TFS Loans plummets into administration – your rights and future payments explained

Lender TFS Loans collapsed into administration today but customers will have to continue making their repayments and existing complaints against the lender are still pending

TFS Loans collapsed in administration

High-cost lender TFS Loans has collapsed into administration following claims of ‘unaffordable loans’.

The company is known as a surety lender, which means they need a family member or friend to cover the repayments if you can’t.

These types of loan companies often charge exorbitant interest rates.

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

The company ceased lending altogether in February 2021 and became insolvent in January 2022.

Opus Restructuring was hired as administrator this week and said “the main causes of the company’s failure are rooted in unaffordable loans”.

TFS Loans stopped selling guarantor loans in 2020


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Other companies in the sector have gone bankrupt in recent years, including payday lender Wonga, while Provident has ended its home loan business.

Most major lenders no longer offer collateral loans, including Amigo, George Banco, TrustTwo and UKCredit.

Opus said: “It was necessary to place TFS into administration in order to protect the business and the interests of creditors.

“We would like to emphasize to customers that this does not change the terms of any loans they have taken out with TFS Loans Limited.

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

“It is important that all customers continue to repay their loans in accordance with the terms of their agreements, as continuing to do so will have a positive impact on their credit rating.”

Secured loans have recently overtaken PPIs as the most criticized financial product, according to figures from the Financial Ombudsman.

Allister Manson, one of the co-directors, said: “Unfortunately the pandemic has caused lending to decline during the lockdown which has negatively impacted TFS cash flow.

“It was necessary to place TFS in receivership in order to protect the company and the interests of creditors.

“We would like to emphasize to customers that this does not change the terms of any loans they have taken out with TFS Loans Limited.”

I am a TFS Loans client – what happens next?

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.

Trustees say they are reviewing how they will handle ongoing customer complaints against TFS loans.

But in previous situations where a loan company went bankrupt, claimants did not receive the full amount owed to them.

For example, Wonga customers only received 4 pence for every pound they had to pay.

Sara Williams, who runs the Debt Camel blog, notes how a long process it could be for TFS Loans customers.

“In a month or two the administrators, Allister Manson and Trevor Binyon of Opus Restructuring LLP will release their proposals for administration,” she said.

“It’s their role to sell a company’s assets and distribute the available money among the company’s creditors. This distribution can take a long time – often more than a year.

If you are expecting a compensation payment from TFS, you should contact the administrator for any updates.

Customers who believe they have been mis-sold but have not filed a complaint may also do so, even after a business has gone bankrupt.

The administrators have recommended that you email [email protected]

“Anyone who is owed money by a company that goes into administration can make a claim against the administrators,” Ms Williams said.

“In this case, that includes TFS customers, past and present, borrowers and guarantors. They could all be creditors because they might have a claim against TFS for unaffordable loans.

“Admins are likely to set up a page that will allow customers to file a complaint.”

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