High cost lender TFS Loans must repay £800,000 – your rights explained

Essex-based guarantor lender TFS Loans has been hugely fined by the Financial Conduct Authority, but customers who lost out are having to wait to get cash.

The lender’s TFS loans went into administration earlier this year

High-cost lender TFS Loans has been fined £800,000 for failing to properly check that customers can repay the loans.

TFS Loans is a secured lender, which means it requires a family member or friend to cover the repayments if you cannot.

The company fell into administration in February following allegations of “unaffordable loans”.

TFS would lend between £3,000 and £15,000 for one to five years at an interest rate of between 30% and 70%, with a representative APR of 39.9%.

But now TFS Loans has been hit with a massive £811,900 fine by the Financial Conduct Authority (FCA) for its lending practices.

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

The Essex Head Office of TFS Loans


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The FCA said: “The FCA found that TFS failed to carry out adequate affordability checks on guarantors who were liable when borrowers were unable to pay their debts.

“TFS’s inability to collect appropriate information about the financial status of guarantors meant that some guarantors were unable to pay the guarantees they had purchased, risking significant personal financial repercussions and distress, if these guarantees were being called. This happened in some cases.”

The financial regulator added that to make matters worse, TFS was also charging “excessive” late payment fees, adding extra costs for customers – and breaking its own rules.

Anyone left out by TFS will be able to file a complaint against the company.

But, confusingly, that £811,900 fine is not part of that compensation.

Here’s how it works.

Why did TFS receive a fine?

The FCA has fined TFS for breaking its rules on how lenders must operate.

The financial regulator found several issues with the way TFS treated customers between November 2, 2015 and April 10, 2018.

But the fine money won’t go to customers – instead it will go to the treasury.

Can I still make a claim against TFS?

Yes. An FCA spokesperson told the Mirror: ‘There may be people who are entitled to redress payments.

A statement on the TFS website said: “The administrators of TFS Loans are developing a methodology to deal with customers who may have suffered a loss as a result of TFS Loans lending practices.

“These customers may be eligible for repair.”

When can I make a TFS claim?

TFS customers will have to wait a bit before their complaint can be heard.

Indeed, the administrators of TFS, Opus Restructuring, are currently working on how this can be done.

The TFS website said the wait is due to the fact that Opus is still designing a complaints system.

How do I make a claim against TFS?

Until an appropriate complaints system is in place, TFS customers who believe they have been affected should email [email protected]

How much money will I receive from my TFS claim?

For the moment it is impossible to say.

If TFS owes you money, it could be in the form of money on your loan or a cash payment later.

However, any customer attempting to obtain relief from TFS will be considered an “unsecured creditor”.

It just means they are at the bottom of the scale when it comes to getting payouts.

TFS will first have to pay all the money it owes to the “secured creditors” and then take care of paying the unsecured creditors.

The TFS FCA fine will only be paid once the lender has paid the customers and businesses it owes money to.

Should I continue to repay my TFS loan?

In short: yes.

Administrator Opus Restructuring said customers should continue to repay their loans.

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

If you are struggling to meet your repayments, the TFS Loans website says you should contact 01268 740 755 for help.

TFS declined to comment. Opus has been approached for comment.

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