TFS Loans collapses into administration – your rights and future payments explained

Lender TFS Loans has collapsed into administration today but customers will still have to keep making their repayments and existing complaints against the lender are still ongoing

TFS Loans has collapsed into administration
TFS Loans has collapsed into administration

High-cost lender TFS Loans has collapsed into administration following claims of “unaffordable lending”.

The company is known as a guarantor lender, which means it requires a family member or friend to cover repayments if you can’t.

These types of loan companies often charge extortionate interest rates.

TFS would lend between £3,000 and £15,000 lent on a one to five-year term basis at between 30% and 70% interest, with a representative APR of 39.9%.

According to its latest accounts, published in December 2021, the lender stopped issuing new guarantor loans in March 2020.

Opus Restructuring was hired as an administrator this week and said “the main causes of the failure of the business are rooted in unaffordable lending.”

TFS Loans stopped selling guarantor loans in 2020



Other firms in the sector have gone bust in recent years including payday lender Wonga and doorstep loan firm Provident.

Most of the larger lenders are no longer offering guarantor loans, including Amigo, George Banco, TrustTwo and UKCredit.

Opus said: “It has been necessary to place TFS into Administration in order to protect the business and the interests of creditors.

“We would like to stress customers that this does not change the terms of any loans they have taken out with TFS Loans Limited.

Are you a TFS Loans customer with an on-going complaint? Let us know: [email protected]

“It is important that all customers must continue to repay their loans in accordance with the terms of their agreements, as continuing to do so will have a positive impact on their credit ratings.”

Guarantor loans recently overtook PPI as the most complained-about financial product, according to figures from the Financial Ombudsman.

I’m a TFS Loans customer – what happens next?

The administrator Opus Restructuring has said customers should continue to repay their loans.

However, TFS is no longer able to issue new loans.

It isn’t clear yet what the administration process means for customers with existing complaints against TFS Loans.

But in previous situations where a loans company has gone bust, claimants have not received the full amount they were owed.

For example, Wonga customers were given just 4p for every £1 they were due to be paid.

Sara Williams, who runs the Debt Camel blog, notes how it could be a lengthy process for TFS Loans customers.

“In a month or two the administrators, Allister Manson and Trevor Binyon of Opus Restructuring LLP will publish their proposals for the administration,” she said.

“It is their role to sell the assets of a company and divide the available money between the company’s creditors. This distribution can take a long time – often more than a year.”

If you’re waiting for a compensation payment from TFS, you should contact the administrator.

Ms Williams said TFS customers who’ve yet to make a complaint should still be able to.

We’ve asked TFS and its administrators for more information and we’ll update this article when we know more.

“Anyone who is owed money by a company that goes into administration can make a claim to the administrators,” said Ms Williams.

“In this case, that includes TFS customers, past and present, borrowers and guarantors. They could all be creditors because they may have a claim against TFS for unaffordable lending.”

“The administrators are likely to set up a page that will allow customers to submit a complaint.”

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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