In January, a reader told me about a loan he had for £650, with 18 monthly repayments of £147. This adds up to a total repayment of £2,650 – an eye-watering amount and more than four times what he borrowed.
At first I thought this was probably taken out years ago. But in fact, it was borrowed in late 2018 from Loans2Go.
Loans2Go also offer logbook loans, but this article is just about their standard personal loans. I have updated this article with information about what the Financial Ombudsman thought about one of these loans.
These Loans2Go personal loans:
- are for amounts between £250 and £1,000;
- all have an 18 month term;
- there is a set APR of 990%.
The quote above is for weekly repayments. You can also choose to repay monthly or fortnightly but this makes little difference to the total repayment.
Is it legal to charge that much interest?
The loan was taken out by the reader when he was desperate and didn’t think closely about the cost. But now he wants to know if it is actually legal to have to repay that amount.
There is a maximum cap on the amount of interest that can be charged on payday loans. Lenders can’t add more in interest and charges than the amount borrowed. If that payday loan price cap had applied to this Loans2Go loan:
- the maximum repayment would have been £1,300, less than half what L2G charges;
- the monthly repayments would have been lower than for L2G’s loan.
The FCA calls payday loans “High Cost Short Term Credit”. Its definition of High Cost Short Term Credit is a loan over 100% in APR and of 12 months or less.
So the Loans2go loan looks as though it is outside that definition because it is 18 months long.
But there is a small point in the FCA’s definition that says it also covers loans which are to be “substantially repaid within a maximum of 12 months“.
An Ombudsman decision on a Loans2go loan
Normally you don’t get very far if you complain to the Financial Ombudsman (FOS) that the interest on a loan was too high.
You can win complaints about expensive credit if you can show the loan was unaffordable for you, but not just because the interest was too high if it was clearly explained at the start… and it was legal.
But here is a decision from the Financial Ombudsman about one of these L2G loans in 2019: Miss R’s personal loan provided by Loans 2 Go Limited .
Miss R borrowed £900 and was due to repay about £3,700, so about £2,800 in interest – she complained this was too high. She didn’t make an affordability complaint.
The Ombudsman points out that some respondents to the FCA’s consultation on the price-cap rules wanted the definition to be more specific, warning that loans of up to 24 months could potentially be caught by it. But the FCA said the definition was broad in order to prevent firms from trying to avoid the rules.
The Ombudsman was concerned that:
the potential harm to a consumer – as a result of having to pay such excessive charges over a longer period – is arguably greater [than for a loan of less than 12 months].
I think that last point is exactly right. If Miss R had taken a payday loan she would have paid a lot less each month and for a much shorter period than taking the L2G loan.
The Ombudsman decided he didn’t have to rule on whether the loan broke the payday loan price cap because the interest rate was in any case simply too high:
this loan had an interest rate so outrageous (i.e. one which works out at well in excess of 100% per annum) that I think a court may well have found it grossly exorbitant and that the agreement grossly contravened ordinary principles of fair dealing.
He reached that decision looking at Miss R’s situation and the fact that L2G knew she was in financial difficulty:
L2G … unfairly took advantage of the situation by providing such an expensive product.
So the Ombudsman’s decision was that L2G should reduce the starting balance on Miss R’s loan to £1,800 instead of c. £3,700 – a major cut in the amount of interest she had to pay.
Many people are winning affordability complaints about these loans
I think this is the worst loan in Britain. It’s not right that you should have to pay every month for 18 months than you would if you take a payday loan and make 12 monthly repayments.
Because they are so expensive they are often unaffordable.
A loan is unaffordable for you if the monthly repayments were so high you couldn’t afford to pay them without hardship, borrowing more or getting behind with important bills. This is a standard affordability complaint, used for many other sorts of loans. If you win this you will get a refund of all the interest.
Several people have said they were not given the full details about the loan before the money was given to them. If this happened to you, say this in your complaint as well.
How to complain
First to Loans2Go
You have to complain to Loans2Go first, you can’t go directly to the Ombudsman.
It doesn’t matter if you have repaid the loan or you are still paying, you can still complain.
Use this template as a basis and make any changes so it reflects your case:
I am also complaining that the interest rate was grossly excessive. It is unfair to charge someone more per month over 18 months than they would have paid to a payday lender for a loan the same size over 12 months.
[only add this if you were not told the loan terms] The loan was not adequately described to me before I was given the money. This is an unfair way to give high cost credit.
I am asking you to refund the interest and any charges I paid, plus statutory interest, and to delete any negative information from my credit record.
[delete if you have repaid the loan] I would also like an affordable repayment plan to be put in place if I still owe a balance after this refund.
I am also making a Subject Access Request (SAR) for all the personal information you hold about me including, but not limited to, my applications, all credit and other affordability checks, a statement of account for my borrowing, and a record of all phone calls.
Change that so it is right for you and email it to ps@loans2go.co.uk.
A good idea to send your bank statements
If L2G ask for bank statements, send them if you have them. They will prove your point that the loan isn’t affordable.
If you don’t have them, this is a good time to get them as they are very likely to be needed at the Ombudsman. You can get statements even from closed accounts within the last six years.
Have Loans2Go made you a poor offer?
You can send your complaint to FOS if Loans2Go have rejected it or have made you a poor offer. This is easy, just use the simple FOS form which asks you what they need to know to set up your case.
If L2G have offered to wipe a small balance or take some money off what you owe, is this a good offer?
Sometimes they offer 50% of the interest off “as a goodwill gesture”. Or to reduce your balance by 50%. These are often very poor offers, you could get a lot more by going to the Ombudsman.
Sometimes they will increase an offer if you push them. Here is what one reader said:
They replied firstly with the offer to half what was left and agree a payment plan and I refused and they immediately came back and wiped the loan clean and removed it from my credit file.
It’s up to you what you think a good offer is. But you can’t change your mind later if you accept and then think you shouldn’t have.
So ask a question in the comments below if you aren’t sure.
Ask for a refund for large bad credit loans
Complaining about a guarantor loan
How to ask for a payday loan refund
Danielle says
Want to say thank for all your efforts and the great advise you provide here it’s really very much appreciated!!:)
I have been dealing with Loans to go for several months now in an attempt to have them clear their interest charges on an affordability basis complaint.
The loan was taken out by my brother back in 2019 for the amount of £1000 to be paid back over 18months with total of £4000 to be paid back. My brother has an awful credit record to the extent of not being able to get a phone contract under his own name. At the time they issued the loan he was also in difficult financial circumstances already £1000 in overdraft with his own bank and incruing further unplanned overdraft charges. Nearly £800 has been paid back to date but they still want a further £3500. I have discussed all this information with them and sent the relevant bank statements but they are refusing the complaint stating that they have ‘confirmed they have not erred in their decision to grant the loan and that is was fair’?! His financial situation is not much better to date and he has small amounts still outstanding with two other payday lenders dating back before the loans 2 go loan, i honestly can’t wrap my head around how these poeple are able to give out money under such terms to people with situations like this!!
I just wonder if you think we have a case to escalate this with the ombudsmen?
Thanks kindly for any advise you have
Sara (Debt Camel) says
yes, send this straight to the Ombudsman.
Also look at helping him with payday loan complaints?
And that overdraft, does he still have it? how much does he use every month?
Danielle says
Thanks Sara, was feeling at a loss with the situation as getting nowhere with Loans to Go themselves. I mistakenly made the initial complaint by telephone before coming across your information and they responded with a lengthy letter, with a lot of fancy statistics they had used to work out the loan was affordable. Then i emailed his bank statements and explained the situation, and had to chase them for a reply which was that they are upholding their decision.
The payday loans that i’m aware of are old from companies that have gone into liquidation that creditors are trying to revover.
He still has an overdraft of £1000 which he uses every month and incrues a charge of £100 when he exceeds this amount. That was the situation he was in with unplanned overdraft charges at time of taking out the loan, which they mentioned flagging up in his credit check, stating ‘your credit report was on the whole very positive. Whilst i admit there is some adverse information, this would normally be ecpected given the type of lending that Loans2Go provide’.
Thank you again, i will pursue this with the ombudsmen hopefully have some more luck with them.
Martin says
Iv recently complained and they have offered to cut my interest owed by 50%, should I accept it
Sara (Debt Camel) says
can you say some more about your loan – how large was it? was it your first from them? how much have you paid so far? what is your balance and what are they offering to reduce it to?
L2G can often be persuaded to “improve” offers so it’s worth thinking about this.
Martin says
Loan was for £300, made 5 payments , balance left is
Current Balance: £801.38
Proposed Write Off Amount: £405.03
Proposed New Balance: £396.35
They say reduce it as a good will gesture
Sara (Debt Camel) says
how large are the payments?
Martin says
£61.67 a month for a total of 18 months, Iv made 5 payments
Sara (Debt Camel) says
ok so you have already paid off the amount you borrowed.
If this was a payday loan, then you would have to repay another £300, they are suggesting you should pay £396.
Your options are:
1) to accept their offer
2) to reject and send it to the Financial Ombudsman. For a £300 loan it isnt always easy to guess what FOS would say. But L2G will be hit with a £650 charge if you so this, whather the decision on the case is, which is why they may be prepared to compromise.
3) to offer some compromise – eg you will accept this if they reduce the balance to £200 , or £300.
Lindsay says
Hi I can’t find my original comment but I got a reply asking me some questions, I’ll just recap, borrowed money £250, while manic (have bipolar) NOT using it as an excuse. I know I’m responsible for the debt. I do feel like I wasn’t in the right mind to understand the interest and terms though, regardless I’ve paid just over £700 altogether. Tried speaking to them to see if they would take that as final settlement (they wouldn’t but thought I’d try!) I’m on benefits after losing my job after I took the loan out, so my income has reduced by a great deal so am now struggling to pay my priority bills as my payment to loans 2 go is £54 a month. I’m surprised they lent to me at all since I had only been with my employer for a month so still in the probation period, but I guess they still saw it as a regular income and it was at the time
Sara (Debt Camel) says
apart from this, do you have other problem debts?
Lindsay says
Thanks for the response
Yes I’m 20k in debt actually, I made some very bad choices In the last ten years, I get ESA and PIP at the minute (because of my mental health conditions) but it’s not a big amount, so im in agreements with most of time creditors but the payments are low
Sara (Debt Camel) says
In that case I think you should go back and say you have already paid much more interest that you would with a payday loan, say you are unemployed and have problems paying your priority bills such as [rent? council tax? energy bills? and food?]. Say you want them to clear the debt or you will be sending it to the Finaical Ombudsman who may order you to get a refund. Add that you canniot afford to pay them anything at the moment so you are canceling the direct debit to them (if that is how they are taking the money?)
But really I think in addition to this you need to talk to a good debt adviser. Because 20k is a mountain of debt and it won’t be helping your mental health. If your only income is benefits at the moment and is likley to be for a while, then a debt relief order may get you a clean start, see https://debtcamel.co.uk/debt-options/dro/. I suggest you phone National debtline on 0808 808 4000.
Lindsay says
Thank you for the advice
Net says
Hello Sara, Do you have any advice for CashFloat. I got a loan last month for £500, I’ve missed my first payment which is £202, I’m really struggling and in payment plans with other lenders.
Sara (Debt Camel) says
Can you say some more about your situation? Are you in work? Do you have priority debts – rest, council tax, energy bills etc! Do you have a lot of other high cost borrowing? Have you added up the total amount of your debts?
Nets says
Thank Sara, for responding
This is my first post so I hope I’ve followed the guidelines and posted in the correct place.
I’m working but on low salary. I have other borrowing Credit Spring, Fund Ourselves and Mr Lender. Cashfloat gave me the loan extremely quickly, i had already missed payments with Credit Spring and Fund Ourselves. Cashfloat seem very aggressive.
Any guidance would be appreciated. I suffer from anxiety and this issues is not helping.
Best wishes and thank you
Sara (Debt Camel) says
Suppose all those 4 debts you have mentioned weren’t there….
Do you have any other debts? Overdraft, catalogues, Klarna, anything else?
Could you manage your money then, or don’t you have enough for your expenses?
Sara (Debt Camel) says
I am asking because I am not sure if it is the expensive debt that is the cause of your problems or there is something deeper.
Shaun says
Hi
I had a loan 18 months ago from L2G. I took out £300 and have paid back £1234 in total. I have now cleared the loan and made a complaint. I’m being offered £250 in compensation. Should I accept this or refuse the offer? Would I get more if I refused? Would the offer disappear if I went to the ombudsman and they ruled against me?
Please help.
I have 6 days to respond.
Many thanks
Sara (Debt Camel) says
You could go back to them and say you don’t think £250 is enough – that if you had taken a payday loan you would have had to repay £300 in interest, so £300 overall, so you would be happy to compromise on a refund of £500?
I can’t tell if they would accept – they do seem prepared to compromise so this could be worth trying.
It’s unpredictable what may happen at FOS – you could win your case and get £934 back. The Ombudsman could say £250 is a reasonable offer and you should accept it. Or they could withdraw the offer.
sarah says
did you accept the offer? I have been offered a £300 “good will gesture” for my 2 loans taken out… I have already paid 3 times what i borrowed, they are writing off the rest of the payments owed and paying me £300. i have just sent an email to accept. I was in the same position as you are in, and wondered if you went back to them and what did they say?
A sheeran says
I recently took out a loan with this company ..it wasn’t adequately explained to me about the 770% apr ..
The funds were literally in my bank account before I finished reading the fine print …this interest rate should be illegal no doubt
Sara (Debt Camel) says
Are the repayments affordable for you.
A sheeran says
Not at all ,I’ve just been made unemployed and it’s all very worrying
Sara (Debt Camel) says
do you have other problem debts as well?
A sheeran says
I had a sizable United utilities debt but I’ve came to an affordable monthly repayment with them
Sara (Debt Camel) says
people don’t usually take a Loans2Go loan if they have no other problems debts?
Camilla says
Hi Sara,
Thank you for all of your help in this article it’s much appreciated.
I took out a loan of £250 in September 2021. I’m now paying £51 for 18 months, I’ve paid over £250 already but the total paid once finished will be over £900. I’ve been given a settlement figure now of another £250 (I can’t afford to pay the settlement now so this isn’t an option for me).
When I took out the loan admittedly I was desperate for a short term quick loan, I do read everything carefully and there was definitely no information about the loan being over 18 months and over £900 total when finished.
I don’t know what to do? I am in debt, I do have an overdraft but I do manage it all. It’s not affordable to me, and is causing a lot of stress. I’ve also recently been in hospital and therefore on a reduced income. I’m refusing to pay loans 2 go until this is resolved.
What do I do?
Sara (Debt Camel) says
Loans2Go will sometimes negotiate. Do you know how much you have paid so far?
How much do your other debts add up to?
Your overdraft – how large is it? Are you in the overdraft all the time, not getting back into a positive balance at all during the month?
Camilla says
My other debts are in the thousands, but I do keep on top of them (with most of my income). I am slowly paying them off. I am always in my overdraft (£1400), My salary brings me out of my overdraft but after bills I go into it each month.
I have currently paid just over £250 to loans 2 go.
Camilla says
I also have a default on my account. If they had made the appropriate credit checks then they would have realised that this loan was unaffordable.
Neil C says
Hi Sara, I have an outstanding loans2go debt, I borrowed £250 then 8 months later borrowed another £250. As I had made payments between loans the agreement was for sum of £387:55 & they wanted £1594:44 paid back
At the time these loans were taken out I had other loans that they would’ve seen on my statements. I ended up defaulting on this loan & they passed it to United Kash & it’s well over £1600 that they want me to pay. With the loan being passed to United Kash what should I do for making a complaint? Do I use your form for Loans2go or contact United Kash. I’ve setup payments for United Kash but I’m not paying much & will take long time to pay it off.
Sara (Debt Camel) says
You make the complaint to L2G. They should have looked closely at why you needed The second loan before the first one was half way through. Send it to the Ombudsman if they reject it.
What other debts do you still have? Are you behind with any bills? Will you be able to manage the repayments with energy bills, National Insurance, council tax, broadband, mobiles etc all going up in April? And rising petrol and food?
Michelle says
Is there a time limit claiming from loans2go, I had logbook loans from them years ago
Thanks
Sara (Debt Camel) says
2007.
But if it is alder than 6 years, FOS has an extra check that it can take the case.
Richard says
Hi Sara. I made a complaint to loans to go. They have not upheld my complaint. I had other loans at the time. And was gambling a lot and constantly in overdraft. These are figures on the loan
Principle: £1,000
Total Payable: £4,114.08
Total Paid: £2,471.32
Balance Outstanding: Status: £1,642.76
Taken on the 19/8/2020
They have offered to write off the outstanding balance. Do they often negotiate. Does this seem fair. Thanks
Sara (Debt Camel) says
They will sometimes negotiate.
If you go to FOS and win (and them offering to wipe the balance suggests they don’t think they are in a strong position) the balance would be wiped and you would get £1471 back.
What do you think would be acceptable compromise?
Richard says
And that won’t include the 8%. Correct? I will reply and see what I get from them. Thanks
Sara (Debt Camel) says
the 8% will be negligible, not worth arguing about.
Richard says
Thanks. For the sake of information for all. I’ll let you know what they come back with. But if it’s nothing good. I’ll be taking it to the FOS. Thanks again
Richard says
How long does it usually take on average for the FOS to deal with it. Thanks
Louise Stratford says
the FOS have finally got in touch with me today saying they will let me know of the outcome of my complaint in 2 weeks.
I sent my complaint in November as soon as I got the rejection from Loans2go. So I’ve waited from November up to today…
Louise says
I sent a complaint and had it rejected in November. I sent my complaint straight to FOS in November and I’m still awaiting to hear back from them regarding the complaint… anyone else has similar? I know covid has changed everything but still taking a long time…
Sara (Debt Camel) says
have you had a confirmation they have the complaint?
Louise says
Yes had confirmation I even rang about a month ago to make sure they have it and they said it’s in the right place. I assume I’ve just got to keep waiting..
Sara (Debt Camel) says
yes
Patricia E says
Hi Sara
I took out an initial loan with loans2go in 2019 for £250 (monthly payments £57.14). Followed by a top up loan 5 months later (monthly payments £114.28). Final loan in 2020 for £726.69 ( monthly payments £166.09 x 18 months £2989.62). This was cleared last year. I did not miss one single payment. Can I claim back some of this exorbitant interest? Please advise.
Last but not least, your service is excellent. Really appreciate you.
Sara (Debt Camel) says
Taking out 2 top up loans is often a sign the loans were unaffordable. I suggest you send a complaint in now. If they make you an offer you are not sure is good enough, come back here and check.
Robert James says
Loans2Go have ‘sold’ my what remains of a £250 18 month loan to United Kash Limited debt collectors and are demanding £628.45.
I have only miss 4 payments and the loan is less than year old, but they are charging 18 months interest.
Also, I believe payday loans are not allowed to charged more than double the loan- or is it the debt.
Who can I speak to legally and cheaply to get them to reduce the amount owed to say under £250? Perhaps I could sue Loans2go for wrongful lending and get them to pay it, that’ll teach ’em. Can I force Loans2Go to be shut down and put into administration so they can no longer operate? Legally of course.
Sara (Debt Camel) says
Unfortunately as this loan is 18 months long, it is treated as a payday loan and the “only pay double” rule doesn’t apply.
What is the rest of your financial situation like at the moment?
Robert James says
I owe money to 3 other payday loans and a credit card. But the loans2Go trumps the payday loans in value. I could set up a a £50 a month standing order, I wouldn’t trust with my card details they may leave me with no money. And try to reclaim the money from Loans2Go.
With this quickquid redress I can pay the other stuff and be left with plenty, but I don’t want to waste £628 on Loans2Go. I need to get a new bike ,etc with the remaining money.
Sara (Debt Camel) says
Look at affordability complaints against the payday loans and l2G. If the loan has been sold, the debt collector may accept a settlement offer.
Robert James says
If I politely ask the debt collector and demonstrate my financial history , they probably would. Is it possibe Loans2Go sold the debt without the interest to Uk Kash Limited and they are trying to make the profit?
Sara (Debt Camel) says
no, the debt would have ben sold, not just part of it,
Robert James says
The sneaky dogs, that are Loans2Go, have sold my loan to UK Kash limited for £628. This is for a £250 loan. I’ve already paid £399 of it off but missed three months of payments at £57.00 per month. The loan was taken out in March 2021,so not even a year has passed. The total owed would’ve been £1028. I think the £399 of payments would’ve classed as a substantial payment towards the loan so should be covered by FCA rules against this type of lending.
I see Loan2Go have sold the loan and charged a full 18 months interest to the UK Kash LTD, It’s my understanding if a loan go to collections interest and charges accrued are frozen not and added after the fact.
I have sent a written response to Loans2Go telling them what I think of there practices in my own immutable style. Including stating that selling the loan at that value amounts to fraud. Poor UK Kash LTD, I determined to make lose on this one!!!
All I can say, Loans2Go are ‘CRIMINALS and SEMI-LEGAL LOAN SHARKS ‘ and prison’s too good for them.
Sara (Debt Camel) says
Unfortunately with a loan all the interest is due at the start. If you settle early, the cost is reduced. If you default, it is all due. So they haven’t done anything wrong. They haven’t committed fraud and you aren’t going to help an affordability complaint by adding on this sort of accusation.
Have you actually made an affordability complaint?
Robert James says
Not sure what’s the best way to do that? Also, United Kash LTD might be amicable to a reduced settlement if I paid upfront rather than say £30 a month?
Is it true once Loans2Go have sold it to United Kash Ltd it is no longer their concern and I should be dealing the United Kash ?
Sara (Debt Camel) says
There is a template in the article above. The complaint still goes to L2G – they were the ones that made the poor decision to lend.
yes a debt collector may accept a settlement offer, but one big advantage of winning a complaint against L2G is that they have to remove the default and ensure the debt collector does the same.
Caroline says
Hi Sara,
Firstly thank you for all your help,
I took a loans2go loan may 2021, £500, 18 monthly payments of £114.28, I made 10 payments and was missing priority bills, I used your template, told them I had also just received an attachment to earnings for council tax, and emailed 21/3, on the 25/3 received
acknowledgement letter of my complaint, today 29/3, have received final response, after reading through the usual “we did everything right ” they said they would not accept my complaint but because of my circumstances they would write off the remaining balance (£914) and give me £250 compensation.
I’m happy with this and have accepted.
Sara (Debt Camel) says
Good.
What about the rest of your debts – do you have other high cost credit debt now? that has been repaid or defaulted?
Aprt form council tax, do you have other priority debts – rent, energy bills?
Caroline says
Hi Sara,
I am contacting likely loans who I still have a balance with and my credit cards are on a payment plan, do you have an email for very?
Thanks to you I have a claim in the schemes with quick quid and provident.
My energy is pre payment meters so I try to use as little as I can.
Sara (Debt Camel) says
they don’t like getting emails…
You have to complaint by phone or letter: https://www.very.co.uk/help/en/online-help-system.page#help-contact-us?PPI%20Complaint
David says
I stupidly took out a 2k loan from these sharks in February 2022 and the repayments will total almost 6.5k over 24 months, repaying 268 a month.
I got the money in minutes, no bank statements or payslips requested, didn’t speak to anyone.
I’ll be getting a conplaint based on this thread, and hope to have oayments reduced to an affordable amouny.
thank you.
Sara (Debt Camel) says
they often make poor offers and can sometimes be persuaded to increase them.
David says
Ahhh found the original post…
Loans2go offered to reduce interest by 50% and arrange more affordable repayments.
Should I accept?
They’ve agreed they used national averages and not my actual expenditure, they also confirmed they didn’t do a credit check or ask for bank statements as I’d already passed their “stringent checks”?
David says
Should I write to L2Go to inform them I want to cancel the CPA for the monthly repayment now that they have offered a reduced payment and interest reduction, even though I will likely escalate to FOS? Or if I reject their offer do I have to continue paying the full amount on the original agreement please?
Sara (Debt Camel) says
If you stop paying them, this will affect your credit record in the short term, but the negative marks will be removed if you win the case at the Ombudsman.
Are the repayments causing you problems? If you are, it’s better to not pay L2G – hoping that these negative marks will be removed – that to not pay another lender or get behind with priority bills.
If the payments aren’t causing you a problem, then you can continue paying – this will increase the refund you eventually gte. This will only go wrong if L2G go into administration, when you may get back little of the extra money you have paid them. I have no particular reason to think they are in difficulty at the moment, but this is a difficult time for many bad credit lenders.
If you decide to stop paying them, you need to phone up your bank and insist the CPA is cancelled. And tell L2G you are not paying. You aren’t asking for their permission.
David says
Thank you. I’m currently awaiting their response to my counter of their final response, which was to remove all interest and reduce payments rather then their offer of reducing the interest by 50% and reduce payments. I will advise them on my CPA, I appreciate the advice again.
David says
Hello. L2GO have accepted reduced payments for a period of 3 months and have agreed to not negatively impact my credit score. In their response they have asked me what I feel a suitable solution would be, why would they ask this? I’ve already requested the removal of interest and reduced reoayments, but it seems that may not be sufficient and they are implying I should ask for an alternative solution. What should I do?
Sara (Debt Camel) says
I suggest you repeat what you have said – that you would like all interest removed so you only have to repay what you borrowed and at a reduced rate.
What is the rest of your current financial situation like?
David says
OK thank you. I’m in arrangements with all other debtors, have been since around 2019, while I have one other loan for £333 which will be paid off by July and I have no issues with that one.
I’ve only repaid £538 of a £2k loan with L2Go, so I will ask for reduced payments and removal of interest. I don’t think I can get away with having the debt cleared of course, so I’ll go with that. Thank you!
david says
Hello Sara,
L2G have again countered and offered to reduce interest by only 75%. They have also said my credit report will now show this account with a Q (Query) Status. As this is their 2nd offer after their initial offer of reducing interest by 50% and they are still ultimately rejecting my complaint do you think it wise to escalate to the FOS now or try to negotiate with L2G further?
Robert James says
Good news. My complaint to Loans2Go has been upheld , they have proposed to write of the £628 I still owe, but they keep the £399 I’ve already paid. This was for a £250 18 Month loan.
Shall I accept or should I pursue further compensation?I think writing of the debt is a result, that is one less thing to worry about. £628 out of my Quickquid redress makes me shudder.
Sara (Debt Camel) says
It will mean you have paid less interest than you would on a payday loan.
It’s quite a personal decision – although it could be better it isn’t a bad offer. And ombudsman decisions about one small loan can sometimes be erratic.
Robert James says
Hi, thanks. I best accept at least I won’t have to waste a further £628 and no worry. You never know I might get a surprise in the bank, but that’s unlikely.
Jack says
Hi Sara,
Just wanted to say thanks so much. After following your template and advice L2G have agreed to write off my remaining debt and clear my credit file.
You’re a star.
Dave says
Hi thanks for the guidance on here Sara, had a loans2go account £600 borrowed, over £2000 repayable….paid off the original £600 borrowed and then used the above template tailored to my personal circumstances.
Received a reply stating complaint was not upheld as loans2go had not done anything wrong but as a gesture of goodwill we’re willing to reduce the remaining balance by 50% leaving me to pay the best part of £800 remaining.
I rejected this offer and stated I would be taking this to the financial ombudsman as I know they have a charge of £750 per complaint that goes to them.
Loans2go then replied a day later and agreed to then write off the full remaining balance of just over £1600 and to mark this as settled on my credit file……this was all done withing 2 weeks of the original email I sent.
So just a thank you to Sara and this site for the help and info here, and a FYI for anybody else who may be considering sending a letter to loans2go this was my experience….many thanks
Angela says
Hi I currently have an affordability complaint with an adjudicator after being rejected by Loans 2 Go. My loans were back in 2013/14. Today I received this from the adjudicator:
Dear Angela
I’m contacting you about your complaint against Loans 2 Go (L2G).
As you know, L2G think you referred the complaint to us too late and we shouldn’t be allowed to consider it. But I wrote to them to say I disagreed with their reading of the rules.
I need a little bit more information from you before I can move your case forward again.
Thinking back to the time when you took out this loan, L2G say you would’ve met with one of their agents to process the application for the loan.
At that meeting you were asked to give them copies of your bank statements and asked about your income and expenditure. Can you tell me what you thought about that at the time? Can you tell me what you thought they were doing all that for?
I appreciate those questions might sound a little odd (and that the conversation I’m referring to happened nearly 10 years ago so it might be difficult to remember exactly what you thought at the time) but it would be really helpful if you tell me as much as you possibly can.
Has anyone had similar follow up by an adjudicator? Not quite sure how to respond, I don’t have a cleat recollection of what happened at the time other than being in significant debt and continually stressed about trying to keep my head above water. Any advice appreciated.
Thanks
Sara (Debt Camel) says
I haven’t heard of anyone being asked this.
was this a log book loan or a normal unsecured loan?
do you remember if you completed an application form or if you were asked questions and the agent completed it?
were you given the impression this was just some formality? or that the agent would help you get the loan?
was it suggested that you should borrow more that you asked for?
do you remember being asked about a lot of expenses or did it seem some quick check?
Of course you may remember very little, that’s unsurprising.
Angela says
Now that I’m thinking about it I think the first loan I had was a logbook loan then it was later topped up. I think an agent filled in the form, asking me questions about my income and outgoings. When it was topped up it was done over the phone, not face to face. I really can’t remember specifics though.
I
Sara (Debt Camel) says
I think you should just say that – that you think the agent asked you some questions and completed the form but you don’t remember much about it.
Angela says
Ok thanks that’s what I’ll do.
Darren says
Hi Sara
You offered me some good advice regarding L2Go, and their initial offer to me of reducing the amount owed by 50% (to £1500, which is with a DCA). I replied to them asking for my credit file (a default) to be amended as an additional request. They have come back to me refusing to do this on the basis they are “a responsible lender so have to record what happened”. Now their claim to be a responsible lender maybe be debatable (!) but, is this a fair point on their part? What are the chances of a complaint to the FCA being realised and indeed would this force the change? They are not the only default on my account, regrettably. Would i be better to take this 50%?
as a FYI my only basis for claim was your template, i have no other exceptional circumstances such as gambling etc. I did simply, miss payments due to a combination of payday loans and cashflow issues at the time. Their extensive initial reply showed my income and expenditure but as i pointed out they wouldnt have seen my out of pocket expenses i have to make as part of my job which gave me at the time the cashflow issues. Many thanks again, in advance.
Sara (Debt Camel) says
I don’t remember replying to you about L2G?
how good is this offer? How much did you borrow, how much have you repaid so far?
have they also agreed to let you repay the balance at a lower affordable rate?
If you could get more by going to FOS, that tilts your decision in favour of that!
If you couldn’t get more, well if your credit record is poor for a lot of reasons, getting one sorted out won’t help it much.
Darren says
hi Sara
Currently owe£3000, loan was £500. so its a 50% reduction. The debt is with a DCA who don’t pressure me on payments at all, and £50 a month is comfortable for me. I have 5 defaults, one or two i expect to get removed due to other situations i.e Satsuma. As i understand it, settling a debt in default does’nt really affect the credit scoring so much so to at least get it reduced so much is a bonus? The possibility of getting more from the FOSin terms of them instructing a correction is i guess, the guidance i’m looking for. Other than their unfair interest rate (which i signed up to) i’m not sure what if the FOS process would give me more, unless your experience suggests otherwise. Many thanks, again.
Sara (Debt Camel) says
the question is, are the repayments afforable? If not you may win the FOS case and then you would only have to repay the £500 borrowed, no interest.
darren says
hi Sara
very affordable, i’m in full time employment. So i guess i’m best advised to take the offer they’ve made.
Your help as ever is much appreciated.
Liam says
Hi Sara,
I took a loan out with L2G back in June 2020 for emergency repairs.
The loan amount was £1000 with monthly repayments of £228.56 over 18 months, totaling £4,114.08. That’s a total interest rate of £3,114.08 for a £1000 loan.
I used your template above but they are stating that I am liable for all charges. The loan was given to me with a much lower APR before I took it out and afterwards the APR shot up.
I’ve been through the Ombudsman as well bud they’re saying they can’t uphold it. Is there anything I can do or am I stuck with the insane interest to pay?
Kind regards.
Sara (Debt Camel) says
have you had a final decision from an Ombudsman? or just from an adjuicator?
what is the rest of your finances like?
how much did the APR go up?
Liam says
This was from an adjudicator, not from an ombudsman.
I’ve given them a breakdown of my monthly income & expenditure which basically breaks even with some weeks having me needing to make some adjustments on what I spend money on more carefully.
Sara (Debt Camel) says
well you can ask for it to go to an Ombudsman.
but it doesn’t sound as though the repayments were clearly unaffordable for you?
Liam says
My income was around £1,600 & my outgoings for everything were coming to around £1,660 a month before the loan repayments were coming out.
I was having to make sacrifices in other areas in order to pay the loan or having to borrow off my parents, leading up to me owing them around £1000 before they told me they could no longer keep bailing me out.
Sara (Debt Camel) says
then go back to your adjudicator and explain this. Ask for it to go to an Ombudsman if the adjudicator won’t change their mind.
Liam says
Hi Sara,
Quick follow up to my last comment. I asked the adjudicator to pass my case on to the Ombudsman a few weeks ago.
I finally heard back from them today with a provisional decision with the following “Put Things Right” terms”
•Remove all interest, fees and charges applied to the loan.
•Treat any payments made by Mr L as payments towards the capital amount of £1,000.
•If Mr L has paid more than the capital, refund any overpayments to him with 8%* simple interest from the date they were paid to the date of settlement.
But if there’s still an outstanding balance, Loans 2 Go should come to a reasonable repayment plan with Mr L.
•Remove any adverse information about the loan from Mr L’s credit file.
I think this is a great outcome for a bad situation of outrageous APR rates. I’m waiting to hear back from them with the final result but they’ve said their final decision will be along them lines.
Gabster says
Hi Sara,
I got £3500 from QQ last week – over the moon. But this is about something else – a log book loan with Loans2go (asking for a friend).
Details of payments: 12 x payments from March 2019 to Feb 2020 (just before lockdown for Covid-19) totalling £993.36 and 2 further payments of £70 on 15/10/21 and 13/09/21. Total paid to date: £1133.36 Total due: £1490.04
Debt outstanding £256.68
They originally borrowed £500 on 14th February 2019
Their financial situation isn’t stable and wasn’t stable at that time, They had some other payday loans/HandT pawn broker loan for an item. And had some arrears with other debts (credit cards and phone company)
After putting in an affordability complaint in early April that have offered to write off the outstanding balance but that’s all (final response) Should they pursue this and send onto to the Financial Ombudsman, it seems like a very high interest loan, your advice please. Thanks!
Sara (Debt Camel) says
who is the lender?
Gabster says
Loans2go – a logbook loan (thanks)
Sara (Debt Camel) says
If your friend wants a “full refund” then they need to send this to the Ombudsman where they could get back 1133-500 = £633, which would be a refund of just over 3400 after the balance is cleared.
But L2G will sometimes negotiate. If your friend would prefer a quicker solution, they could go back and say they think the Ombudsman would uphold their claim, but in the interest of a speedy resolution they would be happy to accept the bapance being cleared and a refund of 3200 say. I don’t know how likely that is to work.
But what is their finacial situation like now? You say “not stable”. If they have a lot of other debts, then it may be better to talk to a debt adviser about all their options, I suggest they call National Debtline on 0808 808 4000
Gabster says
Thanks, Sara. Bit confused on your calculations – sounds great, but think you may have mixed-up his calcs with someone elses? £3200? Sorry, my maths isn’t all that either ;) please explain figures.
FYI, all priority debts were paid (it’s my husband) and I pay mortgage, bills, CT etc. He has a few debts, totalling £4-6k maybe, nothing too heavy now. But his work vehicle was stolen on 2nd Jan 2022 and still waiting for payout from insurance (imminent, but no work in 2022.) Self-emplyed and affected by Covid heavily as couldn’t work due to restrictions We’ve had 3-4 illnesses in the family since 2014 (elderly parents) and have been caring for them on and off, and have 4 children, 2 born after 2014. (2 are 18+ and we help with Uni and college fees/care/accommodation So all very busy…and expensive.
His bank statements 2 month prior to this loan shows 1 payday loan (MyJar) and 2 x unpaid bills FYI.
Thanks again for your support and advice, what do you think we should do, offer for them to clear balance and give him back XXX ? sorry calculations were beyond my capabilities LOL
Sara (Debt Camel) says
Sorry, two of those “3”s should have been £ signs. This is how it should have read.
If your friend wants a “full refund” then they need to send this to the Ombudsman where they could get back 1133-500 = £633, which would be a refund of just over £400 after the balance is cleared.
But L2G will sometimes negotiate. If your friend would prefer a quicker solution, they could go back and say they think the Ombudsman would uphold their claim, but in the interest of a speedy resolution they would be happy to accept the balance being cleared and a refund of £200 say. I don’t know how likely that is to work.
But what is their financial situation like now? You say “not stable”. If they have a lot of other debts, then it may be better to talk to a debt adviser about all their options, I suggest they call National Debtline on 0808 808 4000
—————————————————————————
It is a stupidly high interest rate, but you win these complaints by showing it was unaffordable, not complaining the rate was too high.
I think he has to stop borrowing completely at the moment. And if he has no income he should look at token £1 a month payments until he is back working.
It’s up to you if you want to try to negotiate a bit of a better offer, take what has been offered (which sorts one problem – make sure they agree to remove any default or missed payments…) or send it to the Ombudsman.
Gabster says
Great, thank you so much for your help. Good advice, we will challenge their final decision and if not, we will take it to the FOS.
And thank you for the other advice, he has stopped borrowing, and we’re finally paying off a few things. Van insurance due to payout any day now, so hope we can get back on our feet one he has a work vehicle again. I have put in affordability complaints with Money Platform, Advantage Car Finance and Safety Net, all using your templates, about these loans being unaffordable. I’ll keep you posted on any good news regarding these, as and when. THANKS again for your support and advice.
Gabster says
Hi Sara. Good news. Loans2go have agreed to write off the balance, and pay my husband £250 and mark the credit file as closed. Thank you!! With your your advice, we’re finally getting on track!
Have a lovely weekend!
Sara (Debt Camel) says
Good result
Hels22 says
Hi Sara,
I stupidly took out a L2go loan in Feb of this year for £1200, over 18 months at £160 a month. I have paid 3 instalments. Obviously, the interest is hideously high and i am going to end up paying £3800. Can i submit an affordability complaint now even though i have only paid 3 lots? I have 1 other payday loan on the go at present & 3 credit cards.
Sara (Debt Camel) says
are the amounts actually affordable – can you pay them and still be able to pay your other debts, bills and living expenses?
Hels22 says
Its a big struggle i will be honest. Its 24 months, not 18 months as i said above.
Hels22 says
Hi Sara, had a very quick response. Loans to go offered to remove 50% interest. This takes my balance from £3400 down to £2054. Is this offer good or should i push for 75%? Anything helps but ive read they sometimes can negotiate?
Sara (Debt Camel) says
Can you afford to repay £2054 and still pay your other bills, debts and living expenses? Gwetting abalance reduced if you still can’t afford it doesn’t get you very far.
So what your problem debts do you have that you aren’t paying or are only making payment arrangements to? What other debts are you paying in full? Are you in arrears with any important bills – rent, council tax, energy etc?
Hels22 says
Not in debt with priority bills at all. They actually did negotiate with me and wiped 80% off the interest. That leaves me in a much better position than a balance of £3400! Ive learnt my lesson! Luckily for me, they were actually v easy & quick to deal with.
Louise says
Just out of curiosity has anyone on here won a case with these at financial ombudsman and how long did loans2go take to contact you regarding settling the way the ombudsman has decided? I just won a case and ombudsman said they should refund the interest and 8% on top. I know they have 4 weeks to do this but just wondering if they normally do it quicker…
Sara (Debt Camel) says
Hundreds of cases have been won at the Ombudsman.
Is your decision from an adjuidcator/investigator or an Ombudsman?
Louise says
Firstly the adjudicator agreed but Loans2go disagreed so I had a final decision from an ombudsman who upheld the complaint just wondered if it normally takes the full 4 weeks for Loans2go to payout…
Lauren says
Recently sent a complaint regarding unaffordable lending to loans 2 go.
Principle: £1,000.00
Total payable £4,114.08
Total paid £799.96
I note that you declared your monthly income as £2,250.00 we verified that you received a minimum of around £1,269.10 monthly via an online income verification tool. Following an extensive review of your application, in addition to your credit file, we calculated your monthly expenses to be around £815.40. Therefore, the contractual loan repayment of £228.56 per month would have still been affordable.
e. As a gesture of goodwill and testament to Loans2Go Limited’s commitment to assisting and treating our customers fairly, we are offering to reduce the interest on the active Loan Agreement by 50%.
Authorised and Regulated by the Financial Conduct
Current Balance: £3,314.12
Proposed Write Off Amount: £1,557.04 (0% of Total Interest) Proposed New Balance: £1,757.08.
Wanting some advice or maybe some feedback on anyone who has been in a similar situation x
Sara (Debt Camel) says
They will often negotiate on their offers.
What is the rest of your financial situation like at the moment? Do you have a lot of other problem debts? Are you in arrears on any important bills?
David says
I recently got offered a reduction of 50% then 75% of interest, but they maintained the loan was affordable despite admitting not using my actual income and expenditure when assessing affordability during my application.
It’s now with the FOS because they have marked my account as in arrears only 10 days after agreeing to allow reduced repayments for a period of 3 months.
Good thing is though that if you escalate to FOS and the fos don’t uphold your conplaint, l2g cannot backtrack on their original offer either. Go for it. Nothing to lose I reckon.
Louise Stratford says
go to financial ombudsman you’ve got nothing to lose. I didn’t expect them to uphold my complaint and they did. Currently waiting for loans to go to pay me redress. They’ve got 2 weeks left to sort it.
Lauren says
Thankyou all for your input and advice. Does anyone have a template they used to send to the FOS. Did you notify loans to go you was taking it to the FOS and what did you say. I’m rubbish with words, any input would be really grateful. X
Sara (Debt Camel) says
there isn’t a template. You just use the FOS form here https://help.financial-ombudsman.org.uk/help which asks all the questions they need the answers to set up your complaint in their system – things like what is your date of birth and is this a single account or a joint one with someone else.
Just say a bit of what you said to L2G to make your complaint.
Richard says
Hi. Does anyone know the current average wait to when sending to FOS. Sent mine to them on the 18th of March. Thanks
Helen says
Hi I have had a letter from Loans2go saying they will not look into my claim of unaffordability and on the end of the letter its states this…….Please note that, under terms of our Complaints Procedure, this is our final response. As the complaint was received outside the time limits stated in DISP 2.8.2, we do not consent to refer the complaint to Financial Ombudsman Service.
Does that mean I cannot take it any further? many thanks
Sara (Debt Camel) says
yes you can still take this further.
Does it say that you have the right to take your complaint to the Financial Ombudsman within 6 months?
Helen says
No I don’t think it did say about the 6 month part. I did ask previous for a list of all loans I had received from them but I never took anything any further. I shall recheck email they sent me. But in total I paid, just in interest alone over £1200
Sara (Debt Camel) says
then send this to the Ombudsmn. It may be slow but why give up?
Helen says
Thank you, yes I plan on doing it over the weekend! That loans2go were brutal and harassed customers! They actually looked at my bank statements and advised me on ways I could work things better so I could afford to pay the loan!!! Absolute sharks!
Angela says
Hi
They said the same to me because my complaint dated back to 2013/14. I referred to ombudsman and an adjudicator said they didn’t agree with Loans2go and told them that but they didn’t budge. Adjudicator said he was of the view it could be looked at because i only found out about affordability complaints within the past 2 years. Now in the queue for an Ombudsman.
Tom says
Hi, really good to have found this page. I took a L2G loan last year for £250. The interest wasn’t explained very well at all and now I’m paying back something stupid like £900. My circumstances have since changed and I’m no longer in full time work and I’m claiming carers allowence for my partner. I have sent your template to the email and I’m waiting to hear back.
Sara (Debt Camel) says
Do you have other problem debts too?
Tom says
I have other debts that I’ve managed to arrange into payment plans. I’ve paid the full amount I believe of my L2G payment it’s just the ridiculous interest