Was your car finance unaffordable?
The FCA, who regulates car finance lenders. and the Financial Ombudsman (FOS) say:
a loan is only affordable if you can make the repayments on time, without hardship and still meeting your other commitments.
That means you need to be able to pay all your other debts, your normal household bills and expenses as well as the new car loan payments.
You may have made your car finance a top priority as you don’t want the car to be repossessed. As a result you may have had increasing credit card balances, more loans or got behind with bills. That means even though you kept making the payments, the finance was not “affordable”.
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Affordability checks
A lender should have checked you could afford the car finance. This may mean checking not just your credit record, but also your income and expenses as well.
These checks have to be “proportionate”. If you have got a great credit record and a good income and are only borrowing a small amount, the lender isn’t going to have to look in great detail to be confident you can afford it.
But with a poor credit record, or where the repayments will be a large proportion of your income, better checks are needed. The FCA rules don’t say exactly what has to be done, but a lender often can’t rely on what the customer says their income and expenses are. Other ways to check include:
- your credit record shows what you are paying to other debts each month;
- there are national average figures for some expenses, so your estimate that you spend £60 a month on food or nothing on clothes isn’t realistic;
- the lender could look at payslips or bank statements to be sure.
These checks are often inadequate
The regulator thinks some car finance lenders are not checking properly for affordability. In 2019, the FCA said:
Here is an extreme case ‘Car payments are ruining our lives’ where a 23 year old student with a part-time job was sold a 21k Audi on finance, with apparently no affordability checks at all.
But it’s probably more common that a quick and inadequate check was done.
A car finance expert makes a lot of excellent points in this article: The car industry need to be more honest when selling car finance. He says:
It’s time for the car industry to do better, even if it’s to save customers from themselves.
“Affordability” is a test of your situation when you took the finance
The car finance company may have done a good assessment of affordability. At the start, you may have been able to manage the loan repayments.
Then something went wrong – perhaps you had your hours cut, or you split up with your partner. Or rising bills in 2022 mean what was manageable before isn’t any more. Here it’s not the lender’s fault that the car finance is now unaffordable and you won’t win an affordability complaint. Read Can you afford your car finance payments? which looks at your options in this situation.
But should the lender have seen that the loan was too expensive at the start if they had looked properly when you applied for the credit?
In this case, you can make an affordability complaint to the lender.
How to make a car finance affordability complaint
The affordability rules for car finance are the same as for other loans. So you can follow the approach and use the template letter for an affordability complaint in this article: How to ask for a refund from large, bad credit loans.
The template letter in that article asks for:
- a refund of the interest on the finance;
- for the remaining balance to be repaid at an affordable rate; and
- for any negative marks to be removed from your credit record.
If you have other serious complaints about the car, such as poor quality, you can add those into the standard affordability complaint letter.
A lot of lenders reject even good complaints. So don’t be depressed if this happens – just send it to the Financial Ombudsman – the process is all described in the above link.
What happens if you win the complaint?
If you win an affordability complaint for a normal loan, you get the interest refunded and if the loan is still running, your balance is reduced. It’s more complicated with car finance complaints.
You may wonder what happens if your car was repossessed and you had paid little or no interest?
If you still have the car finance, will you be able to keep the car?
See Car finance affordability – what you get if you win a complaint which looks at the different situations and what the ombudsman usually decides. It has some links to Ombudsman decisions – including one for a brand-new BMW!
Still have the car? You must keep paying the car finance
These complaints may take many months. You will have to keep up the loan repayments during this time, or your car may be repossessed.
Read Can you manage to pay your car finance? which looks at your options when you don’t think you can keep on paying while the complaint goes through.
Other sorts of car finance claims
€ar finance commission – cases won at the Ombudsman
In January 2024, 2 major cases were won at the Financial Ombudsman were people had been charged to high an interest rate on car finance in order to increase the commission the car dealer got.
See Car finance commission scandal – can you get a refund? for details and how to start a claim.
But if you think you may have a good affordability complaint it’s probably worth trying that first, as in an affordability complaint you get all the interest refunded, but in a commission complaint you would only get some of the interest back.
“Dieselgate” – a totally different sort of claim
You may have seen ads saying you may be able to get £,000s back as diesel cars were mis-sold because they produced more harmful emissions than advertised.
MSE has written a good article on these claims, with a list of the law firms you can use and what they charge. This is not a complaint you can sensibly try to do yourself. I have no idea how likely a payout is and it may take a long while.
Get interest refunded from large loans
Which debts are top priority?
How to end your car finance early
Lauren says
Hello, just after some advice really. I was allocated an adjudicator for my motonovo claim on the 13th January. I checked in with the adjudicator a week later and he said he had everything he needed and was reviewing the evidence.
Then 1 week a go he got back in touch and asked me for a copy of my credit file – which I then sent.
It’s now another week on from that and still no news. Does it usually take this long when an adjudicator gets assigned? And should I take it as positive that it’s taking so long and not been thrown out.
Sara (Debt Camel) says
Have you sent your bank statements?
Lauren Bartlett says
Yes bank statements were sent in original referral. Along with motonovo complaint response. Adjudicator was allocated and told me he had everything he needed. Confirmed that again a week later when i asked for update. Then 4 weeks later i chased update again he told me he needed my credit file and i had till 28th feb to get it to him.
I sent it that same day and had confirmation he received it. Its now a week later and still no news.
Sara (Debt Camel) says
I suggest you give it another week and ask about progress.
Lauren says
So frustrating. Every time I have emailed my case handler he has said ‘ive got everything I need’ then when I chase again i get ‘can you give me this information’. It feels like if I don’t send the initial email he does not email me asking for info. My claim has now been with the adjudicator for 6 weeks, and he just responded to an email today, asking for something else. Even though ive got 4 other emails saying he had everything. I just want my decision :(
Catherine says
Motonovo timeline-
-Finance taken in Jan 2019 at the time I had 10 loans(3 guarantor loans,5 in arrangements to pay and 2 others with less than £500 to pay)as well as 2 heavily utilised overdrafts(combined limit £7000)
-shocked to be approved for finance because of all that but desperately needed a van for work.
-struggling financially,mentally,had a gambling addiction relapse in 2020 when father diagnosed with cancer,this progressively got worse until he passed away in 2022.
-Submitted complaint Jan 18th 2022 regarding irresponsible and unaffordable lending and asked for DSAR report.
-sent screen shots of credit report and overdraft usage
-Asked for case to be prioritised due to all my issues.
-Emailed by welfare support team because of what I’d raised and asked if issues could be noted in my account.
-case handler assigned on 6th of Feb and was asked to provide bank statements,I sent statements from both accounts I used.
-case handler found not enough checks done and after a affordability assessment that the finance was unaffordable 3 days later on the 9th of Feb.He didn’t send the official decision but emailed to say he upheld it and would write a formal email and work out the redress and reply on the 12th of Feb.
-Had excellent communication from the complaints team and the case handler who replied promptly to all my emails.
Catherine says
-UNTIL……..I received no responses from the case handler last week when he’d said I’d receive email and calculation.
-no responses from any other email addresses I wrote to either asking what was going on so I raised another complaint about the lack of communication and responses.
-Finally had a reply to say my case handler was poorly and hadn’t been in,they quickly re assigned another case handler to issue the response/redress figure.
-During the time waiting I received my DSAR report which showed some redress figures and a draft final response that hadn’t officially been sent to me.
-But the figures the first handler made had been questioned by the payments team,so the 2nd case handler had to check them over and then get management to check and approve too.
-I figured from the redress figured I’d seen that the 8% was wrong as they are refunding much more than expected.
-Anyway this has finally been double checked and approved and they are refunding overpayments and applying 8% to that amount from the date the agreement.
-Also giving me £150 compensation for the distress and inconvenience the matter has caused overall.
-Advice-when you submit your complaint to motonovo,send your credit report and bank statements straight away,if your really struggling ask for case to be prioritised.Don’t be afraid to say how bad things have been or admit struggles/gambling issues.
Tim ber says
Hi.
I’ve been reading into this with the intent to put a claim in.
I had a high interest rate car finance with money barn.
I was on a dmp when I took the finance out and still on the dmp today. I also had a gambling problem and was regularly going overdrawn at the time.
We cut the agreement short by part ex the car and clearing the balance when my partner hot a new car.
I took a payment holiday throug covid not because I wasn’t working just to ease the pressure.
A couple of bills got behind during the loan not massively and I kept my head above water just throughout.
The car didn’t last the time of the loan hence part ex and cutting it short.
I’ve got together my dmp statements from the time and my dmp statement from this month.
I also have 4 months bank statement from around thr time showing the gambling. overdrawn and dmp payments. Also got my current credit record
Do you think this is enough info for the claim and do you think its a viable claim given I made all the payments on time excluding the holiday??
Thanks in advance
Sara (Debt Camel) says
It sounds as though they didn’t check thoroughly that you could afford the payments so this seems like a reasonable claim to me.
Tim ber says
It wasn’t woth it difficulties. It wad my first direct debit thatlef my account so I didn’t miss I but I missed other bills etc
Sara (Debt Camel) says
That is fine, everyone gives priority to car finance so they don’t lose the car. Getting behind with other bills shows you were in trouble. Make this point in your complaint.
Tim ber says
Sent my complaint in today. I’ll keep you posted on the response. I can’t imagine them admitting it. I’m sure it will be a case for the financial ombudsman.
Beth Hughes says
This sounds v similar to my case. The financial
Ombudsman have now contacted moneybarn for their side and hoping to hear some positive news very soon!!
Tim ber says
So my claim is in with moneybarn I’ve had a reply saying 4 weeks until an outcome. Is now a good time to get everything ready for the ombudsman?? I don’t hold much hope of them upholding my complaint.
Have many people had much luck with moneybarn upholding claims?
Also is there a huge wait for the ombudsman with alot of people complaining?? I pit a claim in a few years ago to a payday loan company and it was nearly a year before ombudsman upheld it is that still the case??
Sara (Debt Camel) says
What do you need to get ready? Think you already said you had your bank statements. I wouldn’t bother writing anything until you have seen Moneybarn’s reply.
Lauren says
Hi Sara,
Just in need of some advice. Adjudicator did not uphold my complaint based on my earnings and committed bills. They have disregarded all the gambling transactions every month and said as its not a committed bill they will not take it into account. Even though i had no money left each month.
Is this correct?
They worked out based on my salary and monthly commitments i had £413 left and car finance was £175.05.
But my addiction and gambling was not taken into consideration, should it be
Sara (Debt Camel) says
how much were you spending on gambling?
Lauren says
Over £300 a month sometimes more
Sara (Debt Camel) says
That seems like a large amount. I think you should go back and query this and say you would like it to go to an Ombudsman if the adjudicator doen’t change their mind.
Tracy says
Hi Sara, J
I am just looking for some advice. I put in a misled complaint to Advantage finance for my husband.
They responded immediately requesting bank statements to back up the claim, which I sent. They also asked why I applied which I answered that I was led to believe by Advantage Finance that I was able to afford the payments.
Today they have emailed me:
Good Afternoon,
I am currently investigating your complaint.
At the time completed the application, he inputted that his wages were around £2300 and stated that he was paid monthly. The bank statements obviously do not match up with this information.
Our firm and many others use modern electronic means of verification when it comes to checking income; inputted his income of £2300 per month. The facility checks the amount being credited into ALL customers’ bank accounts. Therefore, as the verification was successful we would need you to provide bank statements for all accounts held at the time of inception. I can see from your credit profile at the time you applied for the loan you had four active bank accounts showing.
I will need this information by Wednesday 29 March.
He never had any other bank accounts so I have no idea where they are getting this from.
They have had this complaint for nearly 6 weeks and now telling me I have a week to provide information that does not exist!
I would appreciate your thoughts and advice as to my next steps?
Thank you
Sara (Debt Camel) says
I suggest you reply that he only had the one bank account and your case will be going to the Ombudsman if it is rejected.
Beth Hughes says
Morning!
My complaint is with a case handler at the Ombudsman, Moneybarn haven’t responded to him in the timeframe he required. He gave them an extension date of today and to my Knowledge they haven’t responded – he has advised he will make a decision based on his findings and the information I have given him. I am really hoping this goes in my favour and I have a positive outcome – this first got sent to the ombudsman early last year!! Fingers crossed it’s now coming to a close, I will keep you updated.
James says
Same thing happened to me but with Motonovo. They didn’t reply in the time frame and the Adjudicator ruled in my favour. The issue now is because Motonovo haven’t responded to accept or reject the Adjudicators decision it now has to go to an Ombudsman and there is no time frame on how long this will take. They couldn’t even say if it would take more or less than 6 months.
Beth Hughes says
Oh really, that’s crazy. Have they now paid you?
I didn’t think things would take this long to be honest.
Beth Hughes says
So moneybarn didn’t respond in time so they will be making a decision based on the information they have. I wonder how long this part will now take!!
James says
No. Still waiting for an Ombudsman to pick up the case. It’s been 4 weeks so far.
Greg says
James, I think I’m in a similar position to you. Motonovo are a terrible company to deal with. Strangely, I welcome their delaying tactics. It should work in my favour and allow me to replay the intial loan amount and then not have to deal with fair usage amounts and returning the car.
I’ve read that it’s very rare for the ombudsman to rule differently from the adjudicator unless some new startling information is produced. In my case that’s never going to happen as they have nothing except a credit file and what I provided during the complaints procedure. Stick it out and you’ll probably get a bit more 8% interest.
Beth Hughes says
So after all this waiting and sending information and stress this has caused, the ombudsman don’t agree that moneybarn owe me anything. Absolutely devastated.
Sara (Debt Camel) says
Have you supplied bank statements and credit records? Is this an adjudicator decision or an Ombudsman decision?
Beth Hughes says
I have sent 3 bank statements on the run up to the lending by moneybarn, that shows DMP / payday lenders / gambling. But because from his workings out my “disposable” was £425 per month that my payments to moneybarn were affordable. He is an ombudsman investigator. They’ve said I can refer to an ombudsman but from what I’ve seen the decision is unlikely to change :-(
Sara (Debt Camel) says
Have you seen the details of these workings?
Beth Hughes says
I have a very lengthy email from ombudsman, far too long to copy and paste into here but ultimately comes down to because I had enough money they don’t think it was unaffordable. They’ve stated that moneybarn didn’t have a copy of the credit check from the time also “ s reasonable and proportionate checks weren’t carried out for this agreement, I need to decide what a reasonable and proportionate check would likely have shown.”
Sara (Debt Camel) says
it sounds as though the main problem here is whether you had enough money…
Has the adjudicator given you the details of the calculations? Because I assume you think the payments were unaffordable. If they haven’t, go back and say could you see their calculation as it doesn’t sound right to you. You could supply your own, but it’s often simpler to point out what is missing/wrong in the adjudicator’s calculations.
louise brind says
Hi Sara,
I got a reply back from Advantage and they said that there affordability checks are done by Current Account Turnover Data? I’ve never heard of that and when I look it up all that comes up is Commercial use and use for businesses nothing about personal finances. Their reason for dismissing the complaint are laughable. My brother had 3 CCJs entered recently before applying for finance and none were satisfied at all and no payments towards them plus he had an car loan totalling £18000 that was in default and repossession order going through court in the month he applied. They said they don’t check statements or wage slips nor ask any questions about outgoings. So baffled at their affordability checks and how they justify the lack of.
Sara (Debt Camel) says
send it straight to the ombudsman. You have his bank statements for this one I assume.
louise brind says
Yes and I can also show the CCJs and Moneybarn loan too and the status of it. Just confused as to what the CATD is. I’ve never heard of it before.
Sara (Debt Camel) says
Not heard of CATD. CATO is Current Account Turnover.
Jade says
Hi,
I’m curious as to how I go about making my affordability complaint. The garage I was sold my car from is no longer there, the salesman is at fault for pushing a vulnerable freshly 18yr old girl to buy an unattainable car but black horse, the lender, agreed to finance it so who would I complain to?
Sara (Debt Camel) says
Black Horse. They are the one that loaned you the money.
Are you still paying for the car?
Soph says
Hi Sara,
Hope your well,
Where do I begin with doing this.
My car finance was with Black Horse, the finance period has ended. But it was unaffordable at times as I was on statutory sick pay and maternity pay.
Many thanks
Sara (Debt Camel) says
At the start of the finance, do you think Black Horse should have realised it was likely to be unaffordable?
Soph says
Yes, the salesman was pushy.
I struggled to make ends meet by having a large payout every month so they should have realised.
Sara (Debt Camel) says
The the “ How to make a car finance affordability complaint” section in the article above explains what to do
Phil says
Hi how far back can you claim on an affordability complaint with car finance?? Had finance in 2014 which was over 60 mths, it was through a dealer so they dealt with everything. I can’t ever remember them asking for any wage slips or having to prove anything, I then kept the car for about 2 years and went back to the same dealer to see if they could buy out the finance and purchased another car with them. So took another finance agreement out which was 4 years and finished paying it about 3 years ago.. During this time I defaulted on other debts and struggled to finish the finance off because needed my car.. It was with motonova
Sara (Debt Camel) says
There is a difference between how far you can legally go back and whether you have any evidence about your situation in 2014 or 2016. How far back do you have bank statements?
Phil says
I do online banking so I can download them, so I will check how far they go back. I just wasn’t sure if there was a limit on the time.
Sara (Debt Camel) says
In theory you can go back to April 2007.
In practice the lender may have little or no infomration about old loans so if you don’t have any, it can be hard to win these cases. 2016 isn’t that long ago though, so it’s worth a try if you have bank statements.
Phil says
Thankyou I will definitely be looking into it
Sic says
Hi, I believe I have a case i had a car finance in my name 2 years ago, at the time my credit score was bad I couldn’t even get a loan out. The reason why I got the car finance was for my ex who needed a car at the time, when we received the car in the first week or so the car had to go into the garage something to do with an oil leak and when we got it back after a couple of weeks it had to go back for the same situation, after a year I sold the car but of course less than the value of the overall car finance so there was at least 2k to pay off towards the finance
Is there a possible chance of any refunds available
Sara (Debt Camel) says
You may have an affordability complaint – which the article above discusses – and you may also be able to argue that the car sold was not of satisfactory quality.
Sic says
Who can I go to with this, who do I report too
Sara (Debt Camel) says
You make a complaint to the car finance company as the article above explains
louise brind says
Hi Sara,
I couldn’t find my original thread so I hope this is ok. Just had a response back from advantage finance about my brother’s car loan being unaffordable. The refused it saying they use Credit checks and the Current Account Turnover data for checks. I asked them for the file that shows the results and they at first said it was in my final response but when I pointed out that it wasn’t they kept brushing me off. I then sent a DSAR and I received an online file with everything I already have. Emails, pre contract letter etc but not any documents with the data they said they used. I sent back telling them that I wanted all information they held especially the affordability checks from CATO and Credit scoring. I received a reply “ Please be advised your application was automated and therefore there is no copy of your application/affordability check data/Credit file scoring. Your application was automatically verified when you entered your card details on the system which verified your identity and your income. We suggest you contact the introducer, Midland credit as they may have this information but it is not something we hold.” Am I going nuts or is this normal for a loan that was just under £11k. I’m thinking that this shows that there wasn’t any real checks otherwise they would have produced the evidence that they did. I am just going through his bank statements and other bits to a file to send to the FOS so any help or guidance would be much appreciated.
Sara (Debt Camel) says
Just send this to FOS straight away.
They may be right that they don’t hold any information in a shareable format – that may make it harder for them to argue their case at FOS :)
louise brind says
That’s what I’m hoping. Just surprised me. I’ve never come across anything like that. If they do bring out anything like that to the FOS I will make sure the FOS are aware that they didn’t comply with my SAR request 😊.
Natz says
Hello.
Some advice
Got car Car finance last April for £219 a month. Also have guarantor loan at 250 a month. Part time wage of £800 per month mum of two kids. Neither was affordable. I have submitted a claim for the loan. What are the chances of getting the car finance interest frozen etc. I was behind on my payments and car was repossessed but managed to borrow the money for arrears and got the car back. Cost of living / covid has hit hard
Any advice welcome
Sara (Debt Camel) says
who is the lender for the guarantor loan?
the car finances – you are no longer in arrears?
how much did you borrow – not including the interest added?
how much have you paid in toal to the finance so far?
What other debts do you have – overdraft? catalogues? cards?
Natz says
Guarantor loan. Borrowed £5000. Have paid £4148 so far. £4710 left including interested.
Not sure how much the car was excluding interested. Arrears were paid to get the car back as it was repossessed.
It’s mainly the loan that I’m worried about. It was definitely given without proper checks.
Have 3 credit cards and an over draft. And in arrears with priority bills.
Sara (Debt Camel) says
So I am asking a lot of questions because in a very tight situation, it’s best to go after every lender you may have a case against. Not just one of them. This is because you don’t know which you are most likely to win , you don’t know how it may take, and winning just one case may be good but may not have resolved your situation.
Who is the guarantor loan lender?
It is VERY unlikely you can get the car interest frozen. But you may be able to win an affordability complaint… can you dig out your paperwork and find out the amount you borrowed? And also look through your bank ctatements to see how much you have paid to them so far? i know this sounds like a hassle, but you need to know what will happen if you win this complaint, not just blindly put one it. It could make a BIG difference to you if you can win this.
3 credit cards – have any of them increased your credit limit when you were only making minimum payments? if this has happened you may be able to win an affordability complaint about them too – use the template on this page: https://debtcamel.co.uk/refunds-catalogue-credit-card/
And for the overdraft, are you in just at the end of the month? or most or all days?
priority debts – apart from the car fainance what do you owe, rent, energy bills, council tax?
Natz says
Guarantor my loan is the lender.
2 credit cards increased my limit without asking me and yes making minimum payments.
Over draft in it towards pay day.
Sara (Debt Camel) says
OK GML is still in business.
If you are only in the overdraft for a few days a week this one probably isn’t worth a complaint. But the 2 cards increasing your limit probably are. good luck!
Come back when you have the numbers about the car finance as this would be a great one to win.
Natz says
GML offered me a top up when I rang to ask how long I have left. I said no as I knew it couldn’t be afforded.
What are the chances of them up holding my complained. Paying them 60 a week and my wage was just £197 a week sometimes not even as my work as a healthcare assistant wasn’t always guaranteed. That left me £137 to provide for two kids priority bills and to live on etc.
Sara (Debt Camel) says
well it sounds like a good complaint to me!
What is your guarantor’s financial situation? Would the loan be unaffordable for them too?
Have you looked at a debt management plan for all credit cards and overdraft, to get the interest and charges stopped on those while your guarantor and car fiance claims goes through? You should not be getting behind with priority bills.
Natz says
No it would t be affordable to them
I will await the outcome of the complaint so fingers crossed.
Sara (Debt Camel) says
if it wouldnt be affordable for your guarantor, suggest they should also complin! That was if they win their complaint they will be released as guarantor even if you lose yours. Which I hope you don’t, but they complaining too gives yu an extra chance of getting them released.
Natz says
Hi Sara GML said they aren’t with holding my complaint. They said they done the proper checks and I verbally agreed it was affordable. Have sent to FOS
Tim ber says
Hi
I sent a complaint in to money barn on the 2nd march. They responded on the 6th and said they’d look into it.
4 weeks in they sent another email saying they haven’t come a conclusion and need more time.
It’s now 8 weeks in and nothing.
Am I right in think they have 8 weeks and I can send to the fos??
Am I better waiting for their reply??
Is it 8 weeks from them picking it up (6th) in which case they’ve got a couple of days or is it 8 weeks from when I sent the email.
Thanks in advance .
Tim ber
Sara (Debt Camel) says
It is 8 weeks from when you emailed them. But as they responded pretty quickly I would give them 8 weeks from then.
I would send it to the Ombudsman at that point. MB don’t seem very speedy at the moment.
The 4 week response is automatic, it doesn’t mean anyone is looking at it.
Natz says
I had GML contact me via phone to discuss my email. I just told them il wait their response via email. He said he wasn’t from the complaints department and just wanted to talk.
Is that normal?
Sara (Debt Camel) says
they are a small lender, it’s hard to guess what is normal
James says
The ombudsman has come back with their decision and ruled in my favour!! Adjudicator ruled in my favour but Motonovo didn’t agree. It was passed to the Ombudsman at the end of Feb and they got back to me on Monday with the decision. (Put time frames incase anyone was wondering how long it took for ombudsman to look at my case).
This is obviously great news. Is this final now?? The adjudicator said he will be writing to Motonovo and that they should be in touch by letter but he said they have 4 weeks to arrange and make payment.
Sara (Debt Camel) says
As the Ombudsman hasn’t changed the adjudicator decision, this should now be Final. If it has changed at all, even a little bit, then it will still be Provisional and Motonovo can go back and argue more.
If it is a Final Decision it is legally binding on Motonovo and they will pay up :)
Remind me of your situation do you still owe a balance? Did you finish paying the finance?
Jamie says
I finished paying for the car and put in my complaint the week later. The whole process from my complaint to Motonovo to this point has taken about 7-8 months. Glad it’s over. Just waiting for the letter now with the calculations from Motonovo. Hopefully no more delay tactics or funny business from them and things go smoothly.
Gabby Harrington says
Hi. I have had a complaint upheld by a FOS investigator, for unaffordable lending back in 2018 from Advantage Finance. Advantage have rejected the decision, made End March 2023, and asked for an ombudsman to look at the case. I have been waiting almost a year to get here.
The investigator said Advantage should repay all of the interest I paid plus 8%.
Why would advantage ask for the case to be looked at again, does the ombudsman generally agree with the investigator? I’ve been waiting over a month since it was passed to another person at FOS. I wonder what the chances are of the FOS agreeing with the investigator? Seems such a long drawn out process, I never realised the company could reject the decision for it to be looked at again! Any advice! Thanks so much!
Gabby says
Correction the investigator passed it to the Ombudsman on 27th Feb, looking at James’ case, I hope to hear back this week or very soon! (Fingers crossed!)
Sara (Debt Camel) says
In 90% of cases the Ombudsman agrees with the adjudicator
PT says
Hi
I’m wondering if you can offer some advice?
I have car finance through blue motor finance. I took the finance in Oct 2019 my monthly payments are £454 a month. At the time I had a number of high interest loans, maxed out credit cards and missed payments every month on my credit report. My credit report was also very very low. I’m due to finish paying for the car in oct 2024. But so far I have paid £19,522 the cost of the car was £19,997. I was wanting to put an affordability complaint in but worried that they will request my car back, can they do this? Do you think I have a claim or should I not bother. When I originally applied for the car the payments would be £300 roughly but I was rejected that and the dealership came back with this offer that I took up even though it was a lot more than I could afford to pay. Any help would be appreciated x
Sara (Debt Camel) says
So after the next month’s payment, you will have paid BMP more than the £19997 that you borrowed. From that point if you win the complaint you should be able to keep the car and have the remaining balance wiped.
It sounds to me as though you may have a good case. If BMF reject it, send it straight to the ombudsman.
You WILL have to carry on making the monthly payments while the complaint goes through at BMF and with the Ombudsman. If you stop paying they may try to repossess the car.
PT says
That’s what I thought thank you for confirming it’s really helped. Fingers crossed the uphold the complaint x
Richard says
Hi all, does anyone have any idea how long it takes for an Ombudsman to be allocated a case, to them providing their resolution? I received a response in mid-April from the Investigator stating that they uphold my complaint, however the finance company are saying they don’t agree and so it will go to the Ombudsman. Just wondering how long this will drag on for…
Sara (Debt Camel) says
It seems very variable I am afraid. Are you still making payments to this debt? Who was the car finance lender?
Richard says
Thanks for your reply. No, the finance was settled previously by part exchange and adding a small balance to my existing car loan. The lender was Blue MF.
Danni says
Hi, I was not sure where to put this question so apologies if it needs to be moved to another thread. I have been a few days late paying my car finance which resulted in some overdue interest charges being added however when I make my payment early they do not reduce the interest on my account. At one point i had overpaid by 1 full months payment however this was not allocated to my account and was sat in a side account. I wondered if this was correct.
When I contacted the company they then said that any further overpayment would be used to reduce any charges that were sitting on the account rather than reduce the capital. Again i wondered if this was also correct.
Thanks for your help.
Sara (Debt Camel) says
I suggest you take the car finance paperwork to your local Citizens Advice and ask them about overpayments and your rights.
Paul says
Hi Sara, just got allocated on Friday. Is there a difference between an abjuductaor & an Investigator from the FOS?
Thanks
Sara (Debt Camel) says
No. Same job.
Emily says
Hi Sara,
Just an update. The FOS have rang me today to let me know that Moneybarn have now upheld my complaint. They are offering me £2997.09 plus 8% over the two years I had the agreement and removing any negative information from my credit file. My question to you is what would that 8% work out at roughly please?
Sara (Debt Camel) says
So this is an offer from Moneybarn , not a decision from the Ombudsman?
Did they say how they had calculated that?
When you bought the car in 2019, how large a deposit did you pay?
Emily says
I basically rang the FOS for an update and they said that Moneybarn came back to them with this offer. They said it was from the date of the agreement til the voluntary termination date which worked out 2 years and 1 month. I didn’t pay a deposit. They said the £2997.09 they worked it out by deducting interest off my monthly payment amount.
I was paying £214.10 a month. I made 24 payments and the payment at the end I had to pay was £642.30. The interest for the agreement in total was £6281.90 for the 60 months but obviously I terminated.
Sara (Debt Camel) says
ok so that works out at paying about £125 a month for the period you had the car. From what you have said that looks like a pretty good offer from MB, I doubt you could get much more by asking the Ombudsman to look at the case and it would take a lot longer.
It ooks like you VTd the car in May or June 2021. So that is almost exactly 2 years ago. the minimum 8% interest should then be 16% ie about £450-500.
MB will probably take 20% off this 8% part as tax. If you are a non tax payer or a basic rate tax payer you can get this deduction back from HMRC, see https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
Emily says
Hi Sara,
I have just received final breakdown.
Refund of overpayments: £2997.09
8% simple interest: £577.45
Tax deducted: £115.49
Would I be able to claim this tax back? And how can I fill the R40 form in please?
Many thanks
Sara (Debt Camel) says
yes you probably can – see https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
Lisa says
Hi there. I made an irresponsible lending complaint to Ford credit and they have upheld my complaint. They have offered to refund all interest and charges also
The deposit I had paid initially, so looking at a refund of around £3900. I made the complaint in less than a week and they got back to me in the same weekZ they haven’t mentioned anything about the 8% interest? Is it worth me asking for this to be refunded to??
I have about £400 left to pay which the dent is now with link. Ford has said I will have to clear the balance with them but they will contact them and get any bad marks against my credit report. Great win but did leave me in real bad finance difficulties. Thanking you in advance.
Sara (Debt Camel) says
Nice one!
How long ago did you buy the car?
Are they giving you a cash refund or using it to clear most of the balance with Link?
LisA says
Hi Sara. No they said I have to clear balance which is fine. I bought car back in 2015 but actually had an accident so write car off a year after buying. My insurance covered most of what was owing but there was still a balance of about £3000 left to pay so managed to get that down to around £400. They have said they will pay interest on the deposit only so an extra £500. I’m happy with outcome 😄
Steve says
Hi Sara,
I am not sure if this is the right forum or I should be looking at a different one. I have sent an affordability complaint to moneybarn regarding car finance I had and they have come back and rejected my complaint. I was wondering if you could advise me what is best approach before I go to FOS.
This is what they provided as a response.
Your existing borrowing levels and monthly credit commitments were reviewed and appeared affordable.
• Whilst we could see that you had defaulted on some previous borrowing, the most recent of these had been entered 17 months prior to your application. We could also see that you were making contributions to paying back the sums owed.
• There was 1 County Court Judgement applied 18 months prior.
• There was no insolvency information recorded on your file.
————————–
We took this out in 2017. We were making the payments to them but this was only because when we were paying other debts at the time they classed this as a HP as we would lose the car at the time. We did also make comment to financial difficulties to them during our time which I and they have record of. If that make sense.
Steve says
I took this out in 2017 and lasted for 2 years. They provided me with all my SAR when I asked for it. The problem was I had gambling problems as well around that time which if they had looked closely at my statements they would have seen these.
Sara (Debt Camel) says
I don’t think MB will change their mind so send this straight to the ombudsman
Steve says
Ok many thanks. Really appreciate it. Will do :-)
Steve
Tom says
Hi, taken SMF to FOS so far it’s been found in my favour. By adjudicator, Deadline passed for SMF to reply, no comment from them, been given a week extension to reply – that ends next week. How long can they drag this out before Ombudsman makes final decision. So far seems like they want to drag it out. Any thoughts… will Ombudsman find in my favour?
Sara (Debt Camel) says
It’s possible FOS will give them another extension. But it’s more likely that they will put the case in the queue for an Ombudsman. Sometimes a lender will still pop up and accept a decision then, before an Ombudsman picks it up.
FOS data says the Ombudsman agrees with the adjudicator in 90% of cases.
Naomi Higgs says
Hiya, I put in an irresponsible lending complaint against moneybarn back in March, today I’ve recieved a final response saying they’re not going to investigate it because it’s past 6yrs but I’ve read on here that I can still complain because I wasn’t aware I could complain until last year.
In the final response it actually states that they didn’t do the proper checks and should’ve never have leant to me, that’s an admission right there.
Can I still take this the FOS do you think? If so how can I draft my complaint to them, I want to make it clear that I wasnt aware I could complain and that the FOS should investigate it further. Thanks
Sara (Debt Camel) says
How long ago did you take the finance out?
Naomi says
It was taken out in Nov 2015, I got into a lot of difficulty and they do mention the difficulties in their reply
Sara (Debt Camel) says
Yes you can send this to FOS. Try to get hold of your bank statements from the 3 months before the finance application – they can really help probe unaffordability. Do this now.
Tell FOS that you knew you had big financial problem years ago, but until last year you were unaware that a lender had to check for affordability so you did not realise Moneybarn were partly at fault for giving your the finance.
Sandra says
The Ombudsman refused to look at mine as well because it was past the six years unless exceptional circumstances. Advised I did not know HP was included also was looking after dad with dementia while trying to work and then mum with cancer. But good luck there is no harm in trying yours might agree.
Sara (Debt Camel) says
All of these cases are individual. Your car finance was pretty old.
Naomi says
I haven’t referred it to the ombudsman yet, I plan to citing exceptional circumstances, considering moneybarn have admitted fault I’m hoping it goes in my favour.
Mark says
I missed the 6 year deadline by 4 months but put in the complaint i only realised i coyld complain about the misselling and that i only realised it had been mis sold in the last year or two. The ombudsman are asking moneybarn can they look into it which in the final letter off them they said they would decline it. I spoke to the ombudsman today about who makes the decision about the “3 year rule” and they said they decide. They want me to keep sending them emails saying why i think it was mis sold. What sort of things can i put in it. Ive put things like they rejected me for the first car i wanted as it was too cheap and forced me to look for a more expensive car (said minimum amount they would borrow me was £4200. Car i wanted was £3500). Put down it became a priority debt as i was only late with one payment. I had so many payday loans outstanding and a gambling addiction i was petrified of having the car taken off me for work). They said they proved i could afford it when i sent them payslips. They didnt mebtion there was like 20 hours overtime a week on the payslips because i was in so much debt and because of my addiction. I also have ADHD and OCD which leads to depression and anxiety when certain things happen i cant control. But he sort of hinted they need more. Any pointers for me to include. I struggle to think rationally with me condition. Any help would be amazing. I dont want the ombudsman to reject the “3 year rule”. Its all i have.
Sara (Debt Camel) says
At the moment you are not trying to win the case, you are just trying to win the argument that the Ombudsman should look at it even though it is over 6 years ago because you have only become aware in the last three years that you have a cause to complain.
They want me to keep sending them emails saying why i think it was mis sold.
could you put in here exactly the questions that you have been asked to answer, not your summary pf them
Mark Wilson says
They didn’t specifically ask the questions. It was more “if there is anything more you can think of why you think it was mis sold to me, then keep emailing more proof until we gear back from moneybarn”. They may have enough info, but with me having my mental issues, I don’t want to miss anything important that could well turn the tide in my direction. They have definitely missed sold to me. I just don’t want to kick myself if I don’t bring up an important matter and I get rejected. I just need ideas I can look into. Love your work too. Thank you.
Sara (Debt Camel) says
So have they heard back from Moneybarn?
Do you have evidence of payday laon borrowing before the car finance application?
Do you have any evidence from your doctor about your mental health from the time you took the application out to a couple of years ago?
Mark says
I still have payday loan debts from around that time with defaults on todays credit report. I have letters off my mental health nurse, help from the CAB etc. Which I have I formed them about. I was wondering if I should look into, or request things like secret Commission I wasn’t told about etc. I think I’ve done all I can. I was wondering if there was a list so.ewhere I could tick off as Covered or not covered etc. Apologies if I’m asking too much.
Sara (Debt Camel) says
I was wondering if I should look into, or request things like secret Commission I wasn’t told about etc.
Have you complained to the finance company about this?
Mark says
I don’t know if there was any commission changing hands, so No. Should I have put it into my original complaint? Or will it be in the DSARS thing I have received off them? Or is it pointless bringing it up now?
Sara (Debt Camel) says
OK so this is going to seem comlicated but just read this a couple of times and I hope it will become clear.
An affordability complaint and a complaint about undisclosed commission are two totally different things. Winning a complaint about undisclosed commission will not help win an affordability complaint or vice versa.
So there is no reason to mix them up.
You have made an affordability complaint. If you win that all the interest will be refunded.
Winning an undisclosed commission can only refund the commission at the most (we don’t know what the refunds will be in these cases, see below) and the commission will be less than the interest because the commission was paid out of the interest.
So if you win the affordability complaint, there is no reason to bother with an undisclosed commission complaint – you will already have had the maxiumum refund you could get.
If you lose the affordability complaint, at that point you can think about making an undisclosed commission.
Sara (Debt Camel) says
There are some key undislosed commission cases going through the Ombudsman at the moment. Until the Ombudsman’s Final Decisions are published, we don’t know what the ordered redress will be. Nor what evidence is needed to make a claim.
So I would say it’s best to wait with these undisclosed commission claims until we know more. Don’t sign up with one of the legal firms touting for business – it may well be this is a simple claim to make yourself and save the VERY high claims fees.
If you had already started an undisclosed commission case you would have to carry on with it now. But I am glad you haven’t as it will be much simpler when things are less in the dark in a few months.
Mark Wilson says
Totally understand. Thank you.
Mark says
Also, I was declared bankrupt in October 2010. I got the car finance in March 2016. Would the bankruptcy still have been on my credit report? And also, is this something I should bring up to the ombudsman too? Or will it affect my claim? Thanks.
Sara (Debt Camel) says
Yes bankruptcy would still have showed in March 2016. You can point that out to the ombudsman, but most bad credit lenders like Moneybarn wouldn’t regard that as a major problem.
Bankruptcy isn’t a problem for your claim – after discharge there is no reason why you shouldn’t #t have taken out car finance.
Tim ber says
Hi sara.
I put my claim forward to the FOS at the beginning of may expecting a lenghty wait.
The claim was against moneybarn. I got an email last friday saying that i have an adjudicator followed by another email yesterday saying moneybarn have made an offer of the full interest paid £7825 plus 8%.
Which is amazing. Never expected it so quickly.
Thanks to your website for all the advice the templates etc.
Ive accepted the offer immediately ive had conformation today. Is there a time frame moneybarn need to get it done by now cause theyve been very poor in responding to me in the past??
Sara (Debt Camel) says
Excellent news.
Do you still owe a balance? Has that been sold to a debt collector?
Tim ber says
Nop balance was cleared with the value of the car on part ex. I owe them nothing no defaults on it as i made it a priority debt.
Sara (Debt Camel) says
Then I would hope they pay you in 28 days.
Tim ber says
So ive still herd nothing from moneybarn. ive even rung them to be palmed off by them after been on hold for 1hr15mins. I needed to be transfered to a different department which mysteriously got me “disconnected”.
Since then ive tried ringing a couple of times and just get left on hold waiting for an operator longest one upto now 1hr37mins.
Ive left 3 emails which they havent responded too.
Ive now got in touch with the fos to ask what can i do now . I was appointed an adjudicator to my case just before moneybarn made an offer.
Is there anything else i can do they seem to be ignoring everything now??
Kind of just left scratching my head.
Do i just give them more time??
Sara (Debt Camel) says
well it still hasnt been 28 days from the point to Moneybarn that you were accepting their offer. At the moment you are just wasting your time trying to speed this up – they are not late.
Sam says
Hi Tim ber
Good news on your result. Do you mind if I ask when you took the finance out? I’ve put a complaint in against Moneybarn from May 2017 which falls just outside the 6 years which I’m sure they will reject but hopeful the ombudsman will look at.
Tim ber says
Hi it was novemeber 2018 i took out the finance. I part ex’d my car in just after 4 years to clear the balance as i was eligible for a far lower interest rate so it made sense.
Bob says
How long did it take in the end to receive your money? I got a email of moneybarn saying it will be 10 days to receive the money, now it’s 10 working days which has passed and just keep getting fobbed off.
Sara (Debt Camel) says
Is this car finance? Or a guarantor loan?
Fatima says
Hi sara,
Quick question a car finance are chasing for non payment of missing £80 a-which is the arrears. I have been making payments each month, mostly short of £80 each time, but make it back up. The finance is chasing and stating to zvoid further action. What action could they take given I have 10mths of installments left. Orginal price 18k paid 22k and remaining 6k. What are my options
Sara (Debt Camel) says
So at the start of a month you are £80 in arrears. Then you pay them the normal amount less £80 but you make that £80 during the month so at the start of the next month you are again £80 behind?
Do you have other debts? Are you behind on any bills?
Read the article above – do you think you can make an affordability complaint about this car finance?
Fatima says
Payments are 454 each month at the moment I have been paying less than the full amount required. Sometimes I do the full amount at a stretch. I try to keep the amount in arrears less than the 454. In arrears with priority bills , council tax , energy and in dmp. They state that they will take further action. Case is currently with FOS but taking sometime since I put it in March
Sara (Debt Camel) says
how much are you paying a month to your DMP and how long has the DMP been going on?
Fatima says
£98. I started this back in March, but when I took out the intial agreement in 2019 . I was on a dmp then too, except I was living with family. The finance company did not ask for nothing but payslips and driving licence. I still have the evidence
Sara (Debt Camel) says
So I am glad you have an affordabilty complaint underway.
Have you also looked at affordability complaints about the debts in your DMP?
re these arrears. I suggest you ask your DMP company (who is it?) if you can miss a month’s payments to clear the arrears on your finance.
kim says
Hi!
I made a complaint in March to the financial ombudsman about several companies that gave me credit and Barclays partner finance are one of them. Two of my complaints have been upheld and are being looked into now by the same case handler, which is great.
The Barclays partner finance complaint is being investigated and currently the only thing that Barclays have come back to us to say is that the complaint cant be upheld as its too late. Is this right? The finance was started in may 2015 and the car was repossessed and the finance handed to a debt collector in March 2018 and I finally finished paying off the debt in January 2023. I have all the paperwork still and sent them all the bank statements/gdpr things and everything but I don’t think its all been checked properly as a few other details have been wrong.
Sara (Debt Camel) says
Most lenders reject complaints about things that happened more than 6 years ago, saying they are too old.
But the Ombudsman’s rules are:
– FOS can look at anything that has happened in the last 6 years;
– if FOS decides you have only had a cause to complain in the last 3 years, it can decide to go back further than 6 years.
FOS will have asked Barclays if they agree to have you complaint looked at, as the loan was over 6 years ago. Not Barclays have said No, FOS need to decide if the “3 year” part of the their rules can be applied here. Has your case handler asked you any questions about this?
The point to make to FOS is that you obviously realised you were in difficulty in 2018 when the car was repossessed, but at that point you had no idea that Barclays should have checked that the car finance was affordable for you, you thought it was just your fault for taking it out, so you had no reason to make a complaint.
Kim says
Ahh that makes sense! Yes they sent me this:
When and why did you realise that the car finance agreement was unaffordable? (Please provide an explanation and a date DD/MM/YY)?
When did you realise that Clydesdale Financial Services may have contributed towards your financial difficulties (please provide an explanation and a date DD/MM/YY)?
Did any exceptional circumstances apply to the delay in raising your complaint?
CH says
Hi Sara,
This is an amazing site!
My husband received a letter in the post approximately 3 weeks ago from Barclays Partner Finance. They basically said something along the lines that they may not have done their checks correctly when my husband got car finance in 2018. they apologised in the letter and said that they want to make things right. my husband had to reply to them to confirm if he had been able to afford payments or if he got into financial difficulty which he did. have you heard of Barclays sending a letter like this?
Sara (Debt Camel) says
No-one else has mentioned this. I will look out for other examples.
What happened with the finance – did he manage to repay it but only by borrowing more elsewhere?
Ch says
Hi Sara,
So at the end of the term he had a balloon payment of approx £4,000 so he had to trade in car. He finished the finance but he had to go onto a dmp about 9 months after taking out the finance as he had taken out a couple of credit cards and loans to pay for other bills etc..
Sara (Debt Camel) says
Then I suggest you reply to Barclays saying that his other debts rose while he had the car finance as the payments were too high for him soi he had to go into a DMP in month/year. Say also you have now done some research and you feel the finance was unaffordable and should not have been given, so you would like to ask for a refund of the interest that he paid on the finance.
Ch says
Hi Sara
Thanks for coming back to me. So we already had went back and explained the situation he found himself in. He also said that he had to keep paying for the car as he has a commute each day to work (approx 85 mile return each day) so he needed it for work. He seen it naturally as a priority bill because he had to get to work to get paid. He actually would have loved to have kept the car because it was low enough miles and a great car but he had to hand it in as he couldn’t afford the balloon payment at the end.
Sara (Debt Camel) says
So wait and see what they reply.
If they don’t offer something reasonable, if they tell you you have the right to go to the Ombudsman, do that. If they don’t say that, reply that you won’t them to consider this as a formal affordability complaint which you will be taking to the Ombudsman if it is not upheld..
Ch says
Hi Sara,
Thanks for this. We will wait and see what they come back with. I will update as soon as I hear anything. Thank you again for your help
Steve says
Has anyone on here dealt with Blue Motor Finance? If so, just wondering what your experience was like if you were awarded redress for a complaint? How long did they take and what the communication was like etc.. Many thanks.
Sara (Debt Camel) says
I think there are a few cases at the Ombudsman at the moment.
Here is one where BMF accepted the complaint and it didn’t have to go to the ombudsman https://debtcamel.co.uk/unaffordable-car-finance/comment-page-5/#comment-501000
Ombudsman decisions show them losing quite a few complaints.
–
Gemma says
Hi Sara,
I’ve just had the ombudsman decision & they’ve upheld my complaint against moneybarn!
They’ve instructed them to write off all interest, refund me anything over the purchase price of the vehicle that I’ve paid & apply 8% simple interest… amounts to about £9k by my calcs …… best of all, correct my credit file!!!!
I cannot thank you enough! If I hadn’t found your site I’d have never known how to take them on!
Thanks again, Gemma
Fernanda says
Hi Sarah,
I have just received an email from FOS ruling in my favour.
To settle Mrs A***** complaint Moneybarn should do the following:
Refund the deposit, adding 8% simple interest per year* from the date of payment to the date of settlement.
Moneybarn to calculate how much Mrs A**** has paid in total and deduct £3,500 for fair usage. If Mrs A**** has paid more than the fair usage figure, Moneybarn should refund any overpayments, adding 8% simple interest per year* from the date of payment to the date of settlement.
Remove any adverse information recorded on Mrs A**** credit file regarding the agreement.
If there any arrears after the settlement have been calculated, Moneybarn should arrange an affordable repayment plan. And treat Mrs A**** with forbearance and due consideration.
*HM Revenue & Customs requires Moneybarn to take off tax from this interest. Moneybarn must give Mrs Atherton a certificate showing how much tax it’s taken off if Mrs A***** asks for one.
What are the changes of Moneybarn declining this?
Thank you
Sara (Debt Camel) says
I don’t think I can estimate the odds. Moneybarn certainly accept a lot of adjudicator decisions, but it may depend on whether there is something specific in your case that makes them disagree.
Simon says
Hi, after over a year and after the adjudicator rejecting my complaint, the ombudsman has just sent me his final decision and has upheld my complaint against Moneybarn. This is the forth complaint that I have had rejected from the adjudicator only for the ombudsman to uphold.
Gotta love the ombudsman!
Sara (Debt Camel) says
Well pushed.
Michael F says
Hi Sarah
Moneybarn accepted my case and have sent me my figures which is all good but they are now saying they have another 28 days from me accepting there figures to pay me out , Is this correct ? The FOS said after i accepted they had 28 day to make it right however they are now saying another 28 day to make payment ?
Sara (Debt Camel) says
It isn’t right, but there often is much you can do to speed this up
Tim ber says
Having exactly the same issue with them i accepted my offer on the 21st of june. Ive not even had my final figures yet.
Ive asked the fos to chase them up now cause they wont tell me anything nor will they reply to my emails.
Keep me updated on your situation id like to know how theyre taking.
Thanks
Simon says
I had this same issue a couple of years ago with a loan company that ignored the ombudsman deadline and then ignored my emails. Ombudsman couldn’t really do much to help as they were also being ignored. I then took matters into my own hands. I did a simple Google search and found the email addresses of several of the owners/CEO’s of the company. I then emailed them all stating my case and informing them that I would be sending them upto 50 emails every day until they pay what they owe. On day 3 of my bombardment I received a reply saying I would be paid in the next 24 hours. It hit my account 20 minutes later.
Worth a go if you continue to be ignored.
I will be doing it again if they ignore the ombudsman decision on my latest one with moneybarn
Timber says
Thats some effort. Im gunna try this approach next week if ive not heard anything. Theyre clearly ignoring the fos as well.
There should be some sort of fine for this the same way they charge us for a late payment.
Simon says
Your right, there should be some sort of punishment but it seems there isn’t.
If this is the route you are forced to take you will see that moneybarn are part of the vanquis banking group so go all in and email the main CEO’s as well. Don’t just limit it to the Moneybarn MD (David Shrimpton)
I will be doing just this if I am also ignored
Tim ber says
I think i found his email and ive sent 30 + emails everyday for the last 3 days no response.
Also rang thrm everyday to be told ive sent the right department a message to ring you. Which they dont.
Also send 30 emails to yhe complaints email with no response.
These are the king of ignorance.
I spoke to the fos today and basically theres nothing that can be done theyre free to do what ever they want.
Ill continue this tomorrow
Tim ber says
Wow this actually worked had multiple phone calls today i should recieve my refund in the next 48hrs..
Along with a lot of apologies.
Simon says
Cool. Glad it worked.
I suspect I will have to do the same
Veen says
Hi Sara,
I am victim of fraud by my house mates in August 2019. I was introduced a car renting business. They said they will apply Finance on my name to get Hire Purchase and later it will be transfer to Business account and I will get monthly profit for renting cars and they will be responsible for all repayments or any other cost of the cars. I was going through employment issues and wanted to start studies aswell. I find it a good business. They sent me form via WhatsApp to give them my details. So, I did. They got two cars from the Car dealer “Eclipse Automotive LTD”. Eclipse applied two different finances within the space of 5 days on my behalf from BMW for total repayable £46706.20 and monthly repayments £761.77. Second was from Santander for Mercedes Total repayable £31670.69 and monthly repayments £414.56.
They did not ask me for my payslips, Bank Statements. expenditure details or anything else. Even BMW and Santander do not have any of my income details and they did not bother to ask the car dealer for these details. They approved Finance on my name. I just signed the contract that eclipse sent me via email. I came to know after few weeks this is fraud. Car dealer delivered those cars in my presence to them, and they took it. When I came to know it was late to cancel. I contacted banks and tried to sort this out. I bought my first house in Surrey on mortgage in Oct 2018 and was working hard to get on ladder by working 7 days a week (doing 85 hours a week). I could not move out from London until April 2019 due to renting contract.
Veen says
My both Jobs were in London (Full time in West London and Part time in East London) and decided to leave part time job. I was working for them more than 15 years, so I had 4 months’ notice period. On weekends I was traveling 75 miles from my home to London. In a mean time, this incident happened, and I am still stuck with 7 days working. Santander Bank wanted to get judgment against my home and threaten me for taking to court. I have got involved solicitor. Both cars were auctioned by both finance companies and send me remaining balance to pay. Santander bank was £11000, and BMW IS £18000. In a mean time, I contacted Action Fraud, police My local MP different organisations. No one did anything. I found you in 2022. I sent my compliant to FOS for unaffordable lending and did not do primary checks. and 2 days ago, after 11 months the case worker sends me an email saying he is not going to uphold my complain. He also said he is fully aware these finance companies didn’t do any affordability checks but after checking my bank statement case worker think It was affordable because from two jobs, I was earning around £2600 and after paying all bills and expenditure £1057.06 disposable income demonstrate I was affordable (I am going to send him my monthly expenditure again he did not do right calculation). He said Both Finance companies just did my credit check, and they did not find any issue. He said the first finance from BMW was approved 5 days before Santander Bank approve their finance and it wasn’t on your credit report yet. He did not consider I had 3 credit card and I was paying minimum payment.
If I wasn’t working 7 days, then this finance should not be affordable.
Can I please have your advice?
Sara (Debt Camel) says
Are you sure this complaint is against both lenders? That sounds very unusual.
With an affordability complaint, FOS looks for two things. First did the lender make adequarete checks? And second if they had made adequate checks would they have shows the credit was unaffordable?
For your claim to be upheld, you have to win on both points. At the moment FOS thinks the lenders may have decided the loans were affordable if they had made proper checks.
If you think there is something wrong with the calaculations, you should go back and ask for this to be corrected. And for it to go to an Ombudsman if the adjduiactor doesnt change their mind.
As these two credit applications were so close together, the second one would not have been able to see the first car finance on your credit record. I am not sure if the lenders could have easily seen that you were working so many days? This may be a difficult case to win.
I think while this is going through you should talk to National Debtline on 0808 808 4000 about your debt options if you lose this case.
Sara (Debt Camel) says
Who is your FOS complaint against?
Veen says
It is against Santander plc and BMW (Alphera Financial Services). I requested both Finance companies investigate with their car dealer who sold these cars if have done Affordability checks on me and you approved finance without checking your car dealer.
Both Finance companies refused to take responsibility and stressed on one thing I signed these contracts I am responsible for it. They don’t want to talk about anything else.
Steve says
Success story. Complained Oct 22 to Blue Motor Finance, rejected as expected. Adjudicator ruled in lenders favour, Ombudsman overturned and ruled in my favour. Received 7.6k back within 10 days of ruling so all finished by Aug 10 2023. As always massive thanks to this community and Sara. I emailed their CEO to push redress on the day of ruling.
Sara (Debt Camel) says
So this is a different complaint fro the one about your current car?
Steve says
Current ongoing complaint is for refinance on this original agreement, so same car. Adjudicator has ruled in my favour however awaiting lenders thoughts on that who has been asked to respond by next week. Fingers crossed they agree and I don’t have to go through an Ombudsman ruling. Not confident they will though.
Natalie says
Can anyone tell me how long before FO get back to me. It’s been at least 8/9 weeks since I made complaint online to them
Got an email straight after to say the received it but that’s it
Sara (Debt Camel) says
ok so they definitely have logged your case. I would go back if you haven’t heard aything in 3 months.
Ryan says
Hello,
I was sold what I would consider to be unaffordable car finance, my salary would suggest I could afford it but at the time I had taken 10-20 payday loans in the past year, some of which I had missed payments on, I had thousands of pounds worth of gambling transactions each month on my statements, maxed out credit cards which I had missed payments on, a maxed out overdraft. I was missing payments left right and centre on all sorts
Luckily I have turned things around, but I have just over 2 and a half years left on this car finance, it was originally 5 years, so I’m nearly half way.
I’m looking to put in an unaffordable lending complaint to the finance company (247 money), however I’m concerned that as I’m not quite at half way, they may try to take the vehicle as I seen somewhere that can happen?
Am I better to wait, or am I okay to put in the complaint now?
Do you think I’d have a good case here? They did do affordability complaints and used credit karma to check my bank so I assume they would’ve seen my high outgoings, missed payments on credit checks, payday loans etc?
The interest is extremely high, I think the finance was around £10,000 but over 5 years it has £8000+ interest on it! I was desperate at the time and not making good decisions
Sara (Debt Camel) says
So you need to check the numbers, not guess. How much did you borrow? How much have you paid so far to this finance? How much are you paying a month?
Ryan says
Hi
So total amount of car was £13,394, with a £2,100 deposit, leaving a total amount of credit of £11,294
The total payments for this are £314.77 a month, with total amount being £18,886.20
So far I have made 27 payments of 60, with the 28th coming up in a couple of days. Once the 28th payment is made I would have paid a total of £8,813.56
So from what I’m gathering, I’d be best leaving this until I’ve paid off atleast £11,294, then the car is paid and any future payments would be interest?
Sara (Debt Camel) says
If you complain now and win, there is a risk you may lose the car.
The closer you are to the having repaid 11294, the less risk there is.
I would say there is very very low risk when you are 2 payments away, as you will have to continue to pay while the complaint goes through – and even if the car finance company promptly rejects this, and you send it to the Ombudsman staright away, you can hardly get a decision until you are past the point when you have repaid enough.
Sam says
HI Sara,
I had a complaint with Moneybarn which was a month and a half over the 6 years time limit. At no point when Moneybarn refused to uphold my complaint did they say anything about being over 6 years. I sent the complaint to FOS and they have now come back to say that they are unsure if they can help for two reasons.
1. Being outside the 6 years
2. As there was a court order, they say ‘There are times that the existence of a Court Judgement prevents our service being involved’ (They are checking with a senior colleague who will decide if the court order means they can not be involved)
Do you think there is anything I can respond to this?
Thanks
Sara (Debt Camel) says
did you defend the court case, or did it go to default CCJ as you did not defend it?
Sam says
Hi Sara,
I didn’t defend it because i didnt think I could. It never went down as a CCJ, it was just a court order.
Thanks
Sara (Debt Camel) says
So this was just a repossession? I suggest you go back to the investigator and say this and say you understood there were no grounds to defend the application as you had defaulted and were unable to pay the arrears.
Also say you were unaware until recently that Moneybarn had a regulatory duty to check the finance was affordable for you. And that you made the complaint as soon as you found out [by seeing an advert from a claims firm on instagram/Facebook, being told by a friend or relative, seeing an article in the Guardian about overdraft affordability complaints, whatever]. Say that before this you thought it was your fault for taking car finance that you were unable to keep up with nd you had no idea that Moneybarn were partly to blame
As for this to go to an Ombudsman if the investigator doesn’t decide FOS can look at it
Sam says
Hi Sara, you have been a massive help thanks.
After having to buy the car outright to save it being repossessed again, I have to take time off from work due to stress. I think I still have the sick note. Do you think this is worth mentioning?
Thanks again.
Sara (Debt Camel) says
you can try.
Sam says
Hi Sara,
I have had a reply from the adjudicator basically saying they are unable to look into the complaint as it was the subject of a County Court Judgement
The rules (DISP 3.3.4.A – Dismissal) say it may not be appropriate for the Financial Ombudsman Service to consider a complaint if – the subject matter of the complaint has been the subject of court proceedings where there has been a decision on the merits.
Having looked at your complaint, the agreement and administration of the agreement being complained about was subject to a County Court Judgement dated 16 September 2017.
Moneybarn then acted on the court order and repossessed the car from you.
In this case, the court has considered the claim made by Moneybarn to recover the car and outstanding balance. It’s therefore inappropriate for us to consider the complaint because it could undermine what the court has already decided. We also have no power to alter the judgement of the court or, investigate the procedure or processes leading to the issue of the court order.
In conclusion, I wish to make it clear I haven’t been able to investigate the circumstances of this complaint. Under the rules set out by the FCA, it would seriously impair the effectiveness of this service to look into this complaint any further, because a County Court Judgment has been issued.
I never recieved a CCJ for this! I have a CCJ but that’s from Capital One!
How do you recommend I respond to this?
Thanks
Sara (Debt Camel) says
The car was repossessed? you had paid more than a third of the agreement?
Sam says
Hi,
The car was taken away a number of times and wouldn’t be returned until I paid the arrears on the car. The final time I had to pay the outstanding balance (10k) to be able to get the car back! I didn’t have a CCJ from Moneybarn though!
Sara (Debt Camel) says
ok, go back to FOS and say this!
Sam says
Hi,
He has come back with a copy of a Judgement For Delivery Of Goods By Consent which was from
Birmingham County Court. He also has my signature on it!
Am I fighting a losing battle?
Thanks
Sara (Debt Camel) says
at what point did you sign this, when they were picking up your car?
Simon says
I have just opened a complaint with Advantage Finance about a car loan.
The car was £6400 and the total cost of finance £13000 ish.
I now still own £4300.
I now wish I had not complained as I have received a confirmation from them, part of which says:-
I do also need to make you aware that In the event of the complaint being upheld (either by ourselves or the FOS), the outcome would be to place the customer in the position they were before the agreement was entered into. In the case of live agreements, this will result in the required return of the hired vehicle.
I cant afford to lose the car, what can I do now?
Sara (Debt Camel) says
You have paid more than £6400?
In that case you come into “case C” in this description of the typical outcomes: https://debtcamel.co.uk/car-finance-win-affordability-complaint/
Go back to them and tell them that it is your understanding that in cases where the borrower has already repaid more than the cost of the car, then they will NOT have to return it if the complaint is upheld. Refer them to https://www.financial-ombudsman.org.uk/decision/DRN-2912701.pdf as a typical FOS decision in such a case.
If they uphold your complaint and say you have to return the car, then reject this decision, send it to the Ombudsman and carry on making the monthly payments while the case goes through at FOS.
Simon says
Thank you Sara, I have just replied to them and sent them the link to that case. I’ll just wait now and see what happens.
I’ll post any updates here.
JR says
Hey, 2015 I took out finance with Blue Motor Finance, it was a Terrible decision, at the time I had a maxed out credit card, defaulted payday loans, defaulted phone contract, monthly wages was around £900, it was £320 a month, I paid £20000 for a £9500 car I’m older now and sorted out my money problems but blue motor finance was a huge strain on my life for years.
I’ve put in a claim (only learnt recently this was possible) but since it was 2015 I’m concerned it will be rejected for time frame.
Any advice on what I can prepare to do when it’s rejected.
Thank you in advance
Sara (Debt Camel) says
You can send it to the Ombudsman. They can decide to look at older cases.
Do you have bank statements or other details of your fiancés back in 2015?
Katie Galvin says
Hi Sarah,
When I was 18 years old I stupidly applied for car finance and got approved by Black Horse for a £22,000 car fiannce plan.
I had little to no credit score at the time and had only been in full time work for 1 month when I applied and was surprised to have been accepted especially for such a high loan.
The car itself was £16,000 and the rest was interest added. After 2 months I realsied I’d made a mistake and was missing payments. I ended up seeking help from family and my mum paid the full car loan off and we sold the car to settle the fiannce.
The finance was settled at £17,854
I have a few questions:
– how likely do you think this will hold up to Black Horse as irresponsible considering I was 18, had no credit history other than maxed out overdraft accounts, as well as an income history of no more than 2 months.
– If we settled it for £17,854 and I traded in an old car for £1,400 part exchange how much am I likely to receive back if successful?
Thanks for your help!
Sara (Debt Camel) says
how long ago was this?
Katie says
Hi Sara it was July 2019
Sara (Debt Camel) says
So when you send the complaint to BH, attach your bank statements for 3 months before and three months after July 2019. You can get these even from closed bank accounts.
so the car was sold by you to repay your mum after she had settled the finance?
Toby says
FOS have gone in my favour, and Moneybarn agreed to the redress, they haven’t contacted me as asked to settle the account and it’s now been nearly 8 weeks since the decision by FOS. FOS have now said they’ll escalate complaint to an ombudsman but could take months to pick up. Moneybarn have stopped responding to FOS. I’m emailing complaints team at Moneybarn and calling daily without response as can’t speak directly to the complaints team. Are there other people I can be adding into my emails now to get the attention of the right people to get this settled as originally agreed without it having to be sat there waiting to be picked up by an ombudsman, the case has been open a year now!
Sara (Debt Camel) says
ok so as this is not a final Ombudsman decision, you cannot go the legal route discussed in the article above. That is why FOS is suggesting taking this to a final Ombudsman Decision.
Are you currently making monthly payments to them?
Toby says
I stopped payments after the first decision as Moneybarn agreed to the terms that were put forward to them as did I. Basically both sides agreed to the redress the FOS put in their letter to Moneybarn. This was to sign the car over to me, remove any negative information on my credit file and refund me any money overpaid by myself on the agreement. As I had paid back more than the cost of the car they actually owed me money, so obviously stopped payments as they had agreed to end the agreement and follow the terms set out by the FOS.
Sara (Debt Camel) says
So this is annoying but not urgent in the sense that you are not having to make unaffrdable payments to keep the car while this goes through.
These sort of “the lender is ignoring the decision it agreed to” complaints usually go through reasonably fast at the ombudsman level as there isn’t a lot for the Ombudsman to think about!
Toby says
Is there anything I can do in the meantime to try and speed up the process with Moneybarn? I believe they can still settle the case as agreed before it gets to the next level within the FOS, should they choose to. It’s not even the investigation that takes so much time, it’s the waiting around for an ombudsman to actually pick the case up. It took them 7 months to pick up the case the first time and it worries me it’ll be the same kind of time frame for the final decision this time before it’s even looked at. Moneybarn are still negatively updating my credit file which is pretty much undoing all the hard work I’ve made on it over the last few years! Just wondering if there’s another form of contact there is for them or email addresses for certain individuals within Moneybarn I can be contacting to kind of kick them along, as the standard complaints department emails are not getting responded to.
Katie says
So I’ve complained and submitted the 3 months before and 3 months after. Both before and after show my financial difficulty and that I was overdrawn in my overdraft every month to the max.
My mum gave me the money and I settled the finance and we sold the car to which I then paid my mum back.
I had only had 1 month of full time income. The 3 months before the finance I was working park time with an income of around £600 per month.
Sara (Debt Camel) says
Ok then if you win the complaint, you are in “case A” of the situations described in this post about what happens if you win a car finance complaint https://debtcamel.co.uk/car-finance-win-affordability-complaint/#A_Car_finance_repaid
So you would get a refund of the interest you paid which is the £17,854 settlement amount PLUS any payments you made (if they werent included in that 17854 number) MINUS the credit given in the agreement.
I cant tell from what you wrote if the credit given in the finance was £16,000, or if that was the price of the car so you take of the p/x value of £1,400 to give the amount of credit given as £14,600.
To any refund will also be added 8% per year interest – which would be about 30% in total.
Katie says
Hello,
I found out the finance given was £17,316, and I only paid one payment of £312.48 so gives me a total refund of £850.48. I also had part exchanged my car for £1,400.
So just unsure of how to judge what I’m owed back if successfully. The part exchange was put towards the cars value so I think that £17,316 is minus the £1,400 as it was part exchange.
Any help would be great!
Additionally do you think I would qualify for affordability complaint simply for the fact I was alwyays overdrawn and my bank statements show this as well as an inconsistent form of income.
Sara (Debt Camel) says
I think you should wait and see. You should not “expect” to receive any amount.
K says
Okay thanks.
I don’t expect anything, I was more after a rough idea of what they might owe if successful. I was curious as to the likelihood of it being seen as unaffordable lending.
Michael says
Hello, I submitted a claim to Moneybarn in March, and an investigator has now produced me with a document which outlined her findings and what she thinks should be done to put things right (moneybarn to refund all interest on loan above car value +8% interest per year)
She mentioned:
“I think this is a fair outcome in the circumstances, for the reasons I’ve explained. Please let me know by 27 October 2023 whether you agree to my recommendations so the case can be resolved. But if you don’t accept what I’ve said – and want an Ombudsman to make a final decision on the complaint – you must provide any further evidence or representations by 27 October 2023. Requests for more time must also be made by that date. If I don’t hear from you by 27 October 2023 I’ll arrange for an Ombudsman to determine the complaint.”
Do you think I can expect any further issues here? Do Moneybarn have a history of accepting their outcome, or taking it to the ombudsman? And if so, how long can I expect this to drag out to?
Sara (Debt Camel) says
I think Moneybarn have had a backlog of cases. This accounts for the adjudicator’s unusual wording here “Requests for more time must also be made by that date. If I don’t hear from you by 27 October 2023 I’ll arrange for an Ombudsman to determine the complaint.”
Moneybarn do not routinely reject complaints. I can’t guess if the backlog is still serious.
Peter says
Hi there , I placed a complaint with advantage finance about irresponsible lending on car finance . I got a letter today saying they have decided to not uphold my case .
Is it worth going to the ombudsman with this ?
At the time I had many loans and payday loans active with credit cards .
The car has been paid off now .
Thanks
Sara (Debt Camel) says
When did the loan start?
Peter says
It started around October 2020
It was paid off in April of this year
Sara (Debt Camel) says
OK, then it should be easy for you to produce bank statements from the time of the loan and a recent credit card report will also show a lot of your situation back then.
How have you manged to pay this off?
Peter says
Yea I can produce statements etc .
And my recent report will show all the outstanding items on it .
I was paying £205 a month for the duration of 30 months with my wage from my work.
Natalie says
Hi Sara – Sorry in advance for the long comment (my response in second comment as too long) – I’ve commented before regarding car finance and making a claim (months ago if not longer)! Finally got to a point where the FOS (investigator at this stage) agrees I shouldn’t have been lent to in the first place. However I’m not happy with the outcome. First email response from FOS and then my reply, should provide enough info – I want to know if what I’m saying has any standing?
FOS response:
‘Hi Natalie
Apologies for the late reply.
I’m sorry to hear you’re unhappy with the outcome.
As I agree the lending wasn’t fair or reasonable, I’ve asked Moneyway to calculate what you’ve paid towards the finance and anything you paid on top of the capital amount received should be refunded.
Following this, Moneyway have advised the capital amount was £12,250 and they received a total of £9,907.34 from you before the voluntary termination. So, the only refund due back to you was the £200 deposit. As a result, there wasn’t anything else I could’ve asked them to refund.
Can you please advise what you would like Moneyway to do to put things right for you.
I’d grateful if you can reply to my email by 18 October 2023’
Sara (Debt Camel) says
So FOS decided they could look at this even though the first investigator thought it was too old?
I assume the FOS decision says to clear any balance owed? Could you copy that decision in here?
Have you made any payments to the balance owed after the VT?
(I have seen your response but I am not sure that is taking the right line. But I don’t think MW’s suggestion is good either. And possibly not the FOS suggestion!)
Natalie says
Hi Sara, sorry for the delay, I’ve only just seen your reply!
Yes, ombudsman decided it could be looked at. Investigators decision below. My case has now been referred to an ombudsman
——————————
To settle Miss Smyth’s complaint Moneyway should do the following:
Refund the deposit, adding 8% simple interest per year* from the date of payment to the date of settlement
Refund any payments Miss Smyth has made in excess of the total capital amount she received. It should add 8% simple interest per year* from the date of each overpayment to the date of settlement
——————————
By the way – no balance owed because of the VT. No payments made after this happened. Last email from investigator below:
Hi Natalie
As mentioned in my previous email, I don’t think the lending was fair and reasonable, so the voluntary termination doesn’t apply, as the finance should never have been provided in the first place. But I’m only able to ask Moneyway to refund any payments made over the cash price of the car.
I’ve carefully considered your comments, however the outcome remains unchanged.
If you wish to have the case referred to an ombudsman for a final decision, please let me know by 20 October 2023.
Sara (Debt Camel) says
I am afraid your argument about what interest you have paid is not the way FOS or a court would see your situation.
See https://debtcamel.co.uk/car-finance-win-affordability-complaint/ for what FOS normally decides in these cases. You will be in Case B.
So normally you get the deposit refunded PLUS everything you have paid LESS a “fair usage charge”. And the fair usage charge is normally less than your monthly payment so you do get some money back in addition to the deposit.
But the investigator hasn’t considered this approach and what the fair usage charge should be.
You need to go back to the investigator and say this and that you would like the award to be reconsidered. Ask for your request to be passed onto the Ombudsman if the investigator doesnt change their mind.
Say you have been taking advice on this and that you have been told that in this situation, a “fair usage” charge is normally used to work out what you should have paid for use of the car before the VT. Mention these two FOS decisions as showing what a typical award is: https://www.financial-ombudsman.org.uk/decision/DRN7924352.pdf and https://www.financial-ombudsman.org.uk/decision/DRN-3225675.pdf
Natalie says
Thank you Sara, I think my ramblings regarding interest were an attempt to say, hang on a minute there’s no way using the car cost me £300pm. So I’m glad you’ve given the fair usage direction! I have responding with comments regarding fair usage and quoted the two cases you’ve mentioned.
I’ll comment again if I need further help (probably going to have to wait months again), but thanks once again!