YOU MAY HAVE A CLAIM FOR COMPENSATION
Claim a Short Term Loan Refund
If you’ve had a short term loan in the past that you can’t afford to pay back, we can help you claim compensation if the lender acted unfairly or irresponsibly. It only takes 5 minutes to check, so why not do it now?
What are short term loans?
Short term loans are when you borrow money over a short repayment period, usually around 12-36 months. Unlike payday loans that only lend from a day or two up to a few months at most, short term loan borrowing is longer and can attract less interest as it is over a longer period.
After tightening of financial regulations in the credit industry, many payday lenders have gone under or rebranded as short-term loan providers. Like payday loans, short term loans are targeted at those needing cash quickly to cover urgent bills and similarly to payday loans they are unsecured borrowing meaning you don’t require any collateral like a car or house.
How to check you had a short term loan
You can quickly check to see if you had a short term loan by following these simple steps.
Check your email
Search for the names of the short term loan companies you think you may have used in the past. If you find any emails, search for keywords like ‘credit’, ‘loan’ and‘ statement’. If the company is emailing you statements of your account it’s proof you have a credit account with them.
Search your credit record
Use this free credit check tool 
to check your credit history for the last 6 years. See if any credit was ‘repaid’. Remember you can still get compensation from loans older than 6 years and even if the loan hasn’t been repaid in full, although it’s likely to be much less.
Check your bank statements
Looking through your old statements is often an easy way to find out if you had a loan. Don’t worry if you no longer have them, due to GDPR regulations you can request a copy by submitting a Subject Access Request (SAR) to the bank. Once you have them look for money going in and then money going out each month (a typical pattern for loan or credit facility).
The short term loan companies we can claim against
These are the current lenders we are accepting claims for. When you apply you can also select multiple lenders if you had credit or loan from more than one company.
118 118 Money
This well known brand offers loans from £2,000 to £5,000 over a repayment term of 12 – 36 months. The maximum APR is 49.90%.
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Everyday Loans
This lender offers loans from £1,000 to £15,000 over a repayment term of 18 – 60 months. The maximum APR is 299%.
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Cash 4 U Now
Short term loans from £150 to £1000 repayable over 4 or 6 months. If you’ve had a loan in the past, you could have a claim.
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Loans 2 Go
This lender has a rating of just 1.3 stars out of 5 on their Trust Pilot page. If you’ve had an unaffordable loan from them in the past, you may have a claim.
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Loan Pig
According to the firm’s Trust Pilot page, half of Loan Pigs’ customer reviews are classified as ‘bad’. Start your claim now if you’ve had an unaffordable loan from them.
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Moneyboat
Owned by Evergreen Finance London Ltd, this lender gives you up to £1500 at 939.50% APR. Had a loan from this lender before? Start your claim now!
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Cashfloat
This company have a good reputation on their TrustPilot page. If you’ve had a loan from Cashfloat that was unaffordable you may have a claim.
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Checking you have a valid claim
If you can relate to any of the below you may have claim:
Fees or charges not clear?
When you took out the short term loan were the charges and associated fees made absolutely clear to you?
Unable to pay bills?
Your payments for the loan were so large that you struggled to pay for your monthly essentials like bills or mortgage payments.
Rolling over credit?
You had to take out a further short term loan to pay the initial one back, supporting unaffordability.
Lenders taking automatic payments?
Did the lender take automatic payments from your account without telling you that put you in financial difficulty to pay other essentials.
Encouraged to borrow further?
Did the short term loan company advertise ‘good customer’ offers that promoted regular use and the ability to get better deals the more you borrow?
Unfair lending
Despite clearly not being able to pay the first loan back, did your lender continue to offer more through debt consolidation?
If you can relate to any of these points you may have claim and should complete our 5 minute form now:
The Legal View
“Rules imposed by the Financial Conduct Authority mean any firm offering credit has an obligation to check your financial situation to make sure you could afford the credit they were providing, before giving it to you.”
Key Fact
The Financial Ombudsman Service (FOS) reviews complaints made about short term loan companies by checking to see if they completed the necessary affordability checks before lending money. Many claims are ruled in the claimants favour if the lender was shown not to have acted responsibly by carrying out the necessary checks needed to identify if you were in financial difficulty.
The legal bit
The basis of any claim is split into two arguments. First, did the lender properly assess your 'creditworthiness' before lending to you know as 'unaffordable lending'? Second, how did the lender treat you known as 'unfair treatment'.
Unaffordable Lending - “Assessing Creditworthiness”
The FCA sets out in Chapter 5 of the Consumer Credit sourcebook 
(CONC) that before anyone enters into a regulated credit agreement, they must first be assessed for ‘creditworthiness’. This ‘assessment’ must be repeated for any ‘significant’ increase in credit or credit limit given in the future (CONC 5.2A.4 ). The FCA does not prescribe what checks should be made by firms, it just says checks should be ‘reasonable’ and ‘proportionate’ to the type and amount of credit, it’s cost and the customer’s financial position (CONC 5.2.3G ); this is called the firm’s “affordability risk”.
What checks the firm should carry out are covered in CONC 5.2A.20R (Scope, extent and proportionality of assessment). The FCA does state that creditworthiness checks should take into account (where appropriate) information from the customer and credit reference agency (CONC 5.2A.7R )
Repayment Checks
A firm must consider the customer’s ability to make repayments from:
- Income
- Income from savings
- Savings or other assets indicated to be used to repay the debt
- Without having to borrow more to meet repayments
- Without failing to make other payments contractual obliged to meet
- Without the repayments having a significant adverse impact on the customer’s financial situation.
Assessing Income
The firm must take reasonable steps to determine the amount, or make a reasonable estimate, of the customer’s current income and reasonably foresee a likely drop in future income. For the purpose of considering the customer’s income under CONC 5.2A.15R it is not generally sufficient to rely solely on a statement of current income made by the customer without independent evidence (for example, in the form of information supplied by a credit reference agency or documentation of a third party supplied by the third party or by the customer).
Assessing Expenditure
Non-discretionary expenditure referred to in CONC 5.2A.17R includes payments needed to meet priority debts and other essential living expenses and other expenditure which it is hard to reduce to maintain a basic quality of life. It also includes payments the customer has a contractual or statutory obligation to make, such as payment obligations arising under a credit agreement or a mortgage contract.
Use of Credit
The FCA states (CONC 5.2A.21G ) that firms ‘may’ have ask how the customer intends to use the credit. Debt consolidation loans are allowed, but this shows existing financial difficulty which should spark further creditworthiness checkers by lender. The FOS has ruled in the past in favour of claimants where this information was provided and not acted upon.
Extended Credit
If the lender encouraged you to borrow further with ‘good customer’ offers or didn’t inform you of the risks of borrowing more or didn’t check your affordability to increase your limit, you may have a claim.
Unfair Treatment - “How the lender acted”
The list below sets out additional grounds to complain if you felt the lender retreated you unfairly.
Fair treatment
If you felt pressured to extend your loan or if you felt the lender didn’t listen to you or deal with you “sympathetically and positively”.
Repayment Plan
The lender didn’t freeze charges or you were unable to make payments under a reasonable repayment plan.
Key Facts
The lender should have provided you with a Key Facts Document that details in simple terms all the information you needed to know before signing any agreement, if they didn’t you could have a claim.
Use of Debt Collection
If your lender resorted to using a debt collection agency without first talking to you and trying to create a repayment plan.
No Late Payments Warning
The lender didn’t warn you in their advertising or personal communication what would happen if you missed repayments.
No CPA Warning
The Continuous Payment Authority (CPA) didn’t give you prior warning that it was going to take money from your account.
The evidence you need
All you have to do is show that your short term loan company acted ‘irresponsibly’ in providing you with a loan that could not be repaid without ‘undue difficulty’. Get a list of all your short term lenders that you think qualify and then write down how much you earned each week or month. After that, detail all your expenses like rent and utility bills (electricity, gas and water) as well as council tax, broadband, mobile phone, car and home insurance, grocery, clothing, childcare, other debts and outgoings. Finally, write a letter to each lender including this information explaining that your loan was unaffordable and ask for a refund.
But don’t worry if this sounds daunting, we do all this for you. Claim online by filling out our form and let our experienced claims team handle the headache and hassle for you.
Did you know?
On average, the uphold rate for payday loan redress claims is 44%.
FOS Quarterly Complaints Data 
(Q2 2021/22)
Common questions
How successful are claims?
The average uphold rate for short term loan redress claims is currently 58%*. This shows that over half of all short term loan claims that end up being reviewed by the FOS are successful. The reality is many claims don’t get as far as being reviewed by the FOS and are settled with the claimant directly by the lender. Each case is different, however, so if you’ve had a short term loan in the past, it’s best to check your claim now.
How much can I get?
The law says how much you get is dependent on what your financial situation would be now if you had been treated ‘fairly’ and ‘responsibly’ in the first place by the short term loan company. Claims range from £100’s to £1000’s and are calculated by working out all the interest, fees and charges you paid and then adding a statutory 8% interest rate for each year you had the credit. So, for example, if you had a £1,000 refund in fee, charges and interest you would also get £1,000 x 8% = £80 x 4 years = £320. That means in total including compensation you would get £1,320.
What else can I claim for?
If you have had other unaffordable credit in the form of payday loans, doorstep loans, or guarantor loans or had unaffordable credit from credit cards, check out these specific pages on our website. We check over 30 lenders from all industries in one simple form you can complete in just 5 minutes.
How far back can I claim?
The Financial Ombudsman Service states you have 6 years after the loan was issued or 3 years from ‘when you were first made aware’ you could claim, whichever is longer. This means you have a good chance of claiming loans older than 6 years if you weren’t aware you could claim. We have some claims dating back to 2010, but don’t delay, start your claim today.
*based on FOS Business Complaints Data H1 2021 from Everyday Lending Limited, Everyday Loans Limited, Loans 2 Go Limited, Novaloans Ltd, Provident Personal Credit Limited.
Read more FAQs >
Typical claim payout
The law says how much you get is dependent on what your financial situation would be now if you had been treated ‘fairly’ and ‘responsibly’ in the first place by the loan company. Claims range from £100’s to £1000’s and are calculated by working out all the interest, fees and charges you paid and then adding a statutory 8% interest rate for each year you had the loan.
Example Calculation
“If you had a £1,000 refund in fee, charges and interest you would also get £1,000 x 8% = £80 x 4 years = £320. That means in total including compensation you would get £1,320”
Don’t Delay. Check Now.
Don’t miss out on £100’s or even £1,000’s in compensation you could be entitled to. Checking only takes 5 minutes, so why not do it now?