Upheld: Card / payment disputes complaint against Loans 2 Go Limited

Decision detail

Summary

Mr G took out a £600 loan on 30 December 2025 and exercised his right to withdraw within 14 days on 5 January 2026. Loans 2 Go's response on 9 January was unclear about whether the contractual CPA payment would still be taken, resulting in a £117.33 payment being deducted on 15 January despite the withdrawal request. This caused a missed payment to be recorded when Mr G did not repay by 30 January. Although the loan status was later changed to 'withdrawn' and will not appear on credit records, the ombudsman found Loans 2 Go's lack of clarity regarding the CPA payment constituted unfair treatment. The ombudsman upheld the complaint and accepted Loans 2 Go's offer of £96.60 compensation, equivalent to all interest charges, as fair redress.

The Ombudsman's reasoning

The ombudsman found that Loans 2 Go failed to clearly communicate that the contractual CPA payment would continue if the withdrawal balance was not repaid by the payment date. While Mr G was aware daily interest would be charged and had the option to call for faster resolution, the firm's contact page did not indicate email response delays. The ombudsman determined that the £96.60 refund (equivalent to all interest paid) fairly compensates Mr G for the distress and inconvenience caused, particularly given that Mr G could have expedited matters by calling rather than emailing. The missed payment reporting is no longer relevant as the loan status has been changed to 'withdrawn' and will not appear on credit records.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website