ABOUT UNAFFORDABLE LENDING COMPLAINTS

Unaffordable lending claims have become a growing problem in the UK, with a number of lenders and financial providers failing to meet the standards of responsible lending. A recent  report by the Financial Conduct Authority found that many lenders have been engaging in irresponsible practices and allowing people to take out loans and credit cards that they cannot afford to pay off. 

The report identified 118 118 Money, Avant Credit, Everyday Loans, Lending Stream, Likely Loans, Loans2Go, Moneybarn, Safety Net Credit, My Jar, Bamboo, Savvy, Sunny, Satsuma, Ferratum, DoorStep, Loans at Home, Provclaims-Refunds, Guarantor and Bamboo as some of the lenders engaging in this practice. For example, one of the lenders, Avant Credit, has been accused of targeting vulnerable people with high-interest loans, while Loans2Go has been accused of offering unaffordable loans to people who do not have the means to pay them back. 

The FCA has been working to clamp down on these practices and to protect consumers from lenders who are not acting responsibly. The regulator has set a number of rules and regulations for lenders to comply with, such as ensuring that people are only taking out loans that are affordable for them and that lenders have adequate systems in place to assess whether a loan is suitable for the customer. 

If you think that you have taken out a loan from one of the lenders listed above that is unaffordable for you, you may be able to make a complaint to the Financial Ombudsman Service. You may be able to make a claim for compensation and the Ombudsman can look into the case and decide whether the lender was acting responsibly or not. 

It is important to remember that if you are struggling to pay back your loan, there are other solutions available to you. You can talk to the lender and see if they are willing to negotiate a new repayment plan or you can speak to a debt charity to see if they can help you with your finances. 

It is important to remember that taking out a loan should always be a last resort and that you should never borrow more than you can afford to pay back. If you are considering taking out a loan, it is important to make sure that you fully understand the terms and conditions of the loan before you sign any agreement.