Personal Loans

Irresponsible lending - no affordability check (CONC 5.2); Early settlement quote error (CCA 1974 s.97); Payday loan - interest cap breach (HCSTC); Default notice served incorrectly (CCA 1974 s.87); Continuous payment authority (CPA) misuse - payday loans

Mandatory ADR

Max award: £445,000 (from 1 Apr 2025)

8 weeks firm; FOS 6 months; court - 6 years limitation

Uphold rate: 34% (FOS 2024/25)

Key Legislation

FCA Consumer Credit sourcebook (CONC); Consumer Credit Act 1974 — CONC 5.2; CONC 5.2A; CCA 1974 s.140A-C; s.94 (right to repay early); s.97 (settlement figure - 7 days); CONC

Complaint Route: Financial Ombudsman Service

Type: Ombudsman (binding on firm)

Max award: £445,000

Uphold rate: 34%

Average resolution: 180 days

Pre-conditions: Complain to firm first; firm has 8 weeks to resolve; then refer to FOS within 6 months of final response

Visit FOS website

Companies in This Sector

Lloyds (FCA 119278)BarclaysSantanderTSB (FCA 191240)Likely Loans (FCA 671017)

Annual complaint volume: 305,726 (FOS 2024/25 total)

Note: Compensation range: Interest and charges refunded; credit file corrected

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Regulator

Financial Conduct Authority (FCA)

Website

Coverage

Tier 1 — Financial (FOS expertise)