudsman in May. They replied in June 2018 and when I asked for an update on the 25.3.19 it was still in the queue to be looked at by an adjudicator. They said they didn’t have a timescale because they have a backlog of complaints.
Dan says
Yes lou I think there’s more than just the backlog ..only 6months ago it was said three months to adjudicator for these types of loans maybe 6 for payday loans THAT appears to have trebled. You would think there would be more going through ombudsman decisions but its actually less .look up on the website since January its pitiful . Im not jealous when other people get seen so quick but surely if it’s a queue people should get a level playing field.I truly don’t think my case is difficult but if whatever the adjudicator decides its not going to take long. Some companies appear to not be getting the sort of treatment the level of complaints would make you believe take quick quid thousands in the queue .appears at current rate 5years to clear that backlog .Think they should show how many complaints per company resolved as a percentage would be an interesting read .
Sara (Debt Camel) says
“I truly don’t think my case is difficult ” honestly? You had a big gambling habit and you used a lot of lenders. Most of your cases are going to come in the “difficult” category. I hope you will get some good results, but don’t kid yourself that your complaints are easy.
Simon says
Hi Sara,
I am planning to raise an affordability complaint about 118 118 money. I have had two loans £1,950 and £1,200 with a top up on the 2nd loan of £1,600. The issue that I have is that I am currently 6 months in arrears on the 2nd loan and have a payment plan set up. This is reviewed quarterly and has been in place for around a year.
I am worried that if I raise a complaint they be more difficult to deal with in respect of the payment plans. My initial plan was to wait until the loan was paid off, however I can’t afford to make the payments. If some/all of the interest was written off, this would make a massive difference. Do you think it will cause any issues if I raise the complaint now?
Sara (Debt Camel) says
I think this is a good point to put in an affordabilty complaint. It should make it easier to get a sensible payment arrangement made.
The template letter in the article above has the sentence: ” I would also like an affordable repayment plan to be put in place if I still owe a balance after this refund.”
I suggest you change that to “I can no longer afford the current monthly payment of £x and would like it reduced to £y.”
Are you paying by CPA, DD or Standing order?
Simon says
Payment is made by CPA. Per the loan agreement the contractual payment is £264. Payment plan was initially set up for £100 for 3 months, then £150 for 6 months and then £200. I am now on my way out of the debt spiral after all payday loans have now been cleared. I do however have £1,716 in arrears with them (there were also 2 months no payment was made)
mark says
i put in a loan redress complaint to Avant Credit on 13-4-2019, got this today from them.
We are writing regarding your recent complaint with us at Avant Credit.
After completing our investigation we will be upholding your complaint. As a result we will be refunding all interest and charges paid on your loans, plus 8% statutory interest. if there is any negative information relating to the loan on your credit file we will be removing this.
Please confirm your acceptance of this outcome by replying directly to this email. Our customer service team will then be in touch confirming refund due. Payment is normally processed within 30 days.
Kind Regards,
Avant Credit Complaints
Ive calculated i will be refunded £3600, i an now debt free, but this is such a boost.. If i had not came
across this site i would have been none the wiser..
Many thanks
Sara (Debt Camel) says
good news and incredibly fast! there seem to be a lot of Avant Credit refunds being paid out…
Simon says
I also received a similar outcome within 9 days of submitting the complaint. Have they contacted you yet regarding payment?
mark says
the thing with Avant, is that they ask for Bank Statements before loaning to you. i was amazed when
they authorised my 2 loans, £1000 & £5,000 based on the outgoings on my statement and the fact
that i was maxing out a 3 grand over draft
i have 5 other complaints in which i will update on,, they have all been sent today a copy of the Avant email
Lou7 says
Does anyone have idea what Avant are like for paying out? Ombudsman ruled in my favour but was wondering if they just sort it out or drag it out?
MelD says
Can anybody with any advice help? Currently have loan with everyday loans, have been paying it for 5 years with the highest of interest, I sent them a complaint 8 weeks ago today and they haven’t replied to me. What’s my next steps, the financial ombudsman?
Sara (Debt Camel) says
Have they sent you the personal data you requested if you used the template letter in the article above?
MelD says
Used the template, they sent me a posted letter to home address but no information was giving it only said they were dealing with my complaint. I sent them a detailed email about my complaint but still not heard anything from them or received my SARS.
Sara (Debt Camel) says
I suggest phoning them on Tuesday and asking why you haven’t had a response and also why they have not sent you the SAR data you have requested.
Marianne says
I took out a loan with 118118 money in Oct 2016, the loan was for £1500 however the interest on top of that was £1258.08 for a 24 month term taking total repayment to £2758.08.
At the time my credit rating was fair to good despite on my credit report showing I was utilising the majority of credit available to me. A £2k overdraft which I had for many years, credit cards, £3k+ on a Very catalogue account and other loans.
As above, I have contacted the lender to raise an affordability complaint and requested an SRO. However now they have sent me this information of around 70 pages, I have no idea what to look for and when I have set up a Noddle credit report account I can’t find my finances specifically in 2016. Should I go to my old bank at the time (RBS) and ask for copies of statements to try and build a case in this manner? I suffer from anxiety and depression and to me building a case against 118118 seems like a mammoth task and is putting me off which is obviously what they want I imagine.
could anyone please offer any guidance or advice?
Sara (Debt Camel) says
The basic here is what the repayment was on the 118 loan and whether you could afford that each month without borrowing again in a month.
Yes, getting your bank statements may help. Also you will need them if you send the case to the Financial Ombudsman.
If you look through all that 70 pages, there should somewhere be an estimate on an income & expenditure for you to “prove” that you could afford the loan. Did that look accurate? Was there anything obvious missing? For example if you had petrol down as an expense, did you also have car insurance, road tax, servicing?
You can go to your local Citizens Advice and ask for their help to make your complaint. You have a lot of the data to show them – the SAR, your Noddle report and hopefully soon your bank statements.
If you feel totally stuck, just wait for 118’s response to your complaint and if they reject it send it to the financial ombudsman. Just say how repaying the 118 loan meant you got deeper into debt elsewhere and they should have realised you couldn’t afford it and never given you the loan. The ombudsman is used to looking through this sort of data – you don’t need to make long complicated arguments to them.
Sam says
I took out a loan with 118 money in November 2016 for £3,000 which including interest totalled £7,056 repaying £294 over 24 months.
I payed the amount for 14 months when 118 sent me an email stating I was eligible for a top up loan of up to £3,000. In January 2018 I was not in the best of places financially being after Christmas and having 8 payday loans which I was already struggling to meet whith 6 of them being on repayment plans. At a desperate time I accepted the new loan offer which understandably put me in a worse position with new amount including interest owed to 118 being £8,100 over a new 24 month term. I received £1,500 of the top up and the rest was used to pay off the previous loans balance.
I don’t understand why they approached me with an email saying I qualified for a top up loan when I was in this position. To note- this was offered not requested by myself.
After accepted the top up my monthly payment rose to £337 which I paid for 3 months before asking for a repayment plan as it was unaffordable. I have now paid off £2,229 with £5,873 left to pay.
I receive emails every month saying that soon they will sell my account to a debt collecting agency but I can’t help to think that they have made this situation so much worse for me be tempting me in with a top up loan when I was in that position.
Do you think I have a valid claim here?
Any help would be really appreciated
Sara (Debt Camel) says
I think you should make an affordability complaint about the original loan and the top up. You were only in a desperate position in Jan 18 because the original loan had left you in such a mess!