Not upheld: unfair treatment in loan settlement and repayment processing complaint against Salary Finance Limited, trading as Salary Finance

Decision detail

Summary

Mr L complained that Salary Finance treated him unfairly by requesting further repayments after he paid the settlement figure of £10,130.88 in August 2025. Salary Finance subsequently took £118 and advised that £190 remained outstanding. The ombudsman found that the settlement letter clearly stated the regular monthly payment of £307.86 would still be due in August 2025, separate from the settlement figure. Although the firm's early repayment processing was not clearly explained, Mr L suffered no loss as the firm took less than entitled. The ombudsman did not uphold the complaint, finding the outstanding balance of £190 was legitimate and Salary Finance's offer to waive additional interest was fair.

The Ombudsman's reasoning

The ombudsman found that Salary Finance's settlement letter was sufficiently clear that the regular monthly payment of £307.86 would still be due in August 2025, separate from the settlement figure of £10,130.88. Although the firm's processing of early repayments was not clearly explained and caused confusion, Mr L suffered no loss because Salary Finance took less than it was entitled to (£118 instead of £307.86). The outstanding balance of approximately £190 was legitimate, and Salary Finance's offer to waive additional accrued interest was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website