1Plus1 Loans Unaffordable Lending Complaints
If you were given a 1Plus1 Loans guarantor loan you couldn’t realistically afford to repay, or if you signed as guarantor for a loan that strained your own finances, you may be entitled to a refund of interest and charges. 1Plus1 Loans is one of the few UK guarantor lenders still actively operating after the sector-wide collapse of 2020-2024 — which means complaints can still be brought through the standard CONC and FOS route, rather than being constrained by a Scheme of Arrangement or administration as for many other guarantor lenders.
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About 1Plus1 Loans
1Plus1 Loans Limited (FRN 717767) was founded in 2008 by Paul and Gary McKenna and is based in Accrington, Lancashire. It started as a broker before pivoting to direct lending. Today it offers guarantor loans of £1,000 to £10,000 over 12 to 36 months, with a representative APR around 47.8%.
1Plus1 has positioned itself as a regulatory-compliant operator, investing in technology to support affordability assessments and using Open Banking as a key part of its underwriting. In February 2023, the company acquired around 1,900 open and non-defaulted loans from the Buddy Loans administration, becoming the new lender for those former Buddy customers.
The FCA issued a clone-firm warning about an unauthorised entity calling itself “1Plus1 Loans UK Ltd” in 2019 — that is not the same firm as the genuine FRN 717767 lender.
Affordability under CONC for guarantor loans
Under CONC 5.2A, 1Plus1 had to carry out a reasonable and proportionate creditworthiness assessment for both the borrower and the guarantor before agreeing to lend. The duty applies twice — to the borrower’s ability to afford repayments sustainably, and to the guarantor’s ability to cover the loan if called upon, without significant adverse impact on their own financial situation.
Across the guarantor sector historically, FOS has consistently found that lenders’ checks were too formulaic, that household expenditure was assumed using ONS averages without verification, and that essential costs like food, energy, childcare and medical expenses were systematically under-estimated. The Financial Ombudsman has historically upheld guarantor loan complaints at very high rates.
Common patterns in 1Plus1 complaints
- Affordability checks not proportionate to the size and term of the loan — guarantor loans of £5,000+ over 36 months demand thorough scrutiny.
- Borrower already in financial difficulty — recent defaults, payday loan use, or active short-term credit visible on file at the time of the loan.
- Guarantor not properly assessed — limited or formulaic checks on the guarantor’s own income, expenditure and existing commitments.
- Vulnerability indicators missed — bereavement, illness, or known mental health issues that should have factored into either the borrower or guarantor assessment.
- Complaints about how arrears were handled — Financial Ombudsman case material has shown that, particularly where the borrower declared financial difficulty, lenders should explore options before going straight to the guarantor for collection.
How a claim works
- Eligibility check on the loan, when it was taken, the borrower and guarantor circumstances at the time.
- Subject Access Request to 1Plus1 covering both borrower and guarantor records.
- Bank statements and statutory credit reports for both borrower and guarantor.
- Complaint to 1Plus1 — eight-week response window applies.
- Escalation to the Financial Ombudsman if the response is unsatisfactory.
- Redress if successful — refund of interest and charges, 8% statutory interest, removal of adverse credit-file entries linked to the unaffordable loan, balance offset where there is an outstanding amount.
Time limits
I had a Buddy Loans loan that was transferred to 1Plus1 — what now?
In February 2023, around 1,900 open Buddy Loans were transferred to 1Plus1 Loans following the Buddy Loans administration. For these accounts:
- The original lending decision remains Buddy Loans’ responsibility — Buddy is in administration, and complaints about the original lending have to go through the administrator’s process. The redress prospects are very limited (the administration’s scheme paid little or nothing).
- The current account management — the way 1Plus1 has handled the loan since February 2023 — is 1Plus1’s responsibility. Any complaint about post-transfer handling can be made to 1Plus1 in the normal way.
- Where the original Buddy lending was unaffordable but no recovery is available through the administration, the affordability point can sometimes still influence settlement negotiations on the current balance.
Frequently asked questions
Can I claim against 1Plus1 if I was the guarantor, not the borrower?
Yes. CONC 5.2A.32R explicitly requires lenders to assess the guarantor’s ability to meet the obligation if called upon, without significant adverse impact on the guarantor’s financial situation. Where that assessment was inadequate, the guarantor has a complaint in their own right.
What if my loan is still active?
You can complain at any time — you do not need to wait for the loan to be paid off. If the complaint succeeds, the redress is normally applied against the outstanding balance first, with any surplus paid out.
Related guides
- Guarantor loans claims hub
- The CONC rules on affordability
- How the Financial Ombudsman handles unaffordable lending complaints
- How a claim works step by step
- Do I have an unaffordable lending claim?
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