Have you had a catalogue, credit card or store card 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 them.
You may have a good complaint that the lender was irresponsible in allowing you to borrow so much that the debt was unaffordable.
This article explains how to complain and ask for a refund of the interest you paid
Contents
What is “affordability”?
The following is my summary of the regulator’s rules:
- a lender must check if credit is affordable when you apply for it. A mortgage lender will ask for bank statements, but a catalogue offering a £200 credit limit doesn’t have to go into so much detail;
- a lender should also make new checks when deciding to increase a credit limit;
- credit isn’t affordable if paying it leaves you short of money for your bills,everyday expenses, and your other debts;
- if you have to borrow more most months, this would not be affordable. This could be borrowing on the same account – making a credit card repayment but then using the credit card to pay for food so the balance never drops is “borrowing more”;
- you have to be able to repay the balance within a reasonable period of time. Paying the minimum amount is OK for a short while, but not for a prolonged period.
How to complain
Good reasons to complain
If the lender could see any of these on your credit record, they should probably have declined your original application:
- recent credit record problems: defaults, missed payments, or arrangements to pay, mortgage arrears, payday loans;
- you already had a different credit card with the same lender where you were only making minimum payments and were using it for essentials like food and petrol. If you were given two credit or catalogue accounts by the same lender, often the second one should never have been given.
- 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;
- a level of borrowing that looks too high in relation to your income.
Your credit limit should not later have been increased unless you could afford it. In addition to the points above, the following should have also warned the lender you were in difficulty already:
- making minimum payments for a long while;
- using a lot of your limit for a long period;
- a lot of gambling showing on the account statement;
- recent missed payments or an arrangement to pay on this account;
- your overall level of debt on your credit record has gone up a lot.
You don’t need all the details to complain
When your lender increased your credit limit, you don’t need the exact date. If all you can say is “you increased my credit limit several times” that is fine. You don’t need to ask for copies of all your statements – you would get a ton of paper!
But getting your credit record can help. You can’t go back and see exactly what your credit score was in say 2018, but take a copy of your current credit record as soon as you complain (get your free TransUnion statutory credit report). That will show what the pre-2018 problems were that the lender should have spotted.
Template to complain & the email address to use
The best way to complain is by email. It’s free, instant and you have a record of what you sent and when. Here is a list of credit card and catalogue email addresses to use.
In the suggestions below, I’ve invented some examples for the bits in italics in brackets. Change/delete these to tell your story.
I want to complain about irresponsible lending by you 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.
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. When I applied in 2015, you should have checked my credit record and you would have seen I had recent missed payments to a credit card and a default only two months before on a loan.
Or say that they should not have increased your credit limit:
You should never have increased my credit limit in 2015. 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 me 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.
If the lender should already 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
of the gambling transactions showing on my card statement
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 2018.
I would also like any late payment and default markers to be removed from credit records after this point.
I understand that if I take this complaint to the Financial Ombudsman, 8% simple interest is usually added to a cash refund.
Points to think about
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.)
You can complain if you already have a CCJ for the debt. Add a sentence to the template saying you want the CCJ removed as part of the settlement of your complaint.
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 will reject complaints about something that was more than 6 years ago and say the ombudsman won’t look at them. But FOS will often look at old problems if you have only found out in the last three years that you can make the complaint.
If your account was opened in 2015 but the lender increased your limit in 2018 and 2019, then the two limit increases are within the last 6 years and can definitely be looked at.
However, complaints about things that happened more than 6 years ago may be hard for you to produce much evidence for. But if you feel you have a strong older case and you have some evidence, then take it to the Ombudsman and let them decide!
An alternative approach for old accounts
If your account was opened a long while ago and 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.
A poor credit score on its own isn’t a reason why you shouldn’t have been given an account. But if your credit score was poor because you were having a lot of problems with your existing debt, the account should have been refused.
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 and you defaulted, this isn’t the lender’s fault.
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.
In particular, if the lender says you had made all the payments to them on time so they had no reason to think you had problems, you can ignore this. Or if the lender dismisses your complaint as the account was opened over 6 years ago.
When you have a Final Response from the lender – or after 8 weeks if you haven’t had a Final Response – send your complaint to the Financial Ombudsman Service (FOS). Don’t delay doing this!
Is a “partial uphold” good enough?
If the lender says they should not have increased your credit limit in June 2018 when your limit was increased and they will give you a refund of interest for balances over the previous limit, that may sound good. It is sometimes called a partial uphold or a partial refund or proportionate interest.
But often the amount of money refunded in this situation is a lot less than you might expect. So tell the lender you want to consider their offer but need to know how large the refund will be.
Often you were already in a difficult financial situation at that point, with cards close to maxed out, being used for everyday essentials and only paying the minimums. At that point the lender should have stepped in and offered to help you by freezing all interest. That is why a partial refund is often not good enough, you should have all the interest refunded from that point.
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 worry if you don’t have A copy of your credit or finance agreement – lots of people don’t and the lender will supply a copy to FOS if FOS asks for it. Don’t delay sending a complaint to FOS while you try to get this from the lender.
If your credit record shows that you had other debt problems, send FOS a copy of it. If you have kept some, send the oldest one you have, otherwise send the current one. Also get your bank statements if they will support your complaint and send those to FOS too.
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?
M says
Still no contact from Aqua, despite an FOS Final Ombudsman Decision nearly two months ago.
Disgraceful, gimcrack company.
Sara (Debt Camel) says
have you phoned them?
M says
Hi.
They were quick to respond after several unpleasant reviews on Trustpilot. My details were then “forwarded to the relevant team”.
I’m not holding my breath, really. I plan to apply for a Court Order if it’s not resolved by next week.
Thanks again for all of the hard work you put into this site. I’m sure you have helped untold amounts of people (including myself), and I wish you a very Happy New Year.
Sara (Debt Camel) says
come back here before thinking of going to court…
M says
Thank you.
I’ve contacted the Adjudicator too, who kindly said they’ll intervene after their Christmas break.
Kim says
Hi, has anyone had any luck with either Very, Studio, Next or MBNA? I have high credit with all of them and only just able to make minimum payments to them all. I applied for Very when in full time work which was just over 10 years ago when I was expecting My first child.
The others I applied for when either in part time work which was under 10 hours a week and one (Studio) only recently and a stay at home Mum. Studio have increased My limit a few times.
MBNA was under a different name a few years back, but they have increased My credit limit and offered multiple money transfer offers which I stupidly took up, whilst as a stay at home Mum.
Any advice would be great.
Sara (Debt Camel) says
Yes lots of wins but almost all have to go to the Ombudsman as the lenders mostly just reject or offer a very small amount.
It is well worth trying these complaints but you have to accept they will take a long while. They are not the answer to your current problem of only just managing the minimum payments. I strongly suggest in addition to making these complaints to the lenders at the same time you talk to StepChange and a debt management plan https://www.stepchange.org/how-we-help/debt-management-plan.aspx.
A DMP will get the interest frozen on those debts so your monthly payment reduces the balance much faster. It will give you the breathing space to be able to let the complaints move slowly onwards – any that you win will then dramatically reduce the time to complete your DMP.
Kim says
Thank you for your reply. I will get the complaints in today and get the process started.
Was trying to avoid DMP but will look into it.
Thanks
Kim
Sara (Debt Camel) says
Do talk to StepChange – you don’t have to go ahead with them, but it is a serious option for you and I think you should get a feel for how it would work and how much lower the payment to stepCahnge might be than your current minimums.
DM84 says
I just had an adjudicator uphold my complaint for a JD Williams account.
It took 2 years and 3 months just to get this far.
Adjudicator thinks I should be refunded interest on my account from April 2013.
Great news.
I reckon will be about 1300 quid in total which includes 8% interest per year.
Hang on in there anyone still waiting.
Leila says
Hi,
Wondering if anyone can help.
I have a default with shop direct which is currently showing over £5000 I made a complaint and they’ve responded saying its not their fault and that the agreement says they can raise the limit throughout however they have offered to take the interest and admin fees from the balance which is £1400 and remove it from my credit report. Is this a good offer or should I take it to the fos?
Abit of background behind the complaint is –
The account was started in 2014 and began at a £250 credit limit, between 2014 and 2018 they raised it to £2900 and I had exceeded the credit limit in 2017 and they still raised it then. In the days prior to the account being opened I took out a payday loan, during 2014-2018 I had taken out a further 74 payday loans. I missed payments in 2014 and 2015. I have previously had a gambling addiction and I suffer with mental health issues, I attached a debt mental health medical form from my doctor to the complaint.
Sara (Debt Camel) says
So your current balance is 5000? and they are offering to reduce it by 1400?
Can you say what the rest of your debt situation is at present?
Leila says
Hi Sara,
Yes they are offering to reduce the debt, it was put into default around 2 to 3 years ago. At present this is the only debt I have.
Sara (Debt Camel) says
so you have repaid the payday loans? Have you looked at asking for refunds from them?
is it clear that they have stopped adding interest? if it isn’t, I think you should clarify this.
how much will you be able to pay to this a month?
Leila says
The payday loans were always paid on time due to taking out a new one to cover the previous one. I’ve complained to the 3 payday lenders however 2 have now gone into liquidation so I believe I won’t get alot back.
They have removed the interest however I do need to clarify if its now been frozen on the remaining balance. I could probably pay 100 a month towards it
Jim says
Hello, I’m hoping you can help with my query.
This morning, out of the blue, I received a cheque from HSBC for £50 because following a review by their Collections/Recoveries team, they have concluded the quality of service “did not meet the standard we would expect.” I last had an HSBC bank account back in 2012 and have had no communication from them since. In 2010 my wife and I both lost our jobs and were struggling to survive financially. During the period 2010-12 HSBC wrote to us frequently telling us we had bounced payments because our overdraft limit had been exceeded and adding on interest and charges for bounced payments, which only made our financial situation worse. In 2012-13 we went onto a debt management plan and closed our HSBC account.
I would like to understand why HSBC have now written to me some 8 years after the account was closed with this token goodwill payment? I am considering making a request for a refund of excessive bank charges incurred between 2010-12 and as the bank has now admitted their service standards were below expectations, would like to know if this helps strengthen my case for a refund? I realise this time period is beyond the normal 6 year limit.
Many thanks for your invaluable advice.
Sara (Debt Camel) says
HSBC may be doing some review of old cases.
I think you should go back and say you were very poorly treated by them then – go into as many details as you can remember – and that £50 is entirely inadequate. Say you would like a refund of the interest and charges they added on between 2010 and 2012. If they say No, send them a formal complaint about this.
Rachael says
Jim if you do a quick google search for HSBC Compensation Cheques there’s thousands of people receiving them due to poor service. I’ve received 3 totalling £250 for the exact same reason. Basically HSBC know they’ve messed up big time in regards to their poor level of service for customers experiencing financial difficulty. Personally i’m writing a full letter of complaint to them once I question them about these cheques over the phone. In my case they breached many FCA Regulations on a number of occasions so I will complain until I get the response I require. Their lack of help and poor service put me into a great deal of financial difficulty when they refused to help me with a debt management and token payments I offered when I was made redundant in 2018… not to mention suggesting I use a Capital One credit card to pay off an HSBC Overdraft WOW!! Brilliant story for the FCA & Financial Ombudsmen haha good luck :)
Sara (Debt Camel) says
when they refused to help me with a debt management and token payments
you may know this, but you should be asking for all interest they added on to be refunded.
not to mention suggesting I use a Capital One credit card to pay off an HSBC Overdraft WOW
Wow indeed. You may also know this, but that is in breach of CONC 7.3.10 (https://www.handbook.fca.org.uk/handbook/CONC/7/3.html).
If this was on the phone, I suggest you send HSBC a Subject Access Request asking for all your personal information, including recordings of phone calls, for 2018-2020. You can do this by a message if you login or by email or you can write to them at Data Protection Officer, P.O. Box 6201, Coventry CV3 9HW addressed ‘for the attention of the DPO’ in which case you need to give your name, address, date of birth, customer number etc so they can identify you.
Luc says
Hi Sara,
I’ve had a response from shop direct regarding a littlewoods account they’ll upheld my complaint but with a low offer in which I don’t believe is correct. If I was to forward it on to the FOS would that have any effect on the cheque with the low offer I’m currently expecting? Many thanks.
Sara (Debt Camel) says
What was their offer? Did they describe what the offer was and that sounds poor, or did what they say sound OK but the number didn’t seem right?
Luc says
Hi Sara,
Thank you for responding.
They’ll upheld my complaint for credit limit increases for the last 2 years my account was opened,
They offered 209 pound in refund in which £120 was administration fees and the remaining is for BNPL interest. I haven’t been offered any 8% statutory as because I’ve never paid it I’ve never been deprived of those funds.
I agree with the credit limit increases for the last 2 years as that’s when my financial difficulties started, I do believe the BNPL offer is poor though.
Many thanks
Sara (Debt Camel) says
so do you think you have paid more interest than that? Ask them to send you a statement of your account for the last two years as you need it to be able to consider their offer.
Dawn says
Hi everyone, just a little update on my Simply Be/Viva la diva claim, after nearly 3 years the Ombudsman has decided in my favour. JDW have to
Refund any interest and charges incurred as a result of any credit limit increases from March 2008 onwards, Refund all interest and charges added to the accounts since 28 August 2008;Add 8% simple interest – calculated from the date of overpayment to the date of settlement; Remove any negative information about the account from Mrs P’s credit file from March 2008 onwards. I don’t know how much this will be as yet, JDW say they dont have information that far back?? but keep at them.
mrs cheaplaugh says
Brilliant result! I won a case against 2 JDW accounts a couple of years ago. They had to refund the same plus statutory interest going back about 5 years. It was a tidy sum in the end. Both accounts repaid over £1000 each. They should have all your account details. Make a subject Access Request. I did.
Steve says
Quick question please.
A friend of mine has asked if they will be able to put in a claim to studio. She did accept the increase but it got to a point where she was literally just paying the interest and never decreasing the value. With all the other debts this became just another debt. Could she claim?
Sara (Debt Camel) says
Yes, her claim will be stronger if she was only making minimum payments and if her credit record would have shown her other debts were increasing.
But how is she managing her debt situation? These complaints are not fast and usually have to go to the Ombudsman, so she needs to be in a safe financial space while this goes through.
Steve & Janine says
Ok thanks. She told me that the payments they were asking for was £75 a month but she was paying £85 but it would of taken her years to pay them off minimum her debts with other providers 118118 money claim still ongoing and and they are dragging there heels but the loan is nearly cleared and on a reduced payment. Then she has a fluid card which is just making minimum payments to. But not falling behind as yet. Financially she is just making the payments but if these were to increase then she would not be able to afford anything further. Fluid have already said that they are going to increase their interest rates.
Sara (Debt Camel) says
Ok, if fluid increase their rates, she can just say she wants to close the account and stay on the old rates. Then it is a just a debt she pays off.
But it may be easier to get a debt management plan for All the debts, studio, 118 and fluid. Then the interest gets frozen so all her monthly payments reduce the balance. Can you suggest she talks to StepChange about this option?
She can still carry on with the 118 complaint and complain to Studio. The DMP just gets her in a better place while they go through.
Steve & Janine says
Ok brill. Your a star. I will have a chat now and see what she wants to do about a dmp. And in the meantime progress with the complaint.
Andrew says
Hello All,
Can anyone help with some general information – A Catalogue company is chasing a family member for an old debt.
They have provided a “credit agreement” This is not signed and just blank not even electronically signed or dated – Is this Enforceable? They have also not provided a full account statement of goods, prices or fee’s in over 65 days currently.
P.S – Great information on the website – Sent template to my affected creditors and for family too. Growing up I saw how DoorStep Loans were pushed on customers in particular around Christmas :-(
Thank YOU
Sara (Debt Camel) says
This other article https://debtcamel.co.uk/ask-cca-agreement-for-debt/ has a section on this: How can you tell if it is right?
Shaun says
Good evening,
I have made a complaint against capital one. They got back to me today partially upholding my complaint
They said to the higher balance Card saying I generally paid over the minimum then payed the balance off in full. Then a month later they gave me a increase, I payed the balance off though due to a £13000 loan I took out to pay my debts.
I didn’t even mean to claim against the little balance on another card but they have refunded me £430 which more than happy with.
My question is though can I go the FOS because they have offered me £430 for a card the said they shouldn’t have gave me on 17th FEB 2016. But say they done everything right and not accepting my complaint on the bigger card and increased the limit on 26 jan 2016.
Surely they can see my loans which I had and my new £13,000 loan on my report. Also why say yes to one and no to the other barely a month inbetween increases and why there paying out?
Sorry for long message any advice be very grateful
Sara (Debt Camel) says
Is it correct that you generally paid over the minimum? How large was the increase?
Have you looked At whether the 13k loan was “affordable” ? What interest rate was it and who was the lender?
shaun says
Hi Sara, I’m not sure I think I paid a set amount each month but would use it again if it was over the minimum it wouldn’t be by very much. The increase went from £500 to £1250. This was about same time of me opening a new capital one for £200 month between and 2 months after getting a £13k loan
The loan was with NatWest at a high interest rate for a bank like NatWest think it was 18-20 per cent not sure if I can check this, 5 years on an still got a loan with them just consolidating and repeating it really the interest rate on loan now is about 12 per cent.
Sara (Debt Camel) says
Then I think that’s worth taking the complaint to the Ombudsman.
And read https://debtcamel.co.uk/refunds-large-high-cost-loans/ and think about complaints to Natwest.
If your finances are difficult at the moment, talk to StepChange about a debt management plan. This is a much better option for you then keeping on consolidating and ending up having to borrow more. You need to end this cycle of failure.
Winning Ombudsman complaints will then massively speed up the debt management plan.
DEAN says
Hi sara, i have a AQUA mastercard which has a outstanding balance of £2800 and i am on a DM with payplan plus. i have had so many payday loans and Credit card which i used for gambling im just wondering would i have a good chance of claiming against aqua? the account i took out in 13th january 2014, but the account has been defaulted in 31st august 2018. what would you advise me to do?
i used your amigo template and won last year i wanna say thank you for that and your website is amazing not just for me but i bet everyone thats used it is so grateful so thank you.]
many thanks
dean
Sara (Debt Camel) says
Is this Aqua card now in your DMP?
Has it been sold to a debt collector?
Can you say how large the debts are in your DMP? How much a month are you paying to it?
Are you buying or renting?
DEAN says
yes, and another barclaycard also, yes its been sold to cabot financial.
i have 4 debts in my DM
satsuma – £850
aqua – £2800
barclay card – £1200
118 118 – £4500
i have a case against 118 been going over a year and has just been picked up with a adjudictor, just in process to do a affordability claim against satsuma.
with pay plan i pay £25 a week so £100 a month as my partner got made redundant due to covid and looks after my 20 month old baby so things are a bit tight hence the email.
we have a mortgage not renting.
many thanks
dean
Sara (Debt Camel) says
If things are tight at the moment, you should ask Payplan to reduce your DMP payment, or even take a break from it.
You could ask Cabot to produce the CCA agreements for the card debts it has – see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If it can’t, those debts are unenforceable and you can not pay them.
An affordability claim against Aqua – these tend to be easier to win if the lender increased your limit at a point where you were only making minimum payments – did they?
Dean says
Hi Sara, yes I started at £250 then went to £3250 over a few years was always making payments every month.
Thank you Sara
Sara (Debt Camel) says
then go for it!
Wimscot says
I filed a complaint with Aqua Card. New Day. They didn’t uphold it, by sending me an computer generated answer with an overview of my account. So I sent it to the Ombudsman. Meanwhile I paid off the credit card., but they blocked the available amount, without any notice. I don’t mind, as I never going to use them again, but I’ll keep fighting them till the end. So beware if you are depending on that card. If you complain, they mark you down and freeze your card. One of the worst CC companies in the UK.
Natalie says
This is what happened to me with Marbles card also Newday. I complained and they refused my complaint and closed my account.
I had already sent the complaint on to the FOS this was back in July last year and this week I have been assigned a case worker who had requested the info he needed from Newday. My account is marked as disputed on my credit score and I am paying off the minimum amount each month.
Paul says
To be honest they are doing the right thing if you have complained it is unaffordable, they are stopping you from getting any further debt with them.
Natalie says
Yes I agree. It is just a bit of a nightmare when having this withdraw and being in the middle of sorting debts out and getting back on top after redundancy. Having informed them and asked for help on multiple documented occasions they were not very helpful.
Maureen says
Hi, has anyone managed to put a complaint in about monument credit card? I had one years ago but wasn’t working at the time, was going thru a very difficult divorce, they did the application over the phone. I’ve tried looking them up but can’t find the details anywhere. Looking back they shouldn’t have given me the card as only had income support coming in
Any help would be great. Many thanks
Sara (Debt Camel) says
Affordability complaints can only be made about lending after April 2007. Monument closed in 2009. And most of its lending was before 2008… this may be too old to pursue.
Maureen says
Thankyou sara, I still owe £1400 on it, paying it off monthly. Was a difficult time but thankfully better now. Thanks again for all your advice.
Sara (Debt Camel) says
If it has been sold to a debt collector, I suggest you read https://debtcamel.co.uk/ask-cca-agreement-for-debt/. This may not work but for such an old debt it is well worth a try!
chris says
Update on JD Williams t/a Premierman claim. Adjudicator (20 months and counting) got in touch and asked for 26 months of bank statements to be sent to him from 2013-15. Fortunately, I could do that. So, sent these and now back to waiting.
Ruth says
Hi Sara,
I had a student overdraft which was initially interest free back in 2009-2014, where the limit was increased several times very easily up to 2000, this then changed to a regular account with the overdraft but not interest free. I lived in this account until 2017 when I finally managed to clear it in one go, but the charges and interest sent me into huge debt with taking out multiple payday loans and gambling (stupid I know!) to cover living and charges, resulting in the account defaulting and me being in a DMP. I complained years ago, but was ignored. The account was closed in 2017 but last month HSBC sent me a £50 cheque out of the blue saying I hadn’t been dealt with adequately at the time…could there be grounds for me to complain further? Thankyou in advance
Sara (Debt Camel) says
You say you complained but were ignored – do you mean your complaint was dismissed by HSBC or you never had an answer?
Ruth says
It was dismissed. I didn’t know how to put a complaint together at the time so I believe it was dismissed with not presenting my case well
Sara (Debt Camel) says
were you told you had the right to take the complaint to the Ombudsman?
Ruth says
I honestly cannot remember sorry, it was so long ago.
Sara (Debt Camel) says
ok, then i suggest you go back and say their offer is inadequate for the amount of problems and stress this overdraft caused you and you would like a refund of the charges they added on to your account.
A. says
Hi
In 2016 I got into an increasingly worsening situation where I was borrowing from cards to pay other cards and the spiral kept going until I got in touch with step change who helped me set up a dmp… which I’m still using. This resulted in3 defaults.
After finding this page I’ve made irresponsible lending claims and have just received a final decision by NewDay for an Aqua card for £1600. I’m happy with this but they state they won’t remove the default as they feel this is factual reporting to the CRA’s. NewDay agree that the 4 huge credit limit increases between dec 2014 (£1400) and April 2016 (£6350) should never have happened and have paid back any late payment fees or over limit fees which results in the £1600.
If they’ve admitted this shouldn’t have happened should they not also remove the default? This card, the huge increases in limits and my poor management of this were the primary reason my finances crumbled.
Sara (Debt Camel) says
It is VERY likely that the Ombudsman wail say they have to remove the default. It is also likely that they would say Aqua have to refund done if the interest they added as well as the extra charges.
I suggest you say reply saying that you are happy to accept 1600 in the interest of getting this settled speedily but that the default should also be removed as this says https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/unaffordable-lending.
Say if New Day don’t agree to remove the defayoh will be sending the complaint to the Ombudsman and in that case you will also be asking for a refund of the interest you were charged, not just the over limit charges.
A. says
Hi Sara thanks for this advice. I will do this particularly as they’ve admitted in writing that the increase in December 2014 shouldn’t have happened with this being the catalyst for my financial woes.
In November 2020 I have also made 2 other similar complaints to MBNA and Advant loans. Advant are looking into this and have kept me informed however I’ve not received even an acknowledgment from MBNA. Do I just wait this out for the 8 weeks and then take it to the FOS?
Thanks in advance of any advice.
Sara (Debt Camel) says
I suggest you phone MBNA and ask whether they are looking at your November complaint as you have not received an acknowledgement
A. says
Hi Sara, in reference to the default NewDay are saying when the account was sold to Cabot, NewDay removed all their info from my credit file and are unable to remove any information placed in my file by another company.
The default is from when the account was in NewDay’s possession but the default states Cabot on CRA files.
I have now contacted the FOS but I suspect this might be in vain. Would you suggest I contact Cabot and if so how would you approach this?
Thanks again for all your help.
Sara (Debt Camel) says
So have New Day said the default should be removed? If they have, then send that to Cabot.
Al says
Hello, posted something similar in another thread – hopefully I’ve got the right one this time.
NewDay sent me the standard persistent debt letter in 2019, in relation to me Aqua card that’s consistently been at it’s limit of (£5800 currently) for years. I was trapped in the PDL cycle for a long time and just couldn’t chip away at any debt, and used other lending such as credit cards to try and help. On the back of lots of successful PDL complaints for irresponsible lending I sent the same complaint to NewDay. It was partially upheld by wiping my £500 second NewDay card and cancelling my £5800 for more usage (I still had take it back) I passed the complaint to FOS who have just got back. Investigator has sided with me – recommending the pay all interest and fees back from 2014 (9k at a guess) FOS are waiting to hear back from ND who are not responding and she’s given them a deadline to get back to her.
Question is – are they likely to disagree? Do companies like this normally disagree with investigators?
Al says
Further to this, FOS have confirmed what happens when they don’t reply and if they disagree – it’s goes to the ombudsman who will make the final judgement, but I’ve been advised this will take a long time due the backlog. I’m trying to get a bit more info in how the process works from now on. If NewDay agree, how likely would it be before they would process the refund? Is there a time limit?
Ellie says
Can I please be nosey and ask when you submitted your complaint to the FOS and when an adjudicator was assigned to your case? Just curious as my case has been with my adjudicator a year this month and feel I keep getting fobbed off!
Sara (Debt Camel) says
a year! I suggest you phone up and say you want to make a complaint about the delay in getting you a decision.
Al says
I’ve just had a look, FOS replied acknowledging the case in July 2020 and the investigator got back to me looking into it late October. That said – this is just the investigator (I’m not sure if that the same as adjudicator) and she’s told me that if we don’t reach a solution soon it will be passed on to the ombudsman which has a long wait.
Ellie says
Thanks Sara, I’ve contacted my adjudicator again (she tends to respond fairly quickly) but if she has no update will call them tomorrow.
Corrinna says
Can someone contact me
Sara (Debt Camel) says
Which lender is this? Have you already made a complaint?
Maureen says
Hi Sara, I’ve taken your advice, I had a monument credit card from 2013 which I am still paying off, it was sold to cabot. I’ve since found out monument are now CCUK Finance and had emailed them putting in a complaint saying I should never have been given the card as I was unemployed at the time and going thru a messy divorce. I’ve also asked cabot for a CCA regarding this. What do you think my chances are of getting this written off and any compensation? Many thanks
Sara (Debt Camel) says
I think your chance of compensation is low as the debt is so old. But the chance of it being unenforceable because the CCA cannot be produced is much better. I suggest you ask any further questions about the CCA aspect on the other page: https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Maureen says
Thankyou sara for all your help
Alison says
I’ve received a few refunds this year from 118118, lending stream and safetynet which is great and very wiped a large sum of my balance.
I’ve also made complaints to natwest as I had a large overdraft, now paid and account closed. They refused so referred to ombudsmen and also argos card and NewDay marbles credit card refused so all referred. Its more of the level of interest charged on all and natwest gave me a large overdraft on account opening when I already had alot of debt.
Does anyone have any positive outcomes on the above??
Thanks.
Paul says
Hi,
I need advice please.
My Tesco credit card was finally picked up by an ombudsman in August 2020 and they received the info from Tesco in September 2020. I have emailed for an update but all they say is they will be in touch once they review my case.
Should it take this long for an outcome and what should I do.
Thanks
Paul
Sara (Debt Camel) says
phone them up and ask if they need any more information from you, if not, what is the delay?
Paul says
Hi,
Thanks for your reply.
I have checked my emails and I contacted them on 2nd December 2020. They said there was a delay as they requested more info from Tesco which they now have and they would contact me once reviewed. That was 6 weeks ago should they have made a decision by now. If not what options do I have.
Thanks
Paul
Sara (Debt Camel) says
So go back and ask if they have now made progress.
DEAN PITCHER says
hi sara,
do you have the email address for aqua to send my complaint please.
many thanks
Dean
Sara (Debt Camel) says
with credit cards it’s usually easiest to login to your account and send the complaint as message. Put COMPLAINT in caps at the top!
DEAN PITCHER says
my account was defaulted and no longer have the Credit card, do i send a email to there complaints team?
Sara (Debt Camel) says
do you have an email address for that?
They want you to write a letter or phone them on 0443332202691
DEAN says
NO ill have to call them otherwise could i not send straight to FOS?
Sara (Debt Camel) says
no, a lender has to have the complaint for 8 weeks before you can send it to FOS. You waste everyone’s time if you send it to FOS at the start as they have to tell you to send it to the lender.
A says
Hi Dean
The complaints for Aqua card go to NewDay. Their email is Complaints@newday.co.uk
Lea says
Hi
Just wanted to see if anyone’s had any experience with complaints to nationwide specifically one of there credit cards?
I’ve had a complaint active for 1 year 6 months total, first nationwide disagreed so I took it to ombudsman they didn’t uphold till I mentioned nationwide increased my credit card limit same time they took away my overdraft I’d been living in for years, the ombudsman then looked into it and after a fair few months upheld the complaint due to new info, saying they shouldn’t have given me the card in first place based on my current account with them and payday loans (no adequate checks etc ) and said they needed to give me all interest/fees back and 8% interest. nationwide used a lot of delay tatic responses over 4-5 months not agreeing then not responding. So now it’s in ombudsman final decision queue (3-4 months now) … I lost my job due to covid in Dec got made redundant so told my adjudicator and I’ve been put in priority queue .
Sara had a question for you if you know, is there like a percentage of how often final decisions agree or disagree with adjudicators? And do you know how often things woth banks / credit card get resolved ?
Also if anyone has any experiences with a similar case would be nice to hear about !
Thanks
Lea
Sara (Debt Camel) says
Overall FOS cases, Ombudsman reach the same decision as the adjuicator in 90% of cases.
Bank / credit card decisions – really it is down to the individual case. I mean not as many complaints are upheld as for guarantor loans or payday loans, but that just means not all bank cases are weak – not that yours is.
Lea says
Thanks for the info!
Al says
A bit of an update from me, for anyone interested (and a couple of questions)
Despite the investigator stating they should refund me, NewDay do not accept this. So it’s gone to an Ombudsman and I’ve been told to expect a long wait. Anyone know roughly how long this might be? And is an ‘Ombudsman’ also an ‘adjudicator’?
On the back of my most recent correspondence I took a look at published cases on the FOS website relating to NewDay. From even just a quick look a lot of people have had similar issues and generally speaking rule in favour of customers in a similar position to me. It might be worth taking a look if anyone else is interested in how this process works.
Sara (Debt Camel) says
The queue for an Ombudsman seems very erratic.
An Ombudsman is a much more senior member of staff. An adjudicator decision is pretty informal. An Ombudsman decision is legally binding on the lender – they can’t reject it. And an Ombudsman decision is published – your name is changed to Mr J so you can’t be identified.
In about 90% of cases the Ombudsman makes the same decision as the adjudicator.
Here is a recent decision where Newday lost at the Ombudsman https://www.financial-ombudsman.org.uk/files/292576/DRN-2315325.pdf
A says
Hello All,
Normally have been done within 90 days ( I contacted FSA this morning) however No Set Time Frame due to Covid, However I submitted a complaint to FSA on 05 September and told only now with a case handler, and should hear within a few weeks.
DM84 says
Hi,
I have had a case upheld by an adjudicator with JD Williams but they ahve not responded to the judgement by the deadline.
FOS has given them 2 more weeks and then it will have to go to an Ombudsman for final decision.
Anyone else in the same situation?
It’s taken nearly three years to get this far. I was hoping another delay wasn’t in the cards.
Thank you.
Lauren Thomas says
I am in the exact same position. I hope it doesn’t go to an Ombudsman again as have been waiting over two years. Makes me think why even bother with the adjudicator’s decision in the first place. Keep posting how you get on.
Dawn says
Hi. I have been waiting 3 years for a decision on JD Williams. Ombudsman had decided in my favour and JDW have until tomorrow to come back with any other information. I doubt they will respond by then. Fingers crossed
Lauren T says
Hi Dawn. did you get a reply from JD Williams after? They have until tomorrow to reply to my complaint but after seeing the negative comments on here I’m not holding my breath!
Gary says
How have you all got on with j d williams responding to the adjudicator, they’ve found in my favour and JDW have until 16th of feb for me. Like everyone it’s been a very long journey so far on this one.
Lauren T says
Hi Gary,
The adjudicator agreed with my case and gave them 2 weeks to respond, no response so its gone to an Ombudsman. How is yours coming along?
Gary says
Hi Laura
I had the same the deadline was yesterday but apparently JDW are very busy with complaints so they asked for an extension to reply and so are agreeing a reasonable extension timetable with the FOS, we shall see what comes of it.
Mr and Mrs C says
Hi Lauren, I still havent heard anything from JDW. They didnt respond to the Ombudsman in time, so it went to a final decision in my favour. They now have till 8th March to calculate interest to be repaid. They have previously said they don’t have records as far back as 2008. So i am unsure how this is going to work. I honestly expect them to stall again and not contact me with an offer.
Lauren T says
Thank you for the update :)Mine has gone to the ombudsman too as I had no reply. I did manage to contact JD Williams on Twitter and they replied saying they are very busy, so may be worth trying them on there if you get no joy as that is my plan if they don’t reply to the ombudsman this time. I’m glad it didn’t take too long for you, fingers crossed.
izzy kilgallon says
how are you getting along with your jd Williams. complaint
darren says
Had problems with poor credit for some years and needed a tv and couldn’t get credit so went to a local tv audio company to rent a tv the assistant said why was i renting so i told him my situation and he said you can buy one if you have told your been ok for rental
so i had a tv on credit over 12 months interest fee as i went into a iva i did not include the tv loan and now cant afford the payments
but my main point it turns out the company never did a credit check and i was told i should be better to buy not rent
This must be a case of irresponsible lending ?
Sara (Debt Camel) says
well yes, but why did you not include this in your IVA?
darren says
i was going to but wanted to try reduced payments but just could not afford it
now found some paper work and checked my credit report and 100% no credit check and have approx £250 left to pay of £699 org bill
Paul says
If it was interest free like you said then you will get nowhere with this as you are only paying for a product you chose to buy with no extra charges!
How close was this purchase to getting your iva? As it could possibly raise questions
darren cairns says
about 8 months before my IVA
Sara (Debt Camel) says
ok but I still don’t understand why your IVA firm did not notice this debt – or was it deliberately excluded from your IVA?
You may well have a good claim claim for irresponsible lending. A refund would normally be used to reduce the amount owed. But whether your IVA firm will be informed I do not know, nor what the IVA will say.
How is your IVA going? If you are stuggling with this it may be that it was not the best debt solution for you. How many years to go? How much are you paying a month? And what is the total debt that went into it? Do you have a mortgage or are you renting?
darren cairns says
think it was left off because the iva company couldn’t see it on my credit file
IVA was a struggle so the iva company asking to extend the years its going to run for so possible 6 years
paying £50 a month to the iva and rent my home
was told i could not apply for a DRO as i have a car on finance not included in my iva as i need a reliable car for work
total debt excluding the car is about £16.500
the car hp is more than the car value if i sold it
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 to see if they think you would qualify for a DRO.
darren cairns says
i would but dont want to loose the car
Sara (Debt Camel) says
you do not necessarily lose a HP car in a DRO – that is why I am suggesting you take advice from an expert – National Debtline
Paul says
You got nothing to loose by calling the national debtline as you arnt commiting to anything by asking for their advice and asking anything you are worried about such as the car will only help put you in the right direction for a better future
darren cairns says
The manager spoke to me and asked to keep it going and didn’t at the time have anything more than a receipt was not given anything with credit details on to give to the iva company by the shop
Mary says
Hi Sara,
Sorry to hop on this thread but this is the same situation I am in. New Day have upheld my complaint but state that the default won’t be removed as it reflects the significant arrears. The default is registered to Cabot as it was sent to them. Should I be contacting Cabot to say Aqua have upheld my complaint?
Sara (Debt Camel) says
No, you need to get NewDay to do this. Same suggestion as I made to A above.
A says
Hi has anyone followed this process with MBNa? If so how did you find their communication?
I complained with MBNA, new day (Aqua card) and Avant in November last year.
New day is now pretty much sorted, Avant have kept in contact and I’m awaiting their outcome but mbna haven’t even acknowledged me even with follow up communications.
I just wondered if this is typical of them? I have now raised this with the FOS as the 8 weeks has triggered.
Thanks in advance
kate says
Hi Sara,
I have an overdraft with tsb bank which was increased several times during 2019 resulting in me now owing 4500, when the new overdraft changes were announced back in early 2020 i contacted them to see if there was anything they could do to help me as the FOS announced no one should be left worse off by the new interest rates and banks should help customers who would be, i was one of them customers that is now worse off as they refused to help me and blamed it on gambling transactions on my account. if they refuse help because of these transactions why did they offer me an increase of my overdraft to 4500? i made a complaint but they have declined because of the same reason, do you think i stand a chance taking it to the financial ombudsman? at the time the limit was increased i had other credit card debt, there was gambling transactions already on my account with them so i dont think they should of ever offered me the increase. any help and advice would be great
Sara (Debt Camel) says
That sounds complicated but I normally suggest people follow their instinct here – if you know increasing your overdraft limit ending up causing you a lot of problems, and if you think the bank would have realised this if someone had actually looked at your account, then take your complaint to the ombudsman.
Lisa says
Be Aware of Aqua Refund
I complained to Aqua and they upheld my complaint that it was unaffordable to increase my limit from £400 to £1200 and they refunded me my interest that i had paid over the £400 limit and took this off the balance on the card, however……… they only refunded me the interest up to the date on the complaint. They have since the complaint been charging me interest on my whole balance, including that over the £400. When I questioned this they just said thats what they have done! I already had the original complaint in with FOS so just updated them that i was still not happy even with the refund. The FOS adjudicator phoned me to excplain that he was recommending my complaint was upheld as he couldnt understand why they would uphold a complaint but then continue to charge interest. Just waiting for the letter to go out to us both.
N says
Hi has anyone used resolver to complain to very? Its been 9 weeks now and i haven’t heard anything at all from them?
Alison says
No but I used it for other loans and replied to one of the adjudicator emails asking them to raise a case for very too…think it took a few months and they wrote off about £1000 of my debt.
Elle says
Yes, I used Resolver to complain to 8 catalogues including Very,.. they all replied via letters except for Next who replied via email. Very were the last but did eventually reply, it was probably around 12 weeks or so though.
They didn’t uphold my complaint which went back many years including Littlewoods/Isme etc etc… but they did give the most detailed report and excuses for their way of working, pages and pages of it… I sent it on to the FOS,.. and I’m still awaiting an outcome 15 months on :(
N says
I just thought maybe resolver didn’t work for very as i haven’t heard anything. Thanks for replies
Sianyyyy says
After a long 18months I have had my complaint upheld with the FOS regarding my increase in credit limits with SimplyBe hopefully they will agree and I will be able to tick another lender who should not have conducted my account in such a poor way to now be closed. Only quickuid remain….. thanks Sara for all your help wouldn’t be in the situation I am now if it wasn’t for this site!
DM84 says
Update:
JD Williams did not respond to the adjudicator even after a 2 week extension.
Ombudsman has to look at the case now.
Matt says
Hi A few days ago I’ve received letter from
Barclaycard about my credit limit dated 20 November. The letter states that they’re going to refund me £1005 and they did. I’m paying off two cards with minimum payment plan. Do you think I should call them and ask about bigger refund and for some compensation because I was struggling to pay of those cards?
N says
Recieved a letter from barclays about a refund. Although my current account is not with them. I have sent my statement and refund form and ive had a reply as i sent the wrong statement by email. Just wondering if anyone has had a refund but not have a current account with them how long did it take to reach your account?
Sara (Debt Camel) says
The comments on this other article may be of more help: https://debtcamel.co.uk/barclays-refund-customers-arrears/
CJ says
Hello, would anyone be able to help me. I have been looking into unaffordable lending and have submitted complaints, majority are with FOS.
When I came across an old bank statement from 2005-2009 I was absolutely devastated to see that from 2005-Feb 2009 when they closed my account .Santander charged me a total of £31.850 in bank charges for unpaid DD’s and bounced cheques. My statements clearly show uncontrolled spending due to my Now diagnosis of BiPolar. I did submit a complaint a few years ago and they said they had done nothing wrong. I am currently well and managing my spending. And. Hanged banks from 2009-2018 with Natwest which was again a very similar situation although nowhere near like Santander. Do you think I have a case to take this back to them asking them to look into this – now i understand the whole situation – and I am well enough to continue with a new complaint? Or is it a no go, due to the law stating banks do not need to refund back charges? – it was the bank charges that started my spiralling debt problems and has continued ever since, and still owe thousands, but in a DMP now and plan to pay any debts of I can from any redress I might get back.any help would be appreciated- thanks
Sara (Debt Camel) says
The problem is that you have previously complained about this and you did not take it to the ombudsman at that point. I am nore th the tha Ombudsman will agree to look at the complaint now.
CJ says
Hi Sara, I thought as much. I asked about charges and interest and they said no. I didn’t know at the time what I now know. As it was around 5 years ago I asked when all the PPI claims were going in, I didn’t understand the FOS process and I could do it myself. It I suppose that not matter to them will it? They just say I should of complained at the time to FOS. Devastated to know how much I paid, I only earned £7000 a year and they charged over my annual salary on charges per year!!!! They should hang their heads in shame. It cost me my home twice and caused huge detriment on my health. I didn’t know at the time – and until 12 months ago I had bi polar which was the reason for spending. My statement do not even show I paid any essential bills just spending in shops and cash after cash all in one day! Sad really / but thanks you
Sharper says
Good Morning All,
I just wanted to say a huge thank you Sara for helping me get my life back on track. In 2018 I was in a huge amount of debt due to a mixture of overspending, gambling, paying huge interest & fees. This all resulted in an attempted suicide. My first step to recovery was admitting to my family the mess I was in and to stop gambling. Next was to tackle my finances. I count my lucky stars that I came across Sara’s website and early 2019 I started to complain to various payday lenders, likely loans, very and credit cards for irresponsible lending. I won ever case but one (it was with peachy and I only has one small loan with them). My final case was with Capital One. CO did not uphold my case (I had two credit cards with them), I submitted it to the FOS, I was finally picked up by an adjudicator last October (a year later) who also did not uphold my complaint, I esclated it to ombudsman who yesterday informed that he did not agree with the adjudicator and thinks I should not have been given either of the cards. In total I have had around £7,500 in refunds. I am now completely debt free. I also have managed to save almost £10,000 (I have never had savings in my life) from cutting back and picking up a second job. The moral of the story is don’t give up and keep fighting! Good luck to everyone who is still fighting and thank you again Sara.
Anita says
It is like story od my life…I also have the same problems, addiction and debts. This website and Sarah’s guidence has changed mu life. Big, big THANK YOU.
Craig Wallace says
Hi Sara
I had complaint with Barclaycard who rejected it stating that their numerous increases in my credit limit had been after they had carried out thorough checks. FOS adjudicator upheld my complaint and after informing Barclaycard of their decision Barclaycard came back with further information which the adjudicator can’t discuss as it is commercially sensitive and confidential. Despite this she has still upheld my complaint albeit she has now dismissed the first credit limit increase. She has written to Barclaycard informing them of this and if they still reject it will go to an ombudsman so still hopeful of a positive outcome.
Do you have any idea what the “commercially sensitive and confidential” information would be.
Sara (Debt Camel) says
They don’t show me their top secret info… probably your credit record?
Steve says
Evening all,
After coming across a lot of excellent content, I decided to write to Littlewoods on behalf of my wife as she racked up £7,000 worth of debt and it was passed to a credit agency.
I requested a data request first, then followed up with a complaint letter for unreasonable lending. It’s taken months but received a letter this morning for my wife to say that littlewoods will uphold the complaint and they have written off the balance and removed the default and negative reporting.
Wife is over joyed at the outcome, thanks a lot for such a great site👍💪
Elle says
Hi Sara,
I have just got off the phone to an FOS adjudicator, he phoned me… about my Freemans, Kaleidoscope, Bonprix and Grattan irresponsible lending complaints (all are owned by the same company), but he says even though they consistently increased my credit limits (and allowed me to open four accounts with them), they didn’t actually do anything wrong. He says Freeman’s say their data only goes back to early 2017 and the 1 year’s gesture of goodwill (refund) that they have already given me is acceptable, (it just covers my last year with them).. even though they gave this but didn’t uphold my complaint.
I had wanted them to go back further than this (2014 -2018 at least) as it would show all the credit increases over those years but he’s now saying that I didn’t complain in time. I complained in Sept 2018 (after paying all the catalogues off with a further larger loan) and after I spotted here that I could even make such a complaint.
He wishes to close the case.. he’s going to email me, but what can I actually do now please?
I have 4 further catalogue complaints with the FOS and it’s a shame that the 8 issues can’t be looked at as a whole…from my financial point of view and my previous credit files.
Sara (Debt Camel) says
that sounds an odd decision by the investigator. Have you offered to provide your credit record and your bank statements?
You can ask for the case to be looked at by an Ombudsman – that is the second level for FOS decisions when you think the investigator is wrong or it is unfair.
Elle says
Hi Sara, he said the catalogue co’s are allowed to raise the credit limits as and when they like, and I should have asked them not to if I wasn’t happy with this. I said I had no notifications prior to increases, and they just raised them as I neared my limits.
I have already provided my credit record and a full page showing all the catalogue increases of all 8 catalogues between 2014 – 2018 but he said, that isn’t really evidence and he can only look at Freeman’s 4 catalogues (no one else’s) and being that Freeman’s don’t keep their/my records any further back than 2017 he can’t see any point in pursuing it.
He did also ask if I had any older catalogue statements, I said very likely in the roof in a box but I couldn’t put my hand on them right now. But then later he said I was too late in taking my complaint to the FOS anyway, as they couldn’t look back 6 years. I said okay, I understand that.. but because I paid off all my accounts in April 2018 (via further borrowing) and Freemans have already refunded me for my last year back to 2017, that was it, done as it also didn’t fit within the 3 years rule… had they kept records further back then maybe.
No, I’ve not shared my bank statements, I’ve never been asked for them.
I’ve not been asked to supply anything (apart form filling in all the legal forms), this is the first time I’ve spoken to them re-Freemans.
Thanks.
Sara (Debt Camel) says
I suggest you offer to provide your bank statements. And root around for those old catalogue statements!
he said the catalogue co’s are allowed to raise the credit limits as and when they like
this isn’t correct. They have a duty to check the new limit is affordable.
Elle says
Thanks Sara,
Bank statements aren’t a problem (being self employed I keep everything) and I could likely find some catalogue statements.. but when I asked what I could do now, what did he need to see to take this further, he said it wasn’t as simple as that… as Freemans had done nothing wrong (in his opinion) they had no case to answer.
I think when he emails me his break down of everything discussed I will insist it goes further/gets looked at again, and include what you have suggested… and if so, then on to the ombudsman. In the meantime, yes I shall dig out all the paperwork I can find.
…and thanks for clarifying the credit increase issue.
I do feel that some of the adjudicators aren’t that clued up on this stuff,.. I had a similar issue with one about my Next account, and I perhaps rather stupidly believed them and let the case close,…Trouble is many a complainant will walk away at this point simply down to what they are told by the adjudicators.
…but my thinking still is,…at end of the day, what have I got to loose in taking it further….apart from a few hours crawling around in our roof space. ;)
Much obliged as always ~
Sara (Debt Camel) says
Indeed. Say you want it to go to an ombudsman and hunt now for that info – don’t wait to be asked for it.
Fred says
Hello do you know if there is a time limit for the business to respond to the investigator? (ombudsman)
It’s been over 2 months since the requested my information from them and they haven’t sent anything yet. (New Day) it’s the initial stage.
Melissa says
Quick question regarding a store credit card with New day. I have been going over lots of debts that I have had over the years and have had success with many complaints. I found letters from Debenhams regarding my new day credit card and this was a 5k limit which was passed to Lowell. As Debenhams is no longer trading can I still put in a irresponsible lending complaint?
Sara (Debt Camel) says
your card was provided by New Day – they are still trading and your complaint should go to them
Dave says
I have a question on credit card refunds.
If an ombudsman asks the business to refund interest and charges following all credit limit increase made on that card, is the business supposed to refund ALL interest that was added each month after those increases or just the interest that was added over the what’s been deemed as affordable by the ombudsman? For example, if the limit were £1,000 and the ombudsman instructs the business to refund interest following increases that meant the limit was increased to £5,000, should should business refund all interest that was added monthly or just the interest that was added over the first £1,000?
Sara (Debt Camel) says
That depends how it has been worded. You should query this with the Ombudsman if you are unsure.
Chris says
Update on claim against JDWilliams made initially in May 2019. The Adjudicator has ruled in my favour and asked the company to refund charges and interest, add 8% to the remaining sum and then remove adverse markers on my credit file. JDW have until February 17th to challenge. I appreciate this is still in its initial stage but definitely feel the journey is nearing its end. I still owe £850 or so and I am hoping that the refund will, effectively clear that amount. It could be more – which will be fab. Will keep you posted.
izzy kilgallon says
hi there. im in same situation with 3a accounts under jd Williams name. fortunately I managed to pay mine off credit limit total was 8500 £
im waiting on jd Williams response who have until 8th march this has been long 2 years but hopefully light at end of the tunnel.
keep us updated on response
good luck
Rebecca says
Hello
Can I first say thanks for all your info on your site, I’ve had several refunds over the past two years. My most recent is from very, they upheld my complaint and offered £1000 refund. I still have £200 outstanding with Lowell. They said they would clear that balance and send a cheque with the rest. This was over 2 weeks ago. My Lowell account hasn’t been settled and I’ve received no cheque. I called and they said it was sent out the same day as the letter. I then followed up 4 days later when they said someone would call me, no one did. I then called back they told me to wait longer for a call back their busy. Four days later no call. I’ve sent a few emails and had no reply. Do people normally have this issue with very and what should I do next? Thanks
Simon says
Hi Sara,
I have recently had 2 affordability complaints upheld against Halifax for unaffordable loans back in 2016. Do banks usually agree with the adjudicator in the first instance and are the payout times generally quicker than from payday loans complaints?
Sara (Debt Camel) says
I haven’t seen enough Halifax decisions in this situation for that to be of any help to you.
Lea says
This may not be relevant but I have an open case with nationwide bank but regarding irresponsible lending for one of their credit cards. I complained direct to them first they took no responsibility so I went to ombudsman and adjudicator picked it up in 5 months and initially didn’t agree but once I gave new info he changed his mind and upheld my complaint another 6 months later. He contacted nationwide gave 2 weeks to respond took 3 weeks. Nationwide rejected. Info they sent did not change my adjudicators decision so he responded and gave them 30 days from 3rd august to respond or would go to ombudsman for final decision. They kept using delay tatics and dragged it out till October saying they’d get back they needed more time. Finally by October my adjudicator said enough is enough and it was going to ombudsman for final decision. Here I am still waiting in priority queue for final decision . All in all been 1 year 6 months and counting still . Personally My payday loan ones were a lot quicker picked up in a couple months and they’d all agree with adjudicator never went to ombudsman final decision.
Lea
Rachael says
I just want to thank you! When I was 18, I started to get into masses of debt.
I entered into a debt management plan a number of years back and worked SO hard to get debt free and change my habits, I didn’t quite understand how bad credit would affect me later in life, and have struggled to even be considered for a mortgage.
I got a letter from Barclays before Christmas, who admitted to irresponsible lending, providing me with a cheque of 150 pound compensation. I didn’t even realise that was a thing until that letter, so jumped online to investigate. I found your site and with the help of the info here decided, for the price of a few stamps, I may as well try all my past creditors – especially those that give me ridiculous limits.
Fast forward a few weeks and I get a letter in the post. Shop Direct (Littlewoods and Very) are refunding me over £7,000 and wiping any bad marks off my credit report. I was so shocked I had to sit down for a minute!
I still have a number of creditors that are looking at my case – so there may be more in the pipeline. BUT what an amazing result. Thank you SO much.
If you are thinking of doing it, please do. I put it all down to being an irresponsible teenager, but some of the blame has to lie with these companies. Ignore the people that say it’s all your fault!
I cannot thank you enough!
Amanda McCullough says
amazing can i ask how long did it take with very to respond and the process you had?
Lea says
Hi
Jsut had a question for Sarah or if anyone else knows the answer!
I had an account with Very think i opened it 2015/2016 time and in 2018 they passed my debt onto lowell group and i finished paying it off dec 2019.
If i was to do am irresponsible lending claim do i do that to very? or not? how does it work as my debt was passed onto a collector? (which is paid off)
Thanks
LEa
Sara (Debt Camel) says
The complaint goes to Very. They will take into account the payments you made to Lowell in calculating the refund.
Paul says
Hi, has anyone had any success with a complaint against Next please? I’ve had an account since 2004 and they put the credit up a couple of times. I was able to buy dozens of iPods and gift cards to sell on EBay to make cash. I would say that this was irresponsible on both counts when I had major issues.
Sara (Debt Camel) says
These complaints are very individual – other people may have won or lost theirs and it may have little relevance to you.
If you think Next increased your credit limit at a point when they should have realised you were in difficulty, send them a complaint.
Maureen says
I sent off the CCA request form to cabot regarding the monument credit card as you advised and they have said they cannot produce the CCA so this is unenforceable. Does this mean I don’t have to pay it? Its from a debt 14 years ago and cabot financial have been chasing for the money. Its come off my credit report several years ago. Many thanks for your help
Sara (Debt Camel) says
They have agreed the debt is now unenforceable. It still legally existis and they can ask you to pay but if you don’t they cannot take you to court for a CCJ.
So you can simply stop paying. If they ask you to make a payment arrangement, get a simple replay that you make every time “You confirmed to me by email/letter on dd/mm/2021 that you cannot produce the CCA agreement and so the debt is unenforceable. I will not be making any payments to it.” They will get bored with this when they see you aren’t going to change your mind and will stop contacting you.
Paul says
Just wondering if a debt becomes unenforcable, say 10k and they stop chasing etc… and 15 years later you come into some money and own a house with a small mortgage or some savings with the same bank that you did owe can they help themselves to the money or add it on to your mortgage out of interest?
Sara (Debt Camel) says
own a house
the only way a house could be affected is by getting a CCJ then a charging order. If the debt is unenforceable there can’t be a CCJ
savings with the same bank
It is pretty rare that a debt to a bank becomes unenforceable. 9 times out of 10 the debt has been sold to a debt collector and it is the debt collector who cannot produce the CCA agreement. Then the original bank lender will not know or care what happened to it.
add it on to your mortgage
Couldn’t happen. But they could refuse you a mortgage. You might sensibly decide to avoid applying for a mortgage to them if you have had debt problems in the past with them. But this applied even the debt was not uneforceable.
Jay says
Hello,
June 2019 I raised a complaint to Shop Direct Finance Company regarding a Very and Littlewoods account held, in relation to irresponsible lending. This was rejected and I decided to peruse with FOS.
I have had a complaint open with the FOS since October 2019. After several emails, phone calls and chasing they are still advising me the have no update and they haven’t yet passed this to a case handler.
They have advised they received my case file from Shop Direct in January 2020, however I would like to know why is it taking them 16 months to pass this to the relevant person.
Are you able to provide me with any timescale, and if there is anything I can do to make them see to this as a matter of urgency.
I just feel the overall service from the FOS is appalling.
Appreciate your help on this matter.
Thanks,
Jay
Sara (Debt Camel) says
Do you still have these accounts open? Is making the repayments a hardship?
Jay says
Hi Sara,
No the accounts were settled and paid in full August 2019.
Thanks,
Jay
Linda says
Sara have you an email address for complaints for Very
Rebecca says
Message them on resolver, they will take a while but they will send you an acknowledgment, but in a letter. They will answer you but does take a bit longer than other complaints I’ve made.
wes says
im looking for an opinion on a complaint my dad sent to vanquis in which he’s just received his final response letter. (points in brackets indicate my dads points of view)
Vanquis have rejected his complaint on a couple of grounds.
A few points from their final response letter:
1. no outstanding CCJ but did show one default a fair few months prior to acceptance.
2. They upped his credit limit, but the reasons given to him against his complaint,
-payments made on time (however on his vanquis account he’s had multiple late payments)
-no new ccjs or new defaults.
-existing debt although increased (figures had doubled) was still in line with their lending policies.
-3 months prior to each increase offer, he’d constantly paid in excess of minimum payment. (just over minimum payments on a high interest rate doesn’t touch the sides.)
3. They emailed to inform that the credit limit was going to be increased and that he didn’t reject the increase. (is it reasonable to expect my dad to reject an increase when finances are tight?)
Also they’ve told him the loan was affordable, with the household annual income at £….. but the card is in his name, so why does the household income matter and not what he earns individually?
Thanks
Wes
Sara (Debt Camel) says
1 is a fair point to make about their first offer of credit.
Vanquis should have taken into account the late payments he made to them when thinking of raising his limit. If he was just paying a bit more then the minimum then that isn’t that significant. If he had made a lot of larger payments and his balance was really dropping, that is important.
How did they know what his household income was, had he been asked this? Has he been asked if his partner had debts?
wes says
yes he was only making just above the minimum payment each month, so to say he was making regular payments above minimum payment was an exaggeration of the truth.
He can’t seem to remember them asking what the household debt was, just household income within the application, so vanquis have assumed the house is debt free bar my dad.
Do you think he has a point for complaint and should he considering sending to the FOS.
Thanks
Wes
Sara (Debt Camel) says
You haven’t said how much Vanquis increased his credit limit so it’s hard for me to guess.
Also does he still have a balance? Can he afford the repayments?
Is this his only problem debt?
Wes says
the balances increased by £500 on multiple occasions. He currently still has a balance, to which as stated above he is only managing to make just above the minimum payments each month, so the debt is just perennial.
No he has existing which he’s paying off along with this credit card which had been seen to double in the period of time from the original acceptance to now. Vanquis have even acknowledged the increase in the final response letter.
Sara (Debt Camel) says
And is he having difficulty withe the repayments?
The reason I am asking is these cases can take a long time at the Ombudsman.
It may well be that a debt management plan from StepChange could help him now, it would reduce his monthly payments and freeze interest so although he would be paying less his debts would actually be dropping faster. Then if he wins the Vanquis complaint the DMP would finish a lot sooner! So it gets him into a safe and improving place while he waits. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Wes says
I’ll suggest this to him thank you.
Do you think it’s a worthy case against Vanquis if he was to send it to them?
Sara (Debt Camel) says
It’s hard for me to say. What I always suggest is that people should follow their gut instinct. If they know the credit increases have caused them a lot of difficulties and if they wish they had realised this and had said No when they were offered, then that is a sign the larger limit was unaffordable.
Alison says
Hi.
Looking for some advice regarding a complaint I raised with new day for my Aqua account. I complained to them for irresponsible lending for a credit card that had credit limit increases to eventually £4200. They have upheld my complaint and state they will refund a total of £922.87 which will go the debt agency and a further £30 as they incorrectly did not update my credit file that the debt had been sold and has remained on my credit file since 2017 when it should have been changed as the debt was sold.
The refund is only in relation to one credit increase in august 2014 and state that prior to this 3 credit increases were done by the previous SAV credit so I can not reasonably expect new day to refund for SAV credit limit increases.
They further increased my credit limit in February 2015 but have not upheld this complaint although I don’t know why as my credit file and financial position was worse than it was in august 2014.
They have also stated “we are unable to provide you with statutory interest or remove any information from your credit file, as we must report true and accurate information to all credit reference agencies we report to”. Well arguably they haven’t as they should have made the amendments to my credit file on selling the account in 2017? They have offered £30 for this error but do not mention anywhere else why they will not pay statutory interest.
Is there offer fair and reasonable?
Sara (Debt Camel) says
So their three points:
1) prior to this 3 credit increases were done by the previous SAV credit so I can not reasonably expect new day to refund for SAV credit limit increases.
Their website says the change from Sav to new Day was a “rebrand” – that would not change their liability for the previous branding. But it is for the ombudsman to make a ruling on this.
2) They further increased my credit limit in February 2015 but have not upheld this complaint although I don’t know why as my credit file and financial position was worse than it was in august 2014.
That sounds clearly wrong. This is the simplest of the points, and also perhaps the one that would make the largest financial difference to what your refund is. I say “perhaps” as i have no idea how they calculated the £922 refund.
we are unable to provide you with statutory interest or remove any information from your credit file, as we must report true and accurate information to all credit reference agencies we report to
Statutory interest – you will have to ask the Ombudsman for a decision on this.
They can remove negative information from your credit record if they have made an error in increasing your credit limit. They don’t want to… again this is a matter for the Ombudsman to make a decision on.
So to me it seems there are grounds to contest them all. If it was just the credit record or just the statutory interest or just the older credit limit increase you may decide you had got most of what you wanted and accept their offer. But with point (2) sounding so clear cut and all the other points I think you should consider sending the case to the Ombudsman now. This is easy, see the article above.