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?
For some people the limit was too high at the start. Others were originally given an OK limit, but the lender kept increasing it. or it was OK while the 0% offer lasted, then unmanageable.
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 similar 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 very 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;
- often taking cash out on the card;
- 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 had 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 that interest 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. Don’t make a complaint about a BT that is still at 0%, it’s much easier to wait until the 0% has ended.
Do I need to know the limit and date details?
No. My template below asks for these. The lender already knows the details so it doesn’t help your complaint by listing them. Don’t delay making a complain trying to find these out.
Think about these points before complaining
You can complain about open or recently closed accounts
These complaints can be made if your account:
- is still open; OR
- it is closed and settled within the last 6 years; OR
- or if it is with a debt collector and you defaulted within the last 6 years (NB the complaint goes to the original lender, not the debt collector.)
If you have had a DRO, IVA or bankruptcy after these problems, ask in the comments below, as this can be complicated.
Old accounts
Many lenders reject complaints about a card opened more than six years ago and say the ombudsman won’t look at them.
FOS may look at these “old” accounts if they have still been open within the last six years. But you are much more likely to win if there have been limit increases in the last 6 years.
If your account was opened in 2017 say, but the lender increased your limit in 2021, that limit increase is within the last 6 years so it can definitely be looked at. 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 over 6 years 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 asking for this rather than making an affordability complaint.
Is a refund what you really need?
Any refund sounds good, but is your problem much bigger than this?
Complaining only gets the interest refunded – you still have to repay what you borrowed. If the debt is newish, you may still be left with a large, unaffordable balance.
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. But you may still need help to get interest stopped on the cards – talk to StepChange or National Debtline about getting new interest stopped when you are in difficulty.
How to complain
The email address to use
The best way to complain is by email. Find the email address here:
Credit card and catalogue email addresses
Start with this template
I’ve invented an example so you can see how a complaint could read.
Change/delete the bits in italics to tell your story. Miss out any 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.
Put this in if you don’t know some details
I do not know the exact months when the account was opened or any credit limit increases or decreases. In your reply to my complaint, please tell me the dates and amounts of all limit changes, even if these happened over 6 years ago.
Then say IF 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. 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.
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 payments to you in 2023
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 my credit record. (do not mention this if the credit record for this card doesn’t have problems)
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! The increase should not have been offered 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?
Ali says
Finally received a response and I am a little gobsmacked!
Both complaints against Very and Littlewoods were upheld totalling a refund of just short of £8,000!! Part of this will go towards the debt but it leaves me with approx. £5,600.
I am over the moon!
Anita says
Hi. This is the reply from adjudicator
JD Williams told us they had to clarify some additional information to make sure that any offers are clear with their consumers, and they told us they would be in touch with you soon.
If you could please continue to check your correspondence – including your spam mailbox – to ensure you haven’t missed anything that would be great.
As your case is closed with us, any updates in relation to payment etc. will not be communicated with us.
I do hope you hear from them soon as I know this has been going on for a while and you’re eager to have this resolved.
In terms of enforcement, there isn’t much we can do as we aren’t the regulators, but we continue to flag the cases where customers tell us they haven’t heard from the business. We do also report any trends to the Financial Conduct Authority (FCA) and they can then take the appropriate action against a business.
What’s your thoughts Sara. Appreciate your opionion
Sara (Debt Camel) says
“JD Williams told us they had to clarify some additional information”
ask your adjudicator who they were “clarifying this information” with… FOS? In which case FOS will explain how the refund should be calculated… Or someone else, if so, who?
Tell your adjudicator that this is unreasonable and that the case is not closed until you have received payment.
Also tell the FCA about this. The FCA will not look into your individual complaint but hopefully, JD Williams will not like the FCA being told and there will be some action.
To do this, email consumer.queries@fca.org.uk and copy this to compliance.team@nbrown.co.uk and dan.joy@nbrown.co.uk
Subject: JD Williams (311618) have not refunded me despite accepting FOS decision in April
Give your JD Williams customer number or complaint number. And your FOS reference number.
Give a very brief summary of your complaint – no more than a couple of sentences.
Say JD Williams accepted a FOS decision in April but you have still not been paid. They provided you with with one calculation which was clearly wrong and they have not told you a corrected one.
Say how stressful this is. If you have credit card debts or an overdraft, say every money you are having to pay interest on these because JD Williams is delaying paying you.
Say you know that the FCA will not look into your complaint but you feel as the regulator they should be aware of what is going on. Say you think if an FCA authorised firm cannot calculate and pay a refund within a month from the Ombudsman decision they should have to stop trading until they staff their complaints function properly.
A says
Hi Sara
I wonder if you have any advice for me on what steps I should be taking next because i am at my wits end with Barclaycard :(.
– 27th April I complained and got an email through resolver saying they would respond within 2 days.
– 5th May a letter saying I would receive a final response by 12th may.
– 10th June I emailed Barclaycard stating that I could escalate my case in 12 days.
– 21st June I stated I could escalate the case within 14 hours.
– 22nd June I escalated to the Ombudsman. Advised 3 months before my case would be given an adjudicator, however in my past 3 dealings with the Ombudsman this has been 12 months+
– 19th July I recieved a letter from Barclays dated 28th June stating they need more time and a final response by 5th July.
– Yesterday afternoon I called ‘complaints’, after being on hold for an hour I was informed that they ‘will not’ issue a response until after the Financial Ombudsman has made a decision on my case and this was a policy from the Financial Ombudsman themselves!
Sorry about the lengthy post. I feel like I am completely at their mercy and in the meantime still paying £68 a month on a card that is frozen.
.A
Sara (Debt Camel) says
Are the £68 a month payments affordable? Did Barclaycard freeze the account after you made a complaint or had they already frozen it because of persistent credit card debt?
What is the rest of your financial situation like?
Can you say something about your complaint – was it that they increased your credit limits? Or that they failed to notice that you were only making minimum payments over a long period? WAs there any reason they should have been able to tell from your account that you were in difficulty?
Florence says
Hello,
Just wondering if anyone has had success will complaints for PayPal?
In 2018/2019 I had severe financial difficulties (multiple payday loans, 10k credit card debt and constant overdraft) I have pursued the credit cards and my overdraft successfully.
My PayPal credit went from £500 to £2000 during this hard time, and I have several missed payments.
Thanks
Sara (Debt Camel) says
They have been mentioned a couple of times but mostly people just asking like you. I suggest you complain and send to the Ombudsman if PP reject.
A says
I have been paying the minimum since around 2015. I went into a DMP. The dmp ended in 2019 and i continued to pay the minimum amount to Barclays. the account was still active and not closed. I had several payday loans, 2 other credit cards, a large overdraft and a 3k catalog debt with very when I entered the DMP.
Barclays froze my account in January 2021 for persistent debt and asked for a paydown plan. I have been paying the paydown plan amount since.
I was 22 when I got the credit card, single parent and i got credit thrown at me. I like to think I have matured since and have been playing catch up trying to clear my credit files since. Barclays froze interest for a few years while I was in my DMP and reinstated charges when it ended.
I complained about irresponsible lending for increasing my credit card limits. Sorry missed that bit.
I have had a couple of refunds from my other creditors for the same situation. i dont think a DMP was right for me, I probably should have filed for bankruptcy as I lived at home and didnt have any assets.
Sara (Debt Camel) says
so while you were in the DMP, you were paying less than the minimum? What was your Barclaycard balance at the end of this?
why did your DMP end in 2019? you had taken that large Likely Loan in 2018?
PS you should definitely be sending this to the ombudsman. I am asking all these questions looking for some extra points you can make to FOS.
Sam says
Update on Very/ISME account.
Hi all.
Had my final decision letter through. ISME account with 9k balance and Very account with 2k balance. Complained about credit limit increases over a short period of time, given terrible CR and a lot of outstanding credit.
Anyway, BOTH accounts have had the balance effectively written off and SD are not pursuing the small remaining amount.
Both accounts to be closed and marks removed from CR. So all in all, that’s a win of 11k! All down to this site. Honestly, I cannot thank you enough!
Just waiting for my 2k littlewoods complaint to be responded to and, with complaints to other loan providers, this site will have helped me to around 16k worth of complaint wins. My debt at the start of the year was around 22k. It now reads 6k on my stepchange account.
Anyone thinking about complaining, do it. Use the templates, follow the advice. Wish I’d done it years ago!
Sara, I cannot thank you enough.
Jax says
Hi all, just wondering what experiences folk have had with Capital One. Do they usually take the full 8 weeks to respond to complaints and do they usually send the 4 week holding response? Not heard anything since their initial acknowledgement of my complaint almost 8 weeks ago.
Alison Cade says
I received a final response within 10 days of my emailed complaint. Very quick. Maybe email them again to chase.
A says
My DMP ended in 2019 as I had paid all of the debts down apart from the Barclaycard, it went down to, but it never cleared. I intended to get a better card and transfer the remaining balance as Barclaycard had midway through my DMP started charging me interest again and it looked like I was going to be in the DMP even longer.
A friend advised me to close the DMP as I wouldnt get a transfer card being in one. Unfortunately the DMP damage was already done. Barclaycard were getting minimum payments while I was in the DMP, I had the Very catelogue getting the larger £150-160 per month. The other few credit cards I had in the DMP were getting around 20-30 and the payday loans (which were the last to drop off) were getting around £10. It took a full 5 years for a £300 lending stream loan to come off the DMP, something that could have come off in 6 months if they were getting the payments Barclaycard were getting. i dont really get how Stepchange works those payment plans out.
I cant wait to get rid of Barclaycard. I dont even have an overdraft now and want completely rid of credit. my partner now has savings and handles the money. I feel like my financial picture is improving slowly with my last default just dropping off on 14th of this month.
Sara (Debt Camel) says
Well your friend obviously knew nothing about balance transfers if they though you would get one with a poor credit record :(
So part of your complaint should be that because Barclaycard started adding interest while you were in the DMP, the time to complete your DMP was unreasonably prolonged. point out other creditors stopped adding interest and Barclaycard has stopped adding interest at the beginning. Read https://debtcamel.co.uk/creditor-wont-freeze-interest/
Jben says
118 money credit card
Just had quick success with 118 money credit card. Limit of £250 taken out in 2019.
Complained never should have been issues. Had 3 ccjs, defaults and mortgage arrears at time card was accepted.
118 have refunded all fees so balance is wiped. Stated they will close card but all information removed from credit file
Took less than 30 days for outcome.
Also successful with Lending Stream went to ombudsmen.
Awaiting Very catalogue – roughly 5 weeks
JD Williams x 2 – currently with ombudsmen.
Tracey Waite says
Same here wiped debt & compensated me with £1,645.32 dont give up my biggest win was with Littlewoods put in complaint about February received updates all the time then in May received notification that they were at fault went right back to 2008 calculated interest etc received a cheque for £5,468.00 & wiped off the bit of debt I had they admitted they were in the wrong!!
Asl says
Hi Sara
Can you advise what process I should follow to take my complaint to the Financial Obundsman?
Very have only upheld my complaint based on one credit limit increase?
I asked in my letter fir them to provide a list of the credit limit increases, they haven’t fulfilled that in the final
Response either?
Also they have stated that my account is in arrears because I missed a payment while the investigation was taken place, surely that’s not right? (Added an admin charge too)
Any advice would be much appreciated.
Sara (Debt Camel) says
Have you stopped paying them?
Is this your only problem debt?
if they won’t accept a payment arrangement go to StepChange – that is the simple way to deal with this.
Asl says
I haven’t did anything yet they are looking for a £500 minimum payment including the £300 arrears, I defo can’t afford that.
Yeah at the moments this is my biggest problem, I’m in arrangements with other creditors which I am
Managing. But I have heard Very aren’t very accommodating to payment plans the balance is £2900 on the account.
I defo want to take it to the Fos they have sent me through the credit limit increases and there more or less every 3 months
Jax says
I found them extremely difficult to deal with when I got into difficulty. They wouldn’t accept a payment arrangement. I was lucky that I had a bonus at work and was able to clear my arrears.
BC says
I have received the statement of account for the complainant I have currently waiting to be allocated with FOS regarding Vanquis credit card, it contains 77 pages, how do I work it out, do I manually add up all the categories separate, like over limit and late payments, thanks in advance for your amazing knowledge and help/advise
I have had the card from March 2014, increased from 500 right up to max 4000, even though the minimum was paid, along with late & over limit charges, they also offered me 2 loans and allowed me to take one loan whilst at maximum and still only paying minimum payment for the last few years. I did put in an affordability complaint, , so I sent it over to FOS and still waiting for this to be picked up. Not Upheld – Unable to agree our lending was irresponsible. Satisfied all relevant checks completed prior to lending and none of these revealed anything which would deem further credit irresponsible.
I have on the report BILLED DEFERRED FINANCE CHARGES, BILLED FINANCE CHARGES, OVERLIMIT CHARGE, INTEREST DEBIT ADJUSTMENT, LATE PAYMENT CHARGE, all with a figure by them.
Sara (Debt Camel) says
Well one option is to just keep the pile of papers and only go through them if FOS come back saying something you don’t agree with.
Alternatively I would:
– first put all the paperwork into date order if it isn’t already
– then go through and set up a spreadsheet with a line for each month noting what happened. Including those numbers, whether you only paid the minimum and when your credit limit increased.
Bc says
Thanks for the reply, I will do that, just wondering do Vanquis normally reject with a few weeks of the complainant in most cases, as they didn’t give me an option to go back to them to re look.
Michelle says
They rejected mine in 11 days of complaint , sent to ombudsman today , feels like are reject good complaints
Rob says
Have a Vanquis complaint with the ombudsman now, from 2014 as I was unsure they were supposed to conduct checks and such and followed your advice and feel I had a good complaint.
They’ve asked if I have any ‘exceptional circumstances’ as to why I didn’t complain earlier.
Well I didn’t know it was even possible or they should have done that – it’s not as if the creditor gives you a list of what they should & shouldn’t be doing. How best to respond?
Sara (Debt Camel) says
I suggest you reply that you have only recently found out that a credit card lender should checked that the credit limit they gave would be affordable for you.
If you only made minimum payments for a long period – years not months – you could also say you didn’t realise the lender should have monitored your account to see if you were in financial trouble.
Say when you found out about these complaints and how [a friend told you, you read an article in the Sun, you saw an advert from a claim company on Facebook, you were contacted by the administrators of a payday lender… whatever, just say how you found out about these complaints]. Say you are therefore complaining within 3 years of finding out you had cause to complain.
Lauren says
Hi Sara,
I’m just wondering if you can help me with the below?
Next have upheld my complaint and agreed to refund interest etc but only to the balance once they’ve bought it back from Caboot.
Can they not refund me the interest and I pay this against the Caboot debt as they are not removing this from my credit file anyway?
See below for some of their response :)
‘We agree with your complaint
Thanks for getting in touch about your NextPay account and for taking the time to speak with me today. I’d like to say again how sorry I was to learn about the financial difficulties you’ve experienced. I completely understand how stressful this can be.
As promised, I’m writing to confirm that we agree with your complaint relating to irresponsible lending and want to put things right. My reasons are set out in more detail below.
I’d like to offer you £441.15 as an interest refund to the balance and £100 as an apology
We’re arranging to recall the account from Cabot and will reduce the balance by £441.15 for an interest refund. Just to let you know, this is £408.47 for all the interest ever added to the account plus £32.68 for an additional 8% .
To say how sorry I am for any distress and inconvenience this situation has caused you I’m arranging to transfer £100 in to your bank account within the next 3 to 5 days.
What we should have done better
Whilst we undertake affordability checks, using multiple sources of data, before increasing anybody’s credit limit, having reviewed all the available information again today, we now feel the increase we gave to you, to £3750 in June 2017, was too high.
To put things right, we are going to transfer the ownership of the debt and the credit files back to Next, to enable us to make the interest refund as above. I’m afraid this can sometimes take several months to complete, so I will keep in touch with a monthly update until the process has been completed.
I explained that we wouldn’t be able to remove the default from your credit files altogether, as we have a duty to accurately report how an account has been run, and other lenders rely on this information when making their decisions. I explained that the default will fall off your credit files by 05 February 2024, as three years have already passed since it was registered.
Sara (Debt Camel) says
When was the account sold to Cabot?
Did Next stop adding interest when your account defaulted in Feb 2018?
Do you think the limit was too high before the last increase to 3750?
Lauren says
Hi Sara,
March this year by the looks of it.
Interest has been added, the account on Cabot is now £4064.46?
No, the limit went from £300 to £3750, I was making minimum payments only prior to the increase.
Do you suggest I take this to the FSA?
Sara (Debt Camel) says
Some of these figures seem a bit odd. Do you agree they have only added £408 in interest to the account? If you current balance is just over £4000, that seems like a low amount of interest? Do you have any old statements you could look at?
They liked your limit from 300 straight up to 3750 – wow!
Lauren says
I did think it was really low.
They’ve sent me nothing other than a phone call today and that email to confirm the claim was upheld.
I’ve tried to log into my old account but access has been barred!!!
I’ve requested additional information to them, in terms of the refund should that be against my balance or should it go to me and I use it to pay to Cabot? I just think with them not removing it from my history or anything I’d rather continue paying Cabot.
Thanks :)
Sara (Debt Camel) says
yes it looks low – that’s why I asked if they stopped adding interest back in 2018…
From what you have said it looks as though they got two things badly wrong
1) that great hike in your credit limit
2) continuing to add interest after they had defaulted you
Now they have accepted your complaint, it is fair for the refund to be against the balance owed. But they may have got the amount very wrong. And FOS would probably say they have to remove the default.
I think you should ask them to send you copies of your statements from 2017.
Chris says
JDWilliams update: 8 days ago, they messaged me to say they had calculated the redress but needed to get in touch with the debt purchaser to find out how much was still owing. They said they would be back asap. I can find this information out in 10 seconds. Emailed them yesterday to enquire about progress and got a standard ‘we will be in touch shortly’. What happened to the asap? So, this is 8 weeks after accepting the Adjudicator’s ruling – who, ofc, had given them 4 weeks to respond. Started the whole thing in May 2019.
Mr and Mrs C says
They are a complete joke! I have been waiting since Feb for my refund, its been 6 months now. I have reported to FCA as per some advice on here and now JDW have said they are looking at calculations (still) and they hope to have an answer for me by this Friday.
Andrew says
Hi so made 3 complaints vanquis, aqua and marbles
Vanquis fully upheld 900 I still owe to Cabot the interest they charged should wipe out the balance and change although I am yet to see the interest figures
New day(aqua and Marbles) both partially upheld form second increase in May 2017 to date so do I just add the increase from May 17 to date or would it only be the difference on the interest charged between say a 600 debt then increased to 1200 to 3200 etc?
Also the 8 simple interest how do yoh work that out I worked out 2500k interest since May 17 until card was suspended in 2019 but I was adding the full interest which I suspect is wrong if I still owe 2800 to Cabot do they have to pay simple interest
Thanks for any help been a great help this site Sara thank you
Sara (Debt Camel) says
Vanquis – have they also agreed to remove the default?
Aqua & Marbles do I just add the increase from May 17 to date or would it only be the difference on the interest charged between say a 600 debt then increased to 1200 to 3200 etc?
That depends on how they have worded it…
Do you think this is a fair decision, or do you think they were unaffordable from the first credit limit increase?
I worked out 2500k interest since May 17 until card was suspended in 2019 but I was adding the full interest which I suspect is wrong if I still owe 2800 to Cabot do they have to pay simple interest
I am not sure what you are saying. is this Vanquis or New Day?
Andrew says
Vanquis have responded with comments to adjudicator but adjudicator has emailed to ‘head off that argument’, adjudicator ordered the defaults be removed but still waiting to hear whether they agree
So I owe 2800 to Cabot on behalf of new day but if I add up all the interest from May 17 (the increase when fos said was unafforbale) it comes to 2500 because technically they won’t owe me money will just be wiping a balance off then simple interest wouldn’t be applied would it ?
Sara (Debt Camel) says
ah ok, I didn’t realise these decisions were both from FOS.
yes I think you should gte back all interest charged after the second increase. But if you still owe them money at the end of this, no 8%.
Lou says
So I put in affordability complaint to vanquis a week or so ago I have had a reply today rejecting my claim….. the account was taken out in 2011 and was at 250 it was this amount for years I only ever made the minimum payments and I always spent whatever little money was on there…… in 2017 they whacked it up to 1000 then up to 1750….. again only paying minimum payments and maxing…. my argument they never did credit checks as I have my report from that time and if they had they would have seen the payday loans and extra stuff I had out… they say that they had put on the letter that I could have told them that I didn’t want the increases it stated in the increase letters….. is it work taking to ombudsmen… for 2 years shortly after the increases I had to activate the rop as I couldn’t afford payments…. now I’m on debt management plan…. they did not check my personal circumstances if they had they would have seen I was on universal credit at the time of increases etc and not long had my little boy so alot had changed… they claim they did credit check I also asked for all my data which they have not supplied as of yet..
Sara (Debt Camel) says
I suggest you send this straight to the Ombudsman. Those were 2 very big credit increases if you had only been mak9ng the minimum payments.
Anton says
Hi Sara
I have had a reply back form very in regards affordability claim. They upheld and my balance went from £956 to £563, gave me back refund admin charge of £48 and a refund interest charged £321. I won’t receive this refund to me, will it just come off what I owe?
Sara (Debt Camel) says
How have they explained the balance reduction?
Do you think this refund is adequate? It depends how much interest you have been paying over the years.
Also are there any missed payments or defaults on your Very credit record? You should Ask for them to be removed.
A says
Hi. Was just wondering if anyone has had any recent outcomes with barclaycard? I’ve recently put in an irresponsible lending complaint about the increases in credit they gave me over the years. Just prior to this I had a letter saying they were refunding a couple of charges that they shouldn’t have made. Both were over credit limit charges and they must have been some years ago as the interest was over £50 (charges were £12 each). Would this be an indication that they’ve acted irresponsible with their lending also?
Michael says
I complained, and it is now with the FOS, the investigator didn’t uphold, so it’s waiting to be reviewed by the ombudsman. My credit limit went from 3.5k to 17k over the period.
Anita says
Hi Sara,
Some time ago JD Williams has provided my adjudicator with their calculations.
a Interest and Charges £903.72
b 8% interest £41.60
c 20% tax on interest -£8.32
d 8% minus tax £33.28
e Total (a+d) £937.00
As per your suggestion I have asked for the explanation as it seems like the 8% interest looks like exactly 8% of the refund.
Today I have received an email from the adjudicator
The business have provided the below explanation for how the offer was calculated.
‘We’ve recalculated the balance on the account removing all interest and charges from March 2014. From this point onwards the balance is now lower than the actual balance. With the same transaction history (orders and payments) on the account, it is in October 2017 when the account balance goes into credit. From this point onwards, 8% interest is applied to the balance to date.’
Based on everything we have seen we are satisfied that it has been calculated within our guidelines and is correct. If you would like to accept it please let me know and I will instruct the business to make payment.
I am not sure what to do. Please let me know your thoughts
Sara (Debt Camel) says
Did you ask them for a copy of your statements from 2010-2014? because that Interest and charges numbers looks very low. There is no point in arguing about the 8% number until you know the “main” number in the refund is correct.
Anita says
Yes, I did. I was in touch with Head of FS Compliance and as her request my redress was recalculated. I have not received the numbers though.
In that case I must relay on the Adjudicator’s word that ‘Based on everything we have seen we are satisfied that it has been calculated within our guidelines and is correct.’
Maybe I am making a big mistake…
Sara (Debt Camel) says
so are they going to send you the numbers from the statements for the period you are being refunded?
I assume JDW stopped adding interest in 2014?
David says
Next rejected my complaint it’s now with the FOS despite this:
—————
Our records show your credit limit fluctuated, because of the information we’ve received, in addition to how your NextPay account was managed.
The limit was set at £3000.00 in January 2015 and due to a deterioration in the information we received from Equifax this was reduced to £1000.00 in September 2015. It remained set at this amount until the data changed again in October 2017.
Taking into account the improvement in the data received and the way in which the account had been managed, with no arrears and the balance never exceeding £691.00, we took the decision to offer an increase to £3750.00. At the time you had the option to accept or refuse the increase.
The data continued to improve and in March 2018 we offered to increase your limit to £5,000.00.
matt says
Thought I would give some encouragement for those complaining about Overdrafts.
Back in 2015 I went from zero overdraft to £5000 in the space of around 3 months, multiple increases, mainly due to gambling. I complained April 2020 and Halifax dismissed it pretty quickly. I sent to the FOS and the investigator agreed with halifax. I felt this wasn’t right and pointed out that since the overdraft increases I had relied on this overdraft facility to meet all my expenditure. This resulted in overdraft charges totalling at least £180 per month. This wasn’t an isolated occurrence and meant the only way I was able to meet my repayments was by relying on the overdraft facility. As this is not a sustainable way to repay debt, I don’t think you should have agreed that this Overdraft facility was in any way affordable for me and requested an Ombudsman look at it.
Anyway last month the Ombudsman agreed with me and this results in £5000 being wiped, and all negative credit marks removed plus another £1330 back to me in redress.
Very very happy!
Anton says
The exact wording is ‘having reviewed your account and taking account of all the relevant available information(including the information that you provided within your complaint), we are upholding your complaint from 23rd November 2019 when external data worsened on your credit file. Accordingly, SDFC(Very) will calculate the redress from this date’
Standard interest £321.96
Buy now pay later deferred interest £0
Administration charges £48
Total £369.69
8% simple interest will not be provided in this instance because the interest and charges form part of the outstanding debt which exceeds the redress amount. As you have not actually paid these amounts, you have not been deprived of use of these funds.
I thought when I’m making payments each month I would be paying interest off so why wouldn’t I get this back has a refund back to me?
I didn’t open a credit account with them till November 2019 hence why it’s so low. The numbers seem right tbh I just wasn’t sure if when I’m paying each month i would be paying interest so wasn’t sure why I wouldn’t receive that back to me!
Sara (Debt Camel) says
If they are refunding all the interest they charged right from the start, then your account balance should be left at a balance which equals ther amount you borrowed less what you have paid. So you are repaying this without any interest, which is what FOS would say is fair.
Anita says
Hi Sara. Looking forward to your advice. I have send mu complaint to Littewoods in Nov 2018 and again in April 2020. I have never received any response. Is it sensible to Ask them for response?
Thank you.
Sara (Debt Camel) says
I suggest you send them a Subject Access Request by phoning 0800 051 1136 and asking for a copy of all your personal information. That will show if they have responded to your complaints or not.
Mr and Mrs C says
So finally I have the calculations from JDW – these are the exact same calculations that they gave the FOS over a month ago. Why has it taken so long to give them to me? Delaying tactics. The FOS told them to refund me from March 2008 onwards – JDW have only calculated from Sept 2009 saying they don’t have the information. FOS said that JDW should use what information it does have, and make a reasonable estimate of the refund due and explain its calculations. JDW have just dismissed March2008-Sept 2009. What do I do now? Do I have just to accept that neither party has the information? Obviously my account wasnt cleared over this period as they increased my credit limits from £900 to £2250.00 you wouldnt do that if the account was clear?
Sara (Debt Camel) says
How much have they offered you?
Do you know how much interest they were charging a month in Sept 2009?
Mr and Mrs C says
Hi Sara – they have offered £1984 inc 8% interest less 20% tax. In sept 2009 they have that i was paying £60/month interest on Simply be and £15.87 on Viva la Diva.
I have queried why they havent paid from March 2008.
Their response:-Prior to September 2009, we do not have complete records so what I have done is recreate, where there was enough information available to, a statement and what it could look like with the information we had. I had enough information to recreate back to April 2009 on both accounts to give a line by line breakdown.Prior to this, we had no information but what we do know is the total amount of interest you’ve paid on your accounts over their lifetime. For C3732994, the total amount is £291.24 and for G3477508, it is £838.93.
Sara (Debt Camel) says
I suggest you ask for copies of the statements they have “recreated” and for copies of all the other statements.
Without this, you can’t see if what they have done is reasonable or not.
Anth says
Got my final cheques today, so just to run through my story and to encourage people to keep at it! I followed the instructions via Debt Camel and sent a letter via recorded delivery complaining of irresponsible lending back in the middle of May. I had a SAR from a while back due to a separate complaint about default dates being incorrect a number of years ago, so this was handy in determining credit increases and account balances.
I received a confirmation letter and complaint reference from Very a week or so later, a follow up saying they’re still looking into it at 4 weeks and a further one at 8 weeks saying it’ll take a little longer. A week or two after that I received a letter upholding my complaints against 3 different accounts with IsMe, Very and Littlewoods.
Redress ended up totalling £18,643.60 across all three accounts, and taking off the remaining balance from Lowells I’ve received cheques last week totalling £17,686.33. I absolutely cannot thank this site enough for the guidance it provides, and also to all those who’ve commented with their successes, failures and problems. The information was absolutely invaluable in getting to where I am, and the money will go toward paying off the vast majority of my outstanding debt, with the remainder being a much, much more manageable amount. I don’t think I could’ve ever imagined being in the situation I’m now in, all thanks to a few hours and the cost of a stamp!
Jax says
Very have rejected my complaint saying they did checks and I didn’t use my full credit limit. Oh well, off to the FOS I guess.
NICO says
Had some news from Capital One today – FoS upheld my compliant, there was some negotiation but finally go c£500 written off, c£1100 refund and credit file update in 6 – 8 weeks. Thanks Sara for the help on this, keep going everyone :).
Lee says
Hi Sara,
Need some assistance complained about Aqua Card about 6 weeks ago had the account since 2012. Around 2017 they raised my credit limit from £1250 to £4200. I complained I never should of had a limit so high, due to gambling, payday debts etc they did reduce my interest rate as told them I was struggling in 2017. In 9 year’s still hovering on just under £4200 owing. I also have a marbles card with New Day with £250 limit I hadn’t complained about.
I had just logged on to my app.
Noticed my Marbles card app I didn’t complain about has been credited 3 credits of £293 & £240 & £736.41 on 9/8/21. They have closed the card and credit showing of £1031.90. Looks like credits still pending.
Meanwhile on my Aqua Card I have been credited just 1 amount of £994.13 reducing that card to £3,164.09 owing. They closed the account.
I was expecting aqua card credits to be significantly more. I didn’t expect them to look at the marbles card. Haven’t had a final response letter or accepted anything?
What does this mean? Do you think they are still working on my Aqua card side? Does it mean I will get any money back? Do I still owe £3,164.09 on my Aqua card? Do I have any right to appeal of don’t agree with the final response now
As not accepted anything. Very confused considering Aqua credits would of been much more than Marbles.
Sara (Debt Camel) says
I think you need to ask them for the response to your complaint. It’s hard to guess what has happened and there isn’t any point – find out. Also why didn’t you complain about the. marbles card – was the limit in that increased?
Lee says
Hi Sara.
As Marbles was only a £250 limit all the time I’ve had it didn’t complain. Didn’t realise it was new day either.
My Aqua card went from £1250 in 2012 to £1750 around 2014 then to £4200 about 2016 / 17. Always been only £50 from my outstanding balance for at least 5/6 years. Have paid £70 min payments and then withdrawn cash virtually every single month incurring charges to pay other debts. As was on a reduced rate of interest pay about £27 as told them I couldn’t afford the high interest rates back in 2016/2017 when they went through my income and expenditure but they didn’t freeze the account.
For about 12 months after they raised it to £4200 before I said I was struggling they were taking a min payment of about £130; of which about £80 taken up in interest each month. Then you have all the £12 overlimit fees and cash withdrawal fees each month that I did ask in my complaint to also be included in any refund plus a further 8% simple interest.
I kind of am hoping they are still working on calculating my Aqua Card. Am thinking surely they would apply the credits refund to correct cards.
I am thinking I should just leave it a week or so. Keep checking my Aqua Card balance and hope before contacting them if no final response received.
I just wonder if I don’t agree with the calculation that I can still go to the ombudsman. As I haven’t accepted any redress they have applied.
Sara (Debt Camel) says
were you in the habit of withdrawing cash before they increased your card limit in 16/17?
I think you should get a full refund of fees and charges from that 16/17 credit limit increase. And if there is a remianing balance you should be allowed to pay that off interest free at an affordable monthl amount.
If if they offer you an amount which you think sounds low, ask them for copies of all your statements since 2016/17 so you can go through and see what you were charged.
It’s not worth worrying about which account they credit a refund to – you don’t have the full picture at the moment and anyway any credi can bemoved to a different account if you want. What matters is the total refund tyou are offered and whether this is adequate.
Yes you can go to FOS if you don’t think what you have been offered is enough.
Lee says
Hi Sara getting a lot done today. My nationwide complaint I did the other week was purely related to my overdraft. They rejected it and it’s been submitted to to FOS about 4 weeks now.
I am thinking of going back to Nationwide and complaining about my consolidated loans. I had about 5 loans consolidated due to gambling debts time and time again. Should I raise it as a seperate compliant then when likely rejected as the FOS to link the 2 nationwide complaints together. I don’t hold much evidence regarding my loans now so would have to get Nationwide to provide further details. Loans were from around 2010 to about late 2016 / early 2017 I think
The loans were around 10k each time. After 2 years or so I would ask for a new loan to top up funding gambling addiction.
Sara (Debt Camel) says
yes a separate complaint now.
Use the template letter over here https://debtcamel.co.uk/refunds-large-high-cost-loans/.
Add to that template letter that Nationwide could also see your finances from your current account where they could see the gambling and kept increasing your credit limit.
Michelle says
Hi Sara , capital one rejected my complaint today stating this
Please note, your initial credit limit on your first account was £500. It was then increased to £1500 on 2 April 2013 and then to £1750 on 28 January 2014.
You also haven’t provided any explanation or evidence, which suggests that this complaint has been made within 3 years of you becoming aware that you had cause to complain about the lending decisions taken.
What evidence of finding out complaining was a option am I meant to show them ?
Their only reasons for reject is that it’s too late
This is because we believe part of this complaint has been made outside the time limits for referral to the Financial Ombudsman Service, as are set out in more detail below and in the FCA Handbook, DISP 2.8.2R.
Specifically, the complaint was referred to us more than 6 years after your accounts were opened on 24 October 2012, 29 May 2014, and when your limit was last extended on your first account ending (1397) to £2000 on 26 November 2014.
Sara (Debt Camel) says
go back to them and say when and how you became aware of these affordability complaints.
eg I didn’t know that a credit card lender was supposed to check a higher limit was affordable for me before offering it. In 2020 [or whenever] I saw a newspaper article in the Sun/an advert on Facebook for payday loan refunds/a friend said they had had an affordability refund/whatever. I made some loan affordability complaints and then I did some research and found out this also applied to credit card lending. So I am complaining to you within 3 years of having found out that I have cause to complain which is within the DISP rules that cover FOS’s time limits. I would like you to look again at my complaint or I will be sending it to FOS.
But change the date and how you found out so it is really accurate for you.
Katrina says
Hi there,
I am looking for help for my husband, he took out a loan from Tesco 3/4years ago, which was for 25k. At that point in time he was having a breakdown, he lost his job and was on antidepressants, he had late payments and not certain but possibly defaults on other accounts, and had taken out a few credit cards around the same time. Anyway, it wasn’t long before he defaulted and missed payments, he has a payment arrangement with them and is paying a debt collector (I believe it is moorcroft) a low amount monthly. But I really believe it was irresponsible lending. He didn’t have to provide any details of employment or affordability, so I’M trying to help him get his finances in order, do we stand a chance with irresponsible lending claim? They have added nearly 7k in charges onto the debt amount.
Do they take current circumstances into account or is it actually, they shouldn’t have lent him that money full stop. I don’t want to risk opening a can of worms if they are going to say, actually you can afford to pay more now.
Hope that makes sense.
Sara (Debt Camel) says
I hope he is on the road to recovery – getting his finances sorted out may help with this.
That was a huge loan – what was it for?
What has happened to the credit card accounts, were any of the balances he was given large? If thye were, then they too could be “unaffordable”.
His current circumstances are not relevant to whether this was an unaffordable loan.
Could he afford to pay more? Does he have payment arrangements with the cards and other debts?
Are you buying or renting?
Max says
Hi Sara,
Just sharing my story so far about NewDay, as an FOS adjudicator ruled in my favour a few days ago about my irresponsible lending complaints for Marbles and Aqua credit cards dating back several years.
I feel they will almost certainly appeal as the combined refunds would be over £10,000, hence I’d be surprised if it doesn’t end up on the desk of an Ombudsman who might take a different view.
Over two years they implemented a series of credit limit increases on both cards, one limit jumped by nearly 400% in just five months to more than £3,500, the other rocketed over 350% in a year to more than £5,000. I complained in late 2020 and NewDay rejected (of course) my arguments, so off it went to the FOS.
They assessed all the info in a little under two weeks, in the reasoning for their decision they noted multiple times that NewDay failed to carry out any sort of proportionate affordability checks whatsoever, relying on information that was many years out of date. They also said several thousands of pounds of payday loans should have set alarm bells ringing, as should my permanent presence in a £3,000 overdraft and the fact I was on a DMP through PayPlan.
I had expected the adjudicator to also highlight scores of gambling transactions, but they made no reference to that whatsoever.
Max
Max says
In case anyone is unaware, the FOS publishes all Ombudsman-level decisions on its website, and I’ve garnered a lot of valuable information from other people’s complaints (upheld and not upheld) about what factors I should highlight/gloss over should my complaint be appealed (which I’m sure it will looking at posts on this lengthy thread).
That said, it does seem to be the luck of the draw very often, as there are many parallels among the cases that are won or lost.
I did notice in some cases the FOS has awarded “compensation” for stress, anxiety and inconvenience (among other health/well-being issues. As such, I intend to try and secure such an award (say, £500-750) from NewDay as their irresponsible lending has caused a substantial number of sleepless nights and stress/worry within my household for several years.
Sara, any thoughts on the compensation angle? While refunds and 8% simple interest are great, surely the “guilty” party should not get away with their damaging lending activities without actually receiving a tangible penalty? You never know, if such compo was more common and bottom lines hit harder, it might be more of a deterrent?
Sara (Debt Camel) says
The problem with FOS published decisions is they are often (but nit always) the unusual ones, not the many run of the mill cases which are settled at the adjudicator level. So if a lender routinely accepts standard adjudicator decisions, which many do, you only see the more difficult cases.
I agree getting compensation for stress etc is a bit of a lottery. But the purpose if FOS us not to punish bad behaviour but to compensate for loss. The best deterrent is fir a lot more people to make complaints when they were given unaffordable credit and to take the case to the Ombudsman if the lender rejects. The redress plus the standard Ombudsman fee will far outweigh any extra awards for stress.
Lee says
Hi Max,
Just dealing with New Day. Still waiting for the final response as I haven’t accepted anything, but so far on the 6 week mark they have already refunded me around £2280 for 4 seperate payments as noted a few days above on the posts.
For new day I had to send my complaint in the post, (To Aqua Credit cards website complaint address) unlike most others sent via email. I posted copies of evidence with bank statements at key points when credit card taken out and a few around any limit increases etc to give them further snapshot of your finances at the time. I also think this demonstrates you are serious about taking it to the FOS as you have put in a lot of evidence. I also sent them a photo of my TransUnion report that I said I’m keeping incase needed for the FOS as holds around 120 pages of credit report debt history with over 1000 payday loans, credit cards, loans etc.
Good luck with your complaint.
Max says
Thanks Sara, and Lee, for the feedback – glad to hear NewDay are treating the latter better than moi.
They overwhelmingly rejected my two complaints fairly quickly, some of what they wrote in their justification was ridiculous, to be frank.
They’ve got until mid-September to contest the decision from the adjudicator, but my gut feel is they will given it’s a potential five figure refund, and because there were half a dozen increases, so I even if they successfully argue one or two of them were right, they would see that as a “win”.
I will ask for compo in this case and various others (I have double-digit claims in the FOS system) as have nothing to lose by doing so.
I could do with the money ASAP (still paying about £400/month off the two – now suspended – cards) so hope any appeal/escalation to Ombudsman doesn’t drag. I note NewDay Ombudsman decisions contained in their website search function are 422 upheld, 488 not upheld….
Will update this thread in due course.
Cheers,
Max
Scott says
Hi Sarah,
Good news the adjudicator upheld my complaint with likely loans. All interest has been removed and they have been told to remove it from my credit file. The balance was £3600 and has now been reduced to £1300. I couldn’t have done this without your help. The adjudicator was really nice.
My HSBC complaint has now been picked up by the adjudicator and he has contacted me saying he has all the info from HSBC and has started working on my complaint. I wish i had the same adjudicator but I am just hoping he is fair. I am hoping that he agrees that HSBC were irresponsible as I explained to him that my bank at the time refused a £100 overdraft due to my poor credit score, live defaults and that I was in a payday loan cycle along with numerous other debts all on payment plans.
Surely that now I have won the claim against likely loans I have a good chance with them one that amounts to 10k loan 14.6k with interest, 2k overdraft and 1.5k credit card that’s been on payment plan 2 months after given. Plus when I got all of this credit I had more debt and creditors than I did before I got accepted for the likely loans.
Ljc says
I have just received this too from jdwilliams & I don’t have anything .
I haven’t used the account since about 2013 I have £1200 debt on it and I used it from about 2000
What do you think I should do now Sara ?
Sara (Debt Camel) says
Did they increase your credit limit? If so, do you know what date?
If you don’t know, I suggest you reply that you may be able to supply more information wehn they give you details of when they increased your credit limit.
Are you still paying this debt to them, do you have a payment arrangement, has it been sold to a debt collector?
Ljc says
They did increase my limit but I don’t know when that was . The debt was sold to a debt collector and I pay then £1 a month .
I wrote back to jdw and said I don’t have exact dates so I have asked them to send me a SAR so I then can send them any paperwork around those times (I have bank statements for a few years ) should I send another email asking them when did the increase my credit limit/s
Sara (Debt Camel) says
yes.
if the debt is no longer showing on your credit reports, ok, I suggest you also read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ which takes a different approach which MAY work better with older accounts. There the request for the CCA agreement goes to the current creditor, NOT the original lender.
Sharon says
Hi Sarah
Has anyone had a Lloyds overdraft complaint, where it has been upheld by the ombudsman but Lloyds drag their heels in paying out?
Thanks
Sharon
Sara (Debt Camel) says
I don’t remember anyone mentioning this. When was the ombudsman’s final decision?
Sharon says
It has only been a week, but I was wondering if anyone else has had dealings with Lloyds before?
Chris says
I would appreciate some advice on my complaint with JDWilliams. On June 1st, the Adjudicator let me know that JDW had accepted his ruling – they took 14 weeks to do this. He gave them 4 weeks to be in touch. It is now nearly 11 weeks on. JDW have told me that they have made a calculation but that they are waiting for the debt collection agency currently running the debt to let them know the balance. They told me this 4 weeks ago. I have been in touch with them twice since to ask about progress but am told that we need to wait for the figure. Is there anything I can now do to get this sorted? Can I ask the Adjudicator to send it to an Ombudsman so that I can get a legally enforceable ruling? At this stage, the complaint has taken 2 1/2 years already so I think I am now ready to wait if needs be. Thanks.
Mr and Mrs C says
Chris, I waited 6 months for my refund, once the FOS had made their decision, which I have finally got last Friday. I emailed my adjudicator every 2 weeks to chase it, rang JDW every 2 weeks to chase it. I finally emailed chris.rothwell@nbrown.co.uk; sarah.brown@nbrown.co.uk and copied in consumer.queries@fca.org.uk. The query was resolved within 2 weeks of me doing this. They only refund by cheque too, which is annoying as I then had a 20 mile round trip to bank it, but its finally over. I urge anyone who is waiting to email these 3 addresses and keep the pressure on.
Pippa says
Hi; I had the same from JD Williams. It seems it is standard approach by them. I supplied credit report, payday loan statements, bank statements and they still rejected. I had nine defaults yet they still increased my limit six times across all my accounts. They said my credit score was positive yet it was only 178. I made a claim against New Day and they upheld my complaint so god only knows what JD are playing at.
Sara (Debt Camel) says
They know many people will just give up if they get a rejection and not take their case to the Ombudsman.
Als says
Hi Sarah
I’m submitted my very complaint to the obundsman ( I only received a partial refund, even though they had clearly not checked my credit file from the start) only about 2/3 weeks ago, they came back today and asked old and current address as the company (very) we’re querying it?
So my question is, is that what they do contact the company to ask what went on? Before making a decision, I expected to wait months for a reply, is this just the initial start up of it?
Sara (Debt Camel) says
The Ombudsman (know as FOS as it’s shorter) will tell the lender when someone makes a complaint and ask for their case file. If the address you gave FOS is now what Very have on their records, then that needs be cleared up, it’s just housekeeping at the start.
Once FOS have been sent the case file by Very, you will be in a queue to be picked up by an adjudicator who will actually look at the case.
Matt says
Hi Sarah
By any chance do you know of a way of emailing Barclaycard? I had a complaint rejected by them but now have new evidence which I think will change their decision.
I’m unable communicate over phone. They have disabled their messaging system and the mobile chat just says to call them or write in. (I don’t have a printer).
Thanks
Sara (Debt Camel) says
Try jo.woodman@barclayscorp.com. But you will have to explain why you can’t talk on the phone (anxiety or whatever) and why you can’t write a letter.
It may be simpler to send the case to the Ombudsman….
Dave R says
I have a Lloyds overdraft complaint with the FOS that they’ve had since December 2020. Repeatedly told I would have a case handler very soon and then just nothing. They emailed me about a month ago to say they envisaged it being another 3-4 months. Apparently, they are overloaded with complaints like mine and have changed the way they review them. They are re-reviewing historic cases under new guidelines which will apparently help inform how they view current complaints… I hope after such a long wait it will be good news!
Sara (Debt Camel) says
I have seen some good FOS decisions on overdraft complaints recently: https://www.financial-ombudsman.org.uk/files/308265/DRN1491178.pdf
Wester says
Hi,
I just wanted to say thanks- I complained to capitol one about credit limit increases (from £200 in 2015 to £2750 in 2016). I did have a history of payday loans, returned direct debits and always in my overdraft.
Capitol One initially rejected my complaint.
The FOS investigator has upheld my complaint and recommended I am refunded all interest, fees and charges since 2015!! I am over the moon, especially as I only paid off my credit card earlier this year. Fingers crossed capital one agree and it doesn’t have to go to the ombudsman.
I’ll update with actual refund if it comes through.
Jax says
Hi Sara, I wondered if you could give me your view please. Many years ago (around 2000) I took out an MBNA credit card. It was sold on to a debt collector and I finally settled it in around 2014. The default shows on an old credit report I have from 2016. In 2017 MBNA approved me for a credit card again with a limit of circa £5k. I’ve since defaulted on that too and again it’s been sold on. I’m wondering whether it’s worth putting in an irresponsible lending complaint based on my previous relationship with them. My credit file at the time showed the previous MBNA default, a payment arrangement with Barclaycard (that had been paid off in 2016), a catalogue, a 5k loan and an overdraft that I was continually using.
Sara (Debt Camel) says
I think a 5k credit record is large. Was it affordable at that time? MBNA should have checked it was regardless of the previous credit record. Being in your overdraft continuously suggests that you were in trouble at that point.
Jax says
Thanks Sara. It wasn’t affordable at the time. I had a gambling addiction.
Lee says
Hi Sara.
New day have finally provided a final response letter today in it respect to my Aqua and Marbles card.
In relation to Marbles side they refunded 3 payments of £293 in cash advance fees, £240 in overlimit fees and £736.41 in interest charges. This is 100% since 7/6/16 when opened. I am happy with this.
The Aqua side however was opened on 10/7/12.
Limits increased
Oct 2012 – £250 to £600
Feb 2013 – £600-£1000
May 2014 – £1000 to £1750
Dec 2014 – £1750 – £2500
June 2016 – £2500-£3400
Feb 2017 – £3400-£4200
They said June 2016 the limit increase to £3400 was not suitable for me. As I had recently exited a payment plan and data suggests I had another payment plan with another creditor.
I was credited £12 of 1 late payment fee and a proportionate interest refund of £994.13.
This is the amount of interest you have paid as a result of the credit limit increase. Interest would of always been chargeable on the previous credit limit. And why they are stating they are not giving me a full refund of all interest on the aqua card. Bit confused by this.
Then in relation to 8% simple interest on top. New day state not applicable in this scenario.
They also won’t make any amendments to my credit file.
Sara I feel the Aqua side refund is extremely low due to proportional interest. What do you think?
Sara (Debt Camel) says
Do you think the increase to £2500 was affordable?
and what negative marks are there on the credit record for this?
Lee says
Sara, I don’t think £2500 was affordable. I understand this 6 year rule might mean I cannot go past this time so am ok with this.
But in late 2015 to 2016 I was struggling to make payments. My payday loans started around 2016 though and serious gambling issues, debt etc.
I just don’t this this proportionate amount. How can the marbles balance with a much lower credit limit get paid out 100%. But my Aqua doesn’t. I also don’t get why I can’t have the 8% on top. They said it was because I was paying a reduced rate of interest to the typical amount.
Sara (Debt Camel) says
I don’t think the proportionate refund is reasonable.
Aqua could argue that if you had been charged interest on the lower balance, then the extra credit above that limit should be interest free.
But this is NOT what results if they give you a “proportionate refund” – because when there is an interest free tranche, all your payments should have been going to pay off the part that interest was charged on. So every month the part that interest is charged on gets less much fasted and the interest charged should drop even more.
If Aqua want to do that complication it is complicated and it will produce a MUCH higher refund to you than giving you a proportion of the interest back.
You won’t get 8% paid on top while you still owe them money – you cant work that out until the basic refund calcuation is correct.
FOS may well decide that you can go back further than 6 years. In addition to the “6 year rule” they can also look at cases where someone has complained within 3 years of becoming aware they had cause for complaint.
You could just decide to send the case to FOS now and argue for a refund from an earlier point, and for it not to be “proportionate and for your credit record to be cleaned.
If you want to try to reach a compromise with Aqua, I have no idea if they will listen to you. You could say suggest that if you send the case to FOS they will probably look further back than 6 years, but you would be happy with to settle now for a full refund of all interest after June 2016 in the interest of a speedy resolution.
Lee says
Just checked Aqua on hard copy TransUnion report. 79 cash advances taken out since June 2016 to May 2021. No cash advance fees paid back for that I took some large cash amounts out of £870 / £760 in
May 16 / June 16. But Marbles cash advance fees paid back. So think I should request this.
The credit report for aqua all showing ok or 0 on payment / account status but was paying reduced interest rate during this time since 2016. Is that why I cannot apply the 8% simple interest?
I want to argue the portionate amount based on Marbles being a much lower limit. It was actually reduced from £600 to £250 for at least past few years. Marbles reduced it not me.
Ams says
Sorry I have another question! I had a successful complaint with very from an account that I finished paying in 2018 that finished on a debt management payment plan. They then gave me another account in 2019 with initial limit of £2000 that quickly went up to £2500. I don’t feel that they should have given me this second account and not sure if I should complain about this one too? Thanks
Sara (Debt Camel) says
You didn’t mention this account in your first complaint? And Very did not mention it in their reply? Then send them a complaint!
Ams says
Hi Sara, I’ve had a response from barclaycard saying they have not upheld my complaint. They have stated that they done the correct checks and that there was no information on my credit file to say I couldn’t afford the increases and that my payment history reflected this (mostly paid minimum payments apart from few times I borrowed from family to pay lump sums). My question is though, would the fact that I’ve lived in my overdraft (with barclays) for the last ten years not show that barclaycard acted irresponsibly?
I was continuously in overdraft, never getting out of it. Barclaycard started at £3000 in 2010 and went up and down throughout the years (one point to £8000) cleared the card once and made maybe 2 or 3 lump payments. It currently is now back at £3000 which is now the limit
Sara (Debt Camel) says
Here is a FOS decision on a NatWest overdraft https://www.financial-ombudsman.org.uk/files/290226/DRN5869499.pdf. FOS doesn’t operate a “precedent” system, so you can’t assume that will mean you will win a complaint about your overdraft, but it shows the way FOS is thinking about these sort of cases. (It’s a very long decision – FOS only writes a small number of these, where it wants the lender to pay particular attention as the points crop up in other cases as well.)
I suggest you go back to Barclaycard and point out you were always in your overdraft for 10 years. Say this shows you were reliant on credit to meet everyday living expenses. Ask them to review their Barclaycard decision as they should have taken into account everything they knew about your financial situation which included your overdraft usage.
Also say you also want to complain that they failed to monitor your overdraft usage and should have offered you help with this and you would also like to request a refund of overdraft fees charged.
chris says
Update on J D Williams: the final one? I have today received the figures for redress having first complained in May 2019. Thanks to Debt Camel and the other people on here who have posted about JDW, the use of the senior people’s email addresses magically got the ball rolling. I am promised a cheque in the next 14 days. The figures on the 8% interest do not look right though and I should appreciate it if anyone could take a look below and explain them.
Redress amount: £2351.04
8% interest £127.99
The Adjudicator asked for all interest and charges to be refunded since October 22nd 2013 and for 8% simple interest to be added.
I will not be disputing or rejecting the amount btw. It has taken too long to get this far and the money will genuinely help me.
Thanks. Chris.
Sara (Debt Camel) says
Is there a current balance? If not, when was it cleared? If there is, how much are you paying them every month?
chris says
Hi yes – There is a balance of £825.49 in a DMP. I pay £6.66 a month from the plan.
Jay says
Hi Sara, I’ve made an affordability complaint to HSBC regarding a credit card opened in 2012. The complaint outlines the level of borrowing I had at this time with other creditors, including additional accounts held with HSBC including a loan and overdraft (which I was always in). HSBC have dismissed the complaint on grounds that they did the appropriate checks. I have now been assigned an investigator with FOS.
I am about to embark on a high % mortgage as it’s my only option for a house purchase, if this case wins I could have my CCJ removed and go to a high st lender (it’s the only adverse thing on my credit file).
The investigator wants to know when I was made aware I had cause for complaint, since 2012 is outside the 6 year time scale. I only found out on this website that it was an option but am not certain how to word this back to her.
I was also one of the people who received a cheque this year as part of operation “eagle” by HSBC refunding interest and charges, but coincidentally received this a few days after I had sent the complaint. The call with HSBC also suggested that these cheques were sent as HSBC failed to freeze interest/charges to help their customers at the time. Therefore, I am hoping I have a stronger case since they have admitted they didn’t freeze them when they should have done, the balance grew as a result, the card wasn’t manageable and later a CCJ was applied as it simply was not affordable. Any advice greatly appreciated.
Sara (Debt Camel) says
If you can postpone the mortage application until this complaint is resolved at FOS, you could possibly get a much better mortgage rate.
How did you come across this website? Did you read an article about affordability for loans and that made you wonder about your credit card? Did a friend or family member tell you they had had a refund?
When you say you were always in your overdraft, was that always in the red, never back in the black even on payday? or
Jay says
Hi Sara, it’s quite late in the day to postpone the mortgage application, received the MOS today. I raised this case in Feb, forwarded to FOS and I’ve been assigned an investigator now. I thought it might take longer.
I was researching how to buy a home with a CCJ. I’d paid all my debts off (even the CCJ) I used this site as I was researching how to get a default removed. The default had been applied years later after the account defaulted, I won this and HSBC altered the date and it dropped off my file. Then I found your article about credit card refunds.
This c/card account was used as means to live/ survive oppose to how a credit card is intended. The card was issued in March ’12, I was on MAT Leave from June ’11, so when I applied, I had been in receipt of low income for 9 months prior. I don’t think HSBC would have carried out any income checks. The loan repayments were being met, but I was always juggling at this time.
Total Debt in 2012 was £17,487, estimated repayments were £500 pcm (most of my MAT income). Account balances were between 83%-100% utilisation. I had 2 overdrafts, 1 with Natwest that was ALWAYS OD, & HSBC which must have been OD at the time as low income.
I would really appreciate some help with the answer as to ‘when I was made aware I had cause for complaint’, if you feel what I have said above is sufficient – re: researching, I will include this. Thanks so much for your swift reply.
Sara (Debt Camel) says
I was researching how to buy a home with a CCJ. I’d paid all my debts off (even the CCJ) I used this site as I was researching how to get a default removed. The default had been applied years later after the account defaulted, I won this and HSBC altered the date and it dropped off my file. Then I found your article about credit card refunds.
Than that is what you explain to FOS. Say you knew at the time that the card rapyments were causing you difficulty and you were juggling everything, but you didn’t realise the lender should have checked the repayments were affordable so you had no idea you had cause to complaint until you found this article.
Point out that HSBC could see from your overdraft that you were always overdrawn and using credit to pay for everyday essentials.
Sara (Debt Camel) says
You also have a possible good claim against NatWest and HSBC that they failed to monitor your overdraft usage because you were always in your overdraft for years. See https://www.financial-ombudsman.org.uk/files/290226/DRN5869499.pdf which is a case where someone won a similar complaint against Natwest.
Jay says
Thank you Sara!
Amazes me how how financially savvy you are. Thanks for the heads up on the Natwest, I was about to read that article as saw it mentioned previously. But I need to tackle this one head on first!
If I win this case, I will be eternally grateful. From £17k to £0 its been quite the rollercoaster, but an experience I have learned so much from. Removing the CCJ will be the icing on the cake. I hope I can help and inspire as many people as you do.
I will update you with the outcome regardless.
Mel says
Hello,
Does anyone have any information on the HSBC review that is going on this year? I have just submitted my complaint to them for irresponsible lending but then I read about a review instructed by FCA and cheques are to be issued ? I am assuming that these will likely have been paid by now but I haven’t found anything
Sara (Debt Camel) says
ok, I did see that. It seems to be related to debt collection practices rather than affordability. So where HSBC were aware that a customer was in difficulty but they failed to freeze interest and charges on an account.
Was your complaint about affordability? You may have to complaint – your limit was set too high AND they failed to freeze interest when they knew you were in difficulty. It is worth being very clear in a complaint if you are complaining about both these points.
Were you complaining about a credit card? Did you also have an overdraft from them?
Mel says
Hi Sara,
It’s actually still quite traumatic for me to even go back to my HSBC bank statements at that time (2014 onwards) but in essence I was in serious financial difficulty (mentally unwell) and I was able to take out a loan (£5k) which I defaulted on a year later, but is now settled, a credit card (£3.3k) which is now closed and take an overdraft (£3.5k) which I reduced and then was able to take out again (£2.5k) and I have only just repaid that in the last month or so. I don’t owe any money to HSBC any longer.
So my complaint is based on unaffordability and irresponsible lending – which I read the review to be looking at, sub standard customer care to customers during 2010 and 2019. All the red flags were there but they kept lending to me and I know I should never have kept asking but i had lost the plot completely. My grandad, stepdad and best friend died within 18 months of each other from cancer and I was going through a divorce – I was reckless with money and didn’t care what the consequences, and believe me, I have paid the price for my irresponsible behaviour and not just financially :(
Sara (Debt Camel) says
these reviews resulting in refunds tend to be for very specific collections of circumstances, normally just relating to one account. In your case you want ALL your borrowing sonce 2014 to be looked at across all your accounts. You may have been reckless, but they were your bank and they should have seen what was going on from your account history and your current transactions.
Good luck and keep at it – send it to the Ombudsman if they don’t make you a reasonable offer – and if you aren’t sure, pop back here to doscuss it.
Paul says
Hi,
I last contacted the site in June asking about my 2 Tesco cards. After the adjudicator ruled in my favour it was rejected by Tesco but once an ombudsman picked up my case Tesco agreed with the decision before the Ombudsman even read about my case.
This site is the best and Sara is spot on and a great help.
Thank you for your advice and hard work.