UK-based car finance company Moneybarn specializes in providing loans to customers with poor credit ratings. The company has been under scrutiny in recent years for offering unaffordable loans to customers, which has resulted in many customers being left with debts they cannot repay.
The Financial Conduct Authority (FCA) investigated Moneybarn in 2017 and found that the company had failed to adequately assess the affordability of loans it was providing to customers. The FCA found that Moneybarn had not properly considered customers’ income and expenditure when deciding whether to lend them money. As a result, many customers were being given loans that they could not afford to repay.
Moneybarn was ordered by the FCA to pay over £30 million in compensation to customers who had been affected by the unaffordable loans. The company was also ordered to change its lending practices to ensure that loans were only offered to customers who could afford to repay them.
Despite this, many customers are still struggling with unaffordable loans from Moneybarn. Customers have reported that they were pressured into taking out loans that they could not afford, and that they were not given enough information about the true cost of the loans they were taking out.
Customers who have taken out loans from Moneybarn have reported that the company’s interest rates are much higher than those offered by other lenders, which has made it difficult for them to keep up with repayments. The representative APR for Moneybarnis over 30%, which is significantly higher than the average interest rate for car loans. A loan of £10,000 over 60 months would require monthly payments of £313.86, which would total £18,517.74, of which £8,517.74 is interested.
Many customers have also reported that Moneybarn engages in aggressive debt collection practices, which has made their situation even more difficult. Customers have reported receiving threatening letters and phone calls from Moneybarn, and some have even had their cars repossessed by the company.
If you are struggling with an unaffordable loan from Moneybarn, it is important to seek help as soon as possible. There are a number of debt charities and advice services that can provide support and advice on how to deal with unaffordable debt. If you feel that you couldn’t afford the loan when you were approved, you could also make a Moneybarn Claim. If you are successful, you could be refunded the interest you have paid on your loan. This is because the FCA insists that Moneybarn does not lend to customers who cannot afford the loan, along with standard living expenses, which include pre-existing loans. Overall, Moneybarn’s unaffordable loans have had a devastating impact on many customers. The company’s lending practices have been called into question, and it is clear that many customers were not given the information and support they needed to make informed decisions about their loans. It is important that lenders like Moneybarn are held accountable for their actions, and that customers are given the
