Creditspring refusing to pay loan

PolarBear9

Hi all, I’m looking for some advice as I’m really stuck on what to do next.

I entered into a regulated credit agreement with Creditspring and was formally approved. My correct details (including my DOB) are clearly recorded in the signed agreement.

I was then asked to pay £12 to “unlock immediate access” to my loan (which normally has a 14-day wait). I paid this in good faith and received confirmation via email that I had paid this and could now access my funds immediately. However, shortly after this, my account was closed and I could not access the loan at all.

My account was closed due to an alleged discrepancy with my date of birth. I was initially told my ID showed the wrong month in my DOB, which is incorrect. I provided my ID and pointed out that the issue was likely due to image distortion.

I escalated this, and after a lot of chasing, a “senior” staff member called me. During that call, she stated that my ID actually showed the correct DOB and that their internal records showed the wrong one. I referred her to the signed credit agreement whereby my correct details are recorded and advised at no point have they received incorrect information; only a distorted image which was easily resolvable. Despite this, she refused to reopen the account, did not review the signed credit agreement and repeatedly said she was relying only on internal notes. When I asked further questions and requested escalation, she abruptly ended the call.

To make matters worse, I was told to reapply — but when I try, the system blocks me, saying my account is inactive and I cannot access any services. So I’m now completely stuck.

Current position:

• I have a signed agreement with correct details
• I paid £12 for immediate access which I never received (they’ve said they’ll refund this)
• I’ve had no proper resolution and cannot reapply

This has left me without funds I was relying on, and the whole situation seems to stem from their internal errors, poor handling and inability to review documents with reasonable judgement.

I’ve raised a formal complaint and am preparing to go to the Financial Ombudsman Service, but I wanted to ask:

• Does this sound like a breach of contract, or is it more a complaint/FOS issue?
• Should I be pushing for more than just the £12 refund (e.g. compensation)?
• Is there anything else I should be doing at this stage to strengthen my position? Ideally I want the loan funds as per the agreement.

Any advice would be really appreciated — I feel like I’m hitting a wall at every step.

Thanks in advance.

flaneurs_lobster

I'd be looking at other options for short term finance, can't see Creditspring being forthcoming with funds while you are pursuing a formal complaint against them.

MattMattMattUK

In reply to your three specific questions:

Does this sound like a breach of contract, or is it more a complaint/FOS issue?

Unfortunately none of the above, they are not compelled to lend you the money, they can cancel the agreement before transfer of funds.

Should I be pushing for more than just the £12 refund (e.g. compensation)?

I think "should" is stretching a lot there, you can try, I would expect the answer to be a straight no, but if you are lucky you might get £20-50 as a "gesture of good will". Essentially you are not entitled to anything but they will make a small gesture to make you "shut up and go away".

Is there anything else I should be doing at this stage to strengthen my position? Ideally I want the loan funds as per the agreement.

There is nothing you can do and unfortunately they do not have to lend you the money, they are allowed to cancel the agreement and I imagine your odds of success in getting more than £12 out of them are somewhat similar to winning the lottery.

Perhaps if you head over to the DFW board people can help you with your financial situation as borrowing is rarely a solution.

PolarBear9

thanks for the replies!

I didn’t think they could cancel the agreement without any breach occurring? Both parties had signed the agreement and they emailed me asking for £12 to release the loan early. I paid and got an email stating I had immediate access to the funds but within a couple of hours they closed my account and cancelled the loan.

surely unless there’s good reason they cannot cancel a legally binding agreement?

Ayr_Rage

As they have found a discrepancy in your ID details then they can cancel the agreement.

The funds were never released.

You are entitled to your £12 fee back and that's it.

Isthisforreal99

All sounds like a scam to me, alarm bells would have been ringing for me at the £12 "early release fee"

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81977900#Comment_81977900

Well there's no mention (that I can find) on the Creditspring website of an "immediate access" whether for a fee or otherwise, just the 14 day wait for new applicants.

But a scam? For £12? To get the card details?

Guess if I was the OP I'd be wary of unauthorised spend on my card.

PolarBear9

There was no discrepancy with my ID? It was a distorted image. Just to clarify, they had accepted my loan before my ID was even looked at - they didn’t need my ID to approve the loan, they only had this as I’d noticed a minor formatting error on my postal address so to change this they asked for my ID. However at this point the loan had been approved and my correct DOB was on the loan application and the signed agreement.

The credit agreement does confirm sometimes you can be invited to pay to release the funds early 😊

ManyWays

People borrowing from a lender like Creditspring may have difficulty in borrowing from anyone else.
Moving over to the DFW board and discussing your full situation is the best option:

https://forums.moneysavingexpert.com/categories/debt-free-wannabe