Have you had a credit card, store card or catalogue where your credit limit was too high? So high that the monthly repayments were hard to manage and you got into more debt?
Many people were originally given an OK limit, but the lender kept increasing it.
You may have a good affordability complaint that the lender was irresponsible in allowing you to borrow so much. This applies even if you made every payment on time, as you may have borrowed more elsewhere.
This article explains how to ask for a refund of the interest you have paid.
Contents
What is “affordable”?
The regulator’s rules
Even if you made every payment on time, the debt may still have been unaffordable.
The following is my summary of the regulator’s rules:
- a lender must check if credit is affordable when you apply for it. For a very low limit, not many checks are needed;
- a lender should make checks before increasing a credit limit;
- credit isn’t affordable if paying it leaves you short of money for your bills, normal expenses, and your other debts;
- if you have to borrow more most months, this would not be affordable;
- you must be able to repay the limit set within a reasonable period. Paying the minimum amount is OK for a while, but not for a long time.
Good reasons to complain
If the lender could see any of these on your credit record, they should probably have declined your original application:
- a level of borrowing that looks too high in relation to your income; or
- you had a different credit card with the same lender where you were only making minimum payments; or
- other credit cards where you were near your limit and persistent overdraft usage. Here is an Ombudsman decision saying Zopa should not have given quite a low initial limit in this situation; or
- recent credit record problems: defaults, missed payments, or arrangements to pay, mortgage arrears; or
- recent payday loans or a lot of recent credit applications.
Your credit limit should not have been increased unless you could afford it. In addition to the points above, any of the following should have also warned the lender you were already in difficulty:
- making minimum payments for a long while;
- making a minimum repayment but then using the card to pay for food or petrol so the balance never drops;
- using most of your limit for a long period;
- significant gambling the lender was aware of;
- recent missed payments or an arrangement to pay on your credit record;
- your overall level of debt on your credit record has increased a lot.
NB many cases are won when someone has never missed a payment.
You don’t need to know the dates and amounts of any limit increases before you start your complaint – my template asks for these.
0% balance transfers
Here the lender should check that you would be able to repay the whole limit within a manageable length of time (say 5 or 6 years) taking into account the interest that will be charged when the 0% term ends.
So if you were ok during the 0% term but then you couldn’t afford the payments when interest started being added, you can complain. Ask for any interest to be refunded and to be able to repay the rest with no interest.
Do I need to know the limit and date details?
No. My template below asks for these. The lender already knows the details it doesn’t help your complaint by listing them. So don’t delay trying to find them out first.
How to complain
The email address to use
The best way to complain is by email.
I have a list of EMAIL ADDRESSES to use here:
Credit card and catalogue email addresses
Start with this template
I’ve invented this example so you can see how a complaint could read.
Change/delete the bits in italics to tell your story. Miss out dates if you don’t know them, this isn’t a problem
I want to complain about irresponsible lending for my Barclaycard account number 987654/444.
My date of birth is dd/mm/yy. The email address I used for this account was myaddress@whatever.com.
Put this in if you think the lender may have an old address for you
I have moved and my home address is now xxxxxxxxxxxxxxxxxxx. Please do not send any letters to any older addresses on your system.
Then say they should never have given you the account:
You should never have allowed me to open an account with such a large credit limit.
On my income with my regular household expenses and other debts I could not manage to repay that amount in a reasonable time.
[if you had already missed payments] When I applied, you should have checked my credit record and would have seen I had recent missed payments to a credit card and a default only five months before on a loan.
[If this started as a 0% transfer: You should have seen that I would not be able to clear the balance in a manageable length of time, and that after the 0% period ended, I would struggle to pay the higher minimums once interest was being added.]
AND/OR say that they should not have increased your credit limit:
You should never have increased my credit limit [in 2022] At that time I had only made minimum payments on this credit card for a long while and/or I was using a very high level of my credit limit.
If you had properly checked my credit record before increasing my limit, you would have seen that in the two years since my account with you was opened, I had got additional late payment markers and defaults and/or taken out a lot of other credit. This should have warned you I was struggling with my finances and it was not responsible to lend more. By increasing my credit limit you made my financial position worse. Instead you should have offered me forbearance by freezing the interest on the card.
I do not know the exact months of these credit limit increases. In your reply to this complaint, please tell me the dates and amounts of all limit increases, even if these happened over 6 years ago.
If the lender should have known you had problems with your account, mention these
You should also have realised that I was having difficulty because:
of the late payment charges you added to my account
I had missed two payments to you the year before in 2017
I had already asked you on the phone if it was possible to stop adding interest for a while.
End with asking for a refund:
I would like you to refund me all the interest I paid and any late payment charges from the point the account was opened
OR
I would like you to refund me all the interest I paid and any late payment charges after you increased my credit limit in 2021.
OR
I would like you to refund all the interest I have paid since the 0% period ended and allow me to clear the balance without adding interest.
I would also like any late payment and default markers to be removed from credit records after this point.
Think about these points before complaining
Timing
These complaints can be made if your account is still open, or if it is closed and settled, or if it is with a debt collector (NB the complaint goes to the original lender, not the debt collector.)
If you have had an IVA or bankruptcy after these problems, or if you are still in a DRO, then ask in the comments below, as this can be complicated.
Old accounts
The Financial Ombudsman (FOS) can only go back to April 2007, when the law changed to allow these complaints.
Many lenders reject complaints about something that was more than six years ago and say the ombudsman won’t look at them. FOS will often look at these “old” accounts if they have still been open within the last six years, but you may have problems producing bank statements or other evidence from over 6 years to show that a limit was unaffordable.
If your account was opened in 2015 but the lender increased your limit in the last six years, then those limit increases can definitely be looked at. And you can always get bank statements going back six years even from closed bank accounts.
A alternative for old defaulted accounts?
If your account was opened a long while ago, you defaulted and still owe a balance, perhaps in a DMP, think about asking the debt collector to produce the Consumer Credit Act agreement for the account.
If the current creditor can’t produce a proper copy of the agreement, the debt cannot be enforced in court and you can simply stop paying anything to it. This applies to all credit cards, store cards and catalogues.
It may be that the balance on the account is larger than any refund you might get. In which case if the CCA agreement cannot be produced, you would be better off.
Is a refund what you really need?
This depends how large your current financial problems are.
Complaining about newish debt will often only get the interest removed – you still have to repay what you borrowed. Don’t spend months arguing with lenders and going to the ombudsman if you will still be in a mess even if you win.
So phone National Debtline on 0808 808 4000, tell them you are thinking about affordability complaints but you would like to know what your other debt options are.
Poor reasons to complain
You can’t complain just because the interest rate was high or because you have paid them a fortune over the years.
You won’t win an affordability complaint if something unexpected went wrong later in your life. If you had been managing a credit card fine for years but then you lost your job or separated from your partner, this isn’t the lender’s fault. Here you may still need help to get interest stopped on the cards – talk to StepChange or National Debtline.
Don’t be put off by a rejection or a poor offer
Lenders often reject good cases
If a lender rejects your complaint or offers a low “goodwill” gesture, don’t be fobbed off – they want you to give up.
Here are some bad or irrelevant comments lenders sometimes make when rejecting a complaint:
- you made the payments to them on time – that doesn’t mean you could manage a higher limit;
- the account was opened over 6 years ago – if it was still open in the last 6 years the Ombudsman may look at it;
- you accepted the limit increase – that doesn’t make a difference, it increase should not have been offered it if it was unaffordable.
You know if this card or catalogue has caused you difficulty – it’s easy to send a case to the independent ombudsman. Don’t delay doing this!
How to send a case to FOS
Send FOS a complaint using their online form. You can use bits of what you put in your complaint to the lender. If the lender has rejected your complaint or given a poor offer, say why you think this wrong.
The FOS form at the end asks you to add supporting documents. Don’t bother to send A copy of your credit or finance agreement – the lender will supply that if FOS asks for it.
Send FOS a copy of your credit report, they always want to see it. If you have any old credit reports, send the oldest one you have, otherwise send the current one. You can download a statutory TransUnion report for free.
Also get your bank statements if they will support your complaint and send those to FOS too. Do not wait to be asked by FOS for these. Ideally you want them 3 months before and three months after the account was opened and before /after any limit increase
FOS is a friendly service but not fast. Just use normal English, not legal terms. Using a claims company or a solicitor doesn’t help or speed this up.
Ask questions below!
There are hundreds of comments from readers who are using this template. It’s a good place to see how these complaints often go and to ask any questions.
FAQs about Affordability claims
Can you get an overdraft refund?
Could a Debt Relief Order help you?
Nikki says
Sara, just wanted to say a huge THANK YOU for doing such amazing work! AMEX just agreed to refund me £8,433 in interest after increasing my credit card limit without checking my income. I blamed myself for my debt and wasn’t going to apply for a refund until I read the article and realised I had a solid case. It didn’t even go to the ombudsman. Can’t even tell you the relief I feel having received this update. You’re doing incredible work and are literally changing lives. Thank you
N says
Hi,
Could I ask what email address you used for Amex pls? I’m trying to submit a complaint but the email address listed on the other page generates an out of office with no return date and a name of who to contact but not their email address…
Thanks
Mr Jason says
Hi, I’ve been living to the limit of my credit card with capital one and every time they increase I live to that limit. I’ve never missed a payment but they are nearly always minimum and I’m always ending each month short because of my credit agreements.
They have just asked for bank statements over when they increased my limits and I’m worried they will say it was affordable because I could make payments. Is it worth pursuing?
Sara (Debt Camel) says
yes, making minimum payments almoist all the time will take 15, 20 or more years to clear a card. A lender like Cap One should check that you could afforda to repay a limit in a manageable period of time.
do you have a list of the credit limit increases?
Jason says
If they look at my bank statements and decide it was affordable will that likely cause me issues?
I do overspend but the limit increases could be considered in budget if I didn’t overspend the way I have.
Unfortunately I only have the dates of the increases not the amounts
Sara (Debt Camel) says
well send the bank statements and see what the Cap One response is.
Also look at cutting back on the overdspending! If you cant get through the month without using credit cards, then talk to Stepchange about a DMP to get interest stopped.
N says
Hi Sara,
I complained to Santander about irresponsible lending and lack of forbearance. In my original complaint I said they should have frozen interest.
Santander rejected it. The FOS investigator originally sided with them and it was put in the Que for obdusman, but now another case handler has told him to look again because the forbearance point hadn’t been addressed adequately.
Now it’s back with the same investigator, and he’s saying Santander claim forbearance wasn’t part of my complaint even though my wording and later emails clearly show it was. He’s given them until 10 Oct to respond.
The affordability part has already been referred to an Ombudsman – so my concern is, can FOS really just remove the forbearance element now, when it was clearly raised and when Santander had a regulatory duty to consider it anyway?
Sara (Debt Camel) says
Well lets see how this goes.
It does get confusing when different complaints are combined into one.
Pamela says
Hi
If my case has been upheld by ObM how long until my interest is refunded ?
Sara (Debt Camel) says
Is this a final decision by an Ombudsman?
Or an initial decision from an investigator?
PMela says
Your complaint about Capital One (Europe) plc
I wrote to Capital One today to explain what I think about your complaint – and I attach a copy of what I’ve said.
As you’ll see, I’ve given Capital One time to think about what I’ve said and reply to me. They have until 10 October 2025 to do this.
Capital One might come back with new information that changes things. If that happens, I’ll let you know.
This is what it says
Pam says
So long story short, capital one now is questioning Ombudsman and asking for more evidence. They saying they have suspicions I had another account where I was sending money, I’m like what?? I literally provided everything back to Ombudsman and waiting for new updates. Unsure what they trying to do but it’s such a faf from their side
Sara (Debt Camel) says
well any transfers would show up on the bank statements, wouldnt they…
TM says
I recently submitted 2 affordability complaints, one with Barclays and the other with Capital one. Barclays got back to me to deny the claim and I am going to send it to the financial ombudsman. However today, capital one got in contact with me and have agreed to refund fees mounting to £985. This has been subtracted from my balance and they have also decreased my credit limit to the new figure. Which I am happy with as it means I will not be spending in that card again. Nearly £1000 back just by following all the information on this page. I’m truly greatful and thankful as without this information and guidance, I would never of been able to get these fees back. It’s definitely worth a try. Highly recommend 😊
AQ says
Hello,
I am intending to make irresponsible lending complaint against Jaja. I still have balance of nearly 3k. I was wondering can I register this complaint without clearing this balance in full and if I do this will this affect my credit score in a negative way ? Will I be able to make regulars payments the way I am right now. I understand they will stop my access to this credit as soon as I make this compliant. I’m just worried I don’t want them to record mis-payments or default. Thank you
Sara (Debt Camel) says
you can complain now and still make the normal payments, if you do they cant register a default or missed payments. Some lenders will close the account but many don’t.
Lauren Perry says
I made a complaint to aqua, they’ve declined the complaint but closed my card with no notice, I have a £6k balance on there and when I spoke to them they have said it’s because I made a complaint, I’m confused they rejected my complaint but have closed my account, should I complain to FOS? And is this negatively going to impact my credit score having a closed account that has such a large balance on it?
Sara (Debt Camel) says
You can carry on making payments to a closed account as normal.
Send this to the ombudsman if you feel it was unaffordable
Hannah says
Hi
I have been in contact with Newday to get copies of my statements as my accounts are now closed, this was requested over a month ago and still not received anything, I have contacted them again today and they have said they will raise this to see if it can be sent. How long should they take to send this out? I did it with capital one and had the information within 5 days.
Sara (Debt Camel) says
why do you want these statements?
Hannah says
It was to view when I had credit increases and how often I was near to my credit limit, am I able to proceed asking for an interest refund without this information? My accounts are all closed so cannot access any information
Sara (Debt Camel) says
You don’t need those. My template in the artyicle above asks for some of them and you can change that to ask for anything else you want
Charlotte P says
If escalating to the FOS do you always need the statements? Complaint re: Next My main bank account at the time is now closed. Thanks
Sara (Debt Camel) says
How long ago were the increases? You can usually get bank statements going back at leat 6 years even from a closed bank account
Becky says
So glad I came across this site. Over the last couple of years I’d really gotten myself into a pickle and have been desperately trying to clear my debt. So far I’ve had success with Capital One refunding me all interest and Halifax have now cleared the remaining £2,000 of my balance PLUS a £1,500 cheque refund in the post.
Currently going through the motions with the financial ombudsman who agrees with my case for Fluid (NewDay) and NatWest. I understand these companies can be a bit trickier!
Thank you so much for all of the advice and tools on this page, my mind feels so much clearer and has lifted the biggest weight off my shoulders.
Becky says
Just to add today, NewDay have now agreed with the decision from the Investigator at the FOS and being refunded £3.5k!
Ann says
This is amazing!
I’m curious, how long did it take to respond to your complaint? And did they keep your credit cards open or were these closed as a result?
Becky says
I would say the companies took around a month to respond, and then you can probably look to add another month or two from the point of escalating to the FOS to get another response.
Yes, all cards were automatically closed where they have agreed they were given irresponsibly, which is fine as I don’t want to get stuck in the cycle of using them again!
Lucy says
Hi Sara
I can’t thank you enough for this template the FOS upheld my complaint with New day and I got £4k refunded. MBNA have replied to me today and refunded £500. Virgin have declined my complaint so this is now with the FOS. I had a closed account with NatWest so have contacted them today. You have changed my life! Thank you!
Sara (Debt Camel) says
And a message I have just been sent by GD:
Complained to newday and they rejected the complaint. Took it to the financial ombudsman and without them looking at the account newday offered me nearly £1500 which includes all interest paid and an extra 8%. Delight with this outcome, really wasn’t expecting that amount.
Fran says
Hi,
I recently sent a complaint to PayPal and in my complaint asked for the default to be removed from my file. I have started a DMP with Stepchange in Feb 2024.
PayPal have rejected my complaint and I will take to the ombudsman. I asked a follow up question to PayPal about the date of default as they didn’t register the default until July 2025 and that is the date on my credit report with missed payments up then. My worry is that all my other defaults will clear in 5 years but I will still be left with PayPal for an extra year now.
There answer is unclear and they said it is the date of incident and not the date of reporting. Does that mean it will be 6 years from when I changed to a DMP or from July 2025?
Sara (Debt Camel) says
that is unclear. Go back and ask for clarification of what date they mean, ask if you need to start a new complaint about this
Zoe says
Hi Sara,
I had a response from Zable today:
Original credit limit £200 taken out on 04/02/2022,
Increased to £350 on 07/02/2023
Increased to £800 on 11/07/2025 (I was out of work)
The card is maxed out at £800
They have upheld the claim and said:
I will refund any interest or fees paid in respect of the initial lending and credit limit increases. The total refund amount will be £349.48 the remaining balance is still left to be paid (£443.42) and they have placed the card into pay down all interest frozen and can no longer use the card.
Is this pretty much the best outcome I can expect on this?
Thank you
Sara (Debt Camel) says
The total refund amount will be £349.48
Do you agree that is the sum of all the interest you have paid?
Zoe says
Yes I’ve added it up from each statement and that’s how much the total is.
Sara (Debt Camel) says
then that is the best outcome you can get
Zoe says
Great, thank you :)
Kate says
Hello and thank you so much for the templates. My husband and I are drowning in debt and are desperately trying to claw our way out. I have put in affordability complaints to Nationwide using the Karlene white email on this website but haven’t heard back (sent 25th august) not even an acknowledgement. I also haven’t heard back from Halifax. Is this normal? Virgin got back to me within two weeks (rejecting).
Sara (Debt Camel) says
I suggest you phone Nationwide up and ask when you will be getting a reply to your complaint.
Halifax are very slow and you will probably get a text message at 8 weeks saying they need another 4 weeks. AT that point I suggest you send the Halifax one to the Ombudsman (use link in the article above). Also send virgin to the Ombudsman now. Do these one by one, you don’t have to waith for a all the rejections to send them all to FOS.
BUT if you are drowning now, you need immediate help. I suggest you talk to Stepchange about a debt management plan (DMP) for all your debts to get new interest stopped. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx. A DMP hurts your credit score BUT you will still be able to get a new fix from your current mortgage lender when the current fix ends.
In a DMP winning any affordability complaints will help speed up the DMP and may be able to clean your credit record sooner. But these complaints are to slow and uncertain to rely on when you need immediate help now, so a DMP gets you into a safe financial space.
M says
Hi Sara,
I made a complaint to NewDay which they rejected and the FOS investigator had upheld in July. However as NewDay didn’t come back there’s been no response and the investigator has gone silent on me, I have followed up multiple times but get no response. If you could please advise on what I could do next as it has been pending with a response from NewDay for the past 3 months. Is it worth asking them to put it into the ombudsman queue?
Sara (Debt Camel) says
have you always followed up by email? If you have, try phoning the Ombudsman and asking what is happening
M says
Hi Sara,
Thank you for the response. I have been following up by email but will call and see what is happening.
There has been an update in the case though, where the account with Aqua has now been sold to Cabot Financial despite the FOS case being upheld by the investigator but still pending on a response from Aquas end. I was going through a period of unemployment and was unable to make the payments, I am now able to pay. If I set up payments to Cabot financial would this impact the FOS case?
Sara (Debt Camel) says
setting up payments will not impact the FOS case, but here I suggest you tell Cabot that you have a FOS case open about affordability and the investigator has upheld it, but Aqua has asked for it to go to an Ombudsman, so you will sett up a payment arrangement if you lose the case.
John says
Seems like same thing happened to me few months back.
I rang the Fos and Newday complaints department. The Newday complaints dept asked the investigator to respond to FOS and they did and agreed with the complaint. Its best to chase up
M says
Appreciate the advice John thanks, glad the complaint worked out for you
Faith says
I have an IVA, you stated it is complicated to claim affordability when you have one of these, can you help?
Sara (Debt Camel) says
So the claim process is the same. It’s just that very often winning the claim may not help you.
The standard situation is where someone is paying significantly less than their debts in an IVA. here is they win an affordability complaints about a debt in the IVA, it will just reduce the balance in the IVA – this doesn’t reduce what you may each month (which is as much as you can afford) or make the IVA eand earlier (unless your debts will be repaid IN FULL plus the IVA fees, which is unusual)
So the 3 exceptions are
1) if your claim could result in a very large reduction in the balances, so your IVA would end early
2) if the IVA appears likely to fail soon, in which case any reductions in the debts balances may give you more options
3) if you may need to release a small amount of equity in the last year of the IVA, in which case getting any of the debts down may mean this will not be required.
But if none of those 3 sound like you , it probably isn’t worth bothering with
Sanam says
Hi, thanks so much for this! I’ve sent a complaint to Barclays and they’ve replied asking for my bank statements and payslips for 6 months before and after the credit application or credit limit increases. Is this normal? And should i send this information? Feels a bit intrusive but if thats the norm i can look at sending it over to them.
Thanks
Sanam
Sara (Debt Camel) says
they normally do this. You don’t need to send payslips if you have bank statements.
Do you know when the account was opened and when any limit increases were?
Sanam says
Hi, thanks for getting back to me. I don’t know the exact dates so should I reply and ask for them? I’m guessing they’re asking for my current account statements (which is natwest) is it so they can see what my spending habits were at the time? Or are they asking for Barclays statements the account is closed so i don’t have access to these anymore. Any advice would be greatly appreciated. Thanks so much.
Sara (Debt Camel) says
They want your bank statements not the card statements, they can see those.
Bank statements show your income and bills and other debt payments. They don’t need payslips if you send them
Yes I suggest you ask for the limit increase dates.
And now download the NatWest statements as far back as you can. Don’t wait and find you can’t go back as far
Ruthie says
Hi there, firstly, thank you for all this valuable information. I sent a complaint to Capital One that has been rejected – they felt it wasn’t irresponsible etc. I hadn’t had my limit increased, just been struggling to keep up minimum with payments since opening it in 2019 and maxing it out. I had 3/4 other credits cards at the time plus a Next account and an overdraft. Should I continue with this complaint? It;s been relentless. Thank you! :)
Sara (Debt Camel) says
how large was the limit?
is your current financial situation mainly difficult because cost of living increases?
mrs r s oliver says
Hi Sara, thanks for the reply. The limit on this one was £1500 but I have only paid minimums due to my low income. I run a business that was effected by Brexit and the cost of living (which effected sales). Thank you!
Sara (Debt Camel) says
So if you think it was unaffordable in 2019, then send this to the Ombudsman. And try now to get your bank statements for 3 months before and 3 months after the Cap One account was opened.
But it sounds as though your situation has got even worse since then – I think in addition to any affordability complaints, you should talk to StepChange about a debt management plan (DMP) to get interest stopped on all your debts. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Gail says
My Sainsbury’s credit card account was recently moved over to NatWest due to a buy out. Can I complain to Sainsbury’s still as they were the initial provide?
Thanks
Sara (Debt Camel) says
Yes, at some point this will probably switch to NatWest, but at the moment complain to Sainsburys and let me know if they say to complain to NatWest.
Emil says
Can I make affordability claim while in DMP? And can I just say thank you, I am sitting in my bed reading this with hope in me, that website is great and it’s a shame I got on it so late. Yesterday I was sitting in the same bed staring into the darkness depressed about my debt. To be honest I was thinking about ending it but reading your website gave me hope that I will
Be able to to get out of them… thanks again
Sara (Debt Camel) says
Yes you can! Being in the first few years of a DMP is a great time to make these complaints. Winning any will really speed up the DMP and can sometimes help to clean up your credit record sooner. And the DMP means you are in a safe financial space, so when complaints are rejected and have to go to the Ombudsman, you don’t care about the extra time
But if the DMP has been running a while, you may Have other better options?
HS says
Hi Sara, I just wanted to say thanks – I’ve had my 1st affordability win today!
Capital One agreed that they shouldn’t have lent due to my history (i’d had and defaulted cards with them before) so I’ve had both accounts cleared and they will be removed, with the defaults, from my credit report.
Refunds of £412 and £459 applied this morning.
I am in a DMP so this will reduce the overall length and allocate the payments to others.
Just wanted to say a huge thanks for all your help and guidance on this website :)
AJ says
I am currently escalating my Section 140A (Unfair Relationship) complaint against Tesco and HSBC after the FOS Investigator sided with them. I rejected their view and demanded immediate referral to an Ombudsman.
My case relies on three key pieces of evidence:
Proof of Severe Default (Credit File): My credit report for the card shows multiple instances of ‘4’ payment markers (meaning four months late).
Proof of Chronic Distress (Bank Statements): I reviewed my current account that covered the same time period and found over 500 separate Overdraft/Daily OD charges. This proves I was in a severe, chronic debt cycle, using high-cost debt to survive and service payments.
Late Intervention: The bank claims its credit limit reductions were responsible, but the evidence proves they were too late. The reduction only occurred months after the bank had already logged a severe ‘4’ default marker on my file.
The core argument is that the bank allowed interest and fees to compound despite clear, overwhelming evidence of my severe financial distress, failing its duty of care.
The case is now in the queue for the Ombudsman’s final binding decision. The goal remains: refund of all interest/charges, statutory interest, and removal of all adverse credit markers. I will update when I hear the outcome!
EB says
I used this template and MBNA have upheld my complaint on 2 credit cards and have refunded all interest and charge plus an additional 8%. I’ve managed to clear both of these cards now with money left over.
Dee says
Hi Sara,
I’d really appreciate your opinion on this.
I’ve submitted a complaint to the Financial Ombudsman about two Virgin Money credit cards I was given — one in 2022 for £23,900, and another in 2023 for £25,000 — despite already having maxed out the first. I was self-employed at the time with very irregular income, and I often had to borrow from others or use credit to repay credit.
Virgin Money based their lending decision on household income, even though I alone was responsible for the repayments.
I submitted HMRC records, personal and business bank statements, and a detailed explanation of my circumstances. The case was progressing, but suddenly a new adjudicator picked it up on a Tuesday and by Friday, she had issued a rejection. She stated that because I appeared to be “managing,” there was no cause for concern.
I find this logic flawed — it’s almost like saying someone with depression must be fine because they show up to work. Just because I was “managing” on the surface — by borrowing from friends and juggling credit — doesn’t mean I wasn’t in financial difficulty.
I’ve now asked for it to be escalated to an Ombudsman, because I don’t believe my case was reviewed thoroughly or fairly.
Do you think it’s likely an Ombudsman would overturn this decision?
Sara (Debt Camel) says
those were very large limits. I think Virgin should have looked very closely
Lou lou says
Hi Sara
I made a complaint to the financial ombudsman regarding monzo flex. The investigator did not uphold my complaint so i asked for it to be escalated to the financial ombudsman and they have come back with the same decision. I have made complaints to separate lenders around about irresponsible lending around the same time and all these complaints have been upheld, but this one hasn’t.
I assume this is the end of the road for this complaint?
Thanks
Sara (Debt Camel) says
Yes it is. Well you could go to court, But i think you would need to take professional advice, from a solicitor, on that. And having lost a FOS, case, i doubt this would be worth it.
Glad you have won the other complaints, this is one that got away
Jo says
Hi Sara I made a complaint to Barclays for a credit card id had from 2007-2024. I had multiple credit limit increases up to £8200 in 2015 which I could not afford. I was making the minimum payments and then spending the money again straight away to live. Barclays told me I was in persistent debt in 2018 and over the next few years I managed to get some balance transfer and reduce my debt. They then increased my limit again in 2021, 2022 and 2023. I provided bank statements for the most recent increases however am unable to provide them for the increases up to 2015. I have however provided my employment and income history directly from Hmrc for this period showing the increases were very disproportionate to my income. They have said they can’t deal with the pre 2015 complaint due to not being able to provide the bank statements, they have rejected the 2021 and 2022 increases as they think they were affordable however the have upheld the 2023 complaint and refunded me £45. Is it worth taking the pre 2015 complaint to the ombudsman or will they say without bank details there’s no proof? Many thanks
Sara (Debt Camel) says
do you agree the 2021 and 2022 increases were affordable?
Jo Hayes says
I’m not sure. The reason they believe they were affordable is my dad passed away in 2021 and left me a small some of money which I used to reduce all my debts. However once that was gone the balances went up again as I couldn’t cover my basic living costs.
Sara (Debt Camel) says
I think I would send this to FOS. If you can get the 2021 or 2022 increases determines as unaffordable youy will get a lot more
Bee says
Hi Sara, after a bit of advice. I’m currently disputing all my current and previous debts. I’m waiting from outcomes from the FOS for quite a few but I’ve also had a lot of success with others. I was in a DMP before this but due to the fact all my debts are about to change, some wiped, some interest taken off etc. the DMP company advised I stop it and once I know the out comes start it up again if I need to. So in the mean time any outstanding debts I have been paying direct to with an agreed amount until I know where I’m at. I’m having trouble with my Very account. The FOS investigator upheld my complaint however very requested it goes for a final decision. So I contacted them to arrange making a payment sent an offer (which was more than I was paying when in the DMP only by a small amount) they declined it saying it’s unaffordable. Which it isn’t but they said I need to seek financial help. I explained the situation and asked what will they accept and they said they can’t say. And then said I need to settle the account in full else they will start default proceedings. I really need to avoid this but I cannot afford to settle the account in full. I don’t want to risk waiting for the outcome from the FOS just in case and then I end up with a default and I’m unsure what to do. Have you any advice please?
Sara (Debt Camel) says
A default is usually BETTER than payment arrangements as a default drops off your credit record after 6 years but payment arrangements stay harming your credit score for 6 years after the account is settled.
Who was your DMP with? This seems very odd advice from them. How long ago did the DMP start?
It’s a shame you didnt just offer the same as the DMP, very may not have queried it.
Have you told your investigator how unhelpful Very are being? Ask if there is any way the Ombudsman decision can be speeded up?
Bee says
The DMP was with Payplan and I had been in it for about 3 years. The investigator on my case told me this “ Your complaint is effected by s140a which is essentially looking at the fairest of the relationship between you and Shop Direct. Our approach has been challenged by a number of business and is currently subject to court proceedings and there won’t be anything further done until the court has made a ruling. “
So I don’t think a decision will be made very quickly. I will reach out to him now and tell him how very are being see if he can be of any help.
Many thanks
Sara (Debt Camel) says
well if Very add a default, send them a new complaint and ask them to backdate it to the start of your DMP, which will be a better result for you than a payment arrangement
Michael says
Hi Sarah – I’m in month 4 of a DMP…I had some crazy high credit limits (One MBNA card had nearly a £20k limit that I went close to on many occasions) but kept up with payments, with no hope of paying it all back before the interest free period ended but kept up with minimum payments…would this be eligible for an affordability complaint?
Sara (Debt Camel) says
The first year of a DMP is a great time for affordability complaints. It sounds like some lenders have lent you a lot too much! Look at affordability complaints about all the consumer debts on the DMP – loans and overdrafts as well as cards. Winning any will speed up the DMP and may help clean your credit record a bit sooner.
If you got a consolidation loan before the DMP, it may have been “cheaper” a month than the debts you cleared, but the loan repayments may still have been so high that you ended up using the cards again. That was an unaffordable loan.
Also look at any loans or cards you closed with a consolidation loan, winning a complaint about a debt not in your DMP will get you a cash refund.
Michael says
Lovely thanks – which template(s) do you recommend for the debts in the DMP?
Sara (Debt Camel) says
just my normal affordability templates. So the one in the article above for credit cards
Michael says
Thanks – so I need to use the one about the overall limit being way too high?
Sara (Debt Camel) says
Yes. If you have had limit increases, you need to argue that the card was unaffordable from the start or from the lowest increase you can. If the complaint is only upheld from a late increase, you will probably only get a “partial refund” of some of the interest paid from that point, which may not be much
Michael says
Thanks – the limit was sky high from the outset and only ever made minimum payments throughout the years. Let’s see what they come back with
Lynn says
Hi Sara,
I was looking for a bit of advise if possible.
Back in 2015/2016 I had a aqua credit, which I had a good few increases on ended up defaulting and the debt was given to Nolan’s solicitors, who took me to court and I ended up with a payment arrangement and CCJ this was 2019, I made a complaint back in 2022 which I won thanks to your website I would have never known I could do that! I have very recently asked for an up to date statement from Nolan’s to check how much I still owed. The statement they sent me had on judicial costs of just over £400. Is this something that should have been removed from the outstanding amount ?
Sara (Debt Camel) says
was the CCJ set aside?
Lynn says
No it wasn’t set as side.
This was the decision.
My final decision
For the reasons set out above, and contained within my provisional decision, I uphold this complaint. NewDay Ltd trading as Aqua should:
Remove any adverse information NewDay recorded on Miss A’s credit record regarding her ‘Aqua’ credit card account from the date of the credit limit increase in December 2015.
Refund all interest and any charges it applied to Miss A’s ‘Aqua’ credit card account from the date of the credit limit increase in December 2015. NewDay may contact the debt collection agency and offset this against the debt which is now with it, if it repays the debt. If there remains a positive balance after doing so, NewDay should add 8% simple interest to this balance and pay it to Miss A.
Sara (Debt Camel) says
It is a shame you dind’t ask if the CCJ would be removed as the decision doesnt mention it.
The account was left with nolan’s and the balance reduced?
Lynn says
The account was left with Nolan’s and the balance was reduced.
Sara (Debt Camel) says
I suggest you go back to Newday and ask why these cahrges were not removed from what you owe
Lindsay says
Hi Sara,
PayPal just rejected my complaint regarding my credit account so I have sent this onto FOS.
I know that this could take a very long time to hear back from them, is this something I should chase up if not had a decision after so long?
I’m also wondering what will happen if my complaint is upheld and I do receive a refund from PayPal, if I’ve already paid off and closed my credit account by this point? Will they contact me to send me the refund to my bank account or would they not refund this as the credit account it closed and no longer needing to be cleared? I’m worried that they’d either not refund or refund it as credit on the account that I can only use on there.
Sara (Debt Camel) says
FOS will tell you when an investigator is assigned.
if the account is already cleared, Paypal will ask where you would like the refund paid.
Allan says
I have just had a reply from Barclays that they will not look into my complaint because it’s over 6 years old but the account is still open and I still have a balance I am paying. Do I go down the financial ombudsman route? Also if I am able to move this debt to a lower interest and different bank will that affect my complaint? Many thanks
Sara (Debt Camel) says
when was the account opened? when was the last limit increase?
Allan says
The account was opened in 2018 there was no increase in limit but the original limit was 15000+ and my salary was only 28000
Sara (Debt Camel) says
can you get bank statements from the three months before it was opened?
Jen says
I just want to say a big thank you, I have just won my affordability complaint with Santander, I sent it to the FOS last December, Santander dragged their heels to the final decision, I am getting all interest and fees back which is great.
As soon as that money hits the bank it’s paying off more debt and I should be clear by spring time! I have no idea how much I am due back but every penny counts. Thanks again!
Jess says
Hi, I was wondering if anyone is in a similar position to me and if anyone has heard anything about a judicial review? I have a complaint that was upheld by the investigator but rejected by the lender (credit card) so it will need to be assessed by an Ombudsman.
My complaint has been ongoing for around 1 year, so i’m wondering if there is any update that anyone knows of please?
This is part of the email that i have received:
Our service has received judicial review claims which challenge the way we approach complaints where section 140A is relevant law. Whilst the complaints are not identical to yours, the approach we’ve taken to complaints about unfair
relationships is being challenged in the courts, and the outcome of those court proceedings may have the potential to impact the way that we consider your complaint. As a result, I’m afraid we won’t be issuing a decision on your complaint whilst the matter is being considered more widely.
Sara (Debt Camel) says
Yes quite a few “over 6 year” claims are held up because of this. So far there is no news
Jasmine says
Hello, I am currently on a dmp, however I’ve got one more payment to clear this would I still be able to write to them to claim ? Would I have to write to each individual creditor on there ?
Thank you
Sara (Debt Camel) says
when did the DMP start?
Jasmine says
It started in 2021
Sara (Debt Camel) says
Complaints in a DMP ( or a DAS in Scotland) are usually best made in the first few years.
This is going to be tough going as you may find it hard to get bank statements etc to prove the debts were unaffordable from the start, when the loan was given or the credit card limit increased. Also often refunds only go back 6 years.
If you want to try, you make complaints to each original lender.
Keely H says
Hi Sara,
I feel quite deflated after the Ombudsman didn’t uphold my complaint against NewDay (Fluid and Aqua cards). Their decision relied on overestimated income figures that were estimated by NewDay — in one case they said I earned around £2,300 when my payslips shows £1,548. They also said I had £77 disposable income so NewDay didn’t act irresponsibly, this amount clearly isn’t enough to cover any unexpected costs or increases in living expenses and does not take this into consideration.
All salary information at the point of applying were submitted correctly by me, they upped limits with no further checks and only estimated.
At the time of the credit-limit increases, I already owed multiple other creditors and had two active debt consolidation loans, all visible on my credit file. Despite that, NewDay still raised my limits twice in a year.
I accept responsibility for my borrowing, but I don’t think the Ombudsman’s view reflects how unaffordable things really were. I’ve now provided payslips as evidence — could you advise how best to present this when asking for the Ombudsman’s final decision?
Sara (Debt Camel) says
have you supplied bank statements to FOS?
Keely H says
Hi Sara,
Thanks for your reply. Yes, I did supply my full bank statements to FOS. Those clearly showed my outgoings, repayments to existing creditors, two debt consolidation loans, and that I was regularly borrowing just to meet my monthly payments.
I also want to highlight that NewDay overestimated my net income by several hundred pounds on some of the credit limit increases. That means their affordability assessment was inaccurate from the outset. I supplied the correct salary so I’ve no idea where they got their figures from.
Although the Ombudsman said NewDay didn’t act irresponsibly, they also admitted they could “see a slippery slope” of missed payments and defaults shortly after the increases. That seems contradictory — it shows the lending was unaffordable and led to financial harm.
Keely says
There are clear inconsistencies and contradictions in both NewDay’s and the Ombudsman’s assessments across all credit limits. For example, for the August 2024 Aqua increase, the Ombudsman notes NewDay’s estimate of £2,438 net left only £77 disposable (unsustainable) and that more checks could have been done, yet they later use my lower actual income of £1,729 to claim £305 disposable and still justify the lending. Similar inconsistencies appear across the earlier credit limit assessments.
I’m so lost.
A says
I could have written this myself. Have had the same issue with the Ombudsman and NewDay! I had to send over bank statements and I am pretty sure from his response he had not chrcked them because there were so many.
Kelley says
I have had this happen on other cases, but bizarrely not on New Day. They initially didn’t seem to agree with the investigator and then they suddenly agreed before it went to an ombudsman.
Sara (Debt Camel) says
“yet they later use my lower actual income of £1,729 to claim £305 disposable and still justify the lending”
That is probably the bit you have to challenge. It sounds as though FOS is saying if Newday had made better checks and got your income correct. the limit increase would have been affordable.
So you need to argue from the bank statements that you did NOT have anything like £305 spare that you could have used to pay Newday
Keely says
Hi A – did you get any further with your complaint? My investigator has provided so many inconsistencies. Even stating several times NewDay could have done better checks, though they still disagree that the lending was irresponsible. They have contradicted a lot of their points.
And thank you Sara—I’ll be challenging that point raised. I’ve recalculated against their inflated net income using my actual figures, and my disposable income is now far less than stated, and in some cases even negative.
Soph says
I used this template to complain about a credit card with Tesco bank, and unaffordable limit increases over 6 years. I received response within 6 weeks to let me know they were upholding my complaint and I was refunded £2456 of interest and fees! This has been taken directly from my owing balance so all I now have to pay is what I spent, and has almost halved my balance! I was expecting to go to the Ombudsman with this but using the template I didn’t have to! Such a win! Thank you so much Sara!
A says
Hello Sara,
Need some help here. Investigator rejected complaint. They are saying during applying for credit I put monthly expenses of £1000 whereas I just calculated from my bank statements and they were over £2000 easily every month.. Also I can’t remember putting home owner without mortgage as I have always rented. Also they are saying I didn’t have any defaults or CCJ at that time so lender was not obliged to do thorough checks. But my credit file showed few missed payments like in June,July,September, October 2019 and this new credit was approved in February 2020. and usage of overdraft “£2500 upto the limit” without getting out even for a day. 118118 money loan , amigo , safety net , feratum, lending stream all showing on credit file and on bank statements. Missed rent payments.
For argument sake let’s say I did put those numbers during application but isn’t it true that it’s lender’s responsibility to check if there are any discrepancies in what I’m putting and what my credit file says.
So please can you advice how to go about this so that they may change their mind. Thank you
Sara (Debt Camel) says
Which lender is this? How large was the loan or credit limit?
AQ says
PayPal and £950 , did send bank statements to PayPal and FOS
Sara (Debt Camel) says
do you have a copy of a credit report showing the missed payments in 2019?
AQ says
Apologies for such a long post
Yes I have credit report and I did send it to FOS which shows missed payments. But there are few accounts which are no longer showing on credit file like amigo,118118 and lending stream as they were taken off after complaints were upheld for irresponsible lending but bank statements from that time did show monthly repayments like £357 to 118 118 loan and £395 to amigo. But PayPal must have credit report of that time showing all that debt.
This is the extract from their email.
“Based on the information I’ve seen, I’m satisfied that PayPal carried out proportionate checks for the £950 limit provided.
Just because I think the checks were proportionate based on your circumstances, it doesn’t end there. I need to consider whether PayPal made a fair decision to lend.
Thank you for providing your credit file and bank statements for the months leading up to this lending decision. Based on the low credit limit PayPal approved, they were not required to carry out any additional checks into your financial circumstances.”
They completely ignored missed payments and even after providing bank statements showing over £2000 monthly expenses just in bills/repayments without food,clothing etc which obviously will take it upto nearly £2500.
Sara (Debt Camel) says
the 118 case was won at the Ombudsman. Do you have the investigator decision from that point? Had you supplied a credit record to FOS for that?
AQ says
Yes 118 case was won at FOS in 2022. I just checked they just asked for bank statements at that time which I provided but no credit report. I also found investigator’s complaint view which 118 accepted. 118 loan was taken in October 2018 and paid off in July 2020 and PayPal credit was given in February 2020.
AQ says
do I have a case or should I just accept investigator decision
Sara (Debt Camel) says
“They completely ignored missed payments”
I am not sure what evidence of those you have supplied? If you can supply any, its definitly worth challennging this.
AQ says
Credit report which I have provided to FOS shows 9 missed payments from June 2019 till October 2019. I have submitted new submissions stating these 9 missed payments should’ve promoted PayPal to do thorough checks and that would have shown my monthly expenses were over £2500 which was more than my earnings. Let’s see 🤞
N says
Really disappointed with my FOS outcome today.
The investigator asked me for extra evidence on the 20th, and I sent everything over — only for her to issue a final view today (27th) completely siding with the bank. It just feels like she barely looked at what I sent or gave it proper consideration.
(For context, I was given a £10k credit limit on a £21k salary, and she even admitted the bank didn’t do adequate credit checks, saying they just relied on my credit score!)
It honestly feels rushed and unfair. Has anyone else had a similar experience where they were asked for evidence and then got a decision just a few days later?
Sara (Debt Camel) says
The rushed part isn’t relevant, you can make a good decision quickly or a poor decision slowly – it the decision was wrong, it doesnt make it any better if it too 10 days to make…
So you need to focus of why the decision was wrong and how you can show this. You have sent bank statements? Is the investigator saying that proper checks would have shown that the credit limit was affordable? On a 10k limit, that usually means the investigator thinks you could normally afford to pay £500 a month to the card. What numbers in that calculation look wrong, and can you show that from the bank statements?
N says
Thanks Sara, yes I sent full bank statements and my credit file, which clearly showed multiple existing credit commitments and high utilisation at the time.
The investigator actually agreed that Barclaycard didn’t carry out proportionate checks before giving me the £10k limit on a £21–22k income, but then concluded that proportionate checks would still have shown it was affordable. That’s the part that doesn’t make sense to me.
She didn’t even refer to my credit file in her assessment, despite me uploading it, and instead based her conclusion on just three months of bank statements. There’s nothing in those statements that could have shown affordability for that kind of limit. I was already juggling several debts and using overdrafts at the time.
So for her to say checks weren’t done properly, but even if they had been, it would still have been affordable, feels speculative rather than evidence-based.
I’m asking for it to go to an Ombudsman because it seems inconsistent with FOS guidance. Once it’s accepted that proportionate checks weren’t carried out, the investigator shouldn’t guess what the outcome might have been. They should assess what proper checks would have actually shown from the real data available at the time.
Sara (Debt Camel) says
Just saying she didn’t assess this properly is a weak response here. It’s much stronger if you a demonstrate that repaying a limit that size at say £500 a month would not be affordable but going through a couple of months bank statements. And if you were paying for essentials on cards, include card statements for those so this essential spending is visible
Keely says
My investigator repeatedly admitted NewDay could have done better with affordability checks but still sided with them.
At the time, I already had several high utilised cards and two active debt consolidation loans just to service existing credit and stay afloat, yet NewDay increased my limit twice more. Even the investigator said £77 disposable income was “unsustainable,” but it didn’t change the decision and overall agree the lending was fair. It’s clear from my bank statements I was borrowing and making cash withdrawals to cover minimum repayments.
However, I am challenging it currently as I did notice in their findings that NewDay over estimated my net income by hundreds of pounds on some limit increases, which would’ve actually left me with negative disposable income.
I soon started to default after the increases were applied clearly demonstrating the increases were unsustainable. I’m now on a DMP with StepChange.
Sara (Debt Camel) says
A DMP with Stepchange is a good options for many people with a lot of debts. Winning any affordability complaints will speed up the DMP and may help clean up your credit record earlier.
Mr J says
Hi Sara,
I put in an affordability complaint to Very and they came back with the following response
SDFC considers this complaint is outside the jurisdiction of the Financial Ombudsman Service. In our view
the complaint has been referred outside the regulator’s time limits.
SDFC has gone on to consider the second aspect of the regulator’s time limit, whether you ought reasonably
to have been aware of cause for complaint, more than three years before it was made.
I wasn’t aware of unaffordable lending until I found your blog so had no idea I could make a complaint. Would it be worth an ombudsman referral?
Sara (Debt Camel) says
Is the account still open? If not, when was it closed? When were the limit increases?
Sarah says
I haven’t missed a payment (i have one mark which was a direct debit setup glitch) but have had a blance on credit cards for about 18 years which has continually increased/decresased but never reached 0.
I have been 0% tarting over this entire time, moving numberes around but never really paying it down. I’m on teh cusp of a DMP but would like to see if the affordability complaint would work first.
Do I meet the criteria?
Sara (Debt Camel) says
It sounds as though you have paid little or no interest over the years? In that case, there is little or nothing that you will get back…
If the minimum payments at 0% are a struggle, you need a DMP now.
Tracy says
Hi Sara, I used your templates previously and won affordability claims against MBNA amongst others. MBNA backdated my default date to the year they gave me the increases which was 2021. I haven’t made a single payment to them since their last contact with me a year ago. I received a letter from them today stating they are updating their systems and will no longer expect me to repay the debt. It’s 14k on one card. They have said they will record the default as settled. Have you heard of this happening before? I have another CC debt with them with a balance of 12k but had no correspondence about that one. I also have two other defaults with BOS and Halifax both part of the banking group of Lloyds and have had no contact from them since their last defaults last year.
Sara (Debt Camel) says
This is now the third case of this I have heard about in a week from the lloyds group. One was an overdraft, the other was a Bank of Scotland old credit card that defaulted a while ago. These were complaints that were still going, not cases where complaints had been won.
It sounds like there is some tidying up exercise going on, but I would have to see a lot of cases to guess why they are picking on some accounts!
I suggest you should consider if you should make any other affordability complaints
Tracy says
You were absolutely wonderful Sara at the time and I submitted and won every affordability case, using your advice. Thank you. I felt a huge weight lift when I received the letter, and I’m really hoping the whole Lloyds group are doing this exercise, without meaning to sound greedy, they would wipe out my huge historic debts, and free me from the pressure of them. As an older person not far from retirement age, I would be in a position where I’m not worrying about huge debts collectively that I’d be highly unlikely to clear. Thank you again. T
Sara (Debt Camel) says
I don’t think you should be too hopeful that this will apply to a lot of your other debts with them.