Discretionary Commission Arrangements - Compaints and refunds

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Lending Stream Under Fire: Complaints Surge Over High-Cost Loans

Lending Stream, a prominent UK-based short-term lender, is facing increasing scrutiny as complaints mount over its high-cost loans and alleged irresponsible lending practices. Known for offering quick loans with minimal requirements, the company has become a target for consumer advocates and regulatory bodies alike.

The Concerns:

  • High APR: Lending Stream's Annual Percentage Rate (APR) can be as high as 1,333%, significantly exceeding those of traditional lenders. This means borrowers can end up repaying considerably more than they initially borrowed.
  • Affordability Checks: Critics argue that Lending Stream's affordability assessments are inadequate, leading to loans being granted to individuals who cannot afford repayments. This can push vulnerable borrowers further into debt.
  • Aggressive Debt Collection: Some borrowers have reported aggressive tactics employed by Lending Stream's debt collection agencies, causing significant stress and anxiety.
  • Lack of Transparency: Concerns have been raised about the clarity of loan terms and conditions, with some borrowers claiming they were not fully aware of the costs involved.

Complaints and Regulatory Action:

  • Financial Ombudsman Service: The Financial Ombudsman Service has received a significant number of complaints against Lending Stream. Many of these complaints relate to affordability issues and irresponsible lending.
  • Advertising Standards Authority (ASA): In 2018, the ASA upheld a complaint against Lending Stream for a misleading television advert that did not clearly state the APR.
  • Potential for Redress: Borrowers who believe they were mis-sold loans or treated unfairly by Lending Stream may be eligible for compensation. This can include a refund of interest and charges, as well as compensation for any financial hardship caused.

What Borrowers Can Do:

  • Complain to Lending Stream: Borrowers should first try to resolve their complaint directly with Lending Stream.
  • Escalate to the Financial Ombudsman: If Lending Stream fails to address the complaint satisfactorily, borrowers can escalate it to the Financial Ombudsman Service.
  • Seek Debt Advice: Borrowers struggling with Lending Stream loans should seek free and impartial debt advice from organizations like StepChange or Citizens Advice.

The Future of Lending Stream:

The increasing number of complaints and regulatory scrutiny raises questions about the future of Lending Stream and its business model. The company may be forced to make significant changes to its lending practices to ensure compliance and improve customer outcomes.

The Lending Stream case highlights the need for greater regulation and consumer protection in the high-cost short-term credit market. Borrowers should be fully aware of the risks involved before taking out such loans and should explore alternative options if possible.

For further information:

 

GAIN Credit LLC: A Deep Dive into the Company Behind Lending Stream

GAIN Credit LLC, the company behind the short-term loan provider Lending Stream, has become a significant player in the UK's high-cost credit market. This in-depth analysis examines GAIN Credit LLC's ownership, financials, customer complaints, and public reviews to provide a comprehensive picture of the company.

Ownership and Structure:

  • US-Based Parent Company: GAIN Credit LLC is an overseas company registered in Delaware, USA. Its registered address is 251 Little Falls Drive, Wilmington, DE 19808, USA.
  • UK Operations: While GAIN Credit LLC is US-based, its primary business operations are in the UK, where it trades as Lending Stream.
  • FCA Authorization: GAIN Credit LLC is authorized and regulated by the Financial Conduct Authority (FCA) in the UK, with FCA registration number 689378. This authorization allows it to provide consumer credit in the UK.

Financials:

  • Limited Public Information: As a privately held company, detailed financial information about GAIN Credit LLC is not readily available. However, some insights can be gleaned from Companies House records:
    • Annual Accounts: The next accounts are due to be made up to 31 December 2024. The last accounts were made up to 31 December 2023.
    • Credit/Financial Institution: Companies House records confirm that GAIN Credit LLC is a credit/financial institution.

Customer Complaints:

  • High Volume of Complaints: GAIN Credit LLC, trading as Lending Stream, has received a significant number of complaints to the Financial Ombudsman Service (FOS). These complaints often relate to:

    • High APR and Fees: Lending Stream's high Annual Percentage Rate (APR), which can exceed 1,000%, and associated fees are a common source of customer dissatisfaction.
    • Affordability Concerns: Borrowers often complain that Lending Stream failed to adequately assess their affordability before granting loans, leading to financial difficulties.
    • Debt Collection Practices: Some borrowers have reported aggressive or unfair debt collection practices by Lending Stream or its agents.

  • FOS Decisions: The FOS has upheld a number of complaints against Lending Stream, often requiring the company to provide redress to customers, such as refunds of interest and charges or compensation for financial hardship.

Reviews:

  • Mixed Online Reviews: Online reviews of Lending Stream are mixed. Some customers appreciate the quick and easy access to credit, while others express concerns about the high cost of borrowing and customer service issues.
  • Trustpilot: On Trustpilot, Lending Stream has an average rating of 3.8 out of 5 stars, based on over 15,000 reviews. However, it's important to note that reviews on platforms like Trustpilot can be influenced by various factors and may not always represent a balanced view.

Conclusion:

GAIN Credit LLC, operating as Lending Stream, is a significant player in the UK's short-term, high-cost credit market. While the company provides access to credit for those who may struggle to obtain it elsewhere, it has also faced criticism for its high APR, affordability checks, and debt collection practices. The high volume of complaints to the FOS and mixed online reviews suggest that GAIN Credit LLC needs to address these concerns to improve customer outcomes and build a more positive reputation.

Further Research:

This detailed analysis provides a comprehensive overview of GAIN Credit LLC, its operations, and its challenges. By examining the company's ownership, financials, complaints, and reviews, it aims to provide a balanced and informative perspective for consumers and industry stakeholders.

Illustration of Fees: 

From 1st March 2022 fees charged by Redbridge Finance will be capped as per the table below. Further examples are shown below the table.

The figures quoted are only calculated on actual money sent to you. If you get a balance reduction, we do not charge any fees on the balance reduction element, just on money sent to you by the lender.

Band

Redress awarded for a claim (£)

The maximum percentage rate of charge

The maximum total charge (£)

1

£1-£1,499

30% plus vat

£420

2

£1,500 - £9,999

28% plus vat

£2,500

3

£10,000-£24,999

25% plus vat

£5,000

4

25,000-£49,999

20% plus vat

£7,500

5

£50,000 or above

15% plus vat

£10,000

These are some examples:

Band 1

Compensation amount £1,000. Our Fee £300 + VAT (£360 inc VAT). You get £640

Compensation amount £1,499. Our Fee £350 + VAT (£420 inc VAT). You get £1,079

Band 2

Compensation amount £5,000. Our Fee £1,400 + VAT (£1,680 inc VAT). You get £3,320 

Compensation amount £9,999. Our Fee £2,083.33 + VAT (£2,500 inc VAT). You get £7,499 

Band 3

Compensation amount £15,000. Our Fee £3,750 + VAT (£4,500 inc VAT). You get £10,500

Compensation amount £24,999. Our Fee £4,166.67 + VAT (£5,000 inc VAT). You get £19,999

Band 4

Compensation amount £30,000. Our Fee £6,000 + VAT (£7,200 inc VAT). You get £22,800

Compensation amount £49,999. Our Fee £6,250 + VAT (£7,500 inc VAT). You get £42,499

Band 5

Compensation amount £50,000. Our Fee £7,500 + VAT (£9,000 inc VAT). You get £41,000

 

Redbridge Finance is Registered in England & Wales with Company Number 10625599. Registered Office: Highfield, Crossing Lane, Claydon, Banbury, OX17 1EX. Redbridge Finance is a Claims Management Company that is Authorised and Regulated by the Financial Conduct Authority. Firm Reference Number: 836097. VAT Number 270 5830 08. ICO Registration Number ZA533663

 

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