High-cost UK lenders have had to pay back millions to customers and continue to do so. Customers of Lending Stream, another high-cost UK lender, may be able to claim back millions. If you are a past customer of Lending Stream, it is well worth finding out if you are eligible to make a claim.
Many high-cost payday lenders have struggled with customers claiming refunds through claims management companies in the last few years. The most notable of these have been Wonga and Amigo Loans. Wonga ended up going bankrupt as a result and Amigo may follow if they can’t get a scheme approved for repayment (something Provident Financial are trying as well). The reason for these refunds is because, in most cases, the regulator decided they shouldn’t have lent to the customer in the first place as the customer couldn’t afford it. Even if the borrower self declares expenses and income, lenders are expected to find ways of validating claims and make sure customers can pay interest and still afford basic living costs. This means lenders can still be found guilty of giving an unaffordable loan, even if the borrower lied on their application.
Though there have been some high-profile cases of lenders having to give millions of pounds to customers in the form of redress, to the point they become insolvent, there are many lenders that are still lending that will likely follow. One such lender is Lending Stream, owned by Gain Credit. In recent figures from the Financial Ombudsman, 76% of complaints were upheld, meaning customers can claim back all interest payments on their loans. If this is at all reflective of the number of past customers that can claim refunds, Lending Stream could end up paying millions back to customers. In the last two reported years of their private accounts (2019 and 2018), Lending Stream’s owner Gain Credit expensed a £13.5m reserve for the likely cost of these claims. However, with annual revenue of around £100m for the last few years, the actual number could end up being a lot higher if some of their peers are anything to go by.
Claims management companies make it easy to claim a refund from these lenders. If you are a past customer and experiencing financial distress, please seek advice on your debt issues.