Loans2Go provides what I’ve known as the worst loans in Britain.
Since 2021 they’ve been charging 770% APR. See the consultant instance Loans2Go quotes on its web site:
£550 borrowed for 18 months is a month-to-month cost of £113
this provides as much as £2035, a bit lower than 4 occasions what was borrowed.
MUCH cheaper to get a payday mortgage than a Loans2Go mortgage
In fact Loans2Go don’t level this out on their web site, however try these numbers!
With a payday mortgage for £550, the utmost curiosity that might legally be charged is £550 – the quantity borrowed. So you’d solely should repay £1,100 – the £550 borrowed plus the £550 curiosity. And the month-to-month repayments for a payday mortgage for 12 months can’t be greater than £92.
So you’d pay a payday lender £92 for 12 monthshowever Loans2Go is charging MORE PER MONTH (£113) for MUCH LONGER (18 months).
Loans2Go additionally used to supply logbook loans, however this text is nearly their customary private loans. In case you had a logbook mortgage from them, use the template on this different web page.
Is that this authorized?
The Monetary Conduct Authority (FCA) calls payday loans “Excessive Value Quick Time period Credit score”. Its definition of Excessive Value Quick Time period Credit score is a mortgage over 100% in APR and of 12 months or much less.
So the Loans2go mortgage is exterior that definition as a result of it’s 18 months lengthy. So it isn’t caught by the value cap rule.
Sadly, this implies its loans have crept by way of a loophole and are authorized. I believe the FCA ought to shut this loophole.
Many individuals are successful affordability complaints about Loans2Go loans
I believe that is the worst mortgage in Britain.
A mortgage is unaffordable for you if the month-to-month repayments have been so excessive you couldn’t afford to pay them with out hardship, borrowing extra or getting behind with vital payments. It is a customary affordability criticism, used for a lot of different kinds of loans. In case you win this you’re going to get a refund of all of the curiosity.
As a result of Loans2Go loans are so costly they’re typically unaffordable. Many individuals are successful Monetary Ombudsman (FOS) complaints about these loans – right here is only one instance: Miss R’s private mortgage supplied by Loans 2 Go.
No-one who isn’t determined would take certainly one of these loans out, and the ombudsman says Loans2Go ought to make extra detailed checks on affordability when it thinks the borrower could also be in issue.
A number of individuals have stated they weren’t given the complete particulars concerning the mortgage earlier than the cash was given to them. If this occurred to you, say this in your criticism as effectively.
First complain to Loans2Go
It doesn’t matter if in case you have repaid the mortgage or you might be nonetheless paying, you possibly can nonetheless complain.
It’s a must to complain to Loans2Go first, you possibly can’t go on to the Ombudsman.
E mail [email protected] and replica it to [email protected]. Put AFFORDABILITY COMPLAINT because the title.
Use this template as a foundation and make any modifications so it displays your case:
I’m additionally complaining that the rate of interest was grossly extreme. It’s unfair to cost somebody extra per thirty days over 18 months than they might have paid to a payday lender for a mortgage the identical dimension over 12 months.
[only add this next sentence if the date of your loan was after the end of July 2023] This mortgage doesn’t characterize honest worth and it’s in breach of the FCA’s Shopper Obligation.
[only add this if you were not told the loan terms] The mortgage was not adequately described to me earlier than I used to be given the cash. That is an unfair method to give excessive value credit score.
I’m asking you to refund the curiosity and any fees I paid, plus statutory curiosity, and to delete any damaging data from my credit score file.
[delete if you have repaid the loan] I might additionally like an inexpensive reimbursement plan to be put in place if I nonetheless owe a stability after this refund.
I’m additionally making a Topic Entry Request (SAR) for all the non-public data you maintain about me together with, however not restricted to, my functions, all credit score and different affordability checks, an announcement of account for my borrowing, and a file of all cellphone calls.
Let me know within the feedback under if you’re making a criticism a few mortgage that began after the top of July 2023, as there are some new laws about these.
Is a suggestion from L2G an excellent one?
If L2G has supplied to wipe a small stability or take some cash off what you owe, you need to resolve whether or not it is a ok supply to just accept.
For instance, they could supply 50% of the curiosity off “as a goodwill gesture”. Or to cut back your stability by 50%. These are sometimes very poor provides, you possibly can get much more by going to the Ombudsman.
Generally Loans2Go will improve a suggestion if you happen to push them. Here’s what one reader stated:
They replied firstly with the supply to half what was left and agree a cost plan and I refused they usually instantly got here again and wiped the mortgage clear and eliminated it from my credit score file.
It’s as much as you what you suppose an excellent supply is. However you possibly can’t change your thoughts later if you happen to settle for after which suppose you shouldn’t have.
So ask a query within the feedback under if you happen to aren’t positive.
Take a rejection or a poor supply to the Ombudsman
You may ship your criticism to FOS if Loans2Go has rejected it or has made you a poor supply. That is simple, simply use this easy FOS type which asks you what they should know to arrange your case.
Ship your financial institution statements to the Ombudsman – 3 months earlier than and three months after the date of the mortgage. These are the most effective proof that the mortgage was unaffordable for you.