Lender TFS Loans has collapsed into administration today but customers will still have to keep making their repayments and existing complaints against the lender are still ongoing
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High-cost lender TFS Loans has collapsed into administration following claims of “unaffordable lending”.
The company is known as a guarantor lender, which means it requires a family member or friend to cover repayments if you can’t.
These types of loan companies often charge extortionate interest rates.
TFS would lend between £3,000 and £15,000 lent on a one to five-year term basis at between 30% and 70% interest, with a representative APR of 39.9%.
The firm stopped lending completely in February 2021 and became insolvent in January 2022.
Opus Restructuring was hired as an administrator this week and said “the main causes of the failure of the business are rooted in unaffordable lending”.
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Getty Images)
Other firms in the sector have gone bust in recent years including payday lender Wonga, while Provident has wound down its doorstep lending business.
Most of the larger lenders are no longer offering guarantor loans, including Amigo, George Banco, TrustTwo and UKCredit.
Opus said: “It has been necessary to place TFS into Administration in order to protect the business and the interests of creditors.
“We would like to stress to customers…
