Cash Finance Direct Complaints

Cash Finance Direct (CFD) is a trading name for a high-cost short-term loan provider in the UK. As with many payday loan and short-term credit companies, CFD receives a significant volume of complaints. These complaints typically revolve around several key areas:

High Interest Rates and Charges

The most frequent complaint centers on the exceptionally high interest rates and fees associated with CFD’s loans. APRs (Annual Percentage Rates) can reach astronomical figures, often exceeding 1000%. Borrowers frequently express feeling trapped in a cycle of debt, struggling to repay the loan amount plus the accumulating interest and charges. This is exacerbated by the fact that many borrowers are already in a vulnerable financial position when seeking these loans.

Lack of Affordability Checks

Another significant area of complaint concerns the alleged inadequacy of affordability checks conducted by CFD. Borrowers claim that CFD did not adequately assess their ability to repay the loan before approving it. This can lead to borrowers taking on debt they cannot manage, further worsening their financial situation. Regulations stipulate that lenders must perform reasonable checks to ensure borrowers can afford repayments without hardship, but some argue that CFD falls short in this area.

Unclear Terms and Conditions

Some complainants report issues with the clarity and transparency of CFD’s terms and conditions. They claim that crucial information about fees, repayment schedules, and potential penalties was not adequately explained or highlighted before the loan agreement was finalized. This lack of transparency can lead to unexpected charges and misunderstandings, contributing to borrower dissatisfaction and financial distress.

Aggressive Debt Collection Practices

Complaints about debt collection practices are also common. Borrowers allege that CFD engages in aggressive and harassing tactics when attempting to recover outstanding debts. This can include frequent phone calls, threatening letters, and contacting employers or family members. Such practices can cause significant stress and anxiety for borrowers already struggling with debt.

Misleading Advertising and Marketing

Although less frequent, some complaints relate to potentially misleading advertising and marketing practices. Borrowers may claim that CFD misrepresented the benefits of their loans or failed to adequately highlight the risks involved. This can lead to borrowers making uninformed decisions and taking out loans that are not suitable for their needs.

What to Do if You Have a Complaint

If you have a complaint against Cash Finance Direct, it’s essential to follow a specific process. Firstly, you should formally complain to CFD directly, outlining the details of your complaint and the resolution you are seeking. If you are not satisfied with CFD’s response, or if they fail to respond within eight weeks, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that mediates disputes between consumers and financial service providers. They will investigate your complaint and make a ruling that is binding on CFD. It is crucial to gather all relevant documentation, such as loan agreements, bank statements, and correspondence with CFD, to support your claim.