Buddy Loans Administration and Unaffordable Lending Complaints
Buddy Loans was the trading name of Advancis Limited, a UK guarantor lender that entered administration on 7 September 2021. There is no money in the administration to pay cash refunds for affordability complaints. In February 2023, around 1,900 open and non-defaulted loans were transferred to 1Plus1 Loans Limited. This page explains where Buddy Loans complaints stand for the various groups of customers affected.
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About Buddy Loans
Buddy Loans (Advancis Limited) was a guarantor lender offering loans of around £1,000-£10,000 over 1-5 years to UK borrowers. Like other operators in the sector, it served the near-prime and non-prime market — borrowers who could not access mainstream credit.
On 7 September 2021, Advancis Limited entered administration with Shane Crooks, Antony Nygate and Kiri Holland of BDO appointed as joint administrators. The company had become unviable in the face of mounting affordability complaint costs and the wider sector collapse.
The administration scheme and its limits
The administrators developed a scheme for determining which open loans may have been mis-sold. Key features:
- Cash refunds were payable to certain customers, guarantors and third parties for post-administration loan payments (made since 7 September 2021) on affected loans, where redress adjustments produced overpayments.
- These refunds were applied automatically — no need to make a claim to the administrators.
- For pre-administration affordability complaints, no money was available for cash refunds.
- The administration redress mechanism could only adjust loan balances, not pay out cash for historic interest paid.
In practical terms, this means most customers who took out a Buddy Loan, paid interest on it, and either repaid it or had it written off pre-administration cannot recover the interest they paid.
The 1Plus1 transfer (February 2023)
On 1 February 2023, around 1,900 open and non-defaulted Buddy Loans were transferred to 1Plus1 Loans Limited. For these accounts:
- The borrower’s obligation to repay continues, but is now owed to 1Plus1 rather than Buddy Loans.
- The terms of the original credit agreement remain in force.
- The original Buddy Loans lending decision remains Buddy Loans’ (Advancis Limited’s) responsibility — the transfer doesn’t change that. But Buddy Loans is in administration with no money for cash refunds.
- 1Plus1’s post-transfer handling of the loan is 1Plus1’s responsibility — complaints about that can be made to 1Plus1 in the normal way.
Some customers have raised concerns about the transfer process — questioning whether they signed paperwork with 1Plus1, whether the new lender holds proper documentation, and how arrears are being handled. These are matters that can be raised with 1Plus1 directly and, if unresolved, escalated to FOS.
Where Buddy complaints stand
Pre-administration affordability complaints
Effectively no recovery. The administration has no funds for cash refunds, and the standard FOS route for affordability complaints does not apply once a lender is in administration. Where the original Buddy lending was unaffordable, the practical position is that the affordability point can sometimes influence settlement on any remaining balance, but a free-standing claim for refund of interest paid is not viable.
Loans transferred to 1Plus1 — original lending issues
The original Buddy lending decision remains Buddy’s responsibility. The administration’s position therefore continues to apply — no cash refunds available. However, where the affordability of the original lending is in question, this can sometimes be raised with 1Plus1 in the context of how they manage the account going forward (forbearance, hardship support, settlement negotiations).
Loans transferred to 1Plus1 — post-transfer handling
Standard CONC and FOS route applies for issues that have arisen since the transfer:
- Treatment of arrears and forbearance — CONC 7 applies.
- Communications and customer service.
- Information held about the loan and its terms.
- Application of payments and interest accrual.
- Credit-file reporting since transfer.
Why Buddy customers got nothing for affordability complaints
The basic problem is simple — Advancis Limited didn’t have enough capital to absorb the volume of affordability redress that proper assessment of historic lending would have produced. The FCA has been criticised for not requiring lenders to hold capital adequate to meet potential redress liabilities. Once the company entered administration with insufficient assets, the affordability complaint route effectively closed.
What if the lender has gone into administration?.
Frequently asked questions
My loan was paid off before September 2021 — can I claim?
Practically, no. The administration has no funds to pay cash refunds for completed loans. Even where the lending was clearly unaffordable, recovery is not available.
My Buddy loan is now with 1Plus1 — should I keep paying?
Yes — the credit agreement remains valid and enforceable. Stopping payments will produce arrears, possible debt collection, and credit-file impact. If you cannot afford the repayments, contact 1Plus1 about hardship arrangements or seek free debt advice from StepChange or Citizens Advice.
Can I challenge the transfer to 1Plus1?
The transfer was effected by the administrators under their statutory powers. The legal mechanism is sound. Where there are practical issues — paperwork, account information, treatment by 1Plus1 — these can be raised with 1Plus1 directly and escalated to FOS if needed, but not used to invalidate the transfer itself.
Related guides
- What if the lender has gone into administration?
- Guarantor loans claims hub
- How far back can I claim?
- Section 140A and the unfair relationship test
- Do I have an unaffordable lending claim?
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