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?
Janet says
Hi Sara just wondered about the 6 year thing.
I complained to Santander about a loan from 2015, they rejected that it was unaffordable but didn’t say it couldn’t be looked into because of the 6 year rule.
As such does that mean the FOS will look into it or may they still reject it due to it being over 6 years?
Thanks
Sara (Debt Camel) says
FOS can look into it if Santander doesn’t object. If Santadaer does object, FOS will consider if they can look at it eg because you have only found out in the last 3 years that you had a reason to complain.
Luke M says
Hello, I took out a £5000 loan over 3 years with Lendable and the interest was 32% APR. They have agreed to wipe my balance which only has £950 left, but have also offered the below – can you tell me how much I’m likely to get back in total from them as I can’t work it out…
“We will therefore settle and close your loan account. We will also calculate a rebate of the interest and charges you have paid on the account and refund this amount back to you. We will add statutory interest to this amount, taking into account the length of time Lendable has had use of your funds, and will also deduct tax from the amount in line with the relevant regulatory guidelines.
have no idea how much the refund could be but sounds good?
Sara (Debt Camel) says
Can you add up the total that you have paid so far?
Luke m says
Yes £4050 paid to date
Sara (Debt Camel) says
That’s less than yoiu borrowed… I need the actual cash numbers, not whether Lendable say they were interest or principal…
So what was the cash you received at the start (ignoring the interest they added on)?
And what is the total of the cash payments that you have made?
Richard says
Hi Sara, I have just put in an affordability complaint with Bamboo. I am around 18 months in of a 3 year loan for £3000 at £146 a month. I have struggled with payments throughout and have had numerous pay day loans etc in the past. While I wait the 8 weeks for a reply am I able to ask the lender to stop/reduce payments as the account is effectively under review without it affecting my credit file?
Sara (Debt Camel) says
No, this will affect your credit score. But if you win your complaint (and lots are won against Bamboo) then the negative marks are removed.
So if you are in difficulty at the moment reducing or stopping payments to Bamboo may be your best option as it “contains” the problem. If you try to carry on paying Bamboo and have problems with other debts or bills then they will not be sorted even if you win the Bamboo case.
Bamboo also have a bad habit of making poor offers. Sometimes they can be persuaded to increase them. If not this has to go to the Ombudsman so it’s not just a case of trying to scramble through 8 weeks and all will then be fine.
Colin Brown says
What is going on at the FOS ? I’ve had several complaints now where I’ve provided evidence and it’s been completely ignored. I’ve emailed them and not got a reply.
The adjudicators are really poor they don’t know what they are doing and there not passing all the evidence to the ombudsman totally biased and disgraceful
Sara (Debt Camel) says
can you give some details, who are the lenders, what do you think has been ignored? This sound unusual.
David says
My last 3 complaints they ignored the evidence and didn’t follow the correct protocols.
Sara (Debt Camel) says
were these FOS final decisions or adjudicator decisions?
Colin Brown says
So here goes:
1) Packaged bank charges
FOS said I was out of time despite the fact I had sent them an email from RBS stating they were reopening my complaint in November 2022 so it wasn’t out of time at all.
When I emailed the adjudicator saying why haven’t you looked at my email they just completely ignored that question and fobbed me off. So I asked for a manager’s details and he also completely ignored the fact I had proof it wasn’t out of time so frustrating.
2) PPI with Santander
They said they can’t accept my reason why I missed the deadline despite sending medical evidence from my professor doctor which states in 2018 I was wrongly diagnosed with incurable cancer and as such have severe PTSD. FOS not interested I said well I’m not thinking about submitting a complaint when I’m thinking I’m going to die. FOS still not interested.
3) Loan with RBS – exactly the same reason as above saying I made my first complaint in 2017 so was out of date despite the fact for 3 years I had PTSD and was living with an incorrect cancer diagnosis.
The FOS need to be open to dialogue not completely ignore evidence.
Also I missed 3 years of my life and counting with the cancer and PTSD so at that time I didn’t think about complaining as I all over the place. So they need to take that into consideration as every other bank has accepted my cancer as a valid reason but not the FOS.
Sara (Debt Camel) says
You should be able to ask for an adjudicator decision that your complaints are out of time to be looked at by an Ombudsman.
Colin Brown says
I did but the ombudsman said the same. Why are they not following the correct protocols when looking at complaints they are clearly ignoring evidence.
Also the Ombudsman’s final decision was just a copy and paste of the adjudicators.
It’s so frustrating regarding the packaged bank account fees I had 100% evidence it was not out of time and that I had a packaged bank account for 20 years. When you try and reason with these people and say RBS reopened the complaint in November 22 they completely ignore you. So where do I go now.
Banks are behaving appallingly but the FOS don’t do anything.
I will happily send you these complaints if you need.
I have other complaints but I’m not wasting my time with the FOS.
Sara (Debt Camel) says
Not many packaged bank account complaints are upheld – it is one of the lowest % uphold areas. See https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/banking-and-payments/packaged-bank-accounts for some example cases.
It’s not an area I cover. The MSE forum would be a better place to ask.
But in general if you are having a problem with a case you need help BEFORE a Final Decision.
Afterwards you have the choice between suing the firm in the small claims court or taking FOS to judicial review in the High Court. For a small claims court any solicitor should be able to advise. The JR route is expensive, complicated and very very rarely used – unless you can find legal help on a pro bono (free) basis I do not recommend it.
Janice P says
I am having similar issue- it also seems lenders are being allowed to ignore timelines given by adjudicators. 4 weeks can be stetched to 6 without repercussion on the lender.
Colin Brown says
It’s so frustrating just completely biased I’ve noticed recently it’s got really bad I’m having to go to court taking them to court
Simon gutteridge says
I have noticed the same. The adjudicators seem really poor at the minute. I have had quite a few complaints upheld but recently every single one is rejected by the adjudicator even though they are exactly the same as the ones I have had upheld and from the same time period. Good news is that I have found that the ombudsman is a little more on the ball and have had them disagree with the adjudicator a couple of times. I have 2 complaints remaining, both rejected by the adjudicator and both waiting for an ombudsman decision. Fingers crossed.
Sara (Debt Camel) says
For other people reading this it’s important to point out that most people do not have problems with FOS. I am not saying they never happen, but in most cases people get a good decision from an adjudicator, the lender accepts it and pays out – that person may only make one short post hear saying what the result was or may not even do that… so the fact that some people have problems doesn’t actually mean that they are common.
Sara (Debt Camel) says
Colin – I am sorry but I am not publishing all the comments you are leaving.
There are very few judicial review cases against the Ombudsman and FOS wins many of them. You need a solictor to help you take this sort of case forward.
You can take your cases to the county court suing the lenders/insurers. But I suggest you still need legal advice first. You may not like FOS not using its discretion to look at your old cases. But it may be that a judge has no discretion in applying the Limitations Act 1980 times – I cannot give advice on this.
DO says
Hi,
I posted in November in regards to a complaint to TSB, which was passed to the ombudsman. Its now been picked up, as 1 of the 5 loans is 6 years and 1 month before I complained. I have advised to the ombudsman that I only recently realized I could complain, due to finding this site. But they have said “as you took payment holidays and spoke to TSB about your difficulties, you should have known you could complain about irresponsible lending”. As TSB told me various times I spoke to them, which they have admitted to the ombudsman, with 11 dated calls over 5 years, that they cant help me and there isnt really anything I am able to do, never told me I could complain, would that be a basis to include the loan?
I dont want to push it too much as I would rather just ignore the 1 loan, but if they do, do they still have to take my payment holidays and calls etc into account when I had that loan? Or would all the information be ignored if I accept they ignore that loan due to it being over 6 years old?
Sara (Debt Camel) says
You can reply that you are happy not to get a refund on the first loan, but you would like that loan and your problems with it to be taken into account when assessing the affordability of the later loans.
DO says
Yeah, I replied to query, saying that if I was to accept the loan to be ignored, would they still take all my financial problems into account from that period, for later loans.
The adjudicator came back and advised they would. that all financials they have been supplied would be taken into account and that loan 2 would still be classed as loan 2, not loan 1 after the exclusion of loan 1. So I have accepted that, as I dont want that decision to go to an ombudsman extending the time to get a decision overall.
DO says
Its taken 2 week (including bank holiday days), so really only 7 working days, the ombudsman has come back and advised they have all the information they need now. So will be investigating and will come back to me as soon as they have reached a decision.
Curious how long this part will take, as with several other complaints this part has taken as little as a week, or in another case, 16 weeks.
DO says
Hi Sara
So the adjudicator has come back and ruled in my favor against TSB, for the last 4 loans I had with them in the last 6 years.
Advised TSB that all interest to be taken off the outstanding and any overpayments to be refunded back to me direct, with the 8% interest on that amount from the date the loans would have been completed.
TSB have until 08th May to come back to accept or provide more evidence to go to an ombudsman.
Really happy with the outcome, but I think they will dispute it and go to the ombudsman, as I believe its around £12,600 (maybe a little more), as the first 2 loans were excluded due to being over 6 years.
I will update on here when TSB come back to the adjudicator, finders crossed they accept the findings.
Thanks
DO says
Hi Sara,
Really random one, TSB have not got back to the ombudsman as yet, they do have till the 8th.
But yesterday they did send £1,000 to me, when I called them they said it was a goodwill gesture for my complaint. I made sure I said on the call I dont accept that as a resolution and I will only accept what the adjudicators decision.
So just wanted to see if that is something that has come up before?
Sara (Debt Camel) says
I don’t remember this happening
Darren says
The email address for Likely Loans has changed. If you use their old one you will get a message back saying the mailbox is not monitored. It is now complaints@oakbrookfinance.com
If you have emailed the old address, go into your sent folder and click forward on the email you sent with the new one here.
They could have put in a redirect, but I suspect by not doing that, they’ll “lose” a few complaints and hope the person complaining won’t read the auto response.
Sara (Debt Camel) says
thanks, I have updated the address in the article above
L Taylor says
Hello,
I put a claim in with lendable in February, which was rejected by them within a week or so… I went straight to FOS. I have a case reference, but no case handler or further comms since I sent additional evidence on February 10th. I’m aware it says it can be up to four months for a case handler to be assigned – is this timeline likely to be upheld? Just so I can manage my own expectations! I’ve emailed several times asking for an update, but no response.
Sara (Debt Camel) says
FOS timescales are always a bit random but there is no reason that I know of why this one should be particularly slow.
Gareth Shipley says
Hi Sara, hoping for some advice. I have made a complaint to a company called TM Advanced using your standard complaints letter.
The complaint was submitted 8 weeks ago today and as yet I have not received a response or anything information from my subject access request (due after 4 weeks).
I have checked the ombudsman service website to look at how I escape this but cannot find the company using the online look up.
My question is are you aware of the company and also how would I escalate if I cannot find them on the ombudsman service?
Btw I have won so far 5 other complaints using your advice on here so wanted to say thank you for what you do!
Gareth
Sara (Debt Camel) says
The firm name is TM Advances Limited. There are quite a few decisions against them, for example https://www.financial-ombudsman.org.uk/decision/DRN-3652529.pdf
Have you phoned them up and asked why you have not had a reply?
Gareth Shipley says
Thanks Sara, useful information.
I did email them after the 4 weeks passed about the SAR and to ask for confirmation that they had received bank statements I had sent 3 weeks before (upon their request) but had no reply, I then emailed a 2 weeks later to confirm my new address in case they had posted anything and to see if there was an update but again no reply.
I also phoned up a couple of times last week before the deadline. The first time they said a response had been sent and they would check their end, I then got a text the next day saying they had email issues and I would get an email response that day but no email arrived and the next day I called again and the person dealing with it was on holiday.
My guy feeling is they are stalling to see if I end up sending to the ombudsman, I may be wrong and will call again Tuesday.
Sara (Debt Camel) says
I would send it straight to the Ombudsman. They have your complaint & they haven’t replied. Don’t waste any more time on hoping they will
Dawn says
This is an interesting read, we have a loan with Tesco for £25000 with an interest amount of £12200 almost 50% of the original loan price. Would this be worth us submitting a claim?
Sara (Debt Camel) says
Have the repayments been difficult to manage from very early on? Causing you to be short so you have to borrow more on credit cards or your overdraft or get other loans?
Dawn says
Thanks for the reply, erm we’ve had to re jig all our finances due to the financial crisis not sure if it would specifically be classed as the loan as to why we’ve rejigged , this loan was taken out Aug 2021 just before everything going up, maybe it’s not right for us to complain however will be sharing this with people I know who’ll be able to complain.
Jack says
Hi Sara,
Lendable have offered me a refund from an affordability complaint, they estimated 7-10 working days for a refund, it has now been 25 working days with an email chain of the finance team being “notified”.
Where do I stand in escalating this if they continue to not refund me?
Would I have to refer it to the financial ombudsman anyway?
Sara (Debt Camel) says
I would tell them the case goes to the Ombudsman if you haven’t been paid within a week.
L Taylor says
How long did you have to wait for Lendable to pay up on the end?
James says
Hi Sara,
I got a reply from fund ourselves to advise they not have 8 weeks to investigate, is that a standard timeframe?
Seems quiet long?
Thanks
Sara (Debt Camel) says
They have 8 weeks to reply. If they haven’t replied by then, you can send your complaint to the Ombudsman.
Jay says
I’ve had response from avant that says:
We believe on this initial rejection for credit (19/01/2017) you should have questioned why you had been declined further credit so soon after being funded and settling your account without any repayment issues. At which point we would have expected you to raise a complaint regarding your loans possibly being lent irresponsibly. You complained to us on the 22/02/2023, which is six years after that date.
Should I even bother at FOS?
Sara (Debt Camel) says
Yes. FOS can go back further than 6 years if it decides that you have only just found out about irresponsible lending and that back in 2017 you did not know you were declined for credit because Avant thought the loan would be unaffordable for you.
Jay says
Hi Sara, just to let you know I put this forward to to FOS. It’s taken 1 month but it’s been picked up pretty quick. The adjudicator called me this evening and said they will write finding in my favour as they agree that I’ve only just found out about affordability complaints. She explained AVANT still may reject and it may go to an ombudsman level however at this stage she is satisfied I did not know before. Thank you for your advice.
Catherine says
Do you have contact details for a Creation Loan and has anyone on here raised an affordability claim with them?
Sara (Debt Camel) says
They don’t want you to complain by email, do they… try claire.moore@bnpparibas-pf.co.uk (that is the complaint address on the FCA register)
They haven’t been mentioned much.
Victoria says
Catherine I have an unaffordable complaint with them six weeks ago so I should hear back soon. I was given a 7000 loan which I finally paid off by topping up another loan and doing a bank transfer from credit cards. I will let u know the outcome
Catherine says
Hi Victoria,
This would be really useful, thank you. Good luck with your complaint, I really hope you have a positive outcome.
I submitted my complaint last week. I took out at £7500 loan with them in 2019. I was already in serious levels of debt with two other loans, overdrafts and credit cards. This additional loan took my personal debt to an eye watering £45K
Victoria says
Yesterday I got an email from creation rejecting my complaint. They stated that because I didn’t miss payments that this showed the loans were affordable. They also stated that I couldn’t have had a history of poor credit or a default as this would have shown up in their very intense hard checks. I immediately sent a response telling them that I would be gathering up my evidence and sending it to the ombudsman. They then contacted me again to say that they will review their decision if they get supporting evidence. I have sent them a couple of documents and told them that if I don’t get a positive outcome I will send all to the Financial ombudsman in one week. Hope you are getting on okay with your complaint. Don’t give up
Sara (Debt Camel) says
“They stated that because I didn’t miss payments that this showed the loans were affordable”
not a statement that the ombudsman would make!
Catherine says
I am so sorry to hear you did not have a successful outcome but don’t give up. I haven’t heard a peep from Creation but I will also fight them to the end as my Creation loan was very large and I took it out just six months after another loan. All whilst I was on maternity leave!
Catherine says
I received an email this evening from Creation advising that they are unable to uphold my complaint as they are unable to find any evidence of irresponsible lending.
However when I took out this £7500 loan I already had personal debt of £37,726 with credit cards, loans and overdrafts. Plus a mortgage and two dependent children. I was also on maternity leave so my income was reduced although I don’t think I declared this.
Taking out this additional loan with Creation increased my personal debt to £45,226.
My salary was £45K
I also hadn’t missed a payment on other loans at the time but is the hight debt to income a good enough argument to argue irresponsible lending?
This was the last loan of many and the nail in the coffin to my now serious debt issues.
Sara (Debt Camel) says
Send this straight to the Ombudsman.
This was a large loan and probably an expensive one. The fact you hadn’t missed any payments doesn’t mean Creation should not have considered if it was affordable. And your phrase “ the nail in the coffin” suggests that it wasn’t.
Catherine says
I have received my outcome from the adjudicator today which rules in my favour. I hope Creation agrees with the outcome. I will keep you updated.
Richard says
Hi Sara
Just wanted to thank you so much for this site. I had a reply from Bamboo in week 5 (last week). Initially they offered to reduce the interest on my loan by 4 payments. As per your earlier advice I went back to them and on the same day a manager emailed me back agreeing to remove all interest on the loan totalling £2259. This has lowered my payments from £146.09 to £33.12 a month moving forward, with just the remainder of the pay down amount from the loan of £3000 to be cleared. This will make a huge difference to my finances moving forward. Thanks again
Sara (Debt Camel) says
Well done!
James says
Hi Sara,
Just a quick question, when I called
SMF(car loan) and 118 money, over the last past two weeks advising how much I was struggling and asking for other options which I was given none, pay or don’t.
118 today took the payment and after I paid the girl on the phone I advised that’s me not eating for the month, and it was completely brushed over.
FML after they took the payment asked if I was up to date with priority payments and I said no, I had no money for food, gas and electric and she said why did you not say before I took the payment, I said on Monday the advisor told me there was no options pay or don’t as it is a secured loan.
I wanted to check with a SAR to they give call recordings? Also if it did go to the ombudsman and there is call recording surely this would go in my favour?
Thanks
Sara (Debt Camel) says
Why did you pay 118? Car finance is a secured loan but 118 isn’t.
You have to get yourself into a safe financial space now. Yes you can make a complaint now to the lenders and also ask for a SAR but that will take 8 weeks. Then months more at the Ombudsman. This will not solve your problem for next month or the month after…
What other debts are you paying at the moment? Are there any debts that you are not paying?
Was the 118 loan unaffordable at the point you took it out – the repayments were so large that paying 118 has caused yo7 to get behind with bills or to borrow more money elsewhere. If the 118 loan was unaffordable (and they lose a lot of cases at the Ombudsman) then send in an affordability complaint now.
SMF- How much did you borrow, ignoring interest? And how much have you paid them so far? Is the car essential?
James says
Sorry Sara just seen message.
I have already put in my affordability claim. I know I should have left paying 118 and my other credit cards as I have ripped up all the cards but it took me years to get my credit “better” although it still does not seem to be any better.
I have not missed a payment in 4 years and trying not to miss any, a few more payments of the the car and I can try and sell it for more of the value.
It’s not the easiest way of doing it as I have nothing left but I am just trying not to get negative marks.
The fund ourselves loan I do need to miss but hoping I win the affordability and get it removed from credit file and the same with the other affordability claims.
SMF is the car yes.
Sara (Debt Camel) says
So you need to stop paying 118 and Fund Ourselves – if you win the complaint the negative marks will be removed.
Trying to improve your credit score isn’t working at the moment – by stretching to make unafforddable payments you have run up even more expensive debt. You cannot reply on these complaints being quick to win – many have to go to FOS.
SMF are losing a lot of affordability complaints. Give me the numbers on what you borrowed and how how much you have paid so far. Also do you have to have a car? There may be other better options than selling it.
James says
I borrowed £15500 from them over 3 years at £561 per month, I have made 12 payments so far. The overall cost is £22000.
Sara (Debt Camel) says
And is a car essential?
James says
Yes and no I use it to get to train for work but I could walk it and to see family but ultimately I could last without it, just annoying that I have spent so much money on it and will have nothing to show.
It’s not only car, it’s the service plans and extended warranty but it would be a massive saving not having it and eventually could purchase a small car.
I did look at selling it but these car companies pick up on every little thing. So I would be need to pay towards the settlement fee. I can’t return it either for another 6 months.
Sara (Debt Camel) says
So as you can manage without the car, one option is to make an affordability complaint now and carry on making the payments. If you win it, you are very likely to have to return the car but you are likely to get some refund. See https://debtcamel.co.uk/car-finance-win-affordability-complaint/ which describes what you may get if you win a complaint when you haven’t repaid as much as the amount you borrowed (case D in that article).
If the complaint is still running when it gets past the point where you can hand the car back and owe nothing (“VT”). that could be a good option for you – it won’t change the chance of winning or the refund but it stops you having to pay out such an enormous amount each month.
James says
Thanks Sara,
The affordability claim is in just now and I will try and keep making payments and hopefully they agree in my favour but looking about I think they will fight it and I will have to go to is it financial ombudsman? The FO never sided with me last time I made a claim, saying if it’s a first loan they do not have to do as many checks, that was against provident, to be honest I was angry with that but I am guessing they don’t always go in your favour and nothing you can do.
Does the car automatically go back if you win the affordability claim? I am hoping with the SAR they send call recordings as if it does I doubt they would fight it after the advice I was given on Tuesday. I said I was struggling to pay rent/gas and electric etc and he said we’ll pay it or don’t we will just take it off you.
They are hard to deal with after putting in the claim I had to call to make sure it was received and they said they are swamped with claims.
Sara (Debt Camel) says
How large was your provident loan? How large is the 118 loan? A LOT of these complaints have to go to the Ombudsman.
Read that article on what happens if you win car finance affordability claims. It is summarising what FIS typically decides. But this car is colossally expensive and you do not need it… you should probably be resigned to losing it.
A car finance company will I am afraid often refuse to accept a lower payment. Good luck with the complaint that they they should have let you pay less or take a break (It’s not clear to me what you are arguing) but it may be much simpler to win an affordability complaint.
James says
The provident loan is was £1000 but they sided with provident? If that happens can you appeal the decision I didn’t at the time and took it on the chin but I wish in hindsight took it further.
Yeah the arguement is the car company not giving me any help no help whatsoever either pay or don’t. Hopefully I win the affordability as it was definitely not affordable.
Sara (Debt Camel) says
If that was an adjudicator decision you could have asked for it to be looked at by an Ombudsman.
Marie says
Hi I made an affordability complaint with fund ourselves which they rejected and it went to debt collection i then went to the ombudsmun and the adjuticater has said they should upheld my complaint and advised fund ourselves to give me redress . Do I still make payments to the debt collector while I’m waiting for fubdourselves to respond to adjudicator?
Sara (Debt Camel) says
Are the payments affordable?
Jax says
Shawbrook finally agreed with the FOS adjudicator that my loan was unaffordable. They sent me a settlement letter but incorrectly stated that the capital hadn’t been fully repaid. Helpfully they had sent a breakdown of how they had calculated this and there were 2 payments that I had made that were missing from their calculations. I sent them evidence of these 2 payments having been made from my bank statements. Just prior to the final payment they sent the debt to be collected via Capquest. They said in their settlement letter that they had included payments made to their partner but that was incorrect. I have also sent them evidence in letter form from Capquest showing the account was settled. It is 4 weeks on Thursday and I still haven’t received a correct settlement letter, despite chasing them. This is very frustrating!
TooMuchHassle says
I’m challenging a Santander loan. Their application only asked me to list debt i.e. mortgages, loans, utilities in on amount field. It failed to ask about other outgoings such as transport, food, clothing etc like in their income and expenditure checks for hardship.
Should banks like Santander do both a credit check and affordability check search?
Sara (Debt Camel) says
How large was the loan? How long ago?
Was Santander your bank, or did you have a credit card or mortgage from them?
What was your credit record like at that time, woukd it have shown a lot of other debt?
Julia says
Dear Sara, this was the response I got from Barclay’s.
Is it worth contacting the ombudsman?
Thanks for your advice, Julia
Thank you for raising your complaint with us. I have attempted to contact you, however I have
been unsuccessful.
I really appreciate your effort and time in providing us with all the information regarding your
complaint when you raised it initially. This has helped me in making my decision and coming
to a resolution.
You are unhappy as you feel your Loans were mis-sold. Looking into this matter further, all
Three Loans commenced over Six years ago.
As the complaint has been raised with us now, over Six years after the Loans commenced, it is
due to the time that has lapsed, we feel that your complaint is time-barred. When reviewing a
time-bar decision, we review the following:
When did the event that is being complained about take place and was the complaint raised
within Six years of that event?
As the sales took place in 2016; the complaint ought to have been raised by 2022.
We also look at when your client ought to have been reasonably aware they had a cause to
complain, and if they raised concerns within Three years from that point.
In this instance, as you’re complaining about the sale of the Loans, we feel you ought to have
been aware within three years from 2016.
So, based on my review above, the complaint is now timebarred as it is out of scope to review.
Sara (Debt Camel) says
Did each laon refinance the previous one, or did you have two or three loans running at the same time? The last loan you defaulted on?
Julia Shelley says
Thanks, we had 2 loans going at same time, one in my name, one in husbands, along with overdraft on joint account.
Sara (Debt Camel) says
Then I think you should send this to the Ombudsman. Make the point that Barclays gave both of you loans and there was also a joint overdraft.
Julia Shelley says
Thanks so much. Will keep you posted!
John Duddigan says
Hi Sara
Ref my Missold Complaint REF TrustFord about Warranties, Insurances and Extras.
I am getting nowhere with the Investigator at FOS. He is twisting everything I say in favour of Trustford. Saying TrustFord passed on Documents and i agreed to all the extras I say no they didn’t as I was there at dealership so I should know . Shall I exculate this to the Ombudsman?
My Affordability Complaint against Startline Motor Finance has gone to Ombudsman separately to investigate as I didn’t agree with Investigator
Your advise would be much appreciated
Regards
Sara (Debt Camel) says
So the investigator is recommending your case is not upheld?
If so, then you can ask for this to go to the ombudsman. But I suggest you also set out a summary of why the investigator has made the wrong decision, send that to the investigator and ask for it to be passed onto the Ombudsman.
Where there is a disagreement about the facts of the case, FOS will consider on the balance of probabilities what happened.
Laura says
Hi Sara
Can I make a complaint where I was a personal guarantor of a business loan. The company has closed, and creditors are enforcing the guarantee but no checks were made for personal affordability.
The interest was structured such that the principal amount has been covered and the amount outstanding is essentially interest.
Thanks
Sara (Debt Camel) says
these complaints only cover personal loans. Talk to Business Debtline https://www.businessdebtline.org/ about what your options are.
James says
Hi Sara,
I received my SAR from specialist motor finance today, it shows my calls and notes confirming they said either pay or don’t we will just take the car away and that I advised I had not paid priority payments such as rent and council tax.
It also shows a completely blank expenditure form, this was possibly as it was done through car finance 24/7 but I would say from the notes and the blank income and expenditure forms, I am hoping it looks like I have a high chance of winning this dispute.
I am shocked they actually sent me the notes over and they seem pretty damning so hoping they uphold my claim.
Bc says
Hi Sarah, do you have a contact email address for AA loans to make an affordability complaint. They allowed me to take out 3 loans within a space of 7 months, one is finally paid off, but have other loans after having to apply for extra due to family bereavement and I would really benefit from having these either having interest refunded to reduce the amount, and get the interest refunded for the paid off loan. Thanks
Sara (Debt Camel) says
was the loan from the Bank of Ireland?
Bc says
Thinking about it yes they were all from Bank of Ireland. Does that make any difference to claiming. Thanks Sarah for the update
Sara (Debt Camel) says
try foscomplaints@boi.com. And put complaint about AA loans as the email title
Bc says
Thanks for the help, sent the complaint where you advised, and received reply to resend to AAFSCustomerCare@boi.com didn’t get an email back but they sent a letter dated 25/05/2023 acknowledging the complaint, and will reply further within 4 weeks, but if they need up to 8 weeks they will let me know, once again your help is appreciated
Bc says
Have received the final response saying not being upheld as they carried out all the checks, but offered a £50 good will gesture. Why would they offer this and will be sending to FOS.
Sara (Debt Camel) says
Because they hope some people will either be unsure of they case or be so desperate they will accept the £50 and not go to the Ombudsman.
Sandra says
I have just had a reply from the ombudsman man regarding my complaint. Moneybarn had refused to let them investigate because of the six year rule.
Sara (Debt Camel) says
Has the Ombudsman decided they can’t look at this?
Sandra says
They have they maybe able to if there was exceptional circumstances. Will post their reply.
Sandra says
Sorry it will not allow me to post keeps saying to long. Is there another way I can send it?
Plus I have lots of emails to moneybarn over years trying to ask for help.
Went through a really bad patch were I had calling up notices for mortgage arrears, father-in-law took dementia has to help look after him and mother-in-law. Son took not well. Covid hit and I was only one in house working. Son and husband been in and out of hospital, father-in-law died and so did gran and grandad now mother-in-law has cancer. Its not been easy. Really had no time for anything.
Sara (Debt Camel) says
Just pull out the decision bits and whether they are asking you any questions.
Sandra says
Unfortunately, based on what I’ve seen so far, I don’t think your complaint is one we can look into
….
You’ve complained about a finance agreement taken out with Moneybarn on 18 June 2013. You got into arrears and the agreement was terminated, but a court order was obtained so payments could continue and you could retain use of the car. You repaid the agreement on 16 September 2016 when the car was sold.
…
Our rules usually only allow us to look at complaints where they were made within six years of what’s been complained about. If it was more than six years ago, we might still be able to look at the complaint
….
I can see you raised a complaint with Moneybarn on 11 November 2022 explaining you felt the decision to lend was irresponsible and the monthly repayments were unaffordable.
So, as this was more than six years after the agreement was taken out, I’m satisfied the complaint was made too late for the six year part of the rule…
…
You’ve said you only became aware that you could raise a complaint about affordability after finding a website called Debt Camel.
…
Whilst I understand this was when you became aware you could complain, I’ve also had to consider whether you ought to have reasonably known you had cause for complaint sooner.I can see that an arrears letter was sent to you on 21 August 2014 as a payment had been missed and this was followed on 8 October 2014 by a default notice.
…
You called Moneybarn on 3 November 2014 to discuss the situation.
They advised you the agreement had been terminated and would need to be repaid in full or the car would be repossessed. I therefore think you ought to have realised at this stage the agreement was unaffordable to you and that Moneybarn may have been at least partly responsible.
…
This means that you had three years from November 2014 to raise your complaint or six years from June 2013, whichever gives you longer.
Sara (Debt Camel) says
I suggest you go back to the adjudicator and say:
in 2014 you were well aware you had big financial problems. But at that time you were not aware that Moneybarn should have made affordability checks – you thought it was your own fault for being bad with money.
Ask if the adjudicator suggesting that everyone who defaults on a credit agreement should make an affordability complaint? So far as you know, in 2014 there were no affordability complaints about anything. And that three years later, there were some affordability complaints about payday loans… It seems unreasonable to expect that someone who is not financially clued up to be able to determine she has a sort of complaint against a lender that no-one else was making at that time.
And ask for this to go to an Ombudsman if the adjudicator does not change their mind.
Sandra says
Thank you so much. I have old credit reports from 2014, 15 , 16 and a few recent ones do I send these as well?
Sara (Debt Camel) says
You could say that you have these available if that will help…
But at the moment this adjudicator just looking at the “jurisdiction” issue – whether the compliance be looked at by FOS – not the complaint itself.
Sandra says
I’ve completed my investigation into your complaint and have considered your specific circumstances when I reached my view. I’m not suggesting that everyone who defaults on an agreement should raise a complaint.
In this case, I felt that if you were struggling to make the repayments in 2014, you ought to have considered whether this was because the loan was not affordable and the finance shouldn’t have been agreed. By raising a complaint at that time, or within three years of Moneybarn defaulting the agreement, we could have considered your complaint.
We could also have considered your complaint within six years of you taking out the agreement – so if you’d raised the complaint with Moneybarn before 18 June 2019.
Because the complaint has been brought later, it’s too late for us to investigate without Moneybarn’s permission, and they’ve told us they don’t give permission for us to do so.
I’m sorry that this isn’t the answer you wanted but I hope I’ve explained why I’ve come to the view I have. But, if you still don’t accept what I’ve said, then please let me know by 29 May 2023. If I can’t resolve things, then an Ombudsman here can look at everything again and make a decision. If I don’t hear from you by that date we might not be able to look at your complaint again.
Sara (Debt Camel) says
Ask for it to go to the Ombudsman
Sandr says
Really quick reply from the adjudicator.
See attached
Sandra says
Thank you for your help.
I have just had a reply from the ombudsman and they gave said they cannot look at my complaint.
J says
Hi Sara
In your article you explain that affordability complaints do not apply to secured loans or mortgages. Can you explain further? for example if additional borrowing on a mortgage was unaffordable – how do you complain about that?. Considering putting this type of complaint in but don’t want to waste my time.
Thank you
Sara (Debt Camel) says
Is this your current mortgage? when was the extra borrowing?
J says
Hi Sara
Yes current mortgage. Further borrowing was 2006
Sara (Debt Camel) says
and are the problems recent? or do they date back to 2006 or shortly afterwards? Can you say who the lender is?
J says
Hi
Would rather not say who the lender is but yes date back to 2006
Sara (Debt Camel) says
So the affordbility complaints I am discussing here refer to Consumer Credit Act loans taken out after April 2007. You may well have a good case against the lender, but it is not an area i cover and using the template here is probably not a good dtsrat.
I can give you the name of a firm of solicitors – you should be able to discuss with them whether you have a case to pursue.
J says
Thank you Sara. I will have a think and come back to you re the solicitors if needed. Very informative site.
Karen says
Hi Sara
My boyfriend has taken out various pay day loans and credit cards but I don’t think they should have given him the money as they would have seen from his credit report that he has been in financial difficulty for years – it has been a recurring cycle that he can’t get out of as he is constantly paying back debt and applying for more credit to help him make ends meet. He still has balances on his accounts – is it worth him submitting an affordability complaint to the companies even though he still owes money to them?
He currently has the below:
Capital One Credit Card – £2,000 (current balance is £2,050 so he’s over his credit limit)
Capital One Credit Card – £500 (current balance is £502 so he’s gone over again on this one)
118 118 Loan – £1,588 (£1,456 outstanding)
Barclays – £1,000 (£888 outstanding)
Loans 2 Go Limited (pay day loan) – £3,653 (£3,463 outstanding)
Drafty (pay day loan) – £1,730 (£1,660 outstanding)
Sara (Debt Camel) says
He should definitely make complaints to any credit that should not have been given to him.
Capital One, use the template here https://debtcamel.co.uk/refunds-catalogue-credit-card/ but also read this short article on claims when you have 2 cards from the same lender that just came out this morning: https://debtcamel.co.uk/affordability-complaints-2-cards-lender/
118 – use the template in the article above.
Barclays – is this a loan, card or overdraft?
Loans2Go – such horrible loans that I have an article specifically about them: https://debtcamel.co.uk/worst-loan-in-britain/. Not with that one that if they offer to chop a small amlunt off his balance he should push for all interest to be removed – which would probably clear the balance. See the comments below as L2G is one of the few lenders to can get to change their mind if you push.
Drafty technically isn’t a payday loan but it operates much like one so use the payday loan template here: https://debtcamel.co.uk/payday-loan-refunds/
BUT he has a lot of debt – I think he should also talk to StepChange about a debt management plan. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx. That will get him into a safe financail space while these affordability complaints go through.
Karen says
Hi Sara
We have submitted claims to all of the pay day loans/credit cards and loans for my partner.
Money Platform has come back to say that his monthly salary was affordable for the loan taken out which is why they lent him the money. The thing is, his monthly salary is a good wage but where he’s taken out so many different payday loans/credit cards/store cards over the space of a few years he is constantly paying back loans and left with nothing hence why he’s applying to pay day loans to help him get through the month. He’s always going into his overdraft as well.
Do you think we should go back and say that it was unaffordable because you should have done proper checks via his credit report/bank statements?
He also has a default on his credit file from 2018 from Lowell (on behalf of Littlewoods). He said he missed a few payments years ago to them but his mum settled his debts and paid the outstanding balance to Littlewoods however on his credit report it is showing a default to Lowell. He called them to ask what this was about and they said it’s to do with the missed payments. He wasn’t aware that this was sent to Lowell until we looked on his Experian report 3 days ago he presumed the Littlewoods account was closed once his mum paid off the balance. Is there any way to get this default removed?
Thank you.
Sara (Debt Camel) says
Money platform – how large was this loan? Had he borrowed from them before?
Karen says
The loan from Money Platform was only for £200 but he has paid back £325 altogether.
this is his first time borrowing from Money Platform.
His Littlewoods account isn’t showing up on his credit file (even under settled accounts).
The Lowell Portfolio Ltd is showing under Default Accounts. It says on the report:
Account in Default: £0
Opened: 12 June 2013
Defaulted date: 18 December 2018
Satisfaction date: 31 December 2018
Last updated: 17 February 2019
The mum made a payment of £430.43 to clear the balance to Littlewoods on 21st December 2018. He thought by paying the balance off with Littlewoods that was the account closed, he didn’t know anything about Lowell until now.
Thank you.
Sara (Debt Camel) says
The problem is that a lender only has to make “proportionate” checks – and for a first loan of only £200 the Ombudsman is not going to say that MP should have made detailed checks.
I repeat my suggestion that he needs to be in a DMP – affordability complaints on their own are not likely to make enough of a difference.
So unfortunately the Lowell credit record looks correct – the default date is before his mum made a payment. And Lowell have correctly closed the account after the balance was paid.
The default date will drop off his credit record in Dec 2024.
Sara (Debt Camel) says
Lowell default. Does the Lowell account on his credit record show as settled?
Had his mum settled with Littlewoods before the debt was sold?
How does the Littlewoods debt show on his record?
Jax says
So, I think Barclays has rejected my loan complaint. The reason I say THINK is because I have received a letter but where the detail of the complaint handler’s review should be it just says [INSERT REQUIRED CONTENT HERE] then goes on to say, if you remain unhappy, etc. etc. Oh dear, that is very poor.
Sara (Debt Camel) says
It would be funny it this was so important. Can you phone them up?
You can’t actually assume they are rejecting it because a lender has to tell all customers of their right to take a complaint to the Ombudsman. So that could just b3 the standard bit at the bottom.
Jax says
I know! I will call them as ask. I only assume they are rejecting because they’re my bank and I would have expected a payment to go in by now if they had upheld it. I’ll come back here and let you know what they say. Thanks Sara.
MH says
Hi Sara,
Got this reply from an adjudicator……
Thank you for your recent email.
I can see from looking at your loan application, you declared your annual income to be £xxxxx. This was verified by Equifax’s income verification tool.
I’m therefore satisfied Zopa relied on the evidence from you and Equifax when calculating your annual income.
Zopa also used Equifax to verify the loans, overdraft and credit cards you held at the time, to work our your level on indebtedness and your disposable income.
I’m satisfied Zopa have relied on factual information from Equifax and you, when you applied for a loan.
I therefore wont be asking them to do anymore.
Yours sincerely
This sounds like a fob off to me. I had numerous other debt commitments: NBS loan , fluid credit card, ratesetter, Aqua credit card, Livelend and also shows heavily reliant on my £1900 Halifax overdraft. I have put this to him but he seems to have ignored it.
Sara (Debt Camel) says
What was you actual income? And what did you declare it to be?
Jax says
I had a similar ‘fob off’ about Livelend from an adjudicator. I sent a detailed response back and even sent an ombudsman decision letter about a loan taken out 6 months prior to the Livelend loan. He came back asking numerous questions but I felt he was missing the point completely. I asked for it to be referred to an ombudsman for a final decision. I am now waiting for the case to be looked at by an ombudsman.
MH says
I was self employed at the time on an hourly wage so my monthly wage varied drastically on average around £600 per week.
Sara (Debt Camel) says
and what did you declare it to be?
MH says
Hi Sara
£55,000!
Sara (Debt Camel) says
how large was the Zopa loan? Had your other debts been increasing significantly in the previous year?
Mh says
It was £2,500. I had a load of other unsecured loans, credit cards making min payments, constantly in my OD. I’m convinced if they had requested bank statements they wouldn’t have approved my loan.
Sara (Debt Camel) says
had the debt been increasing when you applied to Zopa?
Sam says
Hi,
I had a loan with Likely Loans and I feel I have a strong case for a complaint. The problem is that I can’t remember the exact dates I took out the loan. I think it was back in 2011/12. Should I contact them to get the dates?
Sara (Debt Camel) says
The exact dates don’t matter, you can just complain.
But do you have bank statements going back that far? Because it can be very hard to show such an old loan was unaffordable without them.
Victoria says
Last week I got an email from Creation Finance to say that they would review my complaint if they had visible proof that I had 2 defaults at the time I took out their £6200 loan. (They had previously not upheld it) I sent them an attachment of my Payplan dmp, two defaults, and letters from creditors about payment arrangements. Today I got a very abrupt reply from Creation to say that the defaults must not have been recorded as their hard search would have shown it and that the creditors mustn’t have recorded them. I feel deflated and not sure if I should just give up. They wanted the proof. I sent it and they are still saying that they did nothing wrong. The letter states that no refund will be paid to me.
Sara (Debt Camel) says
Send this to the Ombudsman. This is a very large loan and Creation should have made proper checks.
James says
I believe I have a claim against NatWest loans. If I win does historic interest get “knocked off” or just future interest?
Also, I plan to complain about an overdraft too. Should I do it as seperate complaints?
Thanks
Sara (Debt Camel) says
With a loan where there is a balance owed, that balance is reduced so that the total amount you will have paid to clear it is the amount you borrowed.
Take a £1000 loans where at the start you are told the loan take £1700 to repay -so £700 interest. If you have reapid £600, then the balance will be £1100 going into the complaint. If you win it, the balance is reduced to £400 – the amount borrowed less the amount you have already paid. And no more interest will be added.
You can make a single complaint but now I think it’s easier to make two separate ones.
James says
Thanks – and you can continue to pay over the same time frame but at a reduced cost?
Sara (Debt Camel) says
you have to make an affordable arrangement to repay any balance. That could take less time or more time than the remainder of your loan term. It is very rare that this proves a problem.
AK says
Hi Sara,
I currently have 4 complaints ongoing:
Bamboo Loans (still a live loan) – rejected my complaint and provided me with a final response saying they won’t uphold my complaint on the two loans (top up loan to repay old loan) but will be willing to reduce my balance by 3 months worth of payments
MoneyBoat (paid off) – rejected my complaint and produce final response letter
MoneyPlatform – won’t uphold my complaint but is offering £60 and removal of negative marks off credit report.
LikelyLoan (live loan) – awaiting final response
Now with Bamboo and MoneyPlatform not upholding my complaints but offering goodwill gestures, does this often show a sign that they know they are in the wrong but won’t admit it? Should i go to the FOS now?
Sara (Debt Camel) says
Let’s have the details:
Bamboo – how large was the first loan? The second loan refinanced the first loan – how much cash did you get at that point? How large was the second loan? what is the total amount you have paid to the second loan? and what is the current balance and what are they offering to reduce this to?
Bamboo can often be persuaded to “improve” their offers…
Money Platform – how many loans have you had from them and how large were they, list the amounts in order.
Moneyboat – same questions – how many loans have you had from them and how large were they, list the amounts in order.
AK says
So a bit of a background about myself, i have always had financial difficulties since the age of 18 with gambling and repeated borrowing to pay debt back with another pay day loan etc.
I had my first notice of default back in September 2018 for a Halifax Loan for a few missed arrears payments.
Bamboo Loans
7th February 2022
Initial £7,500
Interest £2593
Total £10,093
Paid £4,209 in monthly payment by December 2022.
On 26th December 2022 – Top up loan
Initial £8,919
Interest £4,776
Total £13,685
Term 36 months
Cash received £3,900 with rest of initial used to pay off first loan
Remaining Balance to this date: £11,784.56
MoneyBoat
8th December 2022
Initial £800
Interest £406
Total £1206
Term 3 months
Paid off £1088 as a early settlement
Second loan on 23rd February 2023
Initial £1,500
Interest £833
Total £2,333
Term 5 months
Paid off £2109 as early settlement
MoneyPlatform
5th March 2023
Initial £1000
Interest £448
Total £1448
Paid off £1403 as early settlement.
AK says
Second part Sara
Likely Loan
2nd March 2021
Initial £7,500
Interest £3,642
Total Paid Off £11,142
Term 18 months
Rebranded to Finio Loans from Likey Loans
12th January 2023 – Second Loan
Initial £5,000
Interest £2,385
Total £7,385
Term 24 months
Total remaining: £6155
Updraft Loan
4th December 2022
Initial £4,500
Interest £1,496
Total £5,996
Term 24 months
Total Remaining £4,493
Amigo Loans
28th September 2019
Initial £8,000
Interest £3,869
Total Paid £11,869
I also had credit card debts of £400, a huge overdraft with Monzo of £2000 which is ongoing and i used safetynet credit on and off ranging from 2019 to 2022 regularly
Sara (Debt Camel) says
So I suggest you send the Bamboo, Money Platform & Moneyboat complaints to the Ombudsman straight away.
Have you complained to Updraft?
Made a claim to the Amigo Scheme?
And are you getting help to stop gambling?
For overdraft complaints, see https://debtcamel.co.uk/get-refund-overdraft/
AK says
Hey Sara,
I am using Resolver and have forward the final response letters to FOS for MoneyBoat and Bamboo Loans. I really hope FOS understands my long standing position of financial difficulties and poor credit score history. I am 29 years old now and this repeat of debt has to stop for me as it has been ongoing for 11 years.
MoneyPlatform i am awaiting to hear their final response letter as they offered £60 plus removal of loan on my credit report.
Updraft, i have not complained and scared to. Do you recommend i should too?
Sara (Debt Camel) says
Why are you particularly worried about Updraft?
AK says
Good Morning Sara,
I have raised a complaint with them today and in regards to the other two questions:
1. Amigo Loans rejected my complaint via the claims scheme and i have appealed it.
2. I have stopped gambling and investing in stocks/crypto
I do feel like i have a case with all these companies irresponsibly lending to me.
From what i have stated so far, do you think i have a chance at winning these complaints?
Sara (Debt Camel) says
Have you supplied bank statements to Amigo? 3 months before and three months after the loan. Evidence will really help with appeals.
Yes I hope you would win a lot of those at the Ombudsman. Take them all the way.
If you have any money at all left in crypto and shares, pay it off the Amigo loan if you lose the appeal
AK says
Hi Sara,
I did want to ask, when a company like Bamboo and MoneyPlatform make goodwill gestures offers in their final response, is it often because they know they are guilty or?
I am hoping to win all battles but i am wondering what the time frame with the FOS will be and what questions they will ask etc.
I have been using Resolver tools and wondering how efficient these tools are?
Sara (Debt Camel) says
A lender may offer a goodwill gesture in the hope that you will accept it. If it isn’t much, this can be worth it even they are 90% sure they would win a case at the Ombudsman. On the other hand some lender will just reject claims knowing that a lot of people will just give up. There isn’t much point in trying to guess why a lender has offered a good will amount – you are the one that knows if the credit caused you problems and if it did you should take it to the Ombudsman.
The Ombudsman will probably ask to see your bank statements for 3 months before a loan and 3 months afterwards. I suggest you get all your statements together now to pass on to the Ombudsman. Once they are there for one case, they can be used for subsequent ones.
Also download a copy of your credit report now so you can send FOS that.
Resolver is just a middleman passing on your emails and responses. Someone people like it as it keeps all their complaints in one place. Personally i would rather email directly.
T says
Hi Sara,
I hope you are well.
I have had an adjudicators view on a series of loans I had from my bank with whom I hold my current account. They have upheld my complaint for the latest couple of loans but not the first 2 loans. Due to the age of the loans there is very little information to go on but there are a couple of things they have said which I’m unsure if I should question.
1. I can’t remember what I told the bank as to why I needed the loan but the adjudicator has assumed on the balance of probability that it would have been for consolidation as if it wasn’t the high st bank would have turned it down. I feel this is weighted heavily in their favour as it assumes appropriate checks. However, as mentioned, due to time passed there is no documents to confirm so I feel I probably have to just accept this?
2. In other complaints about credit cards, the adjudicators have considered affordability based on credit limits rather than outstanding balances. The adjudicator has referenced this but says for loans it is appropriate to consider outstanding balances instead. Do you think that is reasonable?
Thanks again for all your help and hope you have a good weekend.
Sara (Debt Camel) says
This is one of the problems about complaints about old loans. How old were yours?
T says
The ones turned down were 2009 and 2013.
Sara (Debt Camel) says
Are the bank statements available for those dates?
T says
Yes I have bank statements which the Adjudicator has seen and include large gambling transactions but with the reasoning that it was a consolidation loan they don’t feel Halifax needed to have reviewed my current account.
these loans were for £10,500 (2009) and £15,000 (2013) so I feel like it given that my current account was with them and these were large loans they should/could of checked more?
Sara (Debt Camel) says
I agree. Not to check a current account is to ignore information they know about you – the fact you may have said the loan was for consolidation doesn’t mean they should make a proper affordability check.
Tell the adjudicator this and ask for the case to go to the Ombudsman.
T says
Thanks Sara, I made the points to the adjudicator but he doesnt agree so it will have to go to the Ombudsman. Hopefully the Ombudsman views all the loans as irresponsible and not just the most recent 2. Will keep you posted.
CM says
Hi Sara – I took out a £20,000 loan with Halifax in 2017 to consolidate some debts. I raised an affordability complaint which has been declined. I’m not sure what information to detail for the ombudsman so I am looking for your advise.
I soon got into further debt and took out further loans as detailed to keep up with my loan repayments:
Some key points below from Halifax in their rejection letter: ‘As your application was made online with no human interaction, we were not responsible for arranging payments to settle any other debts when the loan funds were issued. Our internet banking channel allows customers to apply for lending when they need it, aiming to make it as easy as possible. To achieve this we ask customers to give their details as accurately as possible so we can access the application fairly. To be able to make a decision quickly, we trust this to be correct rather than asking for proof.’ – My application detailed earnings of £2400 a month (which was correct) with outgoings of £800 per month (which was incorrect). I had three current accounts with the Halifax – two personal and one joint which would clearly show outgoings including mortgage payment that were much more than £800 per month. I used to transfer £1200 to our joint Halifax account for our mortgage payment and household bills. If Halifax checked the accounts I had with them they would see that the £20000 loan was unaffordable. I also had young dependant children at the time.
Sara (Debt Camel) says
I think that was a very large loan and, whatever you application said, Halifax should have verified your income and expenses to be sure you could afford it. I suggest you send this to the Ombudsman.
Christian says
Hi
This is fantastic work you have done here. Even if it doesn’t work out for me, it’s comforting to know that others are being helped.
I’ve recently had an affordability complaint rejected by Nationwide for a series of loans, 6 in total, ranging from 3-18k, but never more than 2 at once. They were taken out between 2018-2021 to pay off IVF but I put down as consolidation as this was paid by card. We also lost a child during that period and tbh I went a little mad spending, I never told them any of this at the time, I was just trying to survive day to day, in some ways I still am.
They have said the current account I hold with them is always managed well and the loans repayments were always paid etc, plus I have savings with them (this is an emergency fund of approx 1K). But obv in real terms I needed to spend on cards and Increase my debt so in turn the loans were topped up.
I’ve raised with the FOS but my question is should I respond to Nationwide too and tell them about the difficulties I’ve had too?
Sara (Debt Camel) says
No, just leave this up to the ombudsman now.
Christian says
Hi, just a follow-up, have had my adjudicator rule in my favour, and now playing the waiting game. So all being well should have a good result. Thanks again, can’t tell you how much this site and your advice is appreciated
Victoria says
Sara I am a bit worried as I sent a complaint to the ombudsman 13 days ago via email about the large unaffordable loan from Creation. I would have expected an acknowledgement by now but have not had any contact at all from them. Is this normal or should I contact them again?
Sara (Debt Camel) says
You sent it by email or used the Ombudsman’s online form?
Victoria says
I sent a normal email from my email address.
Sara (Debt Camel) says
Ok then I think you need to phone them up. It is probably just that they need to ask you for more information (did you give your date of birth? explain that this was not a joint complaint?) to add that to their system, but it is sensible to check.
Victoria says
Thank you. I rang them and what had happened is that although I had sent them the complaint via my email address they actually acknowledged it through resolver which I hadn’t used in years. But no harm done as I am relieved that they got it and are now going to keep in contact by email. Thank you
Sam says
Hi,
Has anyone had any luck with Moneyboat? Is there an email address I can send a complaint too?
Sara (Debt Camel) says
Yes, see https://debtcamel.co.uk/payday-lender-email-addresses/ for email.
Moneyboat tells every client who makes a complaint that they may be reported for fraud if their application was not accurate. This seems to just be a bluff – no one has ever had a problem if they take their case to the Ombudsman where plenty of cases are won.
Sam says
Thanks Sara, I have nothing to hide so they can say what they want. I have a CCJ due to not being able to pay them back so it’s worth a go I think!
Thanks
Sara (Debt Camel) says
Include in your complaint that you want the CCJ set aside (the legal term for deleted)
How many times did you borrow from them and how large were the loans?
Sam says
Hi,
Two loans one for £250 that was paid back and the other for £800 which hasn’t been paid back yet and the one I got a CCJ for. They have asked for bank statements from that time which is fine but shows for the £800 loan that I was not working for a month. Should I continue with the complaint do you think?
Thanks
Sam
Sara (Debt Camel) says
It was just one month you didn’t work for? Would the loan have been affordable if you had worked?
Sam says
Yeah it was just a month. Probably couldn’t have afforded if I was working as I had other loans and debts to pay.
Sara (Debt Camel) says
That is up to you.
One thing you could do is send the bank statements and say you had no income for that month but your complaint is based on the fact that you could not have afforded the repayments when you were working. But this is more complicated and I don’t know if you will win.
MH says
Hi Sara,
I’ve had an email from the investigator requesting a copy of my current credit report for a complaint against Livelend. The loan was taken out back in 2020 and has been paid off since. Is this normal? Just wondering why they would need to see my current financial situation? I have been fortunate to pay a bit of my borrowing off since I had taken out this loan and I’m concerned they may use my current financial situation in their favour against me?
Sara (Debt Camel) says
This is from an investigator at the Ombudsman?
Mh says
Sorry – It is yeah – I asked why and she said
Yes I am requesting a copy of your full credit report, this will hold all your credit history and will help me in my investigation in determining what your financial situation was at the time of sale
But surely this will just be current information?
Sara (Debt Camel) says
A credit report shows your credit history for the last 6 years. FOS would prefer a credit report from 202, but most people do not have these saved, so FOS will usually ask for a current one as that will do instead.
David says
I was wondering if anyone has an email address to complain to loans at home
Sara (Debt Camel) says
They went into administration in March 2022. Do you still owe a balance to them?
James says
Morning Sara,
I received my response from specialist motor finance who as I thought said they acted accordingly. One of the things I did notice is it says.
Throughout the agreement you missed your due date but did not contact us and only put down 4 times i contacted them but on the SAR it shows a lot more including one time I said “I am having to miss paying my priority bills for this”
Should I put this all down in my note to Financial Ombudsman.
Sara (Debt Camel) says
yes, all good information to show the ombudsman how poorly they have treated you and how badly they have handled your complaint.
James says
Amazing thank you, I need to submit that and 118, hopefully I get some favourable outcomes.
Jax says
Morning, I posted on here about a response letter I had received from Barclays. It didn’t have any text in the letter regarding the investigation but just said [INSERT REQUIRED CONTENT HERE]. I have now received the actual response as follows:
Looking into the matter further, I have carried out an income and expenditure (I&E) six month leading up to the sale. The I&E shows you had an average monthly income of £2,467.31, an average monthly expenditure of £141.41. This left you with an average monthly disposable income of £2,325.90. When we carry out an I&E, we only consider Direct Debits and Standing Orders, not general retails transaction, shopping or fuel as this can fluctuate.
So, taking the above into consideration, I do not feel your Loan was mis-sold as the Loan repayments were £187.85 and it was affordable.
Based on my review, I will not be upholding your complaint. I cannot justify refunding any Interest or cleansing your Credit File as no bank error has been identified. I understand this is not the answer you were looking for, but I do hope I have been able to answer your complaint regarding the sale of the Loan.
———————–
I have already raised it with the FOS but this outcome is factually incorrect in terms of the value of direct debits and standing orders and there’s no mention about what was on my credit file, that I was in my overdraft as soon as I got paid, etc. I don’t think there’s any point in going back to Barclays with these points but any advice would be appreciated.
Sara (Debt Camel) says
Barclays was your bank, they could see gambling on the statements?
Jax says
They were my bank and could see several cash withdrawals from the same cash machine on the same day that identified it was a gambling establishment. Often totalling £1000 in a day.
Sara (Debt Camel) says
Good point to make to FOS
Sarah says
Hi Sara
After using your affordability templates, I’m pleased to say I’ve just been awarded £1245.10 by Lending Stream in respect of a number of loans I took out with them between 2016 and 2017. I was in the midsts of a serious gambling addiction at the time but I thankfully I overcame this in 2020. I’ll be using the refund to pay off legacy debts and maybe treat myself a little bit. Hopefully there’s more to come. Many thanks!
Sara (Debt Camel) says
Good! Also good that you have overcome your gambling addicition.
Mh says
Hi Sara
I had a £6k loan with Novuna and they admitted it was unaffordable. They begrudgingly agreed for me to repay a lower affordable monthly payment and have removed the interest from the loan. This was in place for 3 months. I have just received a letter with a default notice after the 3rd reduced amount was paid!i have rung them and they I don’t seem to agree that I should be on a ‘payment plan’ with no negative markers on my file and have raised it to the complaints team. Just a heads up if anyone if dealing with them at the minute. Seems weird they’ve sent a default even though I’ve kept upto date with the plan agreed
Sara (Debt Camel) says
Send this to the Ombudsman if they don’t sort this out.
Mh says
Will do Sara thanks very much as always!!
Sean says
Hello,
I have recently had a complaint upheld at adj level.
The loan was through lend able for £5k with a £300 odd admin fee added at the start in Nov 18’.
To date I’ve worked out roughly £4.5k paid back however the adj has stated-
To settle the complaint, I’m recommending Lendable does the following:
To add up the total amount of money received as a result of having been given the loan. The repayments made should be deducted from this amount.
a) If this results in having paid more than received, any overpayments should be refunded along with 8% simple interest (calculated from the date the overpayments were made until the date of settlement). †
b) If any capital balance remains outstanding, then Lendable should attempt to arrange an affordable and suitable payment plan.
To remove any negative information recorded on the credit file relating to the loan.
Question is what is the 8% simple interest all about?
Thankyou
Sara (Debt Camel) says
The 8% interest is paid on any cash refund going to you.
But in your case you aren’t going to get any cash back (on those numbers) but instead your balance will be reduced to about £500 (if you received 5k at the start? or did they take the 300 off that and you only got 4700?)
Sean says
No it was added to the amount borrowed so capital starting repayment was £5300
Thanks
Sara (Debt Camel) says
Then balance after a refund would be about £500
Jonathan says
Hello Sara wondered if you could help, my mum took a loan out with likely loans which she couldn’t afford and she won a complaint after it to the financial ombudsman and all interest was cleared and she had the remaining balance to pay, in March this year we logged into the account and the balance said £0 and she was all paid up so we fort maybe we’d had the balance cleared after it was massively unaffordable for her and fort it was a delayed action from likely loans, so we chased up potential refund of what she paid about 4 weeks ago and we’ve logged in today and the balance as appeared again. They are a difficult company to deal with, she took the loan out for £2400 I think it was and only pays £15 a month coz that’s all she can afford, they didn’t do enough back ground checks that’s why she won. Just wondered if you could help with them clearing the balance for 3 months and it now appearing
Sara (Debt Camel) says
It looks like some sort of systems error that they corrected.
You can complain and say this has caused her distress as she thought her problem had been removed and ask for compensation. But you are unlikely to get much – perhaps £100?
Can you say something about her situation? Does she have other problem debts? Is it ever likely she will be able to pay more? Is she behind with any bills?
Joanne says
My husband took out a loan which was completely unaffordable and as such he is now in a debt management plan. Can we still send in a complaint if he’s on a DMP?
Sara (Debt Camel) says
yes you can. being in a DMP is a good time to make these complaints as you are in a safe financial situation and can simply refer the case to the ombudsman if the lender rejects it.
Also think about the other debts in his DMP – that loan may be the worst case, but was he stuck in an overdraft? Did he have a credit card where a lender increased his limit even though he was only paying the minimum amount?
James says
Hi Sara,
That’s twice I have went to Financial Ombudman and twice they have rejected my claim, giving 8 loans in the space of 8 months is not unreasonable due to the figure I put down for earnings. Also then attempting to take payment 13 times in 2 days should not have caused significant distress.
They did not take into account how I had 5 credit cards which were fully maxed only payments made, they have not taken into account rent, council tax or gas only what it shows I pay out on my credit file.
Honestly fed up with them, don’t see the point in sending anything to them.
Sara (Debt Camel) says
who is the lender? is this an adjudicator decision or an ombudsman decision?
James says
Hi Sara,
It was adjudicator, they said if I want ombudsman to make the final decision then I need to provide more proof I have asked what more proof and they has not come back to me. Also said that the rates were set out and even though you pay double back I knew this which is fine but after loan 4 they said we think they should have looked at the financial situation more but it was not a concern so if they think that after loan 4 what about loan 5/6 and 7.
Some of the things said made no sense to me and I have questioned it such as “the amount of loans on the short period of time shouldn’t have shown you were in financial difficulties”
My reply was if a friend Comes 7 times in 6 months for money I am sure you can assume they are in difficulty and they have only taken my outgoing from credit file no rent, council tax or gas and electric and not taken into account I was max out on cards and making minimum payment.
I am at a loss what the further evidence is to get ombudsman decision.
Sara (Debt Camel) says
who is the lender?
how large were these 8 loans from them, can you list the sizes in order? so 300, 250, 350 etc
and what were the gaps between the loans, from the time you settled one to taking the next one out?
And what was the interest rate on the loans and did it increase?
James says
Fund ourselves
£500
£750
£1000
£1000
£1500
£1500
£1500
They said the interest is irrelevant also and they don’t take that into account even though they charge double what you borrow.
Between 4 and 5 there was 7 months in between all the rest it was days.
Not sure how the interest works but for every £1 you borrow you pay £2 back, so £1500 is £3000. No did not increase stayed the same.
Sara (Debt Camel) says
ok so these are loans subject to the “payday loan” price cap.
Go back and say that that although the first loan was small, they increased until you hit the maximum the lender would allow. And that the amount of repeat lending by a payday lender and the size of the loans means they should have halted after the first few loans or made additional checks. Say that you think all the loans after the first three should be refunded.
Ask for this to go to an Ombudmsna if the adjudicator doesn’t change their mind.
James says
Perfect I will email the women again tonight and say all of this and that I would like it to be decided by the ombudsman.
So I don’t need any further proof?
Sara (Debt Camel) says
Everyone has the right to have their case looked at by an Ombudsman. Obviously if you can produce more “proof” that helps… but a clear argument should as well
James says
Thank you, it did state with further proof but if I say my argument that it was said at the 4 loan it should have been looked at but they were satisfied and what you said about the payday loan price gap.
Thanks again for your help.
Sara (Debt Camel) says
the argument is that this was REPEAT BORROWING of high cost short term credit – after the first few the lender should have looked more closely and would have seen the gambling.
Sam says
Hi Sara,
When they say the complaint needs to be raised within 6 years, is this 6 years from when the finance was agreed or from when the finance was settled. I had car finance from Moneybarn that i struggled with from the start in May 2017. There was a court order that allowed me to keep the car whilst paying about £400 a month to clear the arrears. In 2019 i had fallen back on payments again and was told if i wanted to keep the car I would have to pay £10k. I needed the car for work so had to borrow the money off parents to keep the car. I have sent a complaint to Moneybarn, they have yet to contact me or confirm receipt of the complaint but it has only been a few days. Im just wondering if this falls within the 6 years.
Thanks for your help,
Sara (Debt Camel) says
It is just outside.
But the Ombudsman can agree to look at older complaints if you have only recently found out that the lender should have checked affordability.
You should complain asap AND try immediately to get your bank statements for 3 months before the application, as they can be very helpful for your case if this has to go to the ombudsman. Which it almost certainly will as MB will very likely reject because of the age.
james says
Hi Sara,
Had another reply,
As explained in my view, when deciding whether a lender’s checks were proportionate, we think it’s reasonable for a lender’s checks to be less thorough – in terms of how much information it gathers and what it does to verify that information – in the early stages of a lending relationship.
I can see you had a break in borrowing which means when you took out loan five this was a new lending chain and we would expect the business to treat this as the early stages of a lending relationship.
So FUND OURSELVES LIMITED asked you what your income and expenditure was and you told them what it was, and I think it is reasonable and proportionate for FUND OURSELVES LIMITED to have relied on upon this information.
So is there anything I can do or am I fighting a losing battle?
Sara (Debt Camel) says
Tell them you want the case to go to an Ombudsman.
James says
Thank you they have advised they will reconsider loan 4 if I send more bank statements which I will do but after that should I still send it to the ombudsman as they won’t agree to look at 5.6.7 as there was a gap between?
Sara (Debt Camel) says
I would certainly argue that loans 6 and 7 should also be refunded, as it looks as though you are slipping back into being dependent on the loans.
james says
Hi Sara,
I have to send over more bank statements but they have made it look like they won’t overturn anything with the wording of the email.
I have copied the email below, I think it should say as I have not, not haven’t as they have made decisions on all loans but either way it looks like I won’t be winning this and discouraged from asking ombudsman to make the final decision.
“As I haven’t already made my findings on the rest of the loans I wont be reviewing any of the other loans using your bank statements. I will however go over your case again to make sure I am happy with everything”.
“Once I have made my findings on loan four, if you remain unhappy that you will still have the option to request that an ombudsman makes a final decision on the case, but they will use the same approach as me”.
Sara (Debt Camel) says
send those statements and say you want it to go to an Ombudsman
james says
Hi Sara,
so send the statements that the adjudicator has sent to me and ask for it to be referred to the ombudsman and just state I am not happy that it was pre judged on it would not be going in my favor or something along those lines?
Sara (Debt Camel) says
“and just state I am not happy that it was pre judged on it would not be going in my favor”
i am not sure what you mean by that.
The points to make are that you think at least loans 4, 6 and 7 should be found to be unaffordable because of the large size of the loans and the repeat lending, whoch should have caused Fund Ourselves to look more closely and verified your income and expenses.
Sam says
Hi,
Is there a template to use for when the loan is full being paid? I’m just over one year into a four year loan but believe it should not have been given to me. It’s with Oplo.
Thanks
Sara (Debt Camel) says
is this car finance?
Sam says
No, it’s a personal loan.
Thanks
Sara (Debt Camel) says
ok. In that case you can just use the template in the article above. If you win the complaint interest will be removed so you only have to repay in total the amount you borrowed. But you don’t have to ask for that in detail – just say you want a refund of interest.
Sam says
That’s great, thank you so so much
James says
I had an overdraft maxxed out at £25k (had been maxxed out for 2 years or so – used your overdraft template to complain) with Natwest at the time of applying for, and being accepted for, £20k loan with Natwest.
Therefore, they would have known full well that I would be using overdraft to make repayments. Is that in itself enough to deem a loan unaffordable as I’d obviously be borrowing to repay?
Thanks
Sara (Debt Camel) says
You had a 25k overdraft? Was this on a personal account?
James says
Yes – currently have a complaint lodged
But interested in whether by default that makes a loan unaffordable
Thanks
Sara (Debt Camel) says
It certainly makes this worth a complaint!
L Taylor says
An update – I put in an affordability complaint with lendable in January on two loans I had – one of 9000 with around 18% interest, the second 3300 with around 30% interest. The second was taken about 15 months after the first.
In short lendable rejected my complaint, despite the fact that during the course of the loans I had asked for payment holiday, reduced interest etc. and they did little in the way to help me as I’d always made payments etc.
I was in a cycle of living in borrowing, and explained this to them, with no success. I went straight to FOS on 3rd February. I got an email Monday to say they were upholding my case! Lendable also agreed that same day.
I don’t have a final figure yet – but I had cleared the loan (due to some other refunds – see overdraft and CC thread). They have been instructed to repay anything I have overpaid from initial borrowing + 8%.
I’m hoping this will be around 5k. Will update when i know.
Thank you Sara for this site! X
Sara (Debt Camel) says
Great result
Mia says
Hi both,
I have just my final response from lendable for 2 loans, 1st was £1200 in 2020 and the 2nd for £5000 in 2021. They said they are not uploading my complaint as I only had 2 late payments and paid off the loans early (I did this both times by taking out other loans to consolidate debts), I feel I was in a similar situation to you in a cycle of borrowing.
I used the template above too and your comment makes me think it’s worth me going to the FOS?
Thanks
Mia
Sara (Debt Camel) says
Definitely. Paying off early by consolidating does not mean they were affordable.
L Taylor says
Yes! Do it, you may have to wait a while but its so worth it!
L Taylor says
I also want to mention that I finally got the money land in my bank account this morning – delighted! I received £5050 back – in the ball park of what I was expecting. So super happy.
Mia says
That’ great so happy for you!
I am going to send my two to Bamboo and Lendable today.
Fingers crossed
L Taylor says
Definitely! And give the FOS as much info as you can – when I submitted mine I have them a credit report I had saved from when my debt was at its worst as well as giving them bank statements from around the times I took out the loans. I think this way it gives them some solid “evidence” to consider too.
Fingers crossed for you – hopefully you’ll get resolved before the end of the year!
Jax says
Well, an Ombudsman has rejected my complaint against Livelend. I have no idea how one Ombudsman can uphold a loan that was taken out in September 2018 and another reject one taken out 6 months later.
I guess that’s that one exhausted now!
CM says
Hi Sara,
I have a Zopa loan of £5000. This was a loan provided to me whilst I was on maternity leave. I had taken out a £20K loan a year earlier and I took out a further £7500 loan out with another lender just 6 months after. I also had significant credit card and overdraft debt at the time.
I complained to Zopa about unaffordable lending. This was rejected my Zopa as they advised all minimum lending requirements had been met.
I then sent this straight to the ombudsman. This has now been picked up by an investigator. I have just received a query from the investigator with regards to my salary so I am looking for your advice.
I declared my income to be £48K however I was on maternity leave at the time so my salary for the three months before I took out the loan and three months after was much lower than I declared. This has been queried by the investigator so I just need to know how to respond. Obviously I lied about my financial situation so that I could take out loan but I needed some money to cover financial commitments whilst I was off work.
Can you please help?
Sara (Debt Camel) says
Why did you take out the previous two loans?
Would the zopa loan have been affordable if you hadn’t been on maternity leave?
CM says
The first loan of £20k was to consolidate debt. The second loan was to keep up with repayments as having two children, a mortgage and multiple repayments was now unaffordable.
So, no even if I wasn’t on maternity leave it would have been unaffordable as this loan pushed me into personal debt that was now greater than my annual salary.
Should I advise i was on maternity or say that my income fluctuated?
Sara (Debt Camel) says
I suggest you say that you were on maternity leave but your complaint is because the Zopa loan would not have been affordable on your normal income. (I assume that is all correct). Point out Zopa could see the very large amount of credit you had taken in the last year and should have made detailed checks.
Also look at affordability complaints against the consolidation loan and the 7.5k loan.
CM says
I have received some good news today. The adjudicator upheld my affordability complaint with Zopa.
Fingers crossed that Zopa agree with their decision and we don’t have to go to the Ombudsman.
I will keep you updated.
CM says
A quick update, unfortunately Zopa have rejected the view of the adjudicator and requested for it to be passed to an ombudsman with some further information.
Does anyone how long I might be waiting now?
Sara (Debt Camel) says
This complaint was eventually upheld by the Ombudsman. Interest has been removed from the current loan leaving only a balance of £500 and Zopa is removing the default that was registed with the credit reference agencies.
Thom says
I have been waiting for a response from my claim against 118118 money . Impact claims are dealing with this (I know,sorry) but I have been waiting for the FOS to get a response from 118118 – it’s been 4 months since it was ruled in my favour by the ombudsman . How much longer do you think I need to wait ? Impact claims are pretty decent in terms of replying to me but they keep saying they are waiting for the response from 118118, they can’t not reply for ever , can they ?
Sara (Debt Camel) says
is this an adjudicator decision or a second level decision from an Ombudsman?
Victoria says
James I am going through the exact same concerning a £6400 loan taken out with Creation Finance which was unaffordable. I sent all of the correspondence to the adjudicator and because I hadn’t had an acknowledgment after 10 days I rang. I was so disappointed with the lady who give me no clear instructions and left me feeling that she really couldn’t be bothered. I told her my computer skills were not good and all she said was that it was too bad that I was finding it hard to download and send documents although I have now done it. She was so dis interested and I was in tears when I put down the phone. I feel it’s hardly worth the grief of putting myself through this as I am getting no help or advice from these people. Really hope it works out for you though.
Sara (Debt Camel) says
I am sorry this has proved so complicated for you. This isn’t a problem people have commented on before. I am glad you have managed to send the documents in.