Are you being harassed by Trust Two Loans UK about your loan? Do you have loans you are unable to repay? Are you receiving dreadful threats such as being taken to court? Do you consider that the loan is unaffordable and you shouldn’t have been lent the money? If you are having these or other stressful problems with Trust Two Loans UK then this article is designed to help you. You might be able to cancel your loan and even obtain 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 Trust Two Loans?
Trust two loans are provided by Everyday Lending Limited. They are a UK based private limited company located in Buckinghamshire and have been operating since 2006.
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Are Trust Two Credible?
Trust two loans operate by providing loans to borrowers with a poor credit rating by requiring the borrower to provide a Guarantor to accept financial responsibility for the loan repayments. Trust two allow Guarantors to be family members – excluding spouses. Whilst loans can attract a maximum APR of 49.9%, there are no arrangement fees, early repayment fees or late payment fees. They are authorised and regulated by the Financial Conduct Authority and are members of the Finance and Leasing Association. Everyday Lending are a moderately sized loan company and have a turnover of around £57 million per annum. They are a successful and profitable company.
Do loan companies make it too easy to borrow money?
It is so easy to borrow money through lenders. The web is crowded with companies that are happy to advance you cash within a few minutes; to approve you for a loan of up to £1,500 in just seconds; to advance you money instantly without any credit checks. Many offer loans to people who have a “Very Bad Credit” history or who are already having difficulty repaying loans.
Read what to do if you can’t pay back your debt.
Why you might have got into debt problems and what the government is doing to curb these loan sharks
It isn’t surprising that so many people get into debt problems with these organisations. The situation today is much better than it was a few years ago. Before new regulations came into force, the loan business was spiralling out of control, as were many people’s debts. At one time the loan market was over £2 billion, fuelled by irresponsible lending and astronomically high interest rates.
Unfair practices identified by the Financial Conduct Authority resulted in huge fines being imposed on many top players. These include Wonga, fined £220 million; and others like The Money Shop being collectively fined £15.4 million; plus a £1.7 million fine for Quickquid. Where money had been lent to people that should never have received a loan because of their “limited criteria” the customers received a refund. The medicine worked. Over the three years following regulation the number of loans issued fell from 10 million to 1.8 million and the number of lenders fell from 240 to 60.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Trust Two Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Government cap on loan interest and other charges
The Financial Conduct Authority has introduced a price cap to protect borrowers from excessive charges. These include:
- A cost cap of 0.8% per day on the amount borrowed – this includes both interest and all fees charged.
- A cap on default fees of £15 – after a default interest can still be charged, but it mustn’t exceed the original rate of 0.8% per day.
- A complete cost cap of 100% – you should never be asked to repay more than 100% of the money borrowed.
These limits apply to all credit agreements that have an interest rate of 100% or more a year and that are due to be fully or substantially repaid within a year.
Additional regulations came into force in May 2017. They now must provide details of their products on a price comparison website authorised by the FCA and borrowers must be provided with a summary of the cost of borrowing.
If Trust Two Loans UK is in breach of these regulations and is attempting to charge you more than they should, your credit agreement with them is unenforceable and they will not be able to make you repay the loan.
There is no doubt that many so-called loan companies are doing business when not authorised to do so. Only authorised businesses are permitted by law to make certain credit agreements. If they are not authorised, then they cannot enforce repayments. You can simply stop paying them and they can do nothing about it.
To check whether Trust Two Loans UK is authorised, just enter the name of the company on this Interim Permission Consumer Credit Register search page. You can also search the financial services register here. If they do not have a valid up to date entry on at least one of these registers, simply stop paying them. They have no power to enforce the debt.
Other indicators that Trust Two Loans UK might be operating illegally include a lack of information on the company website, information on the website that is out of date or different from the information that appears on the two directories, and non-disclosure of true APR.
What do reviews say about Trust Two Loans?
Trust two loans have fairly positive reviews, often being praised for providing fast loan completions for people with a poor credit score. Where there are negative reviews, the complaints normally centre around issues when trying to contact the company by phone and processes taking longer than expected. The majority of issues relate to getting approval for the chosen Guarantor. Getting approval can take significantly longer than expected. In some cases, the chosen Guarantor has been initially accepted but then suddenly rejected before the loan is approved. However, given the trust two business model depends on the Guarantor being able to repay the loan if the borrower defaults, it is understandable why this process needs to be thorough.
How to complain about Trust Two Loans UK
If you believe that Trust Two Loans UK is in breach of the regulations and is treating you in any way unfairly, you have the right to complain formally, and if your dispute remains unresolved or is not dealt with within eight weeks, you can to escalate your complaint to the Financial Ombudsman.
You should collect together all the evidence you have including details of any phone calls. Write to Trust Two Loans UK heading your letter with the word Complaint. The more detail you can provide, the better. You should also say how you would like the matter to be resolved.
If Trust Two Loans UK fails to provide you with a satisfactory conclusion, you can take your complaint to the financial ombudsman. The best way of doing to is to contact them by phone on 0800 023 4567 or 0300 123 9123
If Trust Two Loans UK has treated you unfairly, you may be entitled to a refund even if you have paid off the loan within the last six years. If so, you can expect to be refunded all the interest you have paid on the loan along with any additional charges. You should also receive 8% interest on these payments.
If your loan is considered to have been unaffordable you can insist that it is removed from your credit record and that the outstanding balance is cancelled.
The first step is to write to your lender stating your case and asking for compensation.
If you do not receive satisfaction within 8 weeks you can follow it up through the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
New rules regarding Continuous Payment Authority
Most loan companies will want you to repay the debt using a Continuous Payment Authority (CPA). This provides the company with permission to take any sum they wish from your bank at any time they want. They are supposed to inform you prior to debiting your bank account, but many of them fail to carry out this crucial step. The result is you don’t know the money has left your account until you see your next bank statement.
If you are struggling with important payments such as your rent, mortgage or utility bill, and the money is taken by Trust Two Loans UK ahead of these bills, you could end up in serious trouble even putting your house at risk.
New regulations mean that if the CPA fails to be paid on two occasions, no further requests to your bank account are allowed.
There are also rules governing the amount of money they can take using a CPA. No longer are they allowed to take partial payments. If you don’t have enough money in your account to cover the full amount of the payment due, they can’t take anything. Only if you agree that they can take a partial payment, they are allowed to do so, but you must give your permission in advance for them to do so.
When they do make more than two requests or they take a partial payment without your explicit permission they are in breach of regulations. You can report them to the financial ombudsman on 0800 023 4567 or 0300 123 9123.
What to do if you simply can’t afford to repay the loan?
If Trust Two Loans UK has operated legitimately but you simply can’t afford to repay the loan, there are some steps you can take to protect yourself.
If you are paying them by CPA, standing order or direct debit, you should contact your bank and cancel these. Trust Two Loans UK will no longer be able to collect payments automatically and you will retain control of your bank account. Your bank may advise you to inform Trust Two Loans UK that you have done this, but you are under no legal obligation to do so; they will be unable to collect any money from you until you give them explicit permission to do so.
Of course, you will still owe them money so you must deal with that directly; while you might be tempted to do so, don’t hide your head in the sand. Your first approach should be to contact Trust Two Loans UK and talk to them about your problems. They are obliged to treat you fairly, so you should be able to come to an agreement to reschedule your repayments.
By law, lenders must:
- Indicate where you can obtain free independent debt advice
- Hold off debt recovery for a reasonable period while you develop a repayment plan possibly using a debt advisor
- Giving you reasonable time to repay possibly freezing interest and additional charges.
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.
An IVA would involve you making a monthly payment over a certain period of time. This time is typically five years though it can sometimes be extended to six years as well.
An IVA is a formal debt solution. This means that when you opt for an IVA, you become ‘formally insolvent’ and your name and details are entered into the Individual Insolvency Register (IIR).
An IVA is great as a debt solution for a number of reasons. The first one is that it’s extremely flexible and manageable since the payments you make depend on how much you can afford.
Your IVA is handled by a licensed Insolvency Practitioner (IP) who ensures that you are treated fairly throughout the course of your IVA.
An IVA also protects your assets from being seized and sold off by your creditors.
If you want to protect your assets and have the means to pay back at least part of your debt, then an IVA is most certainly the way to go.
Another great thing about an IVA is that you don’t have to deal with your creditors once you get it. Your IP does all the negotiating for you.
However, there are some setbacks to an IVA which you also need to be aware of.
Firstly, if you own a home, then you may required to release equity from it in the final year of your IVA. If you don’t own a home or don’t have equity in it, then you may be required to make payments towards your IVA for an additional year.
Another setback of an IVA is that it stays in your credit file for six years after the date on which it was registered. This means that for the next six years, your IVA is going to hinder your ability to obtain any kind of credit.
Don’t roll over your loan
Trust Two Loans UK might suggest that you roll over the loan, but doing so is almost certainly a bad idea. You will be charged even more interest and additional charges leaving you in even deeper debt. By law loans can be rolled over no more than twice.
Getting debt help
There are several organisations that provide free independent advice on debt:
Are loan companies all sharks?
There is little doubt that loan companies receive a bad press. It can be argued that they also provide a valuable service by offering a credit line to people who would be unable to obtain credit from a bank or credit card. It is only when these companies place profits ahead of everything else and exploit their customers that they do real harm. While some sharks remain, the new regulations have made it much safer to use these companies. However, many people still get into debt problems.
If Trust Two Loans UK are in breach of the regulations, then you are entitled not to pay them as the debt is unenforceable. If you simply can’t afford to pay, then contact one of the organisations we have listed above, they will provide the help and guidance you require.
If you can’t pay back your loan do check out my other article here.