UK Credit Unaffordable Lending Complaints
UK Credit Limited stopped issuing new guarantor loans in December 2021 alongside the wider sector collapse, but it has continued to service existing borrowers and guarantors and remains FCA-authorised. Unlike Amigo, TFS or the NSF Group, UK Credit is not subject to a Scheme of Arrangement or in administration — which means standard CONC and FOS-route complaints can still be brought about historic UK Credit lending. This page explains the position.
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About UK Credit
UK Credit Limited offered guarantor loans to UK borrowers, with typical loan amounts of £5,000-£10,000 over 5-year terms at interest rates around 32.6% (37.9% APR). The lender served the same near-prime and non-prime market as Amigo, TFS, George Banco and the other major guarantor operators.
In December 2021, UK Credit stopped offering new guarantor loans to new customers, citing the wider regulatory and market environment for guarantor lending. The company has stated explicitly that it has not stopped trading — it continues to service existing borrowers and guarantors with live accounts, processes complaints in the normal way, and remains FCA-authorised.
Where complaints stand
Because UK Credit is still operating and is not in administration or a scheme:
- CONC 5.2A applies to UK Credit’s historic lending decisions.
- Complaints can be made directly to UK Credit, with the standard eight-week response window under DISP 1.6.2R.
- Where the response is unsatisfactory, FOS’s compulsory jurisdiction applies and the complaint can be escalated.
- Successful complaints produce 100% of the calculated redress (not pence-in-the-pound as with scheme lenders).
Time limits run from the original lending event in the normal way — six years from the loan, or three years from when you became aware (or ought reasonably to have become aware) of cause to complain.
Affordability under CONC for UK Credit lending
UK Credit had to carry out a reasonable and proportionate creditworthiness assessment for both borrower and guarantor under CONC 5.2A. Loans of £5,000+ over 5 years are substantial commitments — proportionality demanded thorough scrutiny.
Looking at FOS decisions involving UK Credit, common findings have been:
- Income verification not proportionate — single payslips showing variable income (overtime, holiday pay) treated as guaranteed regular income, without further verification.
- Borrowers already over-indebted — credit checks showing five credit cards, four current accounts and significant existing commitments, with the new loan pushing total debt-to-income ratios to 75%+.
- Refinancing existing loans — top-up loans or new loans used to repay existing UK Credit loans, with the wider position not properly reassessed.
- Guarantor checks formulaic — same patterns as elsewhere in the sector.
- Surplus income calculations relying on modelled rather than actual outgoings
Common patterns in UK Credit cases
FOS decisions involving UK Credit have particularly highlighted:
- Loans that consolidated existing debt without addressing the underlying inability to service it.
- High debt-to-income ratios that should have prompted decline rather than approval.
- Income shown on a single payslip including significant overtime, with the lender treating this as the regular income for the loan term.
- Guarantor checks that established income and expenditure but didn’t consider whether the guarantor could realistically take on the obligation if called upon.
How a claim works
- Eligibility check on the loan and your circumstances at the time.
- Subject Access Request to UK Credit covering the lending decision data and account history.
- Bank statements from the period and statutory credit report.
- Complaint to UK Credit — eight-week response window.
- Escalation to FOS if the response is unsatisfactory.
- Redress if successful — refund of interest paid, 8% statutory interest, removal of adverse credit-file entries, balance offset where applicable.
Frequently asked questions
My UK Credit loan is from 2016 — can I still complain?
Generally yes. The Financial Ombudsman normally accepts complaints within six years of the loan or three years from awareness, whichever is later. For loans that ran for several years, the awareness window can give a longer effective time-frame. See [How far back can I claim?] for the detail.
My UK Credit loan is still active — can I claim?
Yes — you do not need to wait for the loan to be repaid. If the complaint succeeds, the redress is normally applied against the outstanding balance first, with any surplus paid as cash.
Will UK Credit go into a scheme like Amigo?
There is no announcement to that effect. UK Credit has stated explicitly that it has not stopped trading, and it remains FCA-authorised. That said, the wider history of the guarantor sector means the future cannot be predicted with certainty — which is one reason to consider acting promptly if you have a complaint.
Related guides
- Guarantor loans claims hub
- The CONC rules on affordability
- How the Financial Ombudsman handles unaffordable lending complaints
- How far back can I claim?
- Do I have an unaffordable lending claim?
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