UPDATE: FCA fines TFS £880,000.
On 10 June 2022, the FCA announced:
TFS Loans Ltd (in administration) has been fined £811,900 by the Financial Conduct Authority (FCA) in relation to deficient affordability checks on 3,150 guarantors in its consumer credit business. The FCA has also imposed a requirement on TFS to redress the guarantors that were harmed by the firm not conducting appropriate checks.
This fine relates to some loans given between 2015 and 2018.
As TF is in administration, customers with complaints are waiting to see how their complaints will be decided and how much compensation they will get. The FCA has agreed that the fine will only be paid to the FCA if customers are repaid in full, so it won’t reduce the payments customers will get.
TFS Loans Ltd went into administration on 8 February 2022.
TFS was a small guarantor lender. This is the second guarantor lender to go into administration. Buddy Loans went into administration last year. Most of the larger lenders in the market are no longer offering guarantor loans, including Amigo, George Banco, TrustTwo and UKCredit.
TFS loans were pretty typical of the UK guarantor loan market – between £3,000 and £15,000 lent on a 1-5 year term at between 30% and 70% interest, with a representative APR of 39.9%. The FCA describes these loans as “high cost”.
TFS Loans Ltd’s Full Accounts for 2020 were published in December 2021. They said:
- TFS stopped making guarantor loans in March 2020;
- during 2020 TFS received increasing numbers of affordability complaints
- a debt restructuring was being proposed
- the company employed 25 staff.
The audit opinion was “qualified” – that means roughly that the auditors were not confident about the future. The auditors said::
“the ability of the company to continue in operational existence is dependent on the continued support of the company’s creditors and the full agreement of the proposed restructuring deal, without which the company may not be able to continue as a going concern.”
Several Debt Camel readers have had problems being paid in the last few weeks by TFS, so their collapse into administration is not a surprise. This article looks at the implications for them and for all other TFS customers.
Contents
Affordability complaints against TFS
The TFS website said:
A guarantor loan is an alternative way of lending that can provide you with an affordable loan for any purpose…. The loan is based on trust instead of your credit score.
But having a guarantor does not mean that loan can be given that is unaffordable for the borrower. The regulator’s rules say a lender should assess whether a guarantor loan is affordable for both the borrower and the guarantor.
Here are a couple of recent Financial Ombudsman (FOS) decisions against TFS:
- Ms B had had several CCJs and defaults which though not recent were unpaid, TFS did not try to verify her expenses – if they had they would have seen she was gambling regularly;
- Mr L took two loans from TFS. The first was taken only a few months after a recent default and a CCJ. The second loan, to refinance the first and consolidate other debt was taken only a year later after his debts had continued to increase.
Reading FOS decisions, it seems that in some cases TFS lent on the basis that the borrower had an apparently high disposable income, but the Ombudsman pointed out that was not compatible with what the borrower’s recent credit history showed.
What happens in administration
It is the administrators’ role to sell the assets of a company and divide the available money between the company’s creditors. This distribution can take a long time – often more than a year.
The administrators have now published their proposals for the administration.
Anyone who is owed money by a company that goes into administration can make a claim to the administrators. At the moment you can send a complaint by email to complaints@tfsloans.co.uk. The administrators may later put up a page to let people make complaints.
In this case, that includes TFS customers, past and present, borrowers and guarantors. They could all be creditors because they may have a claim against TFS for unaffordable lending.
The FCA has asked the administrators to devise a methodology to work out which customers who were mis-sold loan.
There will not be enough money to repay all the complaints in full in the administration:
- all unsecured creditors who are owed a cash refund get a “pence in the pound” amount that divides up the money the administrators have available.
- this amount can vary from nothing (Uncle Buck), very little (Sunny – 3p in the £), OKish (Swift Sterling 20p in the £) to pretty good (QuickQuid 53p in the £).
- borrowers with an existing loan get the “balance reduction” part in full. Say you owe £1200 and your refund is calculated at £2000. Your balance will be cleared and you will get a small “pence in the pound” amount of the remaining £800 refund.
Current loans
The loans still exist even though TFS has gone under
Current loans still exist on the same terms. You are not expected to pay the full amount immediately.
The administrators may want to sell the current loans to a debt collector. But they may well wait to sell the loans until claims for unaffordable lending have been determined.
Most debt collectors are a LOT nicer to deal with than most guarantor lenders! And the debt collector will not expect you to repay the full amount immediately.
Should you carry on paying?
The administrators say:
It is important that all customers continue to repay their loans in accordance with the terms of their agreements, as maintaining payments can have a positive impact on your credit score.
But what if you can’t afford to do this?
But if you can’t afford these payments, you may feel that getting behind with other debts in order to pay TFS is not a good idea and it would be better to stop paying TFS.
If the borrower wants to stop paying then the guarantor also needs to decide whether to stop any payments being taken from their account.
To talk your situation through with a debt adviser, borrowers and guarantors can phone National Debtline on 0808 808 4000. You need to talk to your guarantor about this and explain your situation. You and/or your guarantor may be able to make claims to the administrators. If either of you wins that, your guarantor is be released and this just becomes a normal loan for the borrower.
And what if you don’t want to pay more because you think you have a good affordability complaint and you have already repaid more than the amount borrowed? The administrators say that all payments made after the administration date in February will be refunded in full if your claim is upheld and you have already paid more than the amount you borrowed.
Current complaints
The Financial Ombudsman will no longer work on TFS complaints and has returned them to the administrators to handle.
If you have a final decision from an Ombudsman
Now TFS is in administration you will not get paid the cash refund you should have had in full. You are just another unsecured creditor.
The administrators should accept the FOS decision as a claim from you. They should not look to reopen the case and decide what you should get.
Any remaining balance on your loan should now be written off – you should not be asked to continue making payments.
If you have an adjudicator decision TFS has accepted but not paid out
Here too the administrators are likely to accept this decision as a claim from you.
I don’t think many people are in this situation as recently TFS seems to have been rejecting all adjudicator decisions.
If you have an adjudicator decision that TFS rejected
These will have been waiting at FOS for an Ombudsman decision that is not now going to be made.
The administrators will have to decide whether to accept these as decided claims or to assess your claim and whether it should be upheld.
In some cases, TFS had agreed to freeze the account waiting for the ombudsman’s decision, so not asking the borrower or guarantor to pay. I think if you are in this situation and TFS now asks you to start paying, you should make a complaint to the administrators. I hope this won’t happen and the freeze will just continue until your claim is decided by the administrators.
Keep up to date with what is happening
Look out for an email from the administrators or TFS customer services. These emails may go into your spam/junk folders.
This page will be kept updated.
The comments below are a good place to see what other TFS customers are thinking and whether they have been told anything by the administrators.
Sonia says
I’ve got two guarantor loans one from TFS loans and Amigo I wrote to them explaining that I cannot afford to make payments and they threaten me with going to my guarantor! I then went to the financial ombudsman and they managed to get my monthly repayments lower but I had to fight the companies to except this! I went through hell with them both! What do I do now? Do I send a copy of my letter to the company?
Sara (Debt Camel) says
So you had a FOS decision on your TFS case? What was this?
Sonia says
No they thought TFS loans did not harass me and liaised with them to extend the term of the loan by 18 months to reduce payments for me! I wasn’t happy as I was working part time and had health problems but had no choice but to make a smaller amount each month otherwise they would threaten me to contact my guarantor I’m now retired due to ill health and my pension is paying my loan every month which is leaving me with nothing but extreme hardship.
Sara (Debt Camel) says
was your complaint that the loan was unaffordable when it was given? Or that TFS were harassing you?
Sonia says
I complained about both TFS loans harassed me and my guarantor i had mental health issues due to my ill health and processed the claim for the loan when I wasn’t well I’m still paying this loan back is their anything I can do to get out of this? I’m not working as retired but I’m worried my guarantor will be left to pay it if I inform them I’m not working
Sara (Debt Camel) says
I need to be clear as this may make a big change to your options.
Did you make a complaint that the TFS loan was unaffordable from the begining? Not that it was expensive, or you currently have problems paying it or that their debt collection is unpleasant … but that the loan from the start was unaffordable?
If the answer is YES, what did the Ombudsman decide on that part of your complaint? Did they agree the loan was unaffordable?
Who is your guarantor – a friend, relative… what is their current financial position? what was their financial position when you took the loan?
Sonia says
Sara, please could I email you my letters please x
Sara (Debt Camel) says
No, sorry.
If you need to talk to a debt adviser about your situation, please go to your local Citizens Advice or phone ANtional Debtline on 0808 808 4000
Sonia says
I wrote to both TFS loans and the financial ombudsman to say that I was mis sold and that the loan shouldn’t have been accepted on my low wage also that my health has become worse so I had to reduce my hours at work which meant my wages had dropped also that they harassed both myself and my guarantor for payment even when I explained I was having a bowel cancer surgery. The financial ombudsman said TFS loans said the checks were carried out correctly but they agreed I had been treated unfairly during difficult times and would not add any further interest to my loan and removed arrears handling fee of £100 I owe them £5,000.
My guarantor is my friend and was my work colleague working 20hrs and has a disabled son. I am currently not working because of my health
Also my GP completed a debt and mental health form which was sent to the company but they ignored this. CAB even tried to liaise with TFS Loans but they said they would harass my guarantor for the payment if I was unwell to make any payment
Sara (Debt Camel) says
horrible behaviour. This is why I always say people should not mind if their guarantor loan is sold to a debt collector as they are usually a lot nicer to deal with than guarantor lenders…
But as you lost the Ombudsman case, I don’t know whether you will be able to make a claim to the administrators. They may just dismiss it.
One thing though that is worth trying is getting your guarantor to submit a claim saying the loan was not affordable for her… if she can win this she will be removed as guarantor. Then this is just another loan for you and you can put it into a debt management plan or even go for a debt relief order.
Sonia says
Thank you Sara any help would be appreciated im no longer working and all my money is paying off this loan and Amigo! Same situation! Would they wonder why my guarantor did not write to them in the first place? What should she say? They are not aware I’m not working as I think they would just harass my friend for the payment I’m paying £220 a month which is a lot when your not working. CAB said they cannot help as it’s a guarantor loan any help what I can put in a letter?
Sara (Debt Camel) says
You won’t know for a while if you will be able to make a claim in the administration, it may well be that you can’t.
I think you should talk to your guarantor, and explain she can make a claim to the administrators saying she should be released as guarantor because she could never have afforded to make the loan repayments. But this will take many months to go through. Possibly 6-12 months.
So if you cannot keep paying, you have to explain this to your friend as the administrators are likely to ask her to pay.
Sonia says
Thank you Sara who do we write to? Who are the administrators and should this be done now? Any letter template available for ideas
Sara (Debt Camel) says
Who should your guarantor send a claim to? Email complaints@tfsloans.co.uk
She can read https://debtcamel.co.uk/amigo-complaints-by-guarantor/ which has a template for some ideas but I suggest she keeps her complain quite short at the moment.
Sops says
Do we think they will do a redress scheme like amigo ? I complained and got no where yet had loans with amigo quick quid etc and have had/ waiting on redress , thanks
Sara (Debt Camel) says
No, a redress Scheme like Amigo is very expensive to do, only available to large lenders who have lot of spare money – so much of Amigo’s is going on lawyers trying to get the Scheme through! That was never an option for a small lender like TFS. And it isn’t now they are in administration.
That doesn’t mean necessarily customers get a worse result in administration – in the QuickQuid administration customers look set to get 30-50p in the £ – very possibly more than customers will get in Amigo’s scheme.
L says
Thanks for the lengthy update Sara. Look forward to seeing any updates.
Andy says
Hi Sara , my TFS case was upheld at adjudicator level TFS didn’t not respond to this in the time given with an extension to that time therefore no option but to forward to ombudsman, am I correct in saying this will go bac to administration company an they will now decide wether the findings were correct , I owe still TFS £1500 which is currently frozen but in total Over two loans from £4100
Sara (Debt Camel) says
The administrators may decide to treat all adjudicator decisions as correct or to look at each and decide. I can’t guess what they will do.
AM says
I am in exactly the same position so should we now start paying again, I really do not want to give this company any more money as my possible redress was around £7000 and now likely to be more like £200 if we only get a very small percentage
Sara (Debt Camel) says
I suggest you should wait and see what happens and if they ask you to pay, object on the grounds TFS allowed the debt to be frozen until it was decided by an Ombudsman so you think the administrators should allow the debt to be frozen until it is decided by them.
Sara (Debt Camel) says
did your wife get redundancy money?
How is her job searching going?
do you have a house with equity?
Sonia says
Thanks for all your help Sara I have sent an email to Amigo complaints as well hopefully to get my guarantor removed. Can I just ask I emailed Scheme @ the money shop but the email is incorrect is their any other email address for them?
Sara (Debt Camel) says
that is not the right email for Amigo, it is for the money Shop which no longer exists and was a totally different company.
read https://debtcamel.co.uk/amigo-new-scheme-2/ which looks at the Amigo Scheme. And you cannot make a complaint for your guarantor. You can make a complaint that the loan was unaffordable for you. If it was also unaffordable for the guarantor, they will have to make the complaint. Asl any questions about this on that Amigo page, not here.
Sonia says
Yes my guarantor will do an email to them with the use of the template letter you recommended.
Unfortunately the money shop email address doesn’t seem to work is it because I’m to late at sending them a complaint?
Sara (Debt Camel) says
The money shop scheme has ended. Claims had to be made by April 2020, nearly two years ogo.
AM says
Update from FOS
My adjudicator has just confirmed it is likely that now TFS are in administration my complaint will not be picked up by ombudsman and therefore no final decision on it.
So upheld with adjudicator and then I suppose wil be passed back to administrators.
Should I contact administrators or just wait?
Sara (Debt Camel) says
Just wait. Do you have a current loan?
AM says
Yes but it was put on hold after adjudicator decision waiting for ombudsman to pick up.
I borrowed 7500 and only had a balance of 2000 left. I had paid 303 a month for 48 months. Really do not want to give them anymore as I will not get back my full redress now if it was upheld
Sara (Debt Camel) says
So this is the situation referred to in “If you have an adjudicator decision that TFS rejected” in the article above.
Rachel says
Hi Sarah, I was wondering if you could shed some light on this. I made an unaffordabilty complaint to TFS in November 2020, they replied rejecting my complaint as they stated that I was outside of the 6 year window in order to process my complaint, however my loan was only paid off in 2017. I escalated it to the FOS in December 2020 and in April 2021 the investigator at the FOS agreed in my favour that I had a cause for complaint as I was within 3 years of becoming aware that I could file an irresponsible lending claim. TFS didn’t agree with the investigator’s decision in May 2020, stating that as my loan was paid off in 2017, they believed the 3-year rule started in 2017. This has now been escalated to the Ombudsman for a second opinion of sort. This was done in May 2021, and I’m still waiting for my case to be assigned to a case worker and yet to hear back from them. Now that TFS has gone into administration, what are my options? By the way I’ve only just found out today that TFS have gone bust!
Sara (Debt Camel) says
FOS will return your case to the administrators to decide. You don’t have any other options I am afraid.
Domonique says
I received my email today from the ombudsman saying they can’t deal with my complaint with tfs loans anymore cos they have gone into administration. Its so frustrating as the adjudicator agreed tfs should pay back 2 out of 3 loans. But tfs rejected it. And now I no why. It’s sad that I paid so much money over 6 years. Got into debt. Struggled for years. Which was proven that it was unaffordable. And now I probably won’t even get back what iv paid.
Rich says
If anyone is still following progress on this there’s a proposal from administrators submitted which you can read on company house for tfs under filling history. Makes for an interesting read. I don’t understand the jargon but think they’re about £6m short of full redress but could be wrong. Administration has done quite a lot of work already so hopefully won’t be years in the waiting.
AM says
I am still trying to follow. Not heard from administrators yet about my complaint that was upheld by FOS at adjudicator level.
Mark says
I had a claim the the FOS and TFS both agreed it was miss sold had a date for transfer off funds and they went into administration two days before I was due my payment. I Spoke to TFS after they went into administration who agreed for i don’t have to pay £8,000 balance however they will not remove off my credit score that’s been agreed to be wiped, now it seems I can’t get a mortgage till this is cleared. Any ideas
Sara (Debt Camel) says
There is a procedure you can try to use – ask the credit Reference Agency to “suppress” the record so no lender can see it. See https://debtcamel.co.uk/correct-credit-records-lender-administration/. There it says don’t do this early in an administration. But as you have the FOS decision and TFS’s acceptance, then you can try this now – explain the situation to the DCRa.
I don’t know if this will work but it is worth a try.
Mark says
Thank you I will try this.
Robert says
Im a gurantor and ive been paying for the last three years because the pearson who had the loan wont pay.TFS been trying to take him to court to pay still no joy and he has also thretend me where do i stand on this three or four years this has been going on and no joy
Sara (Debt Camel) says
Are the loan repayments affordable for you?
Sara says
Hi Iv had the same problem with being threatened and no the loan is not affordable to me. What can I do
Sara (Debt Camel) says
you are a guarantor?
Rich says
TFS have now updated credit file to show remainder of loan cleared and account closed so they seem to be working through it now.
L says
Has anyone heard anything else from the administrators yet?
I sent my claim form in via email but not heard anything since their initial letter.
Coming up to a year now!
AM says
Not heard anything. I had my claim upheld by adjudicator but TFS disagreed so I was in the queue for ombudsman when they went into administration. Still waiting to hear something.
L says
Mine got upheld by adjudicator prior to them going into administration. In fact I was due to receive money 2 days after administration ☹️. Just gone quiet since. Been reading the reports on HMRC but I have no idea what it means and if there’s likely to be any money left at the end.
Catherine Cain says
I jade examine the same! A payment was agreed and a date set!… obviously i received nothing and was told that i process never will… that was over a year ago.
Was a decent amount too!
L says
Mine too! Just shy of £7k!
Doubt we will see anything close to that but from latest update I think there may be something even if it’s pennies to the pound.
Sonia says
I’ve not heard anything from the administrators. I’m still phoning in every month to pay them but I did ask and they said I will be in contact shortly that was 4 months ago!
Margaret says
I paid off my loan a few years ago and was told I couldn’t make a claim as my loan was over 6 years old. Contacted the FOS who were looking at it when TFS went into administration. They forwarded my details to TFS but apart from an email to confirm I’ve heard nothing else.
Catherine Cain says
I had exactly the same! A payment was agreed and a date set!… obviously i received nothing and was told that i process never will… that was over a year ago.
Was a decent amount too!
AM says
Hi anyone still following this? If so how do we contact administrators to get an update. I have never received any communication for them
Sara (Debt Camel) says
It is progressing slowly – latest update (March 23) is here https://find-and-update.company-information.service.gov.uk/company/06542065/filing-history. They do expect to make some distribution and anyone who things they may have a claim should contac5 the administrators.
M Smith says
Hi Sara,
My TFS loan and top up loan mis-selling was upheld by an adjudicator but dismissed by TFS so was in the queue for ombudsman before administration. I have repaid thousands (10k to be precise!) over the capital borrowed and there’s still an outstanding balance. The account is “on hold” they say but they are still adding monthly defaults to my credit file. What can I do to stop this while they decide to uphold my complaint?
Thanks
Sara (Debt Camel) says
Once a default has been registered on an account, every month after that will show as defaulted. Only one default, the first, is counted for credit scoring.
There is nothing you can do to speed up this process.
Sonia says
Hi
I sent them an email to find out an update and got this-
Thank you for your email,
I appreciate this process is taking a long time.
Opus are now in the final staged of revising the methodology with the FCA, I still cannot give you a time frame but we will be in contact with you in due course.
Standard email!
Nic says
I still had an outstanding balance but hasn’t took today payment, when I looked on my credit report it says settled and closed. Does this mean they have wipes the rest of my loan?
Sara (Debt Camel) says
Possibly but you have to ask to be sure
Nic says
Who would I contact? I’ve tried to phone and these no answer I have also sent an email
Sara (Debt Camel) says
I would give it a few days for a reply to your email.
Jemma says
Anyone heard anything 😕 I’ve emailed but no response. Website still the same
L says
Nope, I think administrators are due to update by mid September, so if you keep an eye on HMRC website it should go on there.I didn’t even get an acknowledgment to my claim form I sent to administrators.
I think I read somewhere there are expected to be small payouts so I’d guess a couple of pence to the pound, probably not even worth chasing.
Sara (Debt Camel) says
These are worth chasing is there is a current loan OR if someone wants their credit record cleaned.
Nic says
I received a email on the 27th of July about my refund.. filled form in but has nothing back since
AM says
Who was the email from?
Nic says
It was from tfs loans
AM says
No not heard a thing, wish they would
Do something because my complaint had been upheld by ombudsman assessor but as long as this goes on my credit file is not being updated as it still shows that I owe them money.
AM says
Can anyone give me the contact details for the administrator as I cannot seem to find them
Sara (Debt Camel) says
try tfsloans@opusllp.com
Jemma says
Reply I received
Thank you for your email, with regard to an update to the Administration process, concerning your complaint.
I can confirm that the FCA and the Joint Administrators have now agreed on a Methodology, in which will be used to ascertain if any redress is due to customers that were mis-sold their loan.
If you are a former customer and have settled all your loans in full, any redress that may be due will rank as an unsecured creditor claim in the Administration. The extent of any payments to unsecured creditors (if any) will depend on the level of realisations achieved from the Company’s assets.
Please note that the timing and the amount of a distribution to unsecured creditors in the administration, if any, is uncertain at this stage. You should also note that it can take a significant amount of time to deal with a matter of this complexity.
We will contact you again in due course.
D says
Hi are there any contact details where I can get an update? The last email I received was in 2022 November and the chap at the administrator’s I dealt with has left the company.
Domonique says
On my credit file tfs loans has closed my account now. But I still haven’t heard anything from the administration. My case was with the ombudsman when they went into administration. And only was upheld by the advisor. It’s such a long process with very little information given.
AM says
Just checked my credit file and I now show a 0 balance on the loan. I was also at the same stage as you with ombudsman.
Again I have not heard a word from administrator.
Not expecting any refund but just glad my balance has now been cleared and my credit file updated.
Sonia says
I’m very upset as they have said I am owed nothing. The account is closed as I have made sure I paid the loan every month because otherwise myself and my guarantor would be harassed but they don’t realise how difficult it has been to pay this off every month. My mental health was effected and I had to retire from work at the age of 41 on medical grounds.
Andy says
3rd Nov 2023
EARLY SETTLEMENT DISCOUNT OFFER. PLEASE READ CAREFULLY
The Company has recently reviewed your original loan application by applying a set methodology and has concluded that you have not been mis-sold (“the Outcome”).
If you have not yet received written confirmation of the Outcome, this will follow in due course. In the meantime, the balance of your loan (as set out above) remains outstanding.
The purpose of this letter is to offer you a 20% discount against the balance owing, in full and final settlement of your loan, should you be able to pay off the remaining balance (“the Offer”), subject to the following conditions:
1. The Offer is valid for 28 days from the date of this letter and must be accepted by notifying us within 28 days of this letter; and
2. Payment, in settlement of the Offer, must be received by the Company within 28 days of acceptance.
——————————————
So my guarantee has just received this from administration but states that he made the loan application, this was deemed irresponsible by an adjudicator now saying I have to pay any thoughts appreciated
Sara (Debt Camel) says
Sorry to be clear, you are the borrower but your guarantor has been sent this not you?
“Deemed irresponsible by an adjudicator” at the Ombudsman before administration? Was this a claim by the borrower or the guarantor?
Are any payments being made?
Andy says
Hi Sara yes I am the borrower he sent me this today not happy about it at all , as he is just the guarantee, I made the claim as the borrower went to adjudicators decision upheld in que for ombudsman, but sent my guarantor this today
Sara (Debt Camel) says
so you haven’t had a decision yet? i suggest your guarantor tells TFS he can’t make a decision on the settlement offer until you have had your decision – and points you you had a claim in progress at FOS where it had been upheld by and adjudicator.
Andrew Bellis says
Hi Sara , why would he receive this from administration rather than me as this is their final decision that it wasn’t Mis sold but it was upheld by adjudicator as irresponsible lending , it seems they have got some admin wrong by using their methodology on my guarantee rather than me to make their decision
Sara (Debt Camel) says
I can’t guess this. I also don’t know if the administrators are handling guarantor or borrower claims separately, in which case the decision on whether he can afford th E loan may be different from whether you can.
Sorry, You need to talk to the administrators.
AM says
This is a bit worrying. I was at the same level as you with ombudsman.
I have heard nothing but I had an agreement with TFS before they went into administration and my payments were on hold and my balance is now 0 on my credit file. But no communication has been received from them.
Andrew Bellis says
I will call them tomorrow thanks for the advice Sara
AM says
How do we contact administrators, I receive no from any email I send them.
Anyone got a contact phone number?
Erica says
I am the Guarentor and I have received the same email – however I have a CCJ from them for 20K but the email says the total owed is 27k.
Additionally I have never had a statement to say how much has been paid etc.
Can I ask for a statement and/or ask for details of how they came to that figure?
Sara (Debt Camel) says
yes you can.
Talk to National Debtline about whether the creditor can add interest after a CCJ, see https://nationaldebtline.org/fact-sheet-library/interest-on-a-ccj-ew/
What is the rest of your financial situation like? Do you have other debts> Are you buying or renting? This is a poor F&F offer from the administrators… you may well be able to get a lower lower one if they sell the debt to a debt collector.
Erica says
I am currently paying £90 a month to them I have been since Feb 2021 this was agreed with them after sending them a finance assessment. They were checking my finances every 6 months and the last email I had from them was Feb 2022.
I wasn’t even notified that they had gone into administration and this email is the first I have had from them since Feb 22
Yes I have other loans, credit cards and I am a Guarentor on 3 other loans (one being Amigo).
Sara (Debt Camel) says
Are you buying or renting?
Have you made a claim to Amigo scheme? Who are the other guarantor lenders?
Erica says
I’m Buying
yes I have claimed on Amigo and still waiting for their decision.
The other two are 1plus1 and UKcredit I have CCJ’s for both those and 1plus1 have put a charge on my property.
Sara (Debt Camel) says
Have you and the borrower made affordability complaints to 1plus1 and UKcredit?
Erica says
No we haven’t – I don’t have any contact with the borrower for the 1 plus 1 loan. I don’t even know if she is making any payments.
UK Credit – I am discussing with the borrower doing an affordable claim with him.
Sara (Debt Camel) says
UK Credit – get on with this! Much better done sooner rather than later.
1 Plus 1 – you can make a complaint without the borrower. See https://debtcamel.co.uk/amigo-complaints-by-guarantor/
It may be harder to win these when there already is a CJJ but you have nothing to lose by trying and taking the complaint to the Ombudsman.
SG says
Hi Sara, I have an outstanding balance with TFS Loans. I made my affordability complaint well before they went into administration which they rejected and then unfortunately was to late to get it looked at by the Ombudsman.
After having no contact from them for a couple of years they are now chasing the outstanding balance of just over £3000. I except I have no choice but to arrange to pay the balance one way or another but am also aware their current administration period ends in February 2024.
My financial situation is considerably worse than it was when I took the loan so I have contacted them to say I can afford to pay no more than £10 a month towards the balance, which they said they would except but they would also go after my guarantor to see what they can pay each month… this is the one thing I desperately want to avoid as my guarantor is my elderly father who simply doesn’t need the stress or hassle.
Basically what I am asking is am I better off sitting tight and taking a default notice and whatever else they threaten me with until TFS Loans potentially become insolvent in February so I can then eventually deal with the debt collection agency they no doubt sell the debt onto who should be far more reasonable to arrange an affordable repayment plan with?
Many thanks in advance Sara.
Sara (Debt Camel) says
Administration periods can be extended.
If you cannot pay more than £10 a month what other options do you have? They are entitled to ask your guarantor to pay.
If the loan is sold, that doesn’t remove the guarantor. What is your Father’s financial position?
Chris says
Hi and thankyou for this wonderful site, the information on here has helped me get out of tens of thousands of pounds of unaffordable loans. I am the borrower of a guarantor loan and i had a complaint about tfs at fos, which I had an investigators decision upholding my complaint, tfs disputed this so an Ombudsman reviewed it and made a provisional decision on 5/2/22 again upholding my complaint, this was due to be finalised on 5/3/22 but due to tfs going into administration between these dates it never was finalised and was sent over to the administrators to deal with. I have had no communication from them regarding this complaint but received an email last week saying I have not been identified by their methodology as being miss sold my loan. I have appealed against this decision and sent evidence of the fos investigation and decisions to uphold my complaint. If the administrators reject my appeal are there any steps I can take to fight it? I currently have around £400 of the capital balance left to pay and around £9000 of interest.
Sara (Debt Camel) says
I am sorry, but there aren’t.
NS says
Is there a date that tfs loans will start paying out?
Sara (Debt Camel) says
No. the last administrators report says they need to sell some land in Grenada.