People often ask what happens to their credit score if they make a complaint. And what happens if they still owe a balance on the account. Here are some typical questions:
” Lloyds increased my overdraft limit several times a few years ago when I had a gambling problem. But I have recovered and am hoping to get a mortgage soon. I don’t want to complain if it will it harm my credit score, which is now looking pretty good.”
“I asked Lendable if I could pay less but they said this would be reported on my credit record so I am trying not to do this. If I make an affordability complaint will that hurt my score? “
“I still have the Tesco loan and Virgin credit card accounts open, will this claim have any impact on them? “
” I still owe another year on a 118 loan. Is it best to finish paying which will be hard or complain now?”
“I have a payment arrangement for a credit card. If I complain will they stop the arrangement?”
For details of affordability complaints, with a template to use, for the different types of debt, see:
- refunds from a loan;
- refunds from a credit card or catalogue where your limit is too high;
- refunds of interest and charges on an overdraft.
But the answers to these sort of general questions are much the same for all types of debt, although there are sometimes complications for car finance.
Contents
Making a complaint and your credit record
The complaint itself doesn’t show on your credit record
Sending the lender an affordability complaint doesn’t hurt your credit score or show on your credit record. The only exception is that a few catalogue lenders mark the credit record as “in dispute” – this doesn’t affect your score and it is a temporary marker until the lender responds to your complaint, when it is removed.
The only lenders that can see you have made the complaint are the lender you complain to and any other lenders within the same group. So if you complain to Barclaycard that they have increased your limit too high and you bank with Barclays, you should assume your bank knows about the complaint.
What about a future mortgage?
You should avoid applying for a new mortgage to a bank you have made an affordability complaint to. This also applies to different parts of the same group. So after complaining to Lloyds about an overdraft, don’t make a mortgage application to the Halifax.
This is just common sense – there are plenty of other mortgage lenders out there, so why take this risk? If you are using a mortgage broker, tell them about this part of your history, as they can’t see it on your credit record.
But you do NOT need to worry about making a complaint to a bank you already have your mortgage with.
All the major lenders have committed to letting customers who are up to date with mortgage payments to switch to a new fix without another affordability test. So when your current mortgage fix ends, if you just want a new fix for the same mortgage (same amount, same term etc) then this should be fine.
What about future lending?
Some lenders spell this out when they send you a decision. For example Lloyds sometimes says it will put a restriction on your account so you won’t be able to borrow more from them for a 12 month period.
But most don’t mention it. As with mortgages, I would generally suggest applying to a different lender.
Win a complaint and negative marks are removed, so your score may improve
When you win a complaint, any negative marks are normally removed from your credit record. Sometimes this is only done when you have cleared any remaining balance.
As the Financial Ombudsman says:
We’re likely to tell a lender to make sure their customer’s credit file doesn’t have any adverse information recorded about the loans where we’ve identified proportionate checks would have shown that the borrower couldn’t sustainably repay the loan.
If a lender has accepted your complaint, you need to check that this includes cleaning up your credit score.
Can you stop paying when you complain?
Stopping paying a debt & your credit score
Making a complaint doesn’t put the debt on hold. You are not automatically allowed to stop paying it while the complaint is considered.
If you stop making the normal payments to the debt, this is very likely to result in missed payments and then defaults. Or to a payment arrangement being recorded on your credit record.
So if you can afford to make the repayments it’s a good idea.
Every payment you make will either reduce your balance owed or increase your cash refund, so you won’t lose out by doing this.
(There is an exception here if the lender has gone into administration – then carrying on paying may mean you get a lower refund. Ask in the comments below if you think this applies to you.)
When you can’t afford the normal payments…
If you can’t afford to make the normal payment, without borrowing more elsewhere or getting behind with bills, then it’s usually best to ask for a payment arrangement or say you can’t pay anything when you make a complaint.
This will damage your credit record but that may be temporary, as the negative marks will be cleaned if you win the complaint.
If you borrow more to try to carry on making the payments, then you may then get into problems with another debt and end up in a worse position. For example, if you win your complaint about a loan in the end, but your credit card payments have now got too high winning the loan complaint doesn’t sort out your credit card problem…
So in most cases it’s better to confine the problem to the debt you are complaining about. Don’t let it infect the rest of your finances by struggling to make unaffordable payments.
If you aren’t sure what to do, talk to National Debtline on 0808 808 4000 and tell them you are looking at affordability complaints. They can help you decide what will work best for you.
Car finance is a priority debt
With a secured debt such as car finance or a logbook loan, if you stop paying the lender may repossess your car. These secured debts have to be treated as a priority, so you should pay them even if you do get behind with other non-priority debts.
Again talk to National Debtline if you are struggling to pay priority debts or are unsure what to do.
Is it best to wait until a debt is repaid?
No!
It is good to complain as soon as possible (except sometimes for car finance, see below). The sooner you complain:
- the easier it is to get information from your credit record and bank statements to help with your claim;
- the sooner your problem is solved! You will not get more money by delaying a claim.
Also some lenders seem to make better offers to settle an outstanding balance rather than a loan that has been repaid.
You can still complain when the debt is cleared. I am just saying there is no reason to wait for this.
Will a complaint affect a DMP or payment arrangement?
These aren’t affected by making a complaint. The lender won’t suddenly decide you have to pay more, or start adding interest which they had stopped.
This has never been a problem in practice.
Being in a DMP is a very good time to make a complaint as you are in a safe financial situation. If you win the complaint your balance will drop so the DMP will end sooner.
Will getting a refund affect my benefits?
A refund is treated by the benefits system as more money in the bank, not extra income that month. So there is usually no impact on Universal Credit or other benefits affect unless the refund is very large, leaving you with over £6000 in the bank.
Ask a question in the comments below if you are unsure.
How refunds work when you still owe money
Will my bank close my account when I complain?
This is a common worry. But it has been very rare.
One customer said Santander closed her account when she made a complaint about the overdraft affordability, but other Santander customers haven’t had this problem.
If you are worried, you could open another bank account so it’s there if you need it. The challenger banks – Monzo, Starling and Chase – have accounts with good apps and good budgeting facilities.
Refunds are first used to clear a balance
When you win a complaint, and you still owe a balance, the refund is first used to reduce that balance. so that overall you only have to repay what you borrowed.
Here is a simple example.
If you have borrowed £2,000, which became £2,700 with added interest and you had paid £2,300 so far, with a balance remaining of £400, if you win the complaint the balance is cleared and you get a cash refund of 2300-2000=300.
You can’t usually ask to have all the refund in cash and to be able to carry on repaying the balance.
Do I have to pay a reduced balance immediately?
A similar example but earlier in the loan so you have repaid less:
If you have borrowed £2,000, which became £2,700 with added interest and you have paid £800 so far. If you win the complaint the interest is removed and the balance is reduced to 2000-800=£1,200 so you only repay in total what you borrowed.
So do you have to repay the £1200 immediately? Or just carry on making the loan repayments? No. The creditor should accept an affordable offer of repayment from you and not add on any more interest or default that debt.
In practice this doesn’t seem to be a problem and creditors seem to be reasonable about this. For example, see this comment from someone whose lender was difficult all the way through the complaint but absolutely fine about reaching an agreement on repaying the debt when the case was upheld at the Ombudsman.
For overdrafts, banks will normally reduce your overdraft limit, sometimes removing it, after your balance is reduced. Again this doesn’t seem to be a problem and most people are very happy with the result.
Car finance – when you owe a balance and want to keep the car
Car finance can be complicated. You may still get a very good result from a complaint.
But if you still have the car and you are still paying, you must read about what happens if you win the complaint before making a claim.
Often you may want to delay making the complaint until you have repaid not the whole debt but the amount you borrowed.
What if the debt has been sold?
If you defaulted on the debt and it has been sold, you complain to the original lender because they made the poor decision to lend when it was unaffordable.
If you then win the claim, the lender will sort out the balance with the debt collector who has bought the debt. Sometimes the lender gets the debt back and sorts it out. Sometimes they leave it with the debt collector and get the balance corrected. It is up to the lender which they do.
Your credit record with the original lender and the debt collector should both be cleaned.
What has happened to other people complaining about….?
The best thing to do here is to look at the comments below the specific article for your type of debt:
But your case is individual. Just because one person got a good result or a straight rejection from a lender doesn’t mean you will.
And remember that many of these cases are being won at the Ombudsman. So if the debt caused you problems and you think the lender should have realised that was likely at the start, go to the Ombudsman if you get a rejection or a poor offer. Lenders are hoping you will give up!
Templates for affordability claims
Options when you cant pay bills & debts
Could a Debt Relief order help you?
Claire says
Thanks for this article Sara, I am feeling much more comfortable about potentially lodging a complaint.
I have an overdraft of £900 on my current account – I reduced it myself from £1000 about a year ago, and this negatively impacted my credit score.
I spend about 3/4 of the month getting deeper into this overdraft, which has a daily charge, and I end up paying around £30 a month for this. Over a few years, this has obviously added up.
I’d like to get out of the overdraft to stay in the black, but would prefer to keep a small amount as an emergency option (£350?). I also have other higher interest debt (credit cards and loans). Is it worth a complaint?
Sara (Debt Camel) says
The size of your overdraft limit does not itself affect your credit score – it isn’t counted in the credit utilisation calculations. It may be some other tings were going on in your credit record at that time. Or that you were using your overdraft more even though the limit was lower.
This sounds worth a complaint if it has been going on for a long while and the bank can see your situation has been getting worse.
Often a bank proposes to remove the overdraft if the refund takes you back into the black. But the Ombudsman normally asks if this will cause you a problem. Most people think not using their overdraft and not having the monthly charges is a good exchange for having the overdraft removed!
What are your other high cost debts? Which loan lenders? Did the credit cards increase your limit while you were only making minimum payments?
Clare says
I was checking my credit file and have 3 missed payments on it but these weren’t missed as the money was moved to the end of the agreement. I have contacted Moneybarn as this false information. Should this be changed do you think or be sent to the Ombudsman if they don’t?
Sara (Debt Camel) says
Just checking, this has nothing to do with an affordability complaint against Moneybaran?
They agreed to you not making 3 payments but adding them on to the end of the loan term – is that right? Was this because you were in temporary difficulty?
Was this your first loan from Moneybarn? How large was it?
Kamil says
Hi Sara.
I did not found answer for my problem on this article.
Is about your favourit Amigo loans. I had a loan for £9000 in total (including interest) with Amigo and I have made an affordability compaint. FOS made a decision that amigo has to remove all the interest of my loan and all negative marks on the credit file. I should have a refund from the first loan with amigo and also I have paid over a year about £5000 in monthly instalments. It should be about £3000 left to pay on the loan and this time when FOS made their decision Amigo stopped considering complains. Then I have heard there will be only small percentage of the refund in future so I decided to stop paying as my monthly instalment was over £400. Obviously carrying paying would make me waste lot of money as this situation is on hold for nearly 3 years now.
My credit report shows that I owned more than £9000 to Amigo and it shows I have missed payment for nearly 3 years. I am still waiting for them to make final decision and I am wondering what will happen to my credit score after?
Sara (Debt Camel) says
The article says that making payments when a lender is in administration is different – and the same applies to Schemes of Arrangement, which Amigo has.
If your claim is upheld in the Scheme, Amigo will adjust your balance and should remove the missed payment markers. There is nothing you can do do to speed this up. If your claim is rejected, remember you can appeal in the Scheme.
Richard Eastland says
I have a couple of claims for tax paid on ppi refunds this has been going on for over a year can you advise
Sara (Debt Camel) says
You have sent HMRC an R40?
Marius says
This is one of the reason I am contemplating about complaining my overdraft with My Bank ( very very large one for many many years and unable to get rid of it)
Currently i am going through a severe issue of a few CCj’s registered on my Credit File ( completely shocking me and my IFA as that has put full breaks on any financial arrangements we were planning to do)
After providing full details and highlighting where they have made the mistake, Solicitors firm has CLOSED my file and returned the file back to to their Client ( with whom I have also made an official complaint) and waiting to hear from them. The Solicitor firm is not accepting any blame and refusing to set the judgements a side?
We may have to make a complaint to FOS ( seeking advice accordingly)
Basically my concern is that making all these complaints one after the other will damage my Credit Score further?
As it is the most important in my situation currently
Sara (Debt Camel) says
Making a complaint itself doesn’t damage your credit score. From your other comments you have a massive Barclays Overdraft and loan balance which you have already defaulted on, so your credit score must already be damaged – if you can win the complaint about the loan, those negative marks should be removed.
Anne says
Please can I have an email address for Santander to enable me to lodge an affordability complaint. Thanks Anne
Sara (Debt Camel) says
There is a list of email addresses for banks and credit cards here https://debtcamel.co.uk/email-addresses-banks-credit-cards/
Santander has a bad habit of rejecting good complaints at the moment. So send yours to the Ombudsman if they do with you, sometimes Santander then refunds you very quickly before the Ombudsman even looks at the case! See https://debtcamel.co.uk/santander-overdraft-complaints/
Lisa says
Hi Sara.. I’ve commented on here before because I sent a complaint to everyday loans which they’ve rejected as not irresponsible even though we were £32,000 in debt with credit cards and catalogues at the time of applying for the loan one year after taking the loan out I entered into a DMP with stepchange because of being a joint loan my partner has to pay the remaining, which has been a struggle at times and do have help off his parents… We’ve made part payments some mths because of job changes etc which they added another 4 payments on top of the 60 mths… We got intouch Dec to say we couldn’t make the full payment, they are phoning back in Feb to see how things stand… Should wr be feeling pushed into paying the full amount There is £1500 outstanding now, it’s due to come to an end in aug 2023 it should of been April.. I’ve just took the complaint now to the ombudsman
Sara (Debt Camel) says
Quite right to send that to the Ombudsman.
Are you still in the DMP? Do you have other debts outside the DMP? Any arrears on bills?
Also have you looked at affordability complaints against any credit cards and catalogues that increased your credit limit when you were only making minimum payments?
Lisa Rhodes says
Hi yes still in DMP with stepchange which everyday loans know about, I’m definitely going to put complaints in with the others just waiting to get this everyday loans one sorted, I’m just I’m the process of sending all the documents in to the ombudsman, they’ve said there is backlog of complaints at the moment… My partner also defaulted on his credit cards etc about 2 years after the loan with them.. And most were increasing limits when only paying minimum payments.
Sara (Debt Camel) says
And this everyday loan debt is in the DMP?
Lisa Rhodes says
Yes it is, but because it was a joint loan the full amount is made up from my partner.. I originally applied for the loan in my name but then they said to get my partner to go on tje loan aswell, because I would be able to get more that way..
Sara (Debt Camel) says
What is his credit record like?
Lisa Rhodes says
I know they will try to say that because it was consolidation of 2 credit cards that it wasn’t irresponsible, even though taking the loan out of £6000 has cost us nearly £15,000 with the added intrest… I regret the day of ever having a loan with them and wish I’d of faced up to the debt problem and seeked proper advice earlier. Bit we live and learn
Sara (Debt Camel) says
If the everyday laon is not in your DMP, ask StepChange if you can add it.
If it is in the DMP, then I suggest you just let this carry on.
If your DMP payments are too much at the moment, talk to StepChange and ask for the, to be reduced.
Lisa says
His credit is also poor and think even worse now… . At the time of taking out the loan my debt total was £21,000 and His was around £10,000..
Sara (Debt Camel) says
does he too need a DMP? It sounds as though it isn’t going to hurt his credit record if he stops paying the EL while it goes through the DMP?
Of course if you win the case the negative marks will be removed from your credit records.
lisa says
Yes he’s thinking about it aswell at the moment.. I was going to go down the route of an IVA but I know everyday loans reject them… And at the start if of my DMP they were the ones I owed most of the money too.
Sara (Debt Camel) says
So see how this complaint and your other ones go. In an IVA any refunds go to your creditors and do t speed up the IVA unless you are repaying the debts in full plus the IVA fees
Lisa says
Thanks for your help.. Just one last thing I’m worried about is the charges that will go on to top of everyday loans if my partner decides to go with a dmp.. I’m hearing awful stories of them putting loads of charges on top for not paying contracted amount.. O know they don’t have to freeze the charges or intrest
Sara (Debt Camel) says
If they add extra charges, complain about those and take that compl to the Ombudsman too!
Lisa says
Ok thankyou so much
Karla H says
Hi All,
I have recently submitted an affordability complaint to Money Barn and FOS. Money barn are claiming I didn’t have any CCJ’s at the time when I absolutely did, as these are now over 6 years old they have dropped off my credit file. Is there any way I can see these old CCJ’s to prove this was the case?
Sara (Debt Camel) says
Do you have any old correspondence (letters, emails) about the CCJs? When did you clear them?
Karla says
Hi Sara,
I don’t have any correspondence that I can find, however, they dropped off my file in 2020 so they were 100% there when the agreement was taken out
Sara (Debt Camel) says
No old credit report?
Do you have your bank statements from th3 time of the application? Would they show payments to solicitors for the CCJs?
Catherine says
So I submitted a pending complaint to likely loans and requested all my data held.They have sent several attachments,welcome letters,agreement,payment date change letters but there’s not one document with any income/expenditure details that they used or credit report/search information.
Are there certain documents they don’t have to send you even though it’s my data and was supposedly used to assess affordability??
Likely loans have previously used consents online when I’ve made previous applications to view banking information but there’s no mention of that in any of the data they have sent.
Should businesses also hold information for applications that were declined??
I applied for one a few months prior to been accepted but got declined after they did a check using consents online and the reason it said was ‘high number of gambling transactions’
Yet a few months later when I had more gambling on statements I was accepted.
I was hoping data from my DSAR request would be helpful but there’s no application data.
Sara (Debt Camel) says
You don’t need this information to submit a complaint.
Are you saying that Likely Loans checked your bank statements – through open banking? – when you applied online?
Catherine says
I’ve already submitted but requested my data at the same time but none of what they sent shows any income or expenditure details.
I applied via simply money and was surprised to be accepted as I’d applied 5 times in the 6 months prior and was either immediately turned down at the quote part or turned down after submitting because they used consents online to view bank statements and said I had a high value of gambling so they declined.
But for current loan I wasn’t directed to consents online as before and was approved very quickly with no income verification checks.
Can only see they did an anti money laundering check on credit file.
Sara (Debt Camel) says
If they haven’t kept details of the checks, then they may have a hard time explaining them to the ombudsman…
Catherine says
Should they keep and send data on any loans declined and reason why as part or SAR?
Do they have to send income and expenditure/credit check details through as part of SAR or can they withhold some documents/data?
Sara (Debt Camel) says
I understand why this is irritating and you are suspicious. But all you can do at the moment is wait for their response and send the case to the ombudsman if it is rejected.
It is up to a lender what records they keep – there is no fixed list.
Some lenders have had problems at FOS with loans that were approved through a third party and the lender doesb’t have any details of the checks made.
FOS will ask them what checks they made. If they say they checked X, Y and Z you can then ask why you were not sent details of that in your SAR.
Catherine says
I managed to access consents online that likely loans/oakbrook finance use and it showed that when they checked it they did so 2 days after they had already approved loan and deposited to bank.
I told them this and they said they don’t retain the information from consents online and could I send them a copy of what it showed for them to review??
Should I send it to them??
Surely it’s their job to keep the records to show the checks they did.
But given it showed that they didn’t check till 2 days after approval,haven’t stored the data and haven’t provided any other income and expenditure in my SAR request and that the figures it showed were no way near the amount they have on the application form,and that it showed tons of gambling.
Sara (Debt Camel) says
I don’t see any harm in sending it to them I would put a time limit on this – say the complaint goes to the Ombudsman in two weeks if they haven’t made you a suitable offer.
Catherine says
They do still have a few more weeks before it’s 8 weeks but I’ll send them it and see what they say.
Sara (Debt Camel) says
ok well they have 8 weeks – my suggestion of 2 weeks extra was if they have given you a decision and you are asking them to reconsider it.
Catherine says
You would think if they have gone to the effort of sending all the other documents that they’d of included any credit check,declared income and expenditure data.
Well I’ve asked them to send the missing info requested but suppose I’m hoping they don’t have it as that would surely make my case stronger.
Ernest says
Good evening Sara.. l will like ask questions about my credit record… my loans and credit credit is going down and default removed … but my credit score is drop down not going up.. pls what is the reason?
Sara (Debt Camel) says
You have had such a large number of debts and won so many complaints it’s hard to guess. Have any debts that did not have any problems showing dropped off your records as they are so old? What problems still show on your credit record? Have you applied for any new credit? And how much has your score dropped?
Ernest says
My total debt is about £13k drop to 9k now and some of the case l won drop from my credit record…. the only credit l applied for is credit card £350 in December
Sara (Debt Camel) says
Getting a new credit card by itself will reduce your score for a few months.
Gary says
Hi
I won a case from FOS about irresponsible lending and my interest and credit report marks were removed. There was an outstanding balance and that was all ready at debt collectors(Lowell)
Now when the adjudicator done the case, she missed out half the email which stated the outcome of her investigation. So I ended up speaking on the phone. To confirm this. Last June.
Now Lowell are looking for outstanding balance, as no marks regarding can be placed on my credit file regarding this debt. Can Lowell ever put this on my credit file or go for a ccj if the outstanding balance is not paid
Sara (Debt Camel) says
Are you saying the outstanding balanced should have been reduced and wasn’t?
Gary says
Sorry there was a outstanding balance after the interest was taken off
Sara (Debt Camel) says
ok so the balance with Lowell has been adjusted correctly. and all negative marks with the original lender and lowell were removed.
Lowell now want you start paying the balance and you want to know what happens if you don’t.
You need to make an arrangement to pay the balance. provided it is all you can reasonably afford, Lowell should not put a negative mark on your credit record or go for a CCJ. people haven’t found this a problem in practice.
Sav says
I raised a complaint with moneyboat for irresponsible lending which they have responded they haven’t upheld my complaint but offered 1199 without admission of liability.
“ it is worth considering that it is an offence to obtain funds by deception. If after this email you are suggesting that the information you provided did not accurately reflect your circumstances at the time, then I need to advice you that We reverse you the right to pass your details of your application on to fraud prevention agencies.
I got abit scared of this email so I accepted the offer as I wasn’t accurate on my income and expenditure and didn’t want them to put any markers so I can’t obtain credit
Chloe says
That’s an interesting response. Do all response have this as a caveat I wonder?
Sara (Debt Camel) says
It is Moneyboat’s standard response. But no one has had any problems if they ignore this and take the complaint to the Ombudsman.
Nikki says
Hi, hopefully someone may be able to help with a question. In 2018 I made an affordability complaint with QQ and Wonga for payday loans. I did not realise that I would have been able to make claims against Banks too, I just accepted the fees and interest from the banks were not arguable. I’ve been reading this site recently and can see I will be able to make some claims. My question is, if it goes to the FOS will they not say I should’ve known about the 3 year rule, meaning I should’ve actually complained by 2021. I will obviously argue that I didn’t know but just wondered if anyone had argued it and had success or anything similar?
I’d be gutted if I get turned down because I didn’t make the claim with the pay day claims, I just genuinely didn’t know.
Sara (Debt Camel) says
Just make your claim and if it goes to FOS explain this.
Sarah says
Hi Sara, I need some advice please.
My complaint with Barclaycard is with financial ombudsman. Not been allocated yet that I’m aware of.
I’m trying to apply for a mortgage and the only thing stoping me from being approved is I’ve had an AP for the last 2 years.
Balance left to pay combined on 2 cards less that 2k from18k
I wonder is it even advisable or allowed to go back to Barclays and ask they remove the AP and late markers on account for 6 years, I’ll drop case with financial ombudsman and pay off remaining balance.
Would this be risky because they could decline my offer but I really need this sorted out for the mortgage? Or just wait for how ever long it may take.
Either way, I need to pay that balance in full so it’s settled.
All I’m being told is the lenders view Ap almost as bad as IVA
Sara (Debt Camel) says
All I’m being told is the lenders view Ap almost as bad as IVA
On a scale of badness, a payment arrangement is minor compared to an IVA which is a form of insolvency like bankruptcy.
However a current or recently repaid payment arrangement will probably make it impossible to get a new mortgage (not a new fix if you already have a mortgage) at an ok rate from a normal lender.
And settling it now (can you afford this?) won’t immediately improve this. But it starts you on the road to recovery.
Sarah says
Thank you, my case is with the Fos they said it can take 4 months to be looked at.
This is a new mortgage, I will pay the balance and wait for Fos outcome, but I’m hoping they don’t reject my complaint as they did some others as they didn’t put it in when they did the PD loans.
Sara (Debt Camel) says
But should you go back to Barclaycard and offer to settle the debt if they remove the payment arrangement markers?
Well you can offer this. Some lenders will refuse to deal with you except through the ombudsman, others won’t.
But the big problem here is that Barclaycard are very unlikely to agree. It is against the lenders code of practice for credit record reporting to remove a payment arrangement or a default unless the lenders accepts that they made an error originally eg because the credit was unaffordable. “Doing a deal” over oayment in exchange for cleaning the credit record shouldn’t happen. I can’t say it’s impossible that Barclaycard will do this but i would say it’s unlikely.
So even if you had offered this before sending the case to FOS, my guess is Barclaycard would have refused.
So in practice making the affordability complaint was your best chance to get your record cleaned. And then sending it to FOS when BC rejected it.
Jax says
Good evening. I’m just wondering whether you can get older reports from Credit Karma. I am sure that an account was on there but it isn’t any more. It’s one that I made an affordability complaint about that’s currently waiting to be assigned to an adjudicator. I sent it to FOS over 4 months ago.
Sara (Debt Camel) says
no you can’t. Have you looked at ClearScore or MSE’s credit Club?
Jax says
Thanks Sara. I have and it’s still showing there but I think it was on my credit karma report until today. I’ll keep a check on the others.
Sara (Debt Camel) says
If it’s showing on ClearScore, download and kee a copy of your Equifax statutory report. If it’s showing on MSE Credit Club, download and keep a copy of your Experian statutory report.
See https://debtcamel.co.uk/best-way-to-check-credit-score/ which has links to these statutory reports
Jax says
Thanks will do!
Jack says
Hi Sara,
Currently on a DRO, but i’m curious about how this situation would work (if it’s worth bothering to do in the future).
I previously took out 2 loans with Bamboo loans during a gambling phase.
I paid off the first loan starting in March 2020 and ending March 2021 £5000. Paid £1400 interest
I later took out a second loan in September 2021 where this debt was part of my DRO in December 2022.
If i were to take out an affordability claim on Debt #1 after my DRO has completed, would any waiving of interest be used towards debt #2?
This loan was taken out at the same time as an affordability claim i have just won against lendable where i’ll be receiving £1400. so keeping under the £2000 DRO limit.
Sara (Debt Camel) says
How large was the second loan and what was the total of payments you made to it?
Jack says
The second loan was £7500 over 36 months, where I paid £3333 in 11 months.
Total interest paid was £1848.83
It defaulted at a balance of £7923 remaining due to the DRO
Sara (Debt Camel) says
then it’s very unlikely they would agree to pay you the interest from the first loan. Or that the Ombudsman would say they should.
Darren says
Hi Sara,
Is this right from the FOS?
Regarding any adverse information being removed from your credit file, I can confirm the below:
If after the refund of interest and charges there remains an outstanding balance on your account then any adverse information should remain on your credit file. That’s because even if you hadn’t been charged interest on the account, you’d still have fallen behind with your repayments and lenders have a duty to report accurate information to credit reference agencies.
But if after the refund of interest and charges the outstanding balance has been cleared we would expect the lender to remove any adverse information from your credit file. That’s because we can reasonably assume you only got into financial difficulty as a result of the interest and charges.
From what I can see the refund on your Aqua account resulted in a positive balance so i’m happy to ask the business if they’re willing to remove the adverse information from your credit file from this account. But I won’t be recommending they do the same on your Marbles account for the reasons i’ve set out above.
Is this right? I’ve never heard of such a rule. I thought that if the complaint was upheld (which is was initially by the lender, I referred to FOS because they calculated the refund incorrectly) then the negative markers were removed?
Sara (Debt Camel) says
It’s unusual. Had you missed payments on the account before the date the refund is from?
Darren says
Yes, both accounts has missed payments and were both eventually defaulted.
Sara (Debt Camel) says
So in this case it’s hard to argue that it was the increase in the credit limit that caused your credit record problem as the account was already showing problems before that point.
Darren says
I may have misunderstood so let me explain:
Aqua – opened Jan 14, CL increases on July 14, Nov 14 and Jan 16. Payments missed Dec 16 to March 17. Passed to DCA in March 17, defaulted July 17.
Marbles – opened Dec 15, CL increase on Apr 16. Payments missed Dec 16 to March 17. Passed to DCA in March 17, defaulted July 17 (same date as Aqua).
Refund for Aqua totalled £983.74 from the account opening, balance at the time was £813, so this cleared the account and meant £170 was due back to me.
Refund for Marbles totalled £318.61 from the account opening, balance at the time was £438, so the account still had a balance of £120.
Sara (Debt Camel) says
OK then I suggest you say that as the refund of the Marbles account is from the begining, you think the missed payments and defaults should be deleted because the decision is not that the interest charged was unaffordable, but that you should never have been given this credit. So to put you back in the situation where you had niot been given it, you have to repay what you borrowed but it is not fair that you should have problems showing on your credit record because of this.
Ask for it to go to an Ombudsman if the adjudicator does not change their mind.
Ernest says
Good morning Sara ..pls just want to ask you 2 question pls.
1. Can you get mortgage if you have default on your credit file .. not new mortgage ..l have mortgage already just want yo change the lender… and do you have to wait for the default to remove from your credit file before getting the mortgage.
2. I have buy now pay later.. but l have paid them off this January but still in my credit file and l email them they said l have to wait for Mt credit file to updated.
Can l raise dispute with TransUnion?
Sara (Debt Camel) says
1. How old is the default & has it been repaid? Why do you want to change lender?
2. So they show as not paid? I would wait at least another few weeks.
You need To stop using BNPL if you want to make a mortgage application. Not good.
Ernest says
1.Just check my credit file niw.. l only have one default with PayPal but that one is Ombudsman at the moment… and l have 2 credit cards on special arrangements plan.. but l can pay them off not alot of money.. l can negotiate with them fir the month to reduce and then l pay it off is urder 1k
2. Yes showing not paid off.. have paid them off in January
I just findout on this website that is not buy now pay later.. that is d reason l paid them off.. l don’t want to used anymore.
Am on interest only mortgages d rate now is 6.6.. and also l have alot of money on d house am try to buy another one and rent out..so l can take money of d house.. and l have overdraft on my NatWest account .. l just default that one 2 months ago. Because l don’t want to pay d interest on it… but ar d moment not showing yet on my credit file. Pls what is the best advice?
Sara (Debt Camel) says
You have virtually no chance of a mortgage with a high street lender at a decent rate of interest with a very recent default. You need to clear that as soon as possible and even then you may need to wait at least a year, possibly two. Talk to a mortgage broker about your options.
Sam Dawson says
Hi Sarah not sure if this has been asked but can a irresponsible lending claim be made even if it is 0% interest ?
it is for a device plan i got threw Vodafone I understand you can not make a claim for the airtime plan but this is a separate payment for the device which exceeds about 1.3k
hope this makes sense
Regards
Sara (Debt Camel) says
In theory yes. If you win there is no interest to be refunded but you could pay over a longer period. But I don’t remember anyone winning a case like this.
Sam Dawson says
Thank you Sarah there is other factors to this to , for example DRO and currently having a plan with them ,
Thank you
Sara (Debt Camel) says
sorry are you saying you are currently in a DRO?
Sam Dawson says
sorry for the late reply.
I had been discharged a couple of weeks earlier from the DRO
Sara (Debt Camel) says
ok that isn’t a problem for making an affordabiltiy complaint.
Johnny S says
Hi just for information. I submitted a complaint to LLOYDS for a credit card they gave me in 2021. I was rejected within 2 weeks. I send it straight to FOS, it’s been around 4 weeks and I’ve just received an email from the allocated adjudicator. Hopefully this is a sign that things are moving faster
Koko says
Hi Sara thanks for the site it’s really interesting to read other people’s journeys. I wanted to know if you had ever heard of an IVA being mis sold? Is this even a thing? I ask as because around 2010 I had an IVA but I really feel this was bad option. I didn’t have any assists to protect and would have been better going bankrupt or having DRO. I eventually managed to repay the IVA early as my partner gave me some money for a full and final settlement but I really feel the IVA company ill advised me.
Sara (Debt Camel) says
Lots of IVAs have been mis-sold but there is no clear route to get any compensation for this. As yours was so long ago there is little that I can suggest – the IVA firm may not even retail any records.
Rich says
Hi
Has anyone tried an affordable lending claim against a salary sacrifice scheme?
They take some money out of your wages every month to cover the monthly payment for the item.
There seems to be very little financial regulation, I’m currently waiting on a decision from HMRC whether they will pursue my old employer for not paying minimum wage because of it.
It was also part of a “breathing space” which they ignored and continued to dock wages.
Not one of them could tell me who was responsible to complain to as they just told me it was “policy”
Sara (Debt Camel) says
who was the lender? not your employer, the financial firm that gave you the loan?
was this the sort of loan where it is all paid back from your next months wages? or spread out over several months?
who set up the breathing space for you – this much have been a debt adviser?
Rich says
Hi,
It’s very ambiguous I can’t get a straight answer. My employer says the “salary sacrifice intermediary” they say my employer.
It’s an amount spread over a period of 24 months and when there’s a sale on 14 months. The amount you pay also depends on the relationship between your hourly rate and minimum wage. They can never make it so you are paid less than minimum wage, so as what happened last year the min increased but the wages didn’t and they pulled a figure out of thin air as to what I should pay, to keep them in line with HMRC.
The problem arises when you hand in your notice and they take the full balance from your last pay slip, which obviously means they have paid you less than min wage. Hence I am waiting for HMRC on that.
The system needs looking at because it takes no account of affordability only the difference between your hourly rate and minimum wage. Also it seems to be driven by policy and not by actually following any law, or one that I can find.
The breathing space was set up by step change
Sara (Debt Camel) says
so who is the salary sacrifice intermediary? and what was the interest rate?
James says
Hi Sara,
I have finally decided to make affordability claim against 118 they put my limit up by 1000 3 times in a year and will gambling issues etc I was just withdrawing it in cash but still making minimum repayment.
Quick question, do I need to make separate claims against the credit card and loan I have with them?
If I don’t win an affordability claim for the next 3 years all I will be doing is paying the interest until loans clear and I can pay more.
Sara (Debt Camel) says
I suggest you make a single claim.
DBUK says
Hi Sara – Do you know if Banks & Lenders get to see Complaints submitted to the ombudsman by notification or some type of register or portal, before the case has been assigned to an adjudicator.
The reason I ask is I had a lender reject my original complaint, but within 5 days of submitting my complaint to the ombudsman, made an offer to settle the complaint. This was before it got assigned to an adjudicator, and before there was any type of review into my complaint.
Sara (Debt Camel) says
lenders are asked to supply a copy of their case file to FOS – investigation doesn’t start until they have done this.
Was the offer a good one?
L Taylor says
A successful affordability complaint!
Barclaycard – £3771 refunded
Timeline – approx four weeks – and I called them more or less twice a week to follow up!
I submitted a complaint to Barclaycard using the template letter above, and also via the email address mentioned in this thread.
I wasn’t specific in my complain in regards to what I thought I was owed, just gave the skeleton facts. I was a student when they gave me the card in 2013 with a limit of around £2000 which was increased to £2900 at some point.
I actually closed the account in November – but just came them my last known card number, contact details etc so they could find the account and it’s history.
Now… I put in a claim for just last six years, plus interest. I got a call Tuesday stating the had investigated and found in my favour; I shouldn’t have been given the card I’m the first place and therefore they were refunding interest and geese dating back to 2013 when it was initially given… I didn’t question and accepted the £3771! I had estimated I might get around £2k based on six years, so feel that Barclaycard have treated the situation fairly and with grace and has helped me in a big way.
L Taylor says
I will note that I have banked with Barclays, and also received overdraft refunds as well (posted on other thread). And that I was in a tricky relationship with financial and other abuse for a number of years, which they were aware of. Not sure if all of this information also was taken into consideration.
Thanks so much for this site, it’s information has helped me out my life back on track!
Amber says
Great to hear!
Kim says
Does anyone know how FOS allocates complaints? Are credit card complaints picked up quicker than complaints overdrafts? Do certain things get prioritised? Or is it just a first coke first serve basis?
Carole says
Sara, how long after making an affordability claim would you be able to approach the same back and ask for a mortgage?
I’m in a much better place now but had complaints with a number of banks. Can I never approach them or would 12 months from the complaint be sufficient?
Sara (Debt Camel) says
Oh I would choose another lender. The largest lenders in order are:
Lloyds/Halifax Group
Nationwide BS
Santander
NatWest/RBS Group
Barclays
HSBC Bank
Virgin Money
Coventry BS
Yorkshire BS
TSB Bank
Skipton BS
Co-operative Bank
Leeds BS
But I always recommend going through a broker, not picking a bank at random and applying.
Sara says
Hi, I raised a complaint against moneyboat for unaffordable lending they came back and said they will offer me £1300 as a goodwill gesture without admitting liability which I accepted. I refered the complaint to ombudsman and the investigator said he can look in to it as I already accepted they offer. Can u advice please
Sara (Debt Camel) says
I assume that was a typo and the adjudicator has he can’t look at it.
Did MB ask you to accept their offer to settle the complaint?
Did they tell you that you had the right to take the complaint to the Ombudsman?
Did they say anything that sid You could still go to the Omif you accpeted the offer?
sara says
Yes they did give right to the ombudsman
They gave me the compensation without accepting liability which I stupidly accepted as I do still believe the loans were unaffordable
The investigator response
As you accepted the offer in full and final settlement of your complaint, we don’t usually investigate complaints when there’s already been an agreed settlement.
This means that I don’t think that we should look at your complaint further
Sara (Debt Camel) says
I am sorry but that is what accepting some ing in settlement of a complaint means.
Unless you feel Moneybarn mislead you by saying you could still go to FIS if you accepted, then FOS won’t look at this.
Kayleigh says
Hi
I have debts with numerous companies.
Very
X2 capital one cards
Virgin credit card
Fluid
Aqua
My husband has been put on ssp pending an operation.
I’m working silly hours to try and pay off as much of these debts as possible because the interest is high. Is there anything I can do? We only got our first house in Nov 21 and our introductory mortgage offer is up in November this year so I’m worried about anything affecting this.
Many thanks
Sara (Debt Camel) says
I’m sorry to hear about your husband – SSP is so low. Do you know when his op may be and will he hopefully be back to work soon afterwards?
can I ask who your mortgage is with? and whether you have any mortgage arrears or arrears on other prority bills eg council tax or energy bills?
the credit cards – have they increased your credit limits when you were onlt making minimum payments and when your credit record would have showed that you have a lot of other debt?
Kayleigh says
Thankyou for getting back to me. He is on a waiting list for an operation, could be years but his work won’t let him back until he has had the op and put him on ssp. With 4 children it’s not ideal! Our mortgage is with Dudley, it’s just going up. No arrears. We have no arrears for any council tax etc, we have just managed to scrape by so far with me doing 70 hour weeks but my over time is now dropping off so we are struggling. Very have upped my limit even though I’ve been paying a few pounds over the minimum. Capital one gave me a card when I was in debt on a previous card and aqua did the same with my fluid card. I don’t know what im hoping to gain but any information would be really appreciated.
Thankyou
Sara (Debt Camel) says
ok so first of all, making affordability complaints do not in general hurt your credit record. Aqua sometimes adds a “disputed” marker temporarily, but this is not included in Experian credit score calculations.
Aqua & Fluid are both Newday cards – so you make a single complaint to Newday abut both. For the first card argue they should not have increased the credit limit. If the first of the two cards had a large balance when you got the next one, say you should never have been given the second card at all.
Same argument with the 2 capital one cards – they should not have increased the limit on the first card and should never have given you a second one.
But these complaints take time and I think you should also talk to StepChange about a Debt Management Plan. 70 hours a week isn’t possible long term even if your hours aren’t being curtailed.
Read https://debtcamel.co.uk/new-mortgage-fixed-rate-poor-credit/. As that says most mortgage lenders will not even check your credit record if all you want is a new fix. You could phone Dudley up at the moment and ask about this?
You can still make affordability complaints in a debt management plan – they will really speed it up.
Kayleigh says
Thankyou so much!
How do i go about making a complaint to newday?
I’m all clueless to this. Good news is my husband is hopeful to get his op end of June but as it is his hands they will only do one at a time so could be a while.
Is there a process on their page I complain to?
Also very have increased my balance whilst paying the minimum, should I do the same with them?
Sorry for all the questions
Thankyou Kayleigh
Sara (Debt Camel) says
See https://debtcamel.co.uk/refunds-catalogue-credit-card/ which looks in detail at complaints about credit cards and catalogues like Very. Read the article to see if you think this sounds like you have a good complaint. There is a template letter in it that you can use.
Lisa says
Hi I’ve numerous debts which are being paid through stepchange they include marbles, barclaycard, aqua HSBC, capital one and fashion world. They all increased my limits when only paying minimum payments or just above. If I win affordability complaints does any money that’s owed go to paying the balance off.
Sara (Debt Camel) says
In general refunds are first used to reduce your balance, with any extra being paid in cash.
Marbles and Aqua are both Newday cards, so you can make a single complaint covering both of those. If one was given to you after you already had a high balance with the other, then you should eb asking for a full refund on all the charges for the second card.
Lisa says
Thankyou the marbles was given after the aqua.. I’m sure these were taken out 2014 onwards but defaulted in 2019 when I entered a dmp with stepchange.. Will it be a problem being so long back
Sara (Debt Camel) says
It makes it harder to show the credit was unaffordable unless you have bank statements going back a long way?
Lisa says
Thanks for replying I’ve checked my online banking and it only goes back to 2018 but I’ve checked and you can get them from 10 years ago if you put a request in to your bank.. But would the companies that I have credit with still have all my details aswell?
Sara (Debt Camel) says
Isn’t 10 years long enough? Get your complaint in now to Aqua and also ask your bank for statements as far back as possibsle.
Lisa says
Thankyou I will do it Friday while I’m off work.. I shall have to look through paperwork for acc numbers etc they’ve all been passed to Newdays debt collection now carbot I think.. Thanks for all the advice. This page is amazing
Johnny says
Anyone has any issues with FOS? I’ve logged a couple of complaints and not received reference numbers within 7 days. I called them on Friday and they had no knowledge of my last complaint even though i had an email saying ‘thank you for contacting us’ I have then had to spend an hour on the phone to get it logged properly.
Sara (Debt Camel) says
First time somebody has reported this, I will keep my eyes open for other reports. Did you complete their online form or send an email?
Johnny says
It was via their online form. I waited the 8 days before contacting them just in case things were slow but when i called the guy looked me up on their system and said there was no record of it. I’ve kept a record of when i log a complaint with FOS and when i get the reference number for my own records, other people may want to do the same to help make sure nothing gets lost in the system.
Sara (Debt Camel) says
That’s really unusual. Thanks for the info.
Chloe says
I haven’t had this but I have had the FOS log my complaint incorrectly. I complained to them after new day didn’t respond in 8 weeks, when I referred it to FOS they replied saying they contacted new day and they would now have 8 weeks to contact me. I’ve gone back to FOS to tell them they’ve logged it wrong but I haven’t heard back. It’s so frustrating for us already a slow process.
Laura says
Hello, looking for advice. My OH took out a car on PCP in 2018, through motorpoint with the finance being with Blackhorse. Then when covid hit there was a holiday payment break that was added on to the end of the PCP term, However to this day he still has the car ( taking up space on the drive not being used at all as we have my car) and have no contact in regards to collecting the car as they are blaming covid on how long it is taking. However OH has received a letter stating a payment is required to keep the car, OH doesn’t want to keep the car, and wishes to return. OH has also now revealed they were/are in the DMP and was when this car was taken out. DMP due to being stupid at his young age. OH has submitted to Blackhorse a subject access request several times along with an affordability claim and have heard nothing and over the last few months it’s starting to take its toll having this additional car in our driveway, taking up space with endless amount of calls to see when someone will be to collect this car. OH has had no response at all. Basically what is OH next steps as we are getting no reply from Blackhorse finance and this is taking its toll on our relationship this hanging over his head and on our drive.
Sara (Debt Camel) says
When did your OH tell BH to terminate the agreement or repossess the car? He hasn’t made a payment since 2020?
Has he had any acknowledgment from BH that they have his complaint?
Laura says
Payments stopped in October 2020, when the car was agreed to be returned but they stated they would be in touch when safe to do so due to covid, since then they have sent letters but when asked for subject requests they have sent nothing, they also stated that electronic signing wasn’t being accepted. OH sent the complaint 3 weeks ago by email again. OH has had no acknowledgment as yet. The car is not being used as I had my own car and bought another car when my finance finished. So it is laying redundant as knew it was being returned.
Sara (Debt Camel) says
I think he should phone up and ask why he has not had a response to his complaint.
Laura says
Thank you Sara. OH has received a letter stating they were looking into complaint and have now sent another letter stating they are not up holding the complaint. They have not sent any of details they hold even though stated with in the letter about subject access request. Should this now be sent to the finance ombudsman. Thank you in advancex
Sara (Debt Camel) says
I suggest he sends the complaint to the Ombudsman. And also replies to Black Hourse saying that he has not been sent the SAR information that he has requested.
Laura says
Thank you Sara, I will get him to do that, the letter also states it was a hire purchase but the paper work states in was a pcp.
Sara (Debt Camel) says
Legally the contract was a HP contract – PCP is just the name given to a HP contract with a balloon payment at the end.
Scott says
Hi, I had a claim with a 118 money loan upheld on the final day of the 8 weeks (14/2/2023). They said…
“As a result of the above, had you repaid the loan in full a refund of interest would have
been due; however, as you will be aware, the account was assigned to Lantern (debt
purchaser) who now own the account. 118 118 Money has assigned their rights under
the agreement to the purchaser so it is important to note that they are not acting on
behalf of us, but now own the debt.
We have now requested that the purchaser remove the interest of £2483.28 from the
account which means that the balance will reduce by £2483.28. This can take up to 60
days for the balance adjustment to be completed by the purchaser.”
It’s now been 84 days and I’ve heard absolutely nothing from either 118 or lantern and I’ve also sent emails again to 118 chasing them to which they say they’ll reply within 10 days and it’s been 3 weeks since the first chase email and still nothing. Where do I stand with this? :(
Sara (Debt Camel) says
I suggest you them your complaint goes to the Financial Ombudsman if this is not resolved in the next 2 weeks.
Scott says
Is it worth threatening them with this or will they not care?
Sara (Debt Camel) says
It’s not a threat, it’s just to put a time limit on when you need a reply by.
Scott says
I sent this into the FOS in may and all I’ve had from them is a case number about a week later and haven’t heard anything since. Is this normal?
118 contacted the purchaser and they removed the remaining debt of around £900 but with the original email from 118 that would mean I’m surely still owed the rest of £1500+
Sara (Debt Camel) says
Have you told 118 this?
I suggest you phone FOS and ask what is happening.
Sundeep says
Hi Sara,
I held 3 cards with Barclaycard between 2003 to 2019, I could not afford the minimum payments and went into a DMP from August 2019 to June 2021 which resulted in a default on my credit file. The debt has been settled. I did not know about affordability complaints until I came across this website. I raised an affordability complaint with Barclaycard on 28 March 2023 and they have responded via post about 3 times and on each occasion have extended the deadline every 2 weeks stating that they are still not in a position to share their findings of the investigation. The last correspondence was dated 2 May and I received it yesterday. They have mentioned they will be in touch again by 22 May 2023 but have also included the FOS Leaflet. Shall I wait till I get a final answer from them or shall i contact the FOS. Thanks in advance.
Sara (Debt Camel) says
I don’t think it has been quite 8 weeks? I would give them until 22 May
PS this doesn’t mean you case is unusually difficult – they just haven’t looked at it yet!
Danii says
Hi,
I had a lot of credit pre 2015 that I cleared using PPI refunds. The usual credit cards and catalogue. The catalogue particularly used to raise my limit without requesting.
I kept up with repayments. Just about. I no longer have access to any paperwork/account numbers or bank statements from the time period.
As these are all over 6 years old and I don’t have any relevant paperwork how can I start a claim? Should I make some kind of SARS to the companies involved?
Thanks
Sara (Debt Camel) says
How long ago were the accounts cleared?
Danii says
I repaid most of them in 2015 when I got PPI refunds. Before that I was paying minimum and getting late charges. The 2 main accounts were probably shop direct and Barclycard.
Sara (Debt Camel) says
I think you may struggle with these complaints. The accounts were closed so long ago that the lenders may have little or no information about them and you don’t have old statements.
You can try a subject access request to see what they do know.
Ellie says
Hello
Please help. I have a affordability complaint with moneybarn who told me to go to ombudsman as they are yet to fully investigate(it’s been 56 days), money barn gave me a finance whilst I was on universal credit and unemployed , already had a ccj and 5 defaults and credit score was horrific. The payments was 340 pounds a month. Moneybarn asked me for no information I didn’t even speak to them or provide anything like income payslips bank statements so I think they had a dodgy relationship with dealership. The only thing they know is that I had 1400 coming in (universal credit) looking on agreements they have got expenditures I did not provide so I believe they will play with numbers so the loan looks affordable. Do I still have a case I already made a case with ombudsman but still not heard anything. Don’t want to get my hopes up but surely this can’t be right? Any thoughts I was given a 340 quid loan on benifits s
Sara (Debt Camel) says
how long ago was the start of the car finance? What happened to it?
Ellie says
Started January 2020. Still have car, had a payment holiday after about a month of taking it out. Still have around 6800 to pay off. Loan was 10000 with interest 21000 to pay back. Made it priority to pay since I needed it and didn’t want to get in to more debt. So far no missed payments. Iv had to borrow money and go without
Sara (Debt Camel) says
so you have paid MB so far more than the £10,000 you borrowed? In that case if you win the complaint, you will be able to keep the car, have the balance cleared and get a refund of the interest paid so far.
MB should have thought hard about whether someone on UC with such a poor credit record could really afford that. And should have checked your expenses to be sure. It’s unusual for them not to ask to see anything like payslips or bank statements.
How long has your complaint been at the ombudsman? How long ago did you complain to MB?
Ellie says
Yes that’s correct so far i have paid around 13500. Mb Asked for absolutely nothing nor did they speak with me directly all done through salesman, just sent over forms for me to sign. After rent I think my income would have been around £650 including child benefit, I was unemployed for years prior . I only sent over to fos a few days ago. Was hopeful untill I saw the reviews on fos, just wanted to check if I have a case to stand on as I really don’t want to be disappointed in the end.
Sara (Debt Camel) says
From what you have said it sounds a good case to me. You have to keep making the monthly payments while the FOS case goes through which can be slow. Let me know what happens!
Ellie says
Hello
So fos uphold my complaint I’m really pleased. I have another question. I paid this £1500 to Dealership. So it took the price of the car to £10090 and that’s the money i borrowed from money barn. As I paid this to Dani motors and not moneybarn. If they have to refund anything above the car amount of £11590 and Dani motors have the £1500 this would mean I paid £13,090 for the car instead of £11590
Sara (Debt Camel) says
Have Moneybarn accepted this decision?
Ellie says
They have until the 7th of September to respond. They have not responded yet. I only just got the email from investigator. I sent the same question to investigator and she hasn’t replied
Sara (Debt Camel) says
ok well see what the investigator says. That needs to be clarified before you accept this decision.
Ellie says
Just want to say a big thank you. Before coming across this site I had no idea about affordability complaints. I received over £4100 refund, and car transferred over to me. Thank you!!! Saved me over £11000 interest
Lynne says
I have a bit of a strange story fair finance turned me down for a loan quite some time ago. They contacted me today to say they were prepared to give me a £100 ‘grant’. When I rang them to ask what this is about they said anyone declined were being offered £100 which is not repayable and to help with cost of living. I figured it was all a con but tonight the money was there!
Sara (Debt Camel) says
weird…
RJG says
Hi Sara
Ombudsman assessor decided for my complaint however Clydesdale bank challenged it and the actual ombudsman has not upheld my complaint on the grounds that in my credit report the other account markers did not show the missed/late payments (which I had sent over in the complaint)
Is it worth me challenging the ombudsman provisional decision and if so what do I need to do this – such as evidence etc
Sara (Debt Camel) says
“in my credit report the other account markers did not show the missed/late payments”
is that correct?
what credit report did you provide and do you know what credit reference data Clydesdale checked?
RJG says
Correct
I provided my Experian credit report, I sent a subject access request asking for this information however the SAR was not responded to with the information requested.
Sara (Debt Camel) says
Have you also looked at your Equifax and TransUnion reports? You can get free ones using ClearScore and Credit Karma.
Rjg says
I have now checked and they hadn’t been reported.
Sara (Debt Camel) says
So it is possible that Clydesdale didn’t see the missed payments.
Was this a loan you were applying for? How large?
Would your credit records have shown your level of debts increasing? Were you using an overdraft a lot?
RJG says
It would have shown debt levels increasing.
The total unsecured debt at the time of the application was £16k, I declared my income correctly at the time which was £42k per annum.
The initial investigator found they should have done more checks based on the high debt level however Clydesdale appealed and the ombudsman said because I didn’t have any markers for late or missed payments then this is fine.
I do find it strange as I’ve won near identical claims against Santander, Vanquis, and New Day as all of the credit was accumulated in the same 2 year window all would have had the same credit file with no missed payments.
Sara (Debt Camel) says
It may depend how rapidly your debts had increased. Going from 2k to 16k over a period of a few months is a lot, going from 12k to 16k over a period of a year isn’t.
I suggest you set out clearly when and by how much your debt had increased over the last year and send that to the Ombudsman and ask for it to be reconsidered.
RJG says
Thanks
I looked at the available statements and sent increased from under £2k to over £18k in the 12 months prior – my overall debt showed as £16k when virgin carried out their report according the ombudsman.
I have asked them to review it.
RJG says
I have drafted the below to respond, would you kindly have a look and let me know if you think I have a point, I have sumarised the points for you below:
Lending increased at a significant amount, of which Virgin Money would have seen in the credit Report
they obtained
o +£14000 in 12 months
o Average increase of £1444 for the last 6 months before credit opened
o 2 x Credit limit increases £1600 5 months prior to VM
o 1 x new credit card £6000 limit 3 months prior to VM
Credit Utilization would have been visible to Virgin Money on their credit checks
o Total lending dropped only twice in 12 months (due to no available credit left)
o Averaged 92% utilisation from July 2018 to April 2019 even with increased limit by more than
£8000
o Exceeded limit on cards, they would have been able to see that I exceeded the limit on my
credit card 9 times in 12 months based
Sara (Debt Camel) says
I think this is well worth a try,
Rebecca says
Hi Sara I came across your account and really hope you can advise.
I took a loan out to help with student costs from Future Finance around 5 years ago the interest is obviously crazy so I have still been paying it off as I only graduated a couple of years ago. In September last year I had a baby so asked to go on a payment plan which they were happy with.
In December the company closed and everything got moved to asset link capital. I spoke to them and tbh were a complete nightmare to get a repayment plan. Finally they agreed and I was on a plan until last month which they agreed to extend until august when I return to work. I spoke to them at the start of May on the phone to agree this, fast forward a few weeks and they have closed my account and put a default on my credit file. I never received any correspondence to say this would happen or a default notice to be given the chance to correct this. I have also sent 5 emails since last week and not had a response to any of them.
I was planning on contacting them saying about this interest and that I will be going to the financial ombudsman but worried I won’t get any reply. My biggest fear right now is that they aren’t responding and I have debt collectors come to my home.
Thanks
Sara (Debt Camel) says
I am very pleased to hear Future Finance is in liquidation – nightmare business model, lending at absurdly high interest rates.
What is the rest of your current financial situation like?
How large is the current FF debt?
Rebecca says
Hi Sara, sorry I’ve not just noticed your reply! So I’m currently a stay at home mum now due to nursery costs etc.
I managed to speak to Asset Link Capital who have taken over the Debt from FF and they have corrected the default and said it was a mistake which is great. I currently have £14000 remaining in which the debt was only £16000 to start with. I feel im getting nowhere due to the interest being ridiculous. Im paying back at a reduced plan of £150 per month but the interest is something in the region of £350.
How do I go about claiming a refund? I feel stupid even taking the loan out but had to pay for my tuition and living costs somehow.
Thank you
Sara (Debt Camel) says
Is the 150 a month affordable?
You can apply to the administrators for a refund but often there is very little money to pay these. It is still worth doing though.
Can I ask if you are buying or renting?
Rebecca says
At the moment yes and no because I’m not working I’m living off savings.
Great, even if the interest can be frozen it really helps! Would I still use the same template?
We own our house, the mortgage is under my husbands name only.
Thank you
Sara (Debt Camel) says
How much do you have in savings?
TeaAndToast says
I have a case where the ombudsman miscalculated my month to month credit commitments. They also never considered I had a dependant. I wrote back but got a reply stating the outcome is final. Anything I can say to progress this?
Sara (Debt Camel) says
This is a Final Decision from an Ombudsman? was it the same as the adjudicator’s decision?
Leanne says
Hello! I recently made a successful claim with JD Williams where they agreed that their credit checks had failed and I was refunded the amount of credit I shouldn’t have had, plus 8% interest. They didn’t ask me to accept the offer and I’m wondering if I should just draw a line under it and not take it further with the FOS or consider a complaint so that distress and inconvenience are considered as part of the complaint? The reason I ask is that I was treat horribly by the company and it had a severe affect on my mental health. Thanks in advance
Sara (Debt Camel) says
Was the is full refund of all interest and charges from a specific point?
Or a partial refund of the amount charged over a limit they say was affordable?
Leanne says
Thanks for getting back to me! It was a partial refund over a limit they say was affordable
Sara (Debt Camel) says
Ok so the point they gave the refund from – was that the point you really got into difficulty or do you think the previous increase was also unaffordable?
And at that point do you think they should have seen your situation was very bad? If so, then they should be refunding ALL interest from that point, not just over the previous limit.
I think those are two very good reasons to go to the Ombudsman. If you want to ask for compensation for the way you have been treated ask for that as well, but it can be harder to win that than the affordability bits. I’m not saying it isn’t possible.
Sara says
Good evening sara I made a irresponsible and unafordable lending complaint against 118 money on both a loan and credit card taken out with , they have upheld both complaints reducing the balances by the interest charged on them .However I still have balances on both these accounts.
I ask you for help regarding a couple of queries one being are the credit agreements still lawfully ongoing as they state that We feel it is important to note that although the interest has been removed from the accounts, this does not take away from our rights to escalate the accounts for further action in future should we feel that it is appropriate to do so.They are also still sending out monthly statements for the credit card account with there stated minimum payments to be made, should they still be operating the accounts in this way or should they be asking me to make offer of payments on the accounts I would of thought this to be the case if the original agreements were not legally enforceable.
Many thanks.
Sara (Debt Camel) says
Winning an affordability complaint does not make the debt unenforceable. Have you offered an affordable repayment to each? Don’t assume this won’t be accepted.
Sara says
No just paying what they ask for I presume they are holding me to the agreements I signed , I Know I still owe they balances but are these agreements still lawful as they have stated they were in the wrong.
Sara (Debt Camel) says
Don’t presume. They should agree to accept a lower payment – talk to National Debtline on 0808 808 4000 if you are unsure what to offer.
AG says
Hi Sara,
I have taken advice from your website re affordability claims. However, I have received a response from more than one of my providers that I have used in the past to advise that it is outwith a timescale of six years and will not be progressing – this is for both a credit card and overdraft – do you know if I can progress with this?
By the response given, it appears they haven’t even looked at it and have made their decision on the timeframe alone.
I was unaware that I was able to make affordability complaints until such times as I came across your website.
Thanks,
A
Sara (Debt Camel) says
Yes you can. The Ombudsman can choose to look at older cases if you have complained within 3 years of finding out you had a cause to complain.
So the point to make to the Ombudsman is that before you knew you were in difficulty with the card or overdraft, but at that point you thinght it was your responsibility for borrowing the money – you were Unaware the lender should have made affordability checks and so did not realise that they were partly responsible for your problems c
Chloe says
For anyone reading for the first time and still deciding whether to I make a complaint or not this is my journey.
I found this website at the start of 2023, I followed the advice and used the templates.
Initial refunds from
Lloyds Overdraft 1200 received
Santander overdraft 3100 received
Capital one credit card 700 received
Barclays credit 600 received
All received within 8 weeks.
There were some who rejected stating the account was over 6 years and as such they wouldn’t look into it.
I amended the template to fit and sent them off to the FOS. Probably took an hour tops.
4 complaints of which the companies have said we’re out of time, the FOS have stated they can look at.
The others still await allocation.
This has been one of the best things I’ve ever done. It’s been slow but almost a constant trickle of success.
Good luck.
Rosie says
Hi, I would like the make a complaint to NatWest, I think I have a reasonable case, been in my overdraft since 2003, only coming out of it for short periods of time, at some point between 2003-2007 they increased it significantly from roughly £1000-£3250! I don’t recall requesting this increase, and at the time only earned £1300 per month…. I have written my letter, but I’m now stuck re where to send it- via email? Or the online chat facility on the app.. I don’t know if that is a person or a bot. Would you mind sending me the best email to send my complaint.
Sara (Debt Camel) says
See the main page on overdrafts https://debtcamel.co.uk/get-refund-overdraft/ which has a link to a page with bank emails.
Rich says
Hello Sara, just wondering… is there a difference in terms of experience between an adjudicator and an investigator at the FOS? I’ve noticed that some sign off their emails different. I wondered if this was an experience thing?
Sara (Debt Camel) says
I don’t know
L Taylor says
I want to post a summary of my journey to being debt free, without this website I would not have happened this quickly.
Last summer I was at breaking point, and in September 2022 I had 32k debt (overdrafts, credit cards, car finance). I moved in with a family member for six months, sold my car and other things and also thankfully found this website.
I put in affordability complaints
Barclays ODs – (5000 + 3400) – received 8400 for six years of charges.
Barclaycard – (limit 2900) – received 3771 back for interest and charges.
Lendable – (9000 loan and 3300 loan) – received back 5050 of “overpayment” eg interest.
Barclays and Barclaycard were dealt with directly and resolved within about 4 weeks of putting in the complaints.
Lendable I had to take to the FOS and it took the full four months to resolve. But be patient.
Totally I have had 17k in refunds. Everything else i then paid by selling and sacrificing, but so worth it!
As of today I am finally debt free and I can not thank Sara enough for this website.
I’m now using savings apps such as Plum and also tracking my spending categories with Emma.
This is really changed my life, after not being able to see a way out this time last year!
Sara (Debt Camel) says
What a turn around!
Emma says
Hi Sara,
I followed your instructions and received a fantastic 5k refund from 118 loans. Thank you!
I also complained to my bank provider as at the same time, I had a loan with them. They rejected the complaint and the FOS did not uphold it. I decided to send it to the Ombudsman because surely as my bank provider they could see I had other loans, catalogues and payday loans?
Is it worth explaining to them that at the time I was going through the breakup of a 30 year relationship? As I do feel I was in a vulnerable position and was shocked when they approved the loan to be honest
I’m not sure how the 118 loan can be irresponsible but the one from my bank was fine?
Thanks,
Emmy
Sara (Debt Camel) says
How large was this loan?
Has the adjudicator rejected the complain because they think the loan was affordable?
Emma says
Sorry Sara, I’ve given the wrong info. I’ve just been through my finances and at the time of the loan, I did not yet have the 118 loan but I was getting multiple pay day loans each month. The Halifax loan was for £4,000.
FOS said that given the term of the loan and the amounts I had to repay, they don’t think it would’ve been proportionate for Halifax to ask me for the amount of information needed to show the lending was unsustainable. I thought they may see that me getting hundreds of pounds worth of pay day loans each month would help my case but apparently not
Sara (Debt Camel) says
How large was the bank loan? Was it for consolidation?
Emma says
Yes it was and it was for £4,000. Looking back it was very stupid as it didn’t clear all my debts so 2 years into the loan, I got another one with 118 and was paying 2 loans, catalogues and pay day loans
Sara (Debt Camel) says
I suggest you go back to your adjudicator and argue that you bank did not need to ask you for information as it already had access to your bank statements which showed a large number of recent payday loans and other debts. The bank ignored this information that it already had by offering you the Loan. Reliance on payday loans suggests you were in a financial mess and it was irresponsible to give you more money without being sure it was affordable. It wasnt enough to clear all your debts so it just became part of your debt problem.
Ask for this to go to an Ombudsman the adjudicator doesn’t change their mind.
Emma says
Thank you very much, I’ll do that now
Ejis says
Hi Sara,
Thank you very much for your support on this site! If anyone is contemplating on complaining I would advise you give it a go!
I came across your site randomly while browsing how to get help with overdraft and credit card debts with Lloyds bank. I made 2 affordability complaints and they were both upheld by Lloyds.
For the OD , they only went back to the 6 year threshold which they say is November 2017 (when I applied for an increase from £1000 to £3250). They have only refunded the fees from Nov 2017 to April 2021 – £3.813.95 in charges and £1,344.40 (8% interest, which was taxed to £1,075.52)
They said they sent letters asking me to contact them with regards to OD usage and how they could support me with repayments and they didn’t find any records of me contacting them until March 2023 (I did contact them on phone and through the app but all they did was 30-day interest freeze and another time they said they couldn’t offer any further support and advised to close the account and repay it gradually)
Ejis says
{Continued}
For the CC, I opened the card in July 2006 so they have said they wouldn’t look at the opening of the card. They have only reviewed the limit increase of Dec 2017 from £5,500 to £6,500. They have agreed to refund the interest charged from Jan 2018 – which came to £5,008.83 but they have not included the 8% interest as they say they will not pay interest because it isn’t a cash refund. I still owe approx £884 on the card after the deduction so they have agreed to an interest freeze until that is paid off and then the card will be closed.
I struggled a lot with this particular CC – they were times I repaid it using consolidation loans and Lloyds would automatically increase the limit and I would be back into the borrowing cycle once again.
I am wondering if there’s any thing else I could do with regards to both cases. Thanks
Sara (Debt Camel) says
I am sorry, I didn’t see your comments.
the overdraft – you can send this to the Ombudsman and say you would like the refund to continue after April 21. point out that you did contact them but they onlt offered a 30 day freeze, and said they couldn’t offer anything else. So you were unaware that they should have been able to offer more help.
The credit card – I am afraid it is normal to not pay 8% interest unless the balance has been cleared by the refund. Still a nice refund though!
Sam says
Hi Sara,
Had a bit of a result with Moneyboat. They have partially upheld my complaint and have agreed to close the loan and even give a £35 refund. They also said they will remove any adverse marks on my credit which includes setting aside the CCJ. I am over the moon with this as the removal of the CCJ does more to help me than the money. Can I just ask, do I need to do anything to get the CCJ set aside or will Moneyboat take care of it?
Sara (Debt Camel) says
So they have said in writing that they will set aside the CCJ?
Sam says
They put this in an email after I asked them to confirm they would have it set aside.
Yes we would look to remove any adverse marks and that would include asking for the CCJ to be set aside.
What do you think?
Sara (Debt Camel) says
If you are happy, reply that you are accepting their offer on condition the CCJ is set aside and that if it is not you will go to the Financial Ombudsman. Maonyboat should deal with the set aside. Check up every month how this is going.