Did you know you could get a refund from Avant Loans?
If you have a loan with Avant Loans or you are struggling to make monthly payments, then you may be due a refund. If you have missed some payments or you’re having other problems with your Avant loan, then this article is for you. Many of our readers have been able to cancel their loan or even get a refund!
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
Who are Avant Loans?
Avant specialises in short-term and personal loans to customers in the UK. The company offers a repayment period of up to 60 months for personal loans and 24 months for unsecured loans. The company was established in 2012.
Find your best debt solution (in 1 minute!)
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
New regulations for Avant Loans
Until recently the lending industry was worth over £2billion. This high level of borrowing was largely fueled by what was seen as irresponsible lending. It’s estimated that as many as 8.3 million people in the UK have debt that they cannot pay off as well as not able to even make payments on their household bills.
The Financial Conduct Authority decided that the time had come to take action. They first looked at the unfair practices and irresponsible lending choices and next created a new set of regulations to protect borrowers.
So, what are these regulations and how can they help you?
If Avant didn’t follow one of the recent new laws, then you could claim for a refund!
1) Affordability regulation
One of the most disruptive regulations launched by the FCA is that the lender must ensure that the loan is affordable. This is the regulation that put Wonga out of business and also the one that has allowed thousands of borrowers like you put in a claim for a refund.
The regulation states that you should be able to make the loan repayments as well as pay for other aspects of your life such as rent, bills, cards and food. If you feel like Avant Loans didn’t do a sufficient affordability assessment on you when you took out the loan then you may be able to claim for a refund. Check out my blog post on how to claim for a refund on your loan.
Read what to do if you can’t pay back your debt.
2) Interests and fees regulation
Another thing that the FCA noticed was that lenders would often charge borrowers excessive interest and fees. They remedied this by putting a cap on fees and interest. The limits were, (a) a 0.8% cost cap – this includes all interest and fees. (b) a £15 cap on default fees. (c) 100% complete cost cap, which means you should never have to pay more than double what you borrowed.
Have you taken out a loan with Avant Loans? If you did and you feel that they have breached any of these regulations, then you should consider requesting a refund.
3) Continue Payment Authority regulation
You’ll find with most lenders that they make you agree to them using Continuous Payment Authority (CPA). This gives them permission to go into your bank to take money any time they want.
This was fine, however companies started abusing it, trying to take money multiple times a day. Imagine being paid at 9am and then at 10am it all being withdrawn from your account, leaving you no money for rent, bill etc.
The new regulation around CPA come in two parts. (a) if Avant Loans try to take money via CPA twice and fail, then they cannot try again. (b) the amount taken must be the full amount of the payment due. They are only allowed to take a partial payment if you have agreed it with them by agreeing on a temporary payment plan for example.
If Avant Loans have attempted more than twice to take a payment or they have taken a partial payment without your permission to do so, then you should consider claiming for a refund.
Can’t make your next payment?
If you don’t think Avant Loans has breached any of the regulations then there is still steps you can take to protect yourself and your money. As a reminder, Satsumer Loans are obligated to treat you fairly, which means that they will work with you to get you back on track. Don’t bury your head in the sand! Follow my guide here on what to do if you can’t pay back your loan.
How to write off your debt
It is possible to write off your debt entirely through an Individual Voluntary Arrangement (IVA). This is a formal agreement to pay the debt collectors an amount you can afford as a one-off sum or as monthly payment.
You only qualify for the government IVA scheme if your debts are over £1,700 and you have more than one debt. Fill out a 30 second form to see if you qualify with my 4 question debt write off calculator.
Thinking about making a claim?
There is a good chance after reading this that you may feel tempted to make a claim for yourself and believe me you are not alone. In fact, during 2017 alone the Financial Ombudsman Service received 10,529 complaints that related to these type of loans.
If Avant Loans have treated you unfairly then you may find that you are entitled to a refund. At the very least you can expect to get a refund interest that was paid during the term of the loan, as well as any additional charges. For some people this could be a rather impressive amount of money to receive back.
Who are Avant Credit?
Avant credit loans services are provided by AVANTCREDIT who are based in Delaware in the United States. The first UK establishment was opened in 2015. The parent US company started in Chicago in 2012 with the ambition to lower the barriers and the cost of borrowing for those who could not traditionally have access to credit. Overall the group claim to have a provided over $1.8 billion of funding in their seven-year history.
Are Avant Credit Credible?
Avant Credit are an online lender offering access to unsecured personal loans. Loans are advertised as being available on the same business day as the application. They claim to provide access to personal loans, at competitive interest rates, in a timely manner. The group as a whole claim to have provided over £250 million worth of loans to more than 80,000 customers at a representative 42.5% APR. The company is authorised and regulated by the Financial Conduct Authority.
Personal Loans and Credit Score
AvantCredit is an online lender that can provide you with personal loans ranging between £1,000 up to £25,000. While a personal loan is definitely something worth considering, it’s important to note the incredibly high interest rate that comes with the loan.
Furthermore, you have to take into account the fact that if you miss a monthly payment, it’s going to have an incredibly negative impact on your credit score.
Keep in mind that the personal loan you get from AvantCredit has a fixed monthly payment. This means that if your financial circumstances worsen and you’re unable to make your monthly payment, you could be in real trouble.
Not only will you default on your personal loan but your credit score will go down as well. It’s going to take you a long time to rebuild your credit score and while it is low, you’re going to have an extremely hard time securing any type of credit.
Even if you don’t miss a monthly payment, just taking out a personal loan can negatively affect your credit score as well.
When you’re opting for a loan, ensure that you look at different lenders and then only apply to a single lender. Applying to many different lenders at once can immensely impact your credit score and bring it down by a large amount.
Having a bad credit score can lead to you only being offered smaller loan amounts. The loan amounts that you might be offered with a low credit score may not be the loan amount that you actually need. Furthermore, the interest rates on these loan amounts will be much higher than if you had a decent credit score.
What the reviews say about Avant Credit
AvantCredit has very mixed reviews for the UK arm of the loans company. They have either very good reviews where loans have been issued or very bad reviews when there is an issue and the customer has a need to contact the company. Interestingly the US arm of the business has a much higher proportion of positive reviews. Again, the negative comments arise from customers having to deal with the company to resolve issues. The UK reviews do need to be read with the appreciation that there is a natural bias where unhappy customers are more likely to leave a review than a happy customer.