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“.
A 2019 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: 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.
How to complain about one of 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.
You have two possible reasons to complain about this sort of L2G loan:
- that it was unaffordable for you – 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 loan. If you win this you will get a refund of all the interest.
- that the interest rate was unreasonably high and that L2G was not treating you fairly in offering you this loan. You could win this even if the loan repayments were affordable for you, and Miss R’s case suggests you would get the interest reduced if you do.
You can 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.
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.
Ask for a refund for large bad credit loans
Complaining about a guarantor loan
How to ask for a payday loan refund
Siobhan says
Thank you I will try that.
They’ve described quite clearly how they’ve come to the conclusion I should have had enough spare each month for the refunds to be affordable but my bank statements did show that I didn’t have any spare funds at the end of the month and my credit file showed I had numerous unsecured loans outstanding which were in arrears.
Thank you so much for your help
Roland says
I got quite a few top ups without providing how much I had to pay out think it’s called an expenditure could I claim any back
Sara (Debt Camel) says
were these “normal” loans or logbook loans?
Aaa says
I received a loan in December 2018 but had trouble keeping up with payments and my last payment was in May 2019. I sent an affordability complaint to loans2go in August 2019 with the template above. Is there something I can complain about other than affordability as they are now saying I am not eligible to complain. The issue I have is the huge interest charges which I could not afford to pay! I sent another affordability complaint on 23rd June 2020 and received the following response.
Good afternoon,
Thank you for your email.
However, you had previously raised an irresponsible lending complaint to us on 30 August 2019, with a final response letter issued on 6 September 2019; within that response, we stated the following:
If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.’
Therefore, you had until 6 March 2020, to escalate your complaint to the Financial Ombudsman Service; however, this is now out of time, and is not an eligible complaint.
I did not receive the letters they sent and I also expected a response via the same method I sent the original complaint in which would have been via email.
Please can you advise what I can do about this now?
Tyler (Just a guy, paying off my debts) says
Raise your expired complaint to the Financial Ombudsman Service, explain their final response wasnt sent to you and you wasnt aware until you raised the query about your complaint again, the Ombudsman will likely agree your case was exceptionally delayed (you wasnt aware after all).. Theres absolutely no harm in trying anyway. I had a similar situation with Sunny, the Ombudsman was happy to take my case 8 months after their final response (2 months past expiry)
Stephen says
Hi there I had a loan of £250 from loans 2go didn’t mention anything about how much I would of had to pay back just said it’s a high interest loan at the time I didn’t think of it just needed the money for newborn baby, I was up to date with the £250 loan I had kept receiving texts in need of a top up so I rang them to see how much I could have £500 top up didn’t even get the full £500 they took £150 out of it but didn’t say that over the phone there exact words £500 will clear in to your bank within a couple of minutes, was in starting getting decorating stuff ready for newborn baby. After that I started getting into real difficulties with this lender total rip off be very careful.
Jimmy says
I sent them an email in April of a loan I took out with them at Xmas. Usual story, 2 years to pay back £1800 on a £400 loan. I didn’t miss a payment but the thought of £98 a month for another year and a bit was annoying me. 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. Don’t take what they say at first as gospel. The interests they charge are abhorrent and they are playing on vulnerable people!
Rikki heron says
What did you say in your letter to them pls, I borrowed 1k and have to pay back well over 4k
Sara (Debt Camel) says
the article above has a template that you can use.
Pierce says
Hi all,
I put in my complaint last week for an £800 loan I took out in Jan (costing £3k+ for 18months). Went back and forth, received final response where they rejected my complaint the letter implied that they sent me an email requesting bank statements and other evidence as to help with my claims of the loan being unaffordable (which I never received). However, looking at my statements previous to taking the loan it looks like I can afford the repayments, but during the term of my repayments now I’m having difficulty and ended up borrowing from other places. I don’t know what to do I’ve already paid £914.20 to them. Should I send them the statements and my credit report? They’ve already seen that my score was very bad before but its gone up a bit since then and I’ve had previous defaults etc. and I’ve settled all of my previous debts last year. Their current settlement figure is at £908 and some change… what else can I do?
Sara (Debt Camel) says
I suggest you reply (assuming this is all accurate obviously) that they never asked for your bank statements or credit record and that you have already repaid more than you borrowed. Say that as a compromise you will be happy if the balance is written off [or reduced to £200 say? this is up to you. I guess they will be more prepared to accept a higher about rather a complete write off] otherwise you will be sending your complaint to the Ombudsman.
Marie says
Hi Sara
I put in a complaint with loans2go about their outrageous interest and it wasn’t upheld.
Since then they have been hounding me and I’ve just received a final demand letter saying if I don’t pay £520 (on a £250 loan that I’ve already paid over £500) that they will take me to court, contact my employer asking them to make the payments from my salary, or come to my house and repossess my items to pay for the outstanding items.
I am going to make a complaint to the Ombudsman but the letter has left me feeling terrified, during a time where I’m already experiencing intense anxiety.
Could you pls advise me on next steps with them whilst I wait for the ombudsman to deal with the complaint?
Thanks
Marie
Sara (Debt Camel) says
ok, so they are being unpleasant and trying to pressure you to pay them money.
But when you have a complaint in with the Ombudsman, they should not start court action. So send your complaint to FOS now and tell L2G that you have done this and that as you are disputing the debt and ask them not to start court action.
I haven’t seen them try to take anyone to court when there is a FOS case.
But what if they do? Worst case? I don’t think this is going to happen but here are the facts so you know just how looooong it would take!
They can’t get money taken from your wages or send bailiffs around unless they have already gone to court and got a CCJ.
The first stage in getting a CCJ is for them to send you a special letter with a Reply Form attached. See https://debtcamel.co.uk/letter-before-claim-ccj/ for what this looks like. until you get this form they are just bluffing.
If you get that letter you have 30 days to reply. so you can sit on it for 3 weeks and then send back the reply Form asking for more information (that link explains what to say). They then have to send you that information and they can’t start court case for 30 days after that. So this will have taken 2 months so far.
If you ever get a court form (which I do NOT expect! – and I can say where you can get help if you do so you know what to put on the form!) you have 28 days to send in a defence if you have acknowledged getting the form. So that’s another month.
After that you can request a “stay” of the court case so that it goes on hold while the Ombudsman case is held. At this point FOS should give your case priority.
If you didn’t ask for a stay but just carried on with the case, it took on average 9 months in 2019 for a case to go to court. And things will probably have got a lot slower now post Covid-19 as there is a backlog built up.
Marie says
Thanks so much Sara, I will put the complaint into the ombudsman now. I’ve felt so anxious all morning! Thank you for this website and all the support you give
Thomas says
Hi,
Does anyone know the response times of the financial ombudsman?
I put a complaint on about loans 2 go around 8 weeks ago? I’ve only had one email saying they had received it. I understand things will be slower with COVID-19.
Loans 2 go have taken one payment since me putting the complaint in then I have cancelled the payment and they’ve sent me a letter saying my account is in arrears etc.
Any help would be appreciated
Sara (Debt Camel) says
How much did you borrow and how much have you paid so far?
Thomas says
Hi I borrowed 750
I have currently paid £1,700 back and still have another £1000 roughly to pay.
They rejected my complaint around 9 weeks ago
Sara (Debt Camel) says
ok, well it’s best not to pay them any more but they will push you to. See my reply to Marie above.
Ross says
I put a complaint in in July 2019 for 10 loans with Loans 2 Go and an adjudicator got assigned last month. It’s getting an adjudicator assigned that takes the time, then the process moves fairly quickly.
Thomas says
Hi,
Thanks for the update. As mine was put in June 2020 I could have a few months to wait. What would be the best way to move forward for now with them, should I agree to pay them a small amount every month?
My usual repayments would be £170, what do you think they would accept before threatening to take me to court etc?
Thanks for your help
Sara (Debt Camel) says
they shouldn’t take you to court while you have an open complaint at the ombudsman.
Thomas says
Would you recommend me still paying something back to them each month?
Sara (Debt Camel) says
If you can afford to make the monthly repayments without that leaving you so short you have to borrow more money, that protects your credit record and means you will not be hassled by the creditor
But if the payments are unaffordable, the simplest approach is often to pay nothing – you have already repaid more than you borrowed.
Tyler N says
Just wanna contribute a little if you dont mind Sara, im sure you’ll want to shorten it after a read.
I have an active affordability complaint against loans2go.. I recently spoke to the financial ombudsman service to find out an update on my case as its been over 11 months since i raised it with FOS after Loans2go fully rejected my complaint (after only 3 days of raising it believe it or not)
The FOS told me i would receive a full decision in about 2 weeks as they are 12-13 months behind on short term cases at the moment..
But the adjucator i was on the phone to had just made a decision a few minutes ago on a loans2go case so was well aware of the company, but he had a quick look at my case regarding how unaffordable the loan was too me (because of the interest being so high its unaffordable sustainably) the adjucator agreed based on the decision he just made i will very likely receive all the interest back.
An important point The adjucator told me loans2go are the recently being investigated so all cases being referred to them are now being investigated separately by another team which may add to the delay before a decision can be made..
So id highly recommended anyone who has taken a loans2go loan that was unaffordable to them to put in a complaint soon, this could be the next loan company “2go”
K Smith says
Hi can someone help.
I stupidly took a loan with loans 2 go, didn’t even realise till today that its for 18 months, ive been paying 70 a month back for 6 months and just went on the account to check how much was left as again ive had no paperwork…theres no way I can afford another 12 payments….what do I do??? Thanks
Sara (Debt Camel) says
Read the article above and send in a complaint as it says!
What are the rest of your finances like, do you have other problem debts?
k smith says
Hi….i do have debts with other companies yeah that are either in dispute or I have set up on payment plans for really small amounts as I am a single parent, now unemployed and struggling
Sara (Debt Camel) says
ok so as well as putting in a complaint, I suggest you ask for a payment arrangement for a really small amount.
k Smith says
Brilliant thanks for the help
J Jones says
I used your template complaint letter which was great. They are asking me for a copy of my bank statements 2 months prior to giving me a top up loan should I give them my salary was halved and they still gave me a top up loan which turned out to be a whole new loan agreement which I did contest and offered to pay back the money which was topped up but they asked for the full amount loaned…
Sara (Debt Camel) says
So you made a complaint just about the top up loan? or both loans? What was their offer?
J Jones says
They’ve not offered anything as of yet. They’ve asked to see bank statements as part of the complaint procedure I’m presuming to check my income. Should I give them to them? Or if they’d carried out the correct checks to see if the payments of £227 a month were affordable why would they need these?
Sara (Debt Camel) says
To win a complaint you need 2 things. First is for them to not have made adequate cheks. And second is that the adequate checks would have showed you couldn’t afford the loan.
Suppose you could easily afford the loan. (NB I am not saying you could, this is trying to explain how complaints are decided at the Ombidsman.) Then FOS might decide that L2G hadn’t made the checks but those checks would have shown you were OK, You would lose the case.
So by supplying bank statements you PROVE that the loan was unaffordable.
This doesn’t mean that L2G will uphold your case, but it gives you a bigger chance they will. If they then reject, send it to FOS!
J Jones says
Ok that’s great I will send them over today. The first loan I could afford but what I didn’t realise was that when they gave up the top up loan the payments would quadruple and it was a completely new loan agreement. Which I contested but didn’t win. I’m now earning less being furloughed currently than the loan repayment!
J Jones says
I sent over bank statements and received a response from loans 2 go today who have looked at my affordability complaint. They have said they cannot uphold my complaint but are willing to take 50% of the interest off as a goodwill gesture. Should I accept this or go to FCO?
Claire says
Send to FOS they did the same to me. It took nearly 12 months with the FOS but last week I got a redress payment of £9000 back. It can be a long wait but it’s worth it
tom says
Hi,
I’ve had 6 loans with them over a 20 month, total borrowed was 2200. The interest ive paid on this is 1600. I never had the one loan for longer than 6 months as I always paid it earlier.
Do you think I have a good case to complain and get some if this interest back as surely they should have done better checks, bank statements would have shown gambling.
Sara (Debt Camel) says
Yes that is worth making a complaint because of the repeat lending and the high interest rate.
Tom says
Thanks Sara. I was looking at looking at one loan which I paid in 3 months and the interest was almost the same as the original capital. I honestly don’t know how they get away with this!
Lisa says
Hi
I applied to a payday lender for £800 who also acted as a broker and loans2go accepted me over 18 months no confirmation. Of the monthly payment and automatically set up a CPA, was advised would be contacted the next day and them all of a sudden the money was in my account and it wasn’t until then they confirmed the monthly payment of £182 paying back £3.2k, I withdrew from the loan and was given 30 days to bay it back but couldn’t afford it, I complained and they said they were not a payday lender and I had to pay the interest, they agreed for me to pay £80 a month but had to be reviewed every 2 months, on the last review they dropped it to £40 they know I cant afford this loan but when I complained they said I would not pay all this interest of i paid it off early, I cant even afford the monthly payment, they have also sent me a final demand, although I complained about the interest initially can I go striagjt the ombudsman or would I need to complain again first.
Sara (Debt Camel) says
So you made a complaint? How long ago? What exactly was it? And what was their reply?
Lisa says
I took the loan out in Jan and complained in February, this was there reaponse
In relation to your comment about the interest rate; payday loans have an interest cap of 100% of the principle borrowed which may have caused the confusion, due to our products not being considered a payday loan (our minimum loan duration is 12 months) this interest cap wouldn’t apply.
Please be reassured that the interest is frontloaded, which means that all the interest which will become payable over the term of a loan is added at the beginning of the loan term. Therefore, you do not have to factor the accrual of any further interest into your calculations nor will you incur any charges.
Sara (Debt Camel) says
was your complaint that the interest rate was too high, or that it broke the payday loan interest rate cap? And what date did L2G reply to you?
lisa says
My complaint was the interest rate was too high, and that I thought they could not charge more than 100% of the initial amount borrowed, i wasn’t aware that they were not a payday lender as I did not apply with them direct.
their reply:
In relation to your comment about the interest rate; payday loans have an interest cap of 100% of the principle borrowed which may have caused the confusion, due to our products not being considered a payday loan (our minimum loan duration is 12 months) this interest cap wouldn’t apply.
Please be reassured that the interest is frontloaded, which means that all the interest which will become payable over the term of a loan is added at the beginning of the loan term. Therefore, you do not have to factor the accrual of any further interest into your calculations nor will you incur any charges.
they replied to me on 22nd Feb they responded on the 28th with the details above
Sara (Debt Camel) says
Neither of those points are “affordability” complaints. Did you say L2G had not checked that you could afford the repayments? Or something like that?
(This matters as you are now past the 6 month point at which you can take your previous complaint to the Ombudsman. So I am asking to see if there is a “new and different” complaint you could make.)
What are the rest of your finances like at the moment?
lisa says
Hi Sara many thanks.
My initial complaint was the loan was totally unaffordable for me due to the interest rate being to high amd seeing as I didnt apply to them direct I was not made aware of the monthly payments until after the finds had been transferred, I also queried the interest cap being charged, their response is below
I am sorry to hear of your situation.
There is the option of setting up a temporary reduced payment plan, and then requesting an early settlement figure at a later date when you would be in a better position if you wished to settle the loan, and you would be entitled to a statutory rebate which would reduce the total amount repayable significantly
In relation to your comment about the interest rate; payday loans have an interest cap of 100% of the principle borrowed which may have caused the confusion, due to our products not being considered a payday loan (our minimum loan duration is 12 months) this interest cap wouldn’t apply
I sent an email back saying thank-you for the confirmation and nothing has been done since and they issued the final demand which I have now stopped.
I do kot understand why this would not be an affordability complaint and I am also in arrangements with other creditors .
Many thanks for all your help
Sara (Debt Camel) says
did they tell you you had the right to take to complaint to the Financial Ombudsman within 6 months?
lisa says
Hi Sara no they never mentioned the ombudsman at all
Sara (Debt Camel) says
OK – in that case the 6 month time limit I was worried about doesn’t matter and you can send your previous complaint to the Ombudsman right away. Say you complained in February but they never told you you could go to the ombudsman.
lisa says
Ok thank you Sara for all your help much appreciated
J Jones says
I have decided to go to the FOS even after L2G offered a 50% reduction on the interest charged as to me they are admitting some liability that the loan was unaffordable. Even with that deduction I owe over £2500 and they will not reduce the payments even with proof I have lost my job. Do I tell them I am going to FOS and what do I do about payments if I can’t afford them???
Sara (Debt Camel) says
Do you have other problem debts as well? How much do they add up to? How soon are you likely to get another job?
If the loan was unaffordable they should remove ALL the interest not 50%. Quite right to go to FOS.
J Jones says
So lastly do I tell them that I am going to the FOS and what do I do about continuing to make payments. I have debts but none are for payday loans just store account for Next and a credit card which I am paying off a set amount each month which is affordable. There’s not much left on it. In regards to getting another job I am actively seeking employment but it’s thin on the ground to fit in with a family and childcare arrangements.
Sara (Debt Camel) says
Yes tell them you are going to FOS. If you are out of work I suggest you just offer them a token 31 a month. And the same to the Next & store card accounts as well.
Kate says
I was dumb enough to take one of their loans, however within an hour of the money arriving I repaid 2/3 of it immediately. This went completely unacknowledged by them, in fact they went ahead and took repayments on the basis of the original amount. When I disputed this they at first tried to pay me the amount I had repaid so that the original agreement would stand! I refused this and disputed the amount they took three times that was based on the original principal loan amount. Now they are saying that the 2/3 of the original principal loan amount that I sent back within an hour of receiving it was a repayment on the original loan principal. So I had this money for less than an hour but should still repay as if I had the use of it as per a loan? Now they still want to take money from me on the basis of the original loan and I have that on my credit report. My position is that on a loan of £1200 I sent back £800 in an hour and have repaid 3 x £260? So they owe me, they have been lax in not contacting me and taking the money as per the original amount and not acknowledged that I sent back most of it in an hour. Then their trying to get me to accept the money that I had sent back was blatantly irresponsible lending!
Sara (Debt Camel) says
Could you have afforded the £260 a month repayments and still paid all your other debts and bills and normal expenses?
Brett says
Hi,
Please can I have some advice
I stupidly took a loan out with Loans2go, I was in desperate need and when filling out the application i obviously down played what I pay out each month etc to try and get the loan which I desperately needed to pay off other debts.
I have been paying £97 a month but it has come to the point where I can’t afford this and I sent a complaint and advised I could not afford the loan repayments.
That payment payment I missed was for 31/08/2020 – its the first one I’ve missed. I took a £407.65 loan but need to do 15 more payments of £93.17 which I just can’t afford.
So they never even acknowledged my complaint and have now just taken to calling me every half an hour and sending around 2 to 3 messages a day saying they keep trying to take the money.
I’ve asked for a response to my complaint and asked if thy can lower the payments anyway.
Is there anything else I can do ?
Thank you for your time – I look forward to hearing from you
Sara (Debt Camel) says
When did you complain?
Do you have other problem debts?
Brett says
I complained about a month ago now and have today sent them a message for a reply to my complaint and the request if they can lower the payments but not had anything back yet at all apart from chasers for this payment.
Yes i have 2 other pay day loans – 1 with Mr Lender and 1 with Sunny. I havent missed any Mr Lender ones but currently not paying Sunny.
Thank you for your reply
Sara (Debt Camel) says
If yoh can’t afford the repayments, you need to tell them what you can afford, not ask them…
So you only have payday loan debt? No credit cards or overdraft?
Brett says
Hi Sara, thanks again for your reply
Ok, so if I tell them that i can only afford £50 payment each month – how do i stop them just trying to take the full amounts out? It’s not a DD – they just put a request in on my pay day.
So when it comes to this pay day on Weds they will attempt to take 2 x £97 which I just can’t afford.
I have a £1000 overdraft that I live in and always end up over that after my daily charges
Again I appreciate your time – thank you
Sara (Debt Camel) says
If this is not a DD then it is a Continuous Payment Authority (CPA). Phone your bank up ASAP and say you want this cancelled.
Brett Dance says
Hi Sara,
Ok I have cancelled the payment. They keep contacting me to say payment failed and keep trying to chase the money. They to date have never even acknowledged my complaint and that I can’t afford the payments. How would you recommenced I move forward with this ?
Thank you for your time
Brett
Aaa says
Hi,
I raised an affordability complaint and escalated my case to the financial ombudsman in June. I have now received a letter from a debt collector notifying me, loans2go have instructed them to take legal action in the form of issuing a claim against me at the county court. What do I do? who do I contact? My claim has gone to the Financial ombudsman so I didn’t think they could take legal action until my claim has been processed? Any advice would be great, I need to respond or pay in full by the 26th of October. I do not have the money to pay it in full.
Sara (Debt Camel) says
Have you been sent a letter like this one, with a reply form, https://debtcamel.co.uk/letter-before-claim-ccj/?
Aaa says
Yes, that is the letter I received today.
Sara (Debt Camel) says
I have a busy day today, I will comment on this at the weekend.
Sam says
Hi,
My situation with L2G is perhaps a little bit different as I didn’t actually make any repayments on their loan, and I am now making repayments to all my debts with Step Change. I assumed that the price cap would apply to this loan and that I could complain about this, but now I’m learning it doesn’t is making me feel awful.
I borrowed £250 early this year and supposedly owe just over £1000 now. I don’t think I realised at the time that the total debt would be this high, I was just desperate to get something. My financial situation worsened soon after this and I made the decision to not make any payment and seek further advice for all my debts, and then a few months later I started a debt solution with Step Change. As I haven’t made any significant repayment towards this debt I am not really seeking a refund, instead I’d like to see if they will consider reducing the total debt in line with the price cap ‘short term’ lenders adhere to (so £500 in this case).
Does anyone have any advice on how to approach this with Loans 2 Go?
Thanks,
Sam
Sara (Debt Camel) says
The price cap does not legally apply to this loan so there is no point in asking them to reduce the amount outstanding to that.
If you use the template in the article above it asks them to remove all the interest so the balance would reduce to 250 less the small amounts that have been paid.
Can you say what the rest of your financial situation is like? How large are the other debts in your DMP? Are any of them payday loans and other high interest credit?
Sam says
Hi Sara,
Thank you for your response, I will certainly try the template with them to see how it goes.
I have a few credit card debts that range from £200-£900, a few other pay day loans again in the same range, such as Indigo Michael and Cash 4 U Now. Other than a store card debt with Very (£1700), Loans 2 Go would be my largest debt unless they reduce the balance to £250 like you say.
I am paying £5 towards most of these on the DMP, which is unfortunately a small amount but I am much happier for doing so and have not got into any further debt since.
Sam
Sara (Debt Camel) says
Indigo Michael – is that SafetyNet Credit? They can be one of the easier firms to get a refund from / have the interest removed from as they could see your bank account and the mess you were in… See https://debtcamel.co.uk/payday-loan-refunds/ and use the template there for the other payday loans.
Who is your DMP with? did they talk to you about other options?
Sam says
Yes it is SafetyNet credit. I will try to speak with them too, thanks.
My DMP is with Step Change. I don’t think I had a choice, just that they offered me what they thought was best for my financial situation. It found it easier for me at the time rather than trying to deal with it myself.
Nat says
I have finally had an email saying an adjudicator is looking at my complaint with loans 2 go. I complained to them last october. Sent to fos in February. Is there a rough time how long an adjudicator takes to come to a decision and has anybody had a refund with an adjudicator. I am so fed up with this company i borrwed £250 not realising it was over 18 months !! I have paid £500 back in interest already and they still want another £367 on top of that. Only now they have finally put me on an affordable repayment plan.
Nat says
Also the amount of loans and defaults and other debt i had and they still think this loan was affordable to me. They said i told them my income was 1200 andd my outgoings were 490 but when they did their checks my outgoings were 990 (that was just credit payments)my income was 1100. Even though they seen this they still lent me the money and it was affordable?
salem says
hey i had a loan of 400 of them i have paid over 1100 with them and sitll paying now i still have another 600 to pay i feel tgere robbing me to the max. what can i do about this.
Sara (Debt Camel) says
Read the article above. As that says, if you think the loan is unaffordable, send them a complaint.
Do you have other problem debts as well?
Dariosollazzo says
Hi I did the letter as you show on this website.
And had a final response, that they can’t hold up my complaint.
I borrowed several times from loan2go and previously I missed payments, but yet they would ask me if I wanted another loan, as soon I would clear the last.
They reposed 2 cars of me.
The last one a borrowed 1600. And the total amount was over 6k!!!! I couldn’t afford it and give the. The car, and lost my job as I needed my car for work. But I feel they not going to accept my complaint what shall I do?.
Many thanks.
Sara (Debt Camel) says
Send the complaint to the Financial Ombudsman! Many people are winning these complaints at the ombudsman.
Reece says
Hi, I have logged a complaint using the template letter. They have requested bank statements of doctors notes etc at the time of taking the loan out. As this was the best part of 4 years ago, i don’t have anything like that. I don’t recall anything like that being requested at the time.
They have also told me the loan was sold in june 2019. Are they still Liable, what’s the best way to answer them? Thanks
Sara (Debt Camel) says
You can get bank statements from your bank going back 4 years. Even if the account has been closed.
But for now you can just tell L2G that you want them to respond to your complaint and it will be going to the ombudsman if they don’t make you a reasonable offer. And that you will supply your bank statements to the ombudsman.