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?
Steph says
Hi All,
I’ve woken up to a fantastic email from the FOS this morning regarding my shop direct (Very) complaint.
With no admission to liability and as a “gesture of goodwill” they’ve offered to:
1. refund me all interest paid on the account – £7,196.27
2. Refund all administration charges – £480
3. remove all derogatory information with credit reference agencies.
This is a great outcome for me as this is my largest chunk of debt and this amount will settle my balance plus a little to spare.
Timeline for this Initial complaint sent to shop direct 25/03/17. Sent to FOS at 8 week mark as SD hadn’t concluded their investigation in to my complaint. I must’ve filled out the form with the wrong complaint dates as the FOS wrote to me and told me to wait until the 8 week point. I emailed FOS 5/6/17 to let them know 8 weeks had passed.
Heard nothing from them by 12/06 so called and spoke to an investigator there. He promised to take ownership of my case and contact SD. On the morning of 15/06 I woke up to the settlement offer email. Arrived in the post 16/06 for me to sign.
Huge thanks to Sara. I’ve already had success with a payday loan refund from wonga of £5,000 due to this website, plus I have some more PDL complaints with the ombudsman. Without this website, I would have gone in to a DMP, but you’ve helped get well on my way to getting out of this awful debt hole I’ve been in for 10 years. Thank you so much!
Tony says
That’s a great outcome think I’ll forward mine to the fos did you need to supply bank statements and payslips?
Sara (Debt Camel) says
You shouldn’t need to supply payslips if you send bank statements – not unless you are paid in cash :)
Steph says
Tony, you definitely should. The FOS didn’t request statements from me, as shop direct made an offer before they even looked in to it. However, bank statements would be sufficient for you to prove your income.
Good luck!
debbie says
Hi Sara
just got this from my adjudicator and not sure what to do next, is it really worth going to the ombudsman? Has anyone actually been successful in claiming?
your complaint about Vanquis Bank Limited (“Vanquis”)
Thank you for waiting while I’ve been looking into your complaint. My role as an adjudicator is to look at the information supplied by both you and the business, weigh up the facts, and if possible, suggest a fair resolution.
I’ve now looked at all the information that you and the business have given me. Based on what I’ve seen, I think the business have dealt with your complaint fairly, so I’m not asking them to do anything.
I know this isn’t the answer you were hoping for. But I’ve explained below why I think this is the right outcome, taking into account everything that’s happened.
complaint
My understanding is that you’re unhappy Vanquis increased the limit on your credit card account. You feel they didn’t undertake the relevant affordability checks before doing this. You would like a refund of the interest and charges you’ve paid to date.
findings
The terms and conditions of your credit card explain that Vanquis may increase or decrease the credit limit. So Vanquis were entitled to increase your credit limit and made a commercial business decision in doing so.
The terms go on to explain that if they do change the credit limit, they will notify a customer of any change. And a customer would have the opportunity to tell the bank if they didn’t want the credit limit increased. Vanquis have said they issued correspondence (statements and letters) detailing the increase and provided 30 days for you to opt out. I’ve seen evidence that this was the case. So, I’m satisfied if that if you didn’t want the increase to be applied, you had the opportunity to contact Vanquis about this.
Vanquis increased your credit limits following periodic reviews of your account and in line with its lending policies and the terms of your agreement. But in addition to this, when a customer spends on a credit card, they’ve made the choice to do so. Whilst the credit limit is increased, usage of this is a personal decision and the bank can’t be held liable for this.
As a credit facility, where the interest has been applied correctly and in line with the terms and conditions, we wouldn’t look to recommend that a refund of interest and charges is made. This is because you have benefited from the additional spending, and where money is spent, interest is applied accordingly and against the level of borrowing.
I appreciate you feel the additional credit Vanquis gave you was unaffordable. However, you made the decision to utilise the additional funds. This means you’re liable for any interest applied in line with your credit agreement.
I can only make recommendations if I can establish that Vanquis have made any errors. But based on what I’ve seen, I don’t think they have. Whilst I appreciate this may come as a disappointment to you, I’m unable to ask it to do anything.
They did not request any statements only sent me an email to say they were getting in touch with Vanquis and would let me know what they said. Do you think it would it be worth sending credit files, bank statements etc?
Sara (Debt Camel) says
Definitely, say you would like to send bank statements and credit records.
You could add That CONC 6.2 of the FCA rules says that
(1) Before significantly increasing:
(a) the amount of credit to be provided under a regulated credit agreement; or
(b) a credit limit for running-account credit under a regulated credit agreement;
the lender must undertake an assessment of the customer’s creditworthiness.
(2) A firm carrying out the assessment in (1) must consider:
(a) the potential for the commitments under the regulated credit agreement to adversely impact the customer’s financial situation, taking into account the information of which the firm is aware at the time that the increase in (1) is to be granted; and
(b) the ability of the customer to make repayments as they fall due over the life of the regulated credit agreement, or for such an agreement which is an open-end agreement, to make repayments within a reasonable period.
You feel the Vanquis didn’t do this. It should have noticed that you only made the minimum repayments (assuming you did!) and decided to do more checks to make sure you could afford an increase. If it had checked your bank statements or credit record than it would not have increased your limit.
Say that you were in a very difficult situation for money throughout this period (assuming you were of course!) and that at the time you weren’t making good money decisions. But it was still irresponsible of Vanquis to increase your credit limit so much without making more detailed checks.
debbie says
Thanks for the advice, I’ll give it a go and let you know what happens
debbie says
Hi Sara,
I followed your advice and yesterday got this response:
Thanks for you email and for your patience whilst I have further reviewed the information you supplied.
The FCA guidelines suggest that a business should increase limits in instances where the customer has proved to be credit-worthy. In your case, you met your contractual obligations in line with the facility, in meeting your repayments regularly. This increased your credibility to borrow as you held a strong repayment history with Vanquis.
As a credit card is a running credit facility, the checks conducted by a business are very different to those carried out for loans, for example. As previously stated, the funds are available to you, but it is your decision as to whether or not you wish to utilise them. Your solid repayment history on your credit card was sufficient for Vanquis to increase your limit, and the periodic reviews were proportionate for this type of credit facility.
In light of this, I can’t agree that Vanquis have acted irresponsibly, and therefore my findings remain the same.
My “solid” repayment history consisted of 23 over limit charges or late payment charges, the first one being May 2009 4 months after I took out the card. Using PDL to pay off the balance in full sometimes so I could re-use the credit and then from May 2011 only paying the minimum monthly payment. While Vanquis continued to increase my CL from £2599 to £3600 until the account defaulted in Dec 2012 and I went on a repayment plan. Is it worth emailing the adjudicator again or should I just ask for it to be passed to the FO?
Thanks
Sara (Debt Camel) says
It is a more difficult case if you sometimes repaid your whole balance. But 23 over limit charges or late payment charges suggests to me that the lender should have looked more closely at your situation and if they had done that they would have seen the mounting payday loans. I suggest you ask for it to be passed to an Ombudsman.
debbie says
Update. The Adjudicator would not change her mind and so it has now been passed to the FO. Is anyone having their complaints against Vanquis or other credit cards upheld?
debbie says
Update on my Vanquis complaint. I asked for it to be looked at by the ombudsman and they have not upheld the complaint. Vanquis did nothing wrong and my using payday loans to make my repayments and continued borrowing up to the limit was not a problem. Feeling a bit fed up about the result, hope others are being more successful. I have requested a copy of the credit agreement as a last hope. So keeping my fingers crossed they don’t have it but as the account was opened on December 2008 I suspect they will.
On the plus side the debt will “fall off” my credit record next month so if everything else fails I just have to keep paying the token payment and if some of my other claims are successful then I might be in a position to offer a final pmt, let’s hope so.
Katie says
Hello,
I’m wondering if this would be applicable to me – my “boyfriend” at the time (I use the term loosely, I prefer to think of him as a serious lesson in what not to do in life!!!!!)
He took out 3x catalogues in my name (all with Shop Direct, each gave “me” a credit limit of £750!!) I was 19, and working a minimum wage job and trying to keep a roof over ours and HIS baby sons head, and until we split 3 years later and I had recovered, both physically and mentally, from what he did to me, I knew nothing about any of it!
Whats the likelihood of me being able to claim back any interest they added on, when I’ve been stuck paying it back through debt collectors and such??
It still isn’t all paid off (slowly, slowly getting there) along with the payday loans and everything… this was all back between August 2010 and July 2013… whats the likelihood I will be able to claim any of it back??
I’ve spoken to the police about it (I now work for them!) and unfortunately because we lived together, I cannot prove that I didn’t take out the payday loans (went into a “joint” bank account – I had no access to it though, wasn’t allowed!) and all the parcels were delivered to the house but I wasn’t there when they were delivered (and on the off chance I was there, I wasn’t allowed to answer the door!) there is no way of proving none of it was me (and believe me I’ve tried!) considered the Small Claims Court, however I can’t afford that, and I know he would do what he did when he had to pay maintenance for his son – drop his hours to 8hrs a week so he wouldn’t have to pay me!
Any advice??
Sara (Debt Camel) says
I don’t think you have much chance of an affordability claim against the catalogues but if “you” borrowed from the same payday lender repeatedly, try an affordability claim for those. See https://debtcamel.co.uk/payday-loan-refunds/.
What is your current financial position like? What do you still owe on these old debts? On any new ones? What is your credit record like?
lucy says
HI ive just heard back from my adjudicator for Shop Direct (Littlewoods and Very). Very have offered a refund of interest and charges from May 2016 when I told them about my financial situation. Ive had the account about 6-7 years. The adjudicator thinks this is fair and doesn’t think they have acted irresponsibly. They say I signed a credit agreement in which it states that limits can by increased etc. They consider account history as well as credit score. He needed persuading that they hadn’t taken enough steps to assess my ability to handle an increased credit limit and he feels they did it right. I could of refused the increases. Littlewoods did no wrong and he thinks that’s fair too as the account is now paid off and closed. Im not really sure what to respond to that now as he has seen my credit file himself. Any help anyone? thanks
Sara (Debt Camel) says
Has he seen your bank statements?
Can you summarise your two accounts – how much was your credit limit on each increased and when? what was your credit report like at the points where it was increased?
Do you know how much this current offer is worth – how much interest and charges were added after that date?
Lucy says
Hi i opened an account with very and the limit went from 175 to £3100 in 2-3 years. I had missed payments and had late payments etc but never for months and months on end. My credit report showed payday loans monthly, 2personal loans, mortgage 3 catalogues and a credit card. I was also overdrawn. He says they probaly wouldnt need to look at the whole credit report and just the score and my a count management and they only increased it when i had paid ok for at least a few months. I was also overdrawn hes seen my bank statements but said the company wouldnt need to see bank statements so that doesnt matter. Could i say i dont think i should of been given the account instead of the unaffordable increases? as i recently won a claim for credit card that they said shouldnt of been given to me due to the amount of credit i already had and my low income? My account is now in a DMP many thanks
Sara (Debt Camel) says
Well you can try. But £175 is a very low limit – it’s going to be tough to argue that was unaffordable. In the end if the adjudicator doesn’t agree, just ask for the case to go to an Ombudsman.
Lucy says
Well they actually opened it with a £1000 limit but then reduced it to £175. Il try find out the amount and if its not much i will let it go to the ombudsman thanks
C says
Hi all
Just heard back from my aujudicator about ACE catalogue. He found they did no wrong so not upheld my complaint about increasing and actually allowing me to open a account. He said i hadn’t notified them about financial difficulty so they did no wrong. However, i wrote to them in October 2016 about this and also received avrespobse back from them. Luckily i copied the letter I sent and kept the reply. These letters were NOT in my file that was sent to the aujudicator. I have sent copies of these now over to the aujudicator ready for the ombudsman. How can letters not be in my file?
Sara (Debt Camel) says
Good question!
C says
And it looks like my letters that were sent in January and there response was also not sent over. Just emailed aujudicator a copy of both of these and he replied saying” i see you got alot of complaints with the FOS maybe you attached it to the wrong file?” my response ” these letters were not sent by me only my final response was sent to you, as I expected these letters to be sent over to you in my file from ACE”. So annoyed with ACE !! Not good
dani says
HI everyone,
Quick update, I have spoken to Shop direct today regarding my refund. They are currently calculating the 8 % interest for the offer as it will be surplus to their offer. There is a delay because i have asked about the 8% and apparently they have to figure it out. You would think this would be done before they offer but hey ho. They are looking to give me an updated figure by the end of next week and I should receive a letter and then they send a cheque out which could take 2 weeks to come through. Just thought everybody would like to get an idea of time frame. I have been waiting just over two weeks already since the offer.
Trying to be patient lol but very happy that the sum I receive will be at least £5495!! Thanks debt camel + Sara. Keep going guys!!
Dani
Jack says
Thanks Dani – good work! Just a question; was your offer made without liability? I only ask because with mine they said the 8% won’t be included as it was a ‘gesture of goodwill’. Although it’s funny as we all know, refunding a customer thousands of pounds in interest is definitely seen as an admission of guilt no matter how they word it, at least I’m sure a court would see it that way. Also, are you just ringing SD directly? Are they okay with this?
Dani says
All they said was 8% simple interest would be included so I queried this with the adjudicator and I think this is why it is taking longer as shop direct have said they need to work it out but it will be on top of the offer. Shop direct didn’t really say too much about me ringing but thy made an offer and I was just chasing them lol they transfer you to the customer excellence team once you have phoned the complaints team and then that goes to another department but they won’t let you have this number directly so have to keep chasing them and go through departments. At least I have a time scale now which is all I wanted
Dani
Jack says
Hey Dani – did you get your payment and did it have the 8% interest included? Thanks!
Dani says
I am still waiting for them to get the figures right! The 8% is on top of the figure apparently. Just frustrating having to wait!! Have you had any luck?
Morag says
Dani,
They didn’t know how to do mine. I was waiting 2 months. They wiped my whole balance off, total £3000
???
Jack says
They don’t seem to be the best to be honest. I’m still sorting mine out as they won’t add the 8% interest and have said some accounts are not interest bearing when they definitely were.
Morag – how come they didn’t know how to do it? Was it two months after your decision from the ombudsman?
Morag says
Hi
I probably was the first that posted here to say that I had won my case as was my case for an overdraft.
It did not go to an ombudsman , they accepted with my adjucticator.
They told me it was just over £1000 and lowered my balance to £2000.
I queried this and asked for a breakdown of the charges. After waiting just under a couple of months I emailed my adjucticator and called shop direct. They apologised and then I received a letter saying the rest of my balance was being wiped out for the inconvenience!!???
Daniel says
Hi Sara,
Wondering if you could lend me a bit of advice. I claimed against shop direct and the adjudicator found on favour of shop direct. Now I didn’t agree and sent an email back rejecting her decision and why catalogue’s aren’t expected to follow the same rules as a pay day lender.
Anyway a few days later passed and she got back to me saying it would be sent to the ombudsman but shop direct had offered to refund me and buy now pay next year interest from 2011.
I worked out from my records and get about £4500 that should be refunded. As majority of items I bought was with this offer.
She then message back yesterday saying they offered me £2000 (I still have £2500 outstanding with lowell) and they would offset against the outstanding balance.
She advised me this was a very fair offer.
I rejected it immediately and asked for a break down of the offer to be sent so I could understand why we was so far apart in our figures.
She emailed me back saying they haven’t sent her a break down or any figures.
How can she say this is a good offer if she hasn’t had any facts sent?
Sorry for story my question is can I raise this issue with the ombudsman about how my adjudicator is coming across? I don’t see her as at all impartial.
Rejected my claim, only for shop direct to come back and offer me £2000.
Then advised me the offer was good when she was shown nothing from shop direct to prove £2000 was the correct amount of refund since 2011.
She seems desperate for me to accept and not interested in getting the right amount they’ve offered to refund.
Also just for anyone who has been rejected I argued that catalogues are just as bad as pay day lenders when they offer buy now pay later or buy now pay next year. Because they know that you won’t pay back the money in time for interest not to be added on to the account.
I went for £20 a month in 2007 to £200 in 2012 to over £450 in 2014. I had only done minimum payments will all these offers and had many late payments which shop direct wouldn’t help until I eventually defaulted with my catalogue bill higher than my rent.
Sara (Debt Camel) says
Well to be fair if she has rejected your case then £2000 sounds like a lot… But I suggest you say that you *thought* their offer sounded fair but you need to see a breakdown as your rough calculations suggest it should be a lot more.
“Also just for anyone who has been rejected I argued that catalogues are just as bad as pay day lenders when they offer buy now pay later or buy now pay next year. Because they know that you won’t pay back the money in time for interest not to be added on to the account.” That line of argument is unlikely to help your case at the Financial Ombudsman. There is no “set way” to refund payday loan cases that you can argue should be applied to your catalogues. Every case is treated as an individual.
“I went for £20 a month in 2007 to £200 in 2012 to over £450 in 2014. I had only done minimum payments will all these offers and had many late payments which shop direct wouldn’t help until I eventually defaulted with my catalogue bill higher than my rent.” sounds alike a good case – quite right to take it to the Ombudsman.
Scott says
Hi Sara (debt camel),
Just had Adjudicator response in regards to my credit card complaint. Credit limit was increased 3 times. They think first increase was acceptable but thought others were not.
They have advised to refund all interest and charges from the date of the second increase.
Would this be all the interest charged on the outstanding balance or just the interest on the additional limit amount?
Adjudicator has also awarded compensation for distress and inconvenience.
Thanks
Scott
Sara (Debt Camel) says
I’m not sure I can guess – it may be the adjudicator hadn’t thought clearly about the distinction either. Fingers crossed the lender accepts the decision – who is it?
Scott says
Hi Sara,
Thanks, it was Newday
Steph says
Hi Scott,
NewDay trading as Aqua? I’ve recently submitted a complaint to the FOS regarding this too.
Did NewDay ever come back to you to attempt to resolve directly.
Thanks
Steph
Scott says
Hi Steph,
Yes Aqua, flat out rejection from them.
They will no doubt disagree and it’ll end up with Ombudsman.
Scott
Steph says
Hi Scott,
Good news on adjudicator decision though so can only get better from your perspective even if it does go to ombudsman.
Aqua received my complaint and instantly closed it. Not even an acknowledgement letter for me!!
Steph
Matt says
Hi Scott
Well done with Aqua I know how hard it is to get anywhere with them , my limit was increased from £300 to £1300 after 4 months and then increased again £2500. I don’t want to know your limits but was it anything like the increase I had . My complaint is with the adjudicator at the moment and this is the first aqua complaint I have seen on DC so I am hoping to have a similar outcome.
Thanks
Matt
Scott says
Hi Matt,
My limits were slightly less.
I only used the card for cash withdrawals and made minimum payments and then withdrew cash once available, even if it was only £10.
The adjudicator thought the first increase was OK despite doing this as I had always made a payment and i only had card for 3 months. However when they increased the limit for the second time, I had missed payments and over limit charges in the months prior to the increase.
Aqua had advised in their final response that if the account wasn’t maintained correctly then the customer wouldn’t be offered an increase, so they basically shouldn’t have increased my limit.
I think that if I hadn’t had these charges then the adjudicator may have sided with Aqua.
Hope your complaint goes well.
Scott
loreta says
Hi Sarah, Been reading all the comments here for a long time. I had credit card loan and personal loan in Natwest 2011 topped up and increased my credit limit in a short period of time. Was gambling all transaction was all gambling.. I’m not gambling anymore and now on DMP
Can I make a complaint to Natwest for irresponsible lending
Sara (Debt Camel) says
Yes you can complain. Keep your expectations pretty low – these are new sorts of complaints and so far there is a mixed record in them being upheld by the Ombudsman. Don’t worry about the gambling – that won’t harm your case.
loreta says
Hi Sarah thanks for the quick response will gather all the information and will start the complain .Will update here
Mark says
I just want to post I logged an affordability complaint against barclaycard late last year for an limit increase from 3500 to 6400 in Nov 2011 they rejected in 2 days straight to FOS. After seeing statements and details of usage adjudicator ruled in my favour additional info from them caused him to slightly reconsider in the end they offered half of all interest and I accepted.
I specifically challenged them with details of my credit ref and using CONC 6.2 and various regulations from OFT lending guidance 2.2 4.3 4.4 4.20 4.21 4.23.
I am now moving onto vanquis who throughout 2011 2012 raised my limits from the initial limit of 500 to 1000 then 2000 then 3000.
I called them yesterday for statement and was informed the charge for a years worth is 25! They already seem to be trying to put people of cheeky buggers.
Jimmy says
In need of some assistance with Very/Littlewoods – Shop direct
I put in a complaint to both Very and Littlewoods on 05/05/017 using the online account contact asking for a statement of account.
Littlewoods and Very both pointed me in the direction of their debt sales team as they no longer owned the debt.
Last week I submitted the full complaint template without the statement of account.
Very have said they will investigate the matter.
Littlewoods provided me with the outstanding balance and told me to contact the debt sales team. I asked if this was their final response on the matter and they again stated the account had been sold and to contact the debt sales team.
Can I now send the Littlewoods account to the Ombudsman?
With the Very account, should I give them 8 weeks from when I first contacted them for a statement of account or when I sent them the full complaint template?
Cheers
Sara (Debt Camel) says
Yes, if Littlewoods are refusing to give you a response, take the case to the Financial Ombudsman. IIt’s also good to let the debt collector know that the account is in dispute – but your complaint is to Littlewoods, not the debt collector).
re the 8 weeks, did your request for a statement of account say you were making an affordability complaint? If it did, I would start the 8 weeks at that point.
Jimmy says
Thanks Sara will ping the Littlewoods account off to the FO.
Didn’t mention affordability I just stated I was making a complaint. I’m happy to the let the Very account run longer as they are atleast co-operating.
Will it make any difference to the FO that both accounts fall under the Shop Direct umbrella?
Morag says
An update from capital one
I defaulted on this card in 2016 for just over £1200 and, at the moment , paying £1.00 per week. This is one of my last complaints and put in a complaint about the affordability. My adjucticator said capital one done no wrong on the initial limit of £500 and so was not upheld. She mentioned I did not put , in my complaint, about the increases were not affordable.So I therefore had to put another complaint in.
I have just received a positive outcome from my adjucticator that the increase of £750 was not affordable or the final increase of £1250.
She said that I have to receive any interest of the £500 from 2013. Capital one agreed,
Thanks to Sara , yet again!!!
Also update on shop direct
Adjucticator found me in favour of my complaint. I owe them £3000 and they said the interest was just over £1000.therefote £2000 to pay.
I am paying , at the moment, £1.00 per month
I queried this and asked for them to present to me the workings. Finally after 2 months I received a letter yesterday saying they were wiping all my balance to zero!!!
Weird?? but happy!!
Lucia says
Hi Sara, Please could you give me an idea if this is worth perusing? I have two Capital One Credit Cards. I didn’t realise this at application as one was Luma and one is Ocean. The first one was Luma taken out on 14/12/2015 for £200. This was maxed out almost straight away and has remained so. I make a little bit over the monthly minimum payment but always spend up to the limit.
In August 2016, I applied for another card and got a £1000 limit with Ocean. This again has been maxed out.
I have had pay day loans and a very poor credit file. Shall I complain on the basis they sould never have approved me for a second credit card?
Thanks
Sara (Debt Camel) says
I think that’s worth a complaint. Your poor credit record is important. The £200 limit from Luma was probably fine – but £1000 is very high.
You need to keep your expectations low with this sort of complaint. Expect it to be rejected by the lender and send it on to the Financial Ombudsman.
Nigel says
So after a while it looks like Littlewoods have advised my adjudicator that he can look at all aspects of my complaint with them. That is very encouraging as I am looking at not just the high and unaffordable level of available credit given to me. Looks like we are seeing some encouraging results starting to seep through, so fingers crossed I can get a result here.
C says
Hi all
I have a complaint in with FOS about my hsbc overdraft and credit card, been picked up by aujudicator who is looking into both for me. Yesterday I had a text from hsbc to say to ring them which I did. They explained I was 66.00 over my overdraft limit ( i already knew this as no money had gone into account and this was from fees charged) anyway without asking, the lady said she would refund me the 66.00 (showed in account today), even though i kept saying i had complaints in with the FOS she didnt seem bothered but just insisted on the refund to help me! i emailed the aujudicator to let him know this. Would this maybe go in my favour with my complaint against them? He emailed me back today to thank me for this information. Any thoughts appreciated thank you
Lisa says
Thank you for this website, the information is great.
I have been going through my finances recently trying to clean them up a bit. Currently i am on a DMP but they have allowed me to suspend it for 2 months while going through affordability complaints.
I have 2 accounts on my file that i am looking to dispute for affordabilty but i have limited information.
the 1st account is a Littlewoods Catalogue the information i have is as follows:
opened account: 6/5/03
opening balance: unknown
credit limit @ 6/10/07: £4900
defaulted ac: 18/10/10
default amount: £1290
balance went up to £1382
current balance: £692.06
This account was assigned to Lowells some time after and i entered into a payment agreement with them but couldnt maintain it, it was put on my DMP when i opened it in Jan 2013.
I have bank statements from late 2010 until Jan 2013 that shows payments to Lowells. I have no other information only a handful of default notices and late payments letters from Littlewoods as i destroyed everything else when burying my head in the sand. I do know my account history was clean upto October 2007.
2nd Account is an Argos Store Card which i have the following info for:
opened account: 27/01/07
opening balance: unknown
defaulted account: 6/7/10
default amount: £1219
current balance: £1066.63
This account was left alone for a while due to argos refusing any assistance when i went into financial difficulty. They apparently sold it on but it took over 2 years to find out who to. This was Allied International Credit who refused to enter a payment plan and demanded the full balance. It was eventually placed on my DMP when it opened but after a handfull of payments AIC sent all the money back stating they didnt own the account anymore and that it was back with Argos. Eventually i was contacted by FRS on behalf of Argos so it went back on my DMP.
Both of these accounts i am pretty sure started off with the usual £2-300 credit limit but i have no paperwork to back it up.
I have no idea how many credit increases i had on either account but i know my credit file wasnt brilliant in 2007 as i had bank loans that had missed payments etc, i also had numerous provident loans on my file some settled but clearly being renewed.
With these accounts would it be worth putting in affordability complaints given that i dont have much information?
Thanks
Sara (Debt Camel) says
My first thought with those two old accounts would be to ask the debt collector to produce the Consumer Credit Act agreement – see https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx. If they can’t, then the debt is unenforceable and you can simply stop paying.
It is worth asking for these for any credit card and loan debts in your DMP. The creditor is more likely to fail to produce them for accounts opened before April 2007 when the rules on what they have to have are stricter, but still worth asking for later ones. I wouldn’t bother with the payday loan complainst and provi complaint – wait until your affordability complaints are settled to see if they resolve the proble,
Affordability complaints would be tough as you won’t be able to produce your credit records as they are so old.
Lisa says
Thanks Sara
would i need to use a SAR request? And if these are unenforceable does it then not matter if i have been paying them through my DMP?
I have 3 old credit reports, 1 from 2007 and 2 from 2012 thats how i know the information above.
Sara (Debt Camel) says
No, this is not a SAR request. You are asking for some very specific information and the cost is £1 as that link explains, not the £10 you would have to pay for a SAR.
If the creditor can’t produce the right documentation, they can’t enforce the debt. The fact that you have been paying it so far is irrelevant.
You have a much better chance of not having to pay these debts by asking for the CCA agreement. If it fails, you can always fall back on an affordability complaint. It’s good that you have your old credit record but the lender may simply say they haven’t kept their own records of the checks they did at the time.
Lucy says
Hi Sara with the CCA does this apply to all lenders before 2007? My next directory affordability complaint was not upheld ive had the account since 2005 would the same apply? Thanks
Sara (Debt Camel) says
It applies to all credit cards, store cards, catalogues and loans. It does not apply to: mortgages, some secured loans, items that have been pawned and overdraft.
Definitely worth asking for the CCA for a Next account that is that old and defaulted or in a DMP! Template letter here: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx. National Debtline are good people to talk to if you get something back but you don’t think it looks right.
Mary Stewart says
Wondering if anyone could help me.
I have an £800 overdraft with RBS. They offered me an overdraft a couple of years ago and I iniatially set it at £100, then upped it a few times and now it is £800. I did try at one stage to up it further but I was declined.
When i initially opened my account RBS were told I was a housewife with no monthly income other than CB & CTC (paid into my partners account with a different bank). This has not changed.
My overdraft is always maxed out, I’ve never been able to pay anything off it to reduce it. Every month I pay interest and a £6 arranged overdraft fee. Its a vicious circle :(.
Would I be able to claim anything back?
Sara (Debt Camel) says
You can make a complaint – there are no guarantees you will get a refund, but you have nothing to lose apart from a bit of your time!
Lucy says
I complained to lloyds regarding two overdrafts they let me have at the same time they went from £100-£1500 within a few months. I applied online for them myself.
Adjudicator found they did no wrong as i applied myself it was uo to me. Its now with the ombudsman but all the ombudsman decisions i have had have so far always agreed with the adjudicator. Good luck still worth a try
Pear says
Hi Sara
Bit of a strange question. I had a vanquis credit card which I settled in full back in 2014 however this is still showing on my credit file as an active card with a balance of £349 against a limit of £250. When I phoned them they said the account had been settled and there should be nothing showing on credit file but if I sent via post a copy of this showing on my credit file that they would look into it. I would prefer to email them but apparently they have no complaints email, surely they have a duty to ensure the information they have reported to credit reference agencies is accurate, what do you think I should do?
Sara (Debt Camel) says
They do have a duty to make sure the data is accurate, but there is no legal obligation for them to let you complain by email. I suggest you write a letter.
Aaron jackson says
Had a final response from the ombudsman regarding vanquis complaint.
Original credit limit was £250.
Then made several missed payments & exceeding the limit for a few months.
Vanquis increased the limit to £1000.
Several more missed payments, exceeding/at the limit threshold for a year, was put in to an arrangement to pay twice because I told them couldn’t afford it. I also received 3 defaults from other companies in the space of a month and vanquis didn’t see this.
Vanquis then increased the limit to £2000.
Adjudicator did not uphold my complaint as “It was my choice to spend the money”
I contested this and said yes I agree, but at the same time it was also irresponsible for vanquis to lend the money”
Ombudsman ruled in adjudicators favour
Nim says
HI Aaron, I think this is a general consensus with credit cards – there is not much hope. I am in the same boat. If they give you the money of course you will ‘spend it’ to pay for other debts, living expenses, bills etc, because you can’t afford it. The same applies to payday loans, of course they will give it to you, and you will ‘spend it’ to pay for bills etc.
So I don’t really see the logic of some of the adjudicators and Ombudsman.! In many cases, like my own, they also need to consider what other debts you have as well as numerous payday lending during the same time as having the card and they should have considered this before they increase limits etc – I am sure they can see all this on the credit files as having too much lending. So in both our cases I am disappointed because they have not looked at the bigger picture, yet, a different adjudicator has agreed for refunds on ALL payday lending on my cases.
This also includes ‘one’ loan spread out over one year – same as you would have a card.
It would have been better if one adjudicator looked at all you problems and complaints so they can see the full side of things.
So bad luck to us on this case and there is not much you can do as your other option is to take it to court, which you may end up paying the cost if you loose.
But also, have you had ‘repayment option plan’ when you took the card out? if, so you can reclaim this – it’s like PPI, but they will tell you it’s not PPI to fob you off, so you have to be specific. If you are not sure, check you initial statements when you 1st took the card out and make an initial complaint. You should get a fair bit refunded if you did have ROP added to your account. I got back over £900, deducted from my card – but they will lower your limit too!!
Best Nim
Bridget Blyth says
Hi
Sara what a fantastic site this is.
Does anyone have an email address for Very as I have tried several which have come back mail undeliveable. Have rung customer services who gave me another wrong email address. Tried their Resolver email and email came back saying the email address I provided doesn’t match theirs!
This account is with Lowells . Any help would be much appreciated.
C says
Hi Sara
Just had my aujudicator call me to say that he didnt agree that Nationwide did no wrong in allowing me a credit card for over £12,000 without even seeing my very low wages, having a load of gambling transactions on the card, and also making frequent cash withdrawals and only making the minimum payment for years. Im definately going to the ombudsman about this, just wondered if you have any advice. Feeling upset.
Sara (Debt Camel) says
You know the points to make … good luck! Decisions on cards and catalogues seem very random at the moment.
C says
Hi all, i have just literally wrote a essay to my aujudicator about my credit card. I have pointed out the gambling transactions, loads of cash withdrawals, not seeing my proof of income, copied bits of info from nationwide website, and quoted sections from fca, credit card assoication and the lending standards, taken me all day to write so fingers crossed this helps me and the decision be overturned. Will keep you updated
Matt S says
Been told by my adjudicator that i’ll have his response to my Nationwide Overdraft complaint this week. Trying to stay positive as feel it is a really good case but have a feeling it’ll go against me. Will just wait and see I guess.
C says
Good luck, my nationwide overdraft wasnt upheld even after ombudsman decision, aujudicator today found my 12,000 credit card with nationwide not upheld off to ombudsman with that now
Matt S says
Hi C, what was your story? What position were you in when they accepted you for an overdraft? I was in debt management (showing on credit report) with over 170 gambling transactions, 30 or so payday loan transactions, guarantor loan transactions and dmc payments showing on my statements in the 3 months previous. They accepted me for £800 and allowed me to increase 4 times up to a total of £4000 within 6 weeks despite all of it being spent on gambling.
C says
Hi matt, my overdraft was increased to 2500, along with a credit card for 12,000. My account was full of gambling, payday loans, catalogues, another credit card for 7000, plus another overdraft for 2200, they would have seen all this on my credit report but ombudsman sided with aujudicator finding they done no wrong, i really tried to argue my case but still sided with nationwide. Nationwide have now taken my overdraft off me and im paying 10.00 per month to clear it. They increased my overdraft rapidly too.
Aaron jackson says
The FOS don’t take the customers side with credit cards. They go with the businesses.
I had a strong case and they didn’t bat an eyelid to my side of the story.
They’ll tell you it was your fault and that it was your choice to spend the money
C says
Hi matt how did you get on with your overdraft complaint?
pete says
Hi,
Does anyone have the correct contact address / email for shop direct? have made a claim for PPI agaisnt them for 2009-2012 and they have upheld the complaint. Now i wish to complain about irresponsible lending so need their correct contact details.
Thanks to Debtcamel i have so far this year recieved over £3,000 (not inc the above) from payday loan lenders. Wonga & The Money Shop.
Thank you
Steph says
Help@very.co.uk… if it’s the Very Part of the shop direct group.
Good luck!
Pete says
Hi,
I have tried this numerous times, they fob me off and try get me to fill out a online form which is for PPI. I keep going around in circles with them regarding irresponsible lending.
Shop Direct are a pain in the **** to deal with.
Steph says
Do you currently have an account with them? If so, you could contact them via their online message centre?
Worst case, write…?
Sara (Debt Camel) says
Are you doing this in the phone, by email or letter? Have you actually put in a complaint about affordability and they then send you something asking you to complete a PPI form?
Pete says
This is regarding an old account, i have the account number.
Yes i put a complaint in about affordability, to which they sent a ppi form out. This is a bonus because it turns out i had ppi and they have upheld the complaint. Still waiting on offer.
Everytime i mention irresponsible lending they keep refering me to ppi forms. I do this via email or resolver. I am now looking for an address to i can do a written complaint to and post recorded delivery.
Jordan says
Hi, I’m currently on a DMP to pay back two overdrafts and two credit cards I have. My Barclaycard debt is £8100, late last year they upped the limit to that from £5000 without warning. This was despite me constantly being at the limit, going over my limit frequently, whilst having several other large credit commitments. I had also been using payday loans very frequently to help when i couldn’t make payments. I think this is the only one where I genuinely feel that I have been irresponsibly lent to.
I had buried my head in the sand and just ignored it and paid interest on everything each month and it affected me greatly, i’m only now dealing with it through my DMP. I’ve just started it last month and Barclaycard have agreed to suspend interest at the moment and it is about to default. Is this worth pursuing still at this time or should i wait and do it in the future?
Sara (Debt Camel) says
Irresponsible lending complaints shouldn’t be delayed. Barclays aren’t going to decide to carry on adding interest in revenge for you making a complaint.
These complaints aren’t easy and the results seem a bit random but it’s worth a try. It will help your case if your credit record showed late payments or defaults on your other debts.
Stefan says
Hi, is there any email to complain Barclaycard? Or just post?
Btw, thank you so much for your site, Sara. Only because of you I stared to put my finances in order and I can smile after a long period of time.
Ross says
Hi Stefan,
If you’re registered for online account facilities (MyBarclayCard), then you can send them a secure message. This means that they’ll definitely get your message and they can then advise if they need any more information and/or if they need you to send the information to another department etc… I have been pondering whether to complain to them for a while now, as my limit was increased and I was constantly overlimit for around 2 years and they applied default charges for the whole period. Nobody ever contacted me, apart from a standard default fee letter, to ask if I needed help at all. Pretty poor for such a large financial institution in my opinion?
Ross says
OK, in this case, maybe ponder this page?
https://www.barclaycard.co.uk/personal/help-and-support/complaints
Good luck!
C says
Quick update with my catalogue complaints…aujudicator didnt uphold my complaint with little woods off to ombudsman now, ace studio again aujudicator didnt uphold however I have proved that ACE did NOT send over all the file and there were letters missing about me writing to them to advise of financial difficulty, ombudsman contacted today to ask more questions so fingers crossed. My 4 accounts with JD williams was not up held, with ombudsman now as I have proved that they have lied and contradicted their selves, next not up held with ombudsman, curvissa, freeman and look again not upheld but again sent to ombudsman as they did not send over all the information that I had sent them (letters advising of financial difficulties) so people be warned that the companies seem to be NOT sending all information they have to the ombudsman.
Will keep you updated
carly says
Hi
I have credit cards with vanq and aqua but I don’t have the older statements which show when my credit increases were applied. Where can I find this information?
Sara (Debt Camel) says
You could write and ask, but they may ignore this. Or send them a Subject Access Request. Or you could just put in a rather vague complaint “You increased my credit limit several times between 2010 and 2015”.
Scott says
Hi Carly,
If you’re signed up with Noddle you can see your limit history up to 6 years if the account is still open.
Scott
carly says
Thanks Scott
That’s really helpful – because I have moved recently noddle are saying they can’t identify me! :-(
grace says
Last week the FO rang regarding my complaint with VERY and made an offer of £200 which I declined, as they continued to add interest and charges over a period of 5 years whilst in a DMP. Today the FO called again saying VERY had re-investigated and are offering £400 which I declined again. They are saying they only added interest for 6 months where as I know they continued to add interest throughout the whole period of 5 years. I cannot get statements online as account close, I have requested statements and they have declined as only dealing with the FO. The FO needs evidence to say there were adding interest for that amount of time I’m stuck!!! as I have no paper trail and VERY will obviously not produce statements for the FO. Any help please???
Vera says
Hi grace,
Could your bank statements help.
grace says
Hi Vera monthly payments were made through a DMP with StepChange – I have contacted them today but they cannot help as the DMP has finished and is closed. I called Very again today and put from department to department no joy!! surely the FO can ask for these details??? they are obviously not willing to play ball. But quite strange the second offer was almost double after they checked another system!!
Sara (Debt Camel) says
Ideas:
Your DMP – who was it with? Could you ask them to help? You just need evidence of the amount of the Very debt that was passed to the DMP at the start and the amount you paid to it during the DMP.
You could put in a Subject Access Request – you need to ask your adjudicator to put the case on hold for this time.
Could you ask your adjudicator to ask Very for the statements? If Very refuse, you could suggest that there is no reason for them to refuse if they are correct with what they are saying and that you want the case to go to an Ombudsman.
grace says
Hi Sara I have contact StepChange today no joy as DMP closed. I have sent a SAR 3 weeks ago but Very say they have no record of this and have also asked the FO to request statements not sure why Very are being difficult lol! Very should provide all information and I have written to them again stating this. Thanks always for your help
Sara (Debt Camel) says
If Very say the FO should ask them for statements, you need to put this in writing to your adjudicator. It may be daft, but it’s a potential way forward!
Did Very cash your cheque for 310 for a SAR?
grace says
I sent a cheque not cashed yet!! I have also emailed my adjudicator and asked him to ask for statements as I have had no joy. I will chase up again today – thank you
Nigel says
My Littlewoods (shop Direct) complaint should be nearing the end now. I had an email from my adjudicator telling me he was very close to letting me have a decision, just needed to go back to Littlewoods for some further information. Fingers crossed. I really don’t know if it will be successful or not. He did inform me that he would only be able to go back to 2007 as consumer credit became a regulated activity in April 2007. I will post when I know either way. A reminder that The credit limit was set at one point £7200. There was no way I could afford the repayments once his was all used, at one point they were asking me for £600 a month! How can anyone in my position be allowed to be able to run up that amount of debt. Why did they allow this to happen.
carly says
Sara
I have accounts that I have opened before 2007 but they are not in default or DMP is it still worth asking for a CCA or is this not applicable?
Sara (Debt Camel) says
It’s applicable – if they can’t produce the CCA then the account is unenforceable and you could stop paying it. That would then result in a default on your credit record for 6 years though. If your credit record is really bad you may not care about this. If the balances are large, then you may feel not having to pay them will make a big difference to all your other finances.
One option would be to ask for the CCAs and if they can’t produce them, offer then a partial settlement – creditors won’t usually accept these unless you have defaulted, but if they know the debt is unenforceable they may be prepared to take a reasonable (not very low) offer. I haven’t seen this doen but it could be worth a try.
Daisy says
Hi Sara,
I followed your advice to ask for copies of my CCAs.MINT and Marks & Spencer have now sent me copies of the actual forms I filled in at the time so they have managed to comply.MBNA are still looking and it is now approaching 3 months since my request.TSB have sent a generic CCA with my surname now and my current address and no signature.My agreement with them began in the 1980s before I was married so to fully comply with my request should they not send a copy of the actual agreement?Am I within my rights to suspend payments to TSB and MBNA?I am still paying currently.
Sara (Debt Camel) says
I don’t think you have commented before so I don’t know anything about your circumstances. Have you defaulted or missed payments to TSB or MBNA? What is your credit record like? Do you have large amounts owing to TSB and MBNA? Are you struggling with these and other debt repayments?
Daisy says
Yes,I defaulted on my payments and entered into a DMP 7 and a half years ago.I originally owed over £17000 to MBNA and around £10000 to TSB.These figures have now reduced to just over £7000 and £6000 respectively.Interest is frozen on both accounts and the defaults have now dropped off my credit file as they are over 6 years old.The debts have been sold on though so if I stopped paying the new creditors could they log them again?I tried complaints on the grounds of affordability but it was knocked back by the FOS as they were over 6 years old so I am just looking at other ways to get back at them!
Sara (Debt Camel) says
OK, did you ask the original creditors to produce the CCA or the current debt collector?
From what you have said, you may well be able to stop paying the MBNA and TSB ones but I think you should talk this through in detail with a debt adviser, phone National Debtline (or use their webchat – it’s excellent) https://www.nationaldebtline.org/EW/Pages/contactus/debtadvice.aspx#.
The debt collector can’t re-add these debts to your credit record whatever you do.
Daisy says
I went to the current debt collectors first who then passed on the requests to MBNA and TSB.
Sara (Debt Camel) says
Good, that is the best way to do it because the debt collectors now already know you are looking into this. I suggest you talk to National debtline but it is sounding promising!
Lisa says
Hi Sara,
I followed your advice and sent CCA requests for my Littlewoods Catalogue and Argos store card and have received this response today regarding the store card:
Dear Lisa,
RE: Argos Card
We acknowledge receipt of your recent letter requesting data as per section 77-79 Consumer Credit Act 1974, and can confirm that we have requested the relevant documentation from our client will forward it to you when it is received.
We must also stress that we are not seeking to enforce an agreement and have only asked that paymetn is made towards a debt that is outstanding by way of an affordable repayment plan. However, if you beleive we are unable to ask that your account is repaid in this manner please provide us with specific details so the client can address any specific concerns you may have. This request is asked to also minimise potential costs and delays.
The account will be placed on hold for a period of 30 days to allow you time to read and respond too this letter. Should you have any additional information please do not hesitate to contact us on the above telephone number.
Sincerely
Accounts Department
Im not quite sure what they mean with this response, i never speculated why i was sending the CCA request?
What would you suggest i do?
Thanks
Sara (Debt Camel) says
I suggest you ignore it. Wait and see what they send you.
Lisa says
I can’t imagine they will send me an actual Credit Agreement as I believe i applied online while ordering goods.
When they send me whatever they have, depending on what they send, would i then send the affordability complaint straight to Argos even though they no longer own the debt or if they cant supply an agreement what would be the next steps?
Thanks
Sara (Debt Camel) says
Wait and see what they send. you can waste a lot of time and energy trying to ask what if questions, half of which may never be needed.
Lisa says
Hi Sara
I have received my postal order back today from Moorcroft regarding my Argos store card stating that they are in the process of closing my account on their system and returning my debt to their client.
So the letter i received stating that they were waiting for CCA from their client and would post it to me was a lie.
My problem is i dont know who to send the CCA to now, Argos told me some time ago that they couldnt deal with this debt as they no longer owned the account and i had to wait for someone to contact me (Moorcroft) but i dont know who their client is.
Sara (Debt Camel) says
Phone Moorcroft up and ask them who their client is/was.
Marie says
Hi Sara
I saw your blog about Lloyds bank scrapping fees and charges for unplanned overdrafts. I have had issues with debt and handling money for years and regularly have fees and charges from being overdrawn every month.
I did complain to Lloyds two years ago and they refunded my a years worth of charges, they did say for me to speak to a Lloyds advisor to help me manage my money better, but it was face to face and I felt anxious about discussing my finances with someone at the bank.
I complained to Lloyds again this year and they refused to refund any charges for last year, saying that I didn’t listen to them about seeing an advisor.
I’m just wondering whether I would have any grounds to be refunded for the charges now that they’re scrapping them?
What do you think? I’ve been trying to clear my debt for a year and still struggling.
Thanks for your help
Marie
Sara (Debt Camel) says
Well you could try, but I’m not optimistic. Did you tell Lloyds you were anxious and didn’t want a face to face meeting? If you said this, they should have suggested a phone conversation or some other alternative. There isn’t much a creditor can do if they offer help and it isn’t accepted and you don’t explain why.
Rosie says
After lodging complaints against payday loan companies I started to look at this page and decided to complain against Very. They increased my credit limit on my account multiple times without me asking for this and during that time I had a lot of debt and a bad credit score. I saw a lot of people were unsuccessful with Shop Direct, however I just received an email and they have offered me a refund of all interest and charges since 2012, plus 8%. That is over £3K! I can’t believe it, so happy! This refund will finally get me completely debt free. Massive thanks to Sara for all the advice on here, I couldn’t have got here without this website. It has been an amazing help and completely life-changing!
Bridget Blyth says
Hi Rosie
When did you send your complaint to Very as I have just had a reply back from them saying they are looking into my complaint.
Rosie says
Mid-March this year was when I first sent my complaint to Very. After 8 weeks they said they were still looking into the complaint but I eventually sent my complaint to FOS a few weeks ago and thats when they made the offer once FOS got in touch with them. Good luck!
Rachel says
That’s great Rosie very similar story to mine I’m putting in complaint tonight I’m going to do this via resolver any pointers for initial letter?
Rosie says
I managed to give dates and amounts for each credit limit increase by looking at my credit report – not sure if that helped! I wrote “My credit limit was increased on 6 occasions without my consent or request. The
increases were made in… XXX” I also noted what other credit I had at the time (credit cards, overdraft, payday loans) and a rough estimate of my income and expenditure. As much detail as you can basically. You could use one of the payday loan complaint templates on here and just edit it to suit. If you end up going to FOS include as much extra info as possible – bank statements, credit report etc. Good Luck :)
Gib says
I have a card with aqua they raised my credit from £1600 to £4300 within 12 months despite having other maxed out cards a ccj and a default and missed payments on other accounts
I ended up missing a payment then 2 days later they went through my expenses and said I should make reduced payments as I could not afford to manage the card reluctantly i agreed without knowing what I was getting into
I’ve checked my credit file it shows an AR marker for 6 months then shows debt management plan now my credit is ruined
Do you think I have a case for a refund?
Sara (Debt Camel) says
These complaints are NOT guaranteed to work, but this sounds like a good case for a refund to me. You should ask for a refund of the interest you paid after your credit limit was raised from £1600 and for the default to be removed from your credit record.
If they refuse, take the case to the Ombudsman.
Scott says
Hi GiB,
Before they raised your credit limit, how was your account managed? Did you have any late payments or over limit charges in the 6 months prior to the increase?
Gib says
No but I only ever made the minimum payments except on 2 occasions when I paid a bit more every time I got the increase I spent it within a month I’m more concerned they put me on a debt management plan without explaining what it was all they said when I asked how it would impact my credit rating they said it would show as arrange to pay which is better than a missed payment she basically talked me into accepting it
Rachel says
Hi Sara is it worth putting in a complaint against aqua credit card. They didn’t increase my limit as it was £1200 can I claim they shouldn’t have opened the account to begin with due to my credit record which at the time had missed payments/pay day loans. Is it worth a shot? How would I word it?
Scott says
Hi Rachel,
During my complaint, it was explained that Aqua do lend to people with adverse credit history and the view by the FOS is that this is a better situation for the borrower due to the APR compared to payday loans APR.
My credit report was totally full with payday loans, defaults and a CCJ and they found that granting the card was acceptable.
When I applied they took all the information into hand and gave me a £250 limit. What information did you give to get a £1200 limit? And when did you take the card out?
I’m not trying to get you not to make a complaint and think you should at least try. I just want to prepare you for a high probability that the FOS will side with Aqua.
These complaints are new and it seems to me that it is the increases that are being found unaffordable based on the history of the account and not the granting of an account.
Scott
Sara (Debt Camel) says
I would agree that you aren’t likely to win a complaint about a £250 credit limit with no increases. But £1200 is a large credit limit so it is worth complaining about in my opinion.
Scott says
Hi,
I also think it is worth complaining about but was addressing expectations.
My own personal experience was Capital One £1500 limit taken out year before when my credit report wasn’t shot to bits but still had payday loans and old CCJ. This wasn’t found in my favour as found acceptable with info, credit report etc.
Aqua a year later when credit report destroyed, originally £250 limit, original granting of card acceptable but limits not.
I just didn’t want hopes set on refund.
Scott
Gib says
I think you can set up a Dmp yourself but from what I’ve read you have to request to be put on one. aqua put me on one without explaining to me that by lowering my interest and letting me make reduced payments that I was entering a dmp and did not explain the impact it would have on my score
I had never missed a payment with aqua but I went over my limit quite a few times and if they would have reviewed my credit file before increasing my limit which I thought they had to do they would have seen I had 4 other credit cards maxed out and missed payments on them I also had a ccj which has dropped off now and a default with capital one as well as catalogues with high balances
Scott says
I still thought that you would need to set it up with all your creditors though?
I contacted Aqua when I was struggling and they reduced my interest and I make a set payment each month and it shows on my credit report as AR, this was a couple of years ago and it still shows as this.
Hopefully you will get a fair Adjudicator as if they find in your favour then all bad information will be removed from your file.
Good luck with your complaint, I hope it is resolved in your favour.
Scott
Gib says
Thanks scott my AR turned into a dmp after 6 months on my file if I can just get that removed I will be in a much better position as it’s the only really damaging thing left on my file I’ll keep u updated when I hear anything back
Thanks again
Shannon says
I’m currently looking to make a complaint against Shop Direct regarding my Littlewoods account. Same old story regarding credit limit being increased without my request, low income, debt on credit file including multiple payday loans (already made complaints for these). The issue I have is regarding my credit limit increases between certain dates. Basically I know my credit limit at the start of my account in 2008 and then from July 2011 to present day from my credit file but unaware of the changes made between these times. Increase of £2,000 from 2008 to 2011 from information I have.
I have contacted Littlewoods and been advised that I would need to make a request in writing to have statements between start of my account and July 2011 sent to me so I can check credit limit changes. I explained I don’t want a copy of these and just want to know the credit limit changes. They confirmed will be a change of £5 per statement (treating the request a SAR I’m guessing) and as it is monthly statements I obviously don’t want to do this.
So question is would I need to know the exact changes to my credit limit and the dates to make this complaint?
Sara (Debt Camel) says
No, just say Littlewoods increased your credit limit from £x to £y between 2008 and 2011.
You could send Littlewoods a SAR.
But you need to know that these cases often aren’t easy and the longer ago, the harder it may be. For example, you may find it hard to prove what was on your credit record between 2008 and 2011 as most of it will have dropped off.
Shannon says
Thanks for the quick reply.
Yeah I understand these types of complaints are harder to win but figured I have nothing to lose. Lucky for me I have used the same bank account since 2007 and can support my financial side with that.
Oddly enough, I also had a repayment plan for my account with them between the dates I specified and they still increased my limit. Fingers crossed I have what I need to prove they did wrong.
Sara (Debt Camel) says
A repayment plan is an EXCELLENT piece of evidence in your favour :)
Emma says
Hi can someone point me in the right direction, I want to complain to my credit card and payday loan for iresponsible lending but don’t know where to start?
Sara (Debt Camel) says
For payday loans, read https://debtcamel.co.uk/payday-refunds-defaulted-loan/. For credit card, read the article above – but I suggest starting off with the payday loans complaint as they are much simpler and easier to win. Once you have got that one underway, then think about the credit card.
C says
Hi Sara
I have a complaint in against Nationwide fora huge credit card allowing me unaffordable increases. Aujudicator came back to me 3rd july saying he did not uphold my complaint. I asked for this to be sent over to the ombudsman as a i did not agree, wrote a essay about lending board standards credit card ass etc,.
He has come back today to say he hasnt sent it over to the ombudsman and have now wrote to nationwide for more information as a default Has now been added too. Is this normal? I was hoping it was already in the ombudsman queue? Thank you
Sara (Debt Camel) says
There isn’t really a “normal” for these cases. I wouldn’t worry too much about getting into the Ombudsman queue, it’s better to get things sorted by the adjudicator if possible.
Aaron jackson says
Hi, shop direct have agreed to refund £2000 of charges and interest, before my adjudicator even looked in to the case. My adjudicator has told me he is closing the case and I should here from shop direct about the refund within 4 weeks. Does anybody know how they contact you? Do they bank transfer or send a cheque? Is it also 4 weeks untill they refund you or is it just 4 weeks untill they contact you about refunding you? Thanks
Steph says
Shop direct processed my refund within 5 working days of receiving my signed acceptance. They cleared my outstanding balance and issued the rest of the refund to me via cheque, which was received the week after that. So, all in all, you should have the full amount back with you within 2 weeks.
grace says
I am also waiting on a refund not heard anything yet and its been 2 weeks!
C says
Today I received a letter from the ombudsman about my Ace catalogue account with a provisional decion. The complaint was upheld. She has suggested that all interest and fees be refunded, along with the 8%, all negative comments removed from my credit file and also to pay me £200 compensation for the stress they have caused me and how my complaint was handled. Very happy with this as the aujudicator felt they had done no wrong!
Jimmy says
Made a complaint to Littlewoods who failed to respond to my complaint within 8 weeks so sent to Ombudsman. Soon as the Ombudsman contacted Littlewoods they offered to clear the £200 outstanding balance and remove the entry from my credit file. I had another account with Littlewoods and one with Very that all fell under the Shop Direct umbrella but I have been told I need to submit individual complaints for each account I had. The statements they have submitted to the Ombudsman aren’t they easiest to read so hard to tell if this is a good offer or not.
Roch says
Hello all,
Just an update on my Very complaint for increasing my limit to £1000 from £200 without my knowledge
Date complained via online webmail 5th may 2017
Acknowledgement received 12th may
8 weeks passed they requested an additional 4 weeks to investigate so sent to the Ombudsman
28th July 2017 received this email from the Adjudicator
Shop Direct is making you an offer
Since I’ve been talking to Very, they’ve let me know that they want to make an offer to settle your complaint. They’ve suggested to:
– Refund all interest charges applied to the account, totalling £169.71
– Refund all administration charges applied to the account, totalling £72.
Looking at the offer, I believe it’s fair and reasonable in line with the circumstances of your complaint.
I am accepting this offer very happily as I expected not to get anything except and apology so very happy but surprised by this and it did not take that long at all.
Thanks to everyone’s advice on this site I got this and now I am able to clear my £100 Very balance and close my account and also treat my kids.
:) xx
Daniela says
Hello Sara,
How do i make a complaint against “Littlewoods” do i need to start by asking them for a statement of account? They’ve opened my account with a limit of £750.00 and continued to increase my limit without me asking for it, until it reached £7500.00
I struggled to keep up with my payments and now it has been passed onto “Lowell” for the debt to be recovered. The account is still currently open with Littlewoods, but i can only see statements back to 2016, so not sure when the increases started. I hope this make sense? Many thanks
Jimmy says
Hi Daniela,
I complained to Littlewoods using their account queries service. They wouldn’t provide me with an email address and I refused to contact them via phone. I asked for a statement of account initially but they tried fobbing me off so I just put in my formal complaint. Again they told me to ring them but in the meantime they had sent a letter saying they were investigating my complaint. I passed onto Ombudsman after 8 weeks when they finally provided statement of account and made an offer.
Hope this helps.
Daniela says
Hi Jimmy,
Thank you for your reply, I think I will do the same. Did you tell them that you intend to make a complaint against them when you requested the SOA?
Best regards
Daniela
Lisa says
Hi Sara,
An update on my Argos Store card, so i mentioned Moorcroft had sent postal order back well i received a parcel last week with half a tree in it. It contained lots of statements to do with my card some dated last month (I havent had a statement in around 5-6 years), there was no credit aggreement.
So it would appear Argos have taken back control over my account, what would you suggest i do now?
Thanks
Lisa says
What would be the next steps with this debt?
Thanks
Lewis B says
shop direct have refunded me as a goodwill gesture…
2 cheques, one from littlewoods one from very, wasnt expecting anything so this was a bonus.
complaints with halifax for giving me a £4500 overdraft with increases over a 35 minute period, rejecting one amount then accepting a higher amount quickly after, and i have calculated that over the period leading up to the overdraft i had roughly £6000 gambling transactions.
on its way to ombudsman as halifax said they had no idea i was gambling?!
they did however refund one years worth of charges as a goodwill gesture
vanquis point blank denied and wrongdoing and so did ajudicator and ombudsman
lloyds- unplanned overdraft charges went up to 442£
refunded the full amoutn and removed default from credit file – very pleasent to deal with
will update when hear from ombudsman regarding my halifax
Gary Morrall says
I am in a IVA, should I not bother trying to do a claim on catalogue debts that are now in an IVA? What about old loan debts that I had which were paid off before i went into an IVA, could I claim for these?
Sara (Debt Camel) says
In an IVA any lump sums you get will go to your IVA provider. Don’t waste your time complaining.
Gary Morrall says
Even if the loan I am complaining about was paid off before I went into an IVA and not listed as a debt on the IVA?
Sara (Debt Camel) says
Doesn’t affect fact any windfall from any source goes to your IVA.
Gary Morrall says
Ok well thanks for your help, I have already sent off the complaint so if they offer anything then I will forward to the IVA, if they don’t offer anything then I won’t bother going to the ombudsman
Marie. scott says
Hi . I am currently in dispute with shop direct over a ppi claim. They inform me that the complaint has been upheld and have sent 3/4 letters to me. I have received none of this communication so far. After another telephone conversation with them today I have been advised that they do not pay compensation out for mis-sold ppi only 8% on top of your actual amount paid. Is this correct or are they trying to fob me off with a smaller amount then I am entitled to.
Sara (Debt Camel) says
“They do not pay compensation out for mis-sold ppi only 8% on top of your actual amount paid.” That sounds right to me but I’m not a PPI expert. I suggest you ask here: https://forums.moneysavingexpert.com/showthread.php?t=524031
Gib says
Just got my complaint letter finalised and ready to send off to aqua and I’ve just checked my credit report and all records of aqua have disappeared I was on a AP then DPM I’m confused as to why it has been removed as the account is only 3 years old can they sell the debt without telling me first
Sara (Debt Camel) says
Selling a debt doesn’t mean it’s deleted from your credit record. I suggest you look at all 3 credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/.
Pete says
Im hoping you could help clear something up for me. I put 2 separate complaints in to ShopDirect for PPI and irresponsible lending, both acknowledged and 2 separate reference numbers . Today I have received my redress calculation for the PPI. However i am a little confused, to me it appears like they have also refunded me for irresponsible lending at the same time.
Ppi premiums =£ 239.73
Account intrest =£908.51
Refinancing interest =£705.18
Charges =£48.00
Simple interest 8% =£736.31
Total redress =£2637.73
Less tax =£147.26
Redress after tax =£2490.47
Is this the normal structure for a ppi refund? Or does it appear like they have also added the irresponsible lending into this complaint?
Thanks Sara your site is truly great and very informative. The R40 tax deducted from savings is giving me more money from all the refunds i have had.
Sara (Debt Camel) says
I am not an expert on PPI refunds. And no one is an expert on unaffordable catalogue refunds! But that looks like a very high payout given the size of the PPI premiums so I too wonder if they have put the two complaints together.
If you want to ask about the PPI refund, then try here: https://forums.moneysavingexpert.com/showthread.php?t=524031. If they say they don’t know what some of those figures are, then they must be from your other complaint.
Did you have any idea how much interest you had paid to the catalogue over the years?
NB if you have already claimed 3200 back from the taxman in this tax year, you can’t get any more back.
Pete says
Evening,
No sorry i had no idea how much interest i did pay. I only had ppi from July 2009 – February 2011. But i did have thd account open and in use for much longer.
Thank you for the link, i will ask over there. I think it is both complaints. It just doesnt mention nothing in their letter about irresponsible lending. Just seems a little odd
Thanks again. I will let you know as to whether it is just ppi or both complsints.
Lorjas says
HI Sarah been following this thread. Helped me so much amd guided me.I’m halfway on my payday loan complaints ..Got offered from them like Wonga offered just £218 .I looked at my bank statement .I paid more than £1000 of all loans I took out.So I will take the ombudsman route.I will put my update here once I have success with FOS. Thanks for all your help.
Vijay says
I noticed that I was paying Vanquis a monthly fee for a “repayment option plan” (=ROP). The monthly fee varied from £2 to £12 and I had it for the length of the time I had my card (December 2007 to mid 2010 or early 2011 when it defaulted). I noticed on my statements that even when they said “Card in arrears/account suspended” due to non-payment of the monthly balance, I was still being charged ROP. I never received an email or text message from Vanquis about this nor did they offer to help me to use this feature. It was not applicable to me but I was being charged for it.
I believe I was mis-sold this ROP and it was definitely not appropriate for me. I cannot remember agreeing to it either. I was in a terrible payday loan spiral and I could not afford anything, let alone the ROP payment on top of my bill. Various websites have said that ROP is not PPI and not to bother trying to get it refunded. Others have said the Ombudsman has classed it as a PPI-like charge so it is worth pursing.
Should I pursue this? Vanquis has taken my complaint but I worry that it is statue-barred because the card defaulted in mid-2010/early 2011. But if they are handling it like PPI, then I still have time to file a complaint.
Any advice would be most appreciated! Thank you!
defaulted on the card so it was passed to 1st Credit.
keith says
hi Sara and everyone, can anyone offer information regards Studio? contact details for complaints?
account opened 2008 till about 2015. now cleared
even with missed payments / defaults with other creditors before opening and during account.
and I missed / late payments to studio, credit was given and increased
thanks peers
Sara (Debt Camel) says
Send a letter or use their contact form
Emma says
Hi, I sent an email to quick quid last week regarding irresponsible lending on an old account. They have sent me an email asking me to explain my reasons and relevant bank statements etc. The problem I have is as this is an old account (4 years ago) I have no paperwork and I closed the bank I was with (which would have statements) because of the £35 I was charged every time I went overdrawn or something bounced (putting me in an even worse financial position. My reasons for saying it was irresponsible was that I was unemployed at the time (had a very low income) , had already amassed other debt (gas and electric, catalogs), I was also suffer from post natal depression and when I paid the loan back I would usually get out another loan as I had no money left. Do I have a chance with no supporting evidence? I am still in a huge amount of debt (nearly £5000 now and it all started at that point in my life. Thanks in advance.
Sara (Debt Camel) says
Reply to QQ saying you don’t have the bank statements at the moment and you want them to consider your complaint as it stands because your repeat borrowing showed you were in trouble.
If it goes to the ombudsman (and QQ have a habit of making very low offers or even rejecting good cases) then you can get the old bank statements, but you don’t need to do this yet.
Mandy says
I wonder if anyone can help. I have a very old credit card debt with HSBC for 2k from 1999. The dca confirmed that they do not have the cca as I asked them to produce it. I have read that it would mean the debt is unenforceable but does that mean that they will eventually write the debt off? There was a default but that was is older than 6 years so it has dropped off now so I’m not concerned about that – they can’t put another default on can they? Is there any template letters available to request this debt is written off? Also this debt has bounced around so many dca’s that I honestly thought I had paid most of it off and am genuinely shocked it’s still 2k. Like I said I have paid so many dcas on this debt that I feel like it would be impossible to get the payments all in order. Any advice? Thanks.
Sara (Debt Camel) says
No, another default can’t be added.
The debt is unenforceable so you can simply stop paying it. The debt won’t be written off but it isn’t on your credit record so why do you care?
Mandy says
Thank you – it’s so old but it is still on my credit record when would it fall off? It’s already so old. Do you think it is better to tell HSBC I have no intention of paying it as it is unenforceable. Does the same principle apply to mobile phone contracts?
Sara (Debt Camel) says
If there was a default more than 6 years ago, the record should have dropped off and not come back. Do you know when the default was?
“Do you think it is better to tell HSBC I have no intention of paying it as it is unenforceable.” Tell the debt collector, not HSBC.
“Does the same principle apply to mobile phone contracts?” unfortunately not, only loans and credit cards.
Gemma says
Hi everyone, just thought I’d update on my Simply Be claim. I received my final response from the Ombudsman yesterday and unfortunately it has not been upheld on the basis that a credit check was carried out when I opened the account, additionally when my limit was increased on multiple occasions I could have declined the increases and didn’t have to utilise them. Don’t let this put you off though, I think I have been unlucky with the Ombudsman I got who used the above reasoning rather than the financial mess that I was in which has been recognised by other ombudsmen for my payday loan refund claims for the same time with the exception of one who disagreed with the adjudicator and said loans with one provider were affordable. So sadly for me now I’m stuck with a default and huge debt on catalogue as interest payments doubling each month became unmanageable (approx £1200 within a few months)
Sara (Debt Camel) says
Sorry it didn’t work for you.
I’m concerned about what your options are now. How large is this debt now? What are the interest charges every month? Is it still with Simply Be or has it been sold to a debt collector? When was the account opened? Are you making payments to it? What is the rest of your financial situation like – total debts? Renting or mortgage? any other payday loan complaints in progress?
Gemma says
Hi Sara
The total debt is now around £2700 and has now been sold to a debt collector who put on hold whilst I put complaint in but will now keep chasing me (multiple times a day). I haven’t made payments for a while because no matter what I was paying I wasn’t meeting the minimum payment each month prior to it being sold as it was several hundred pounds a month and I already have the default. I’ve put multiple payday loan complaints through, Mr Lender, WDA and Piggybank have all refunded which I used to pay my credit card debt. Payday Express and Uncle Buck were not upheld by FOS. Payday Uk offered to refund on all but one loan (inc. of over 6 years) on 27th July through FOS which i accepted but they haven’t yet advised of the settlement figure and are sticking to the ‘we’ve got 28 days’. And then loans for wonga, QQ and 24/7 are with jurisdiction team as earlier loans over 6 years old. I’m in rented accommodation and up to date with all priority commitments but my credit score is terrible, it was improving until I was hit with a default by Simply be and Uncle Buck
Sara (Debt Camel) says
When did you open this Simply Be account?
Is the debt collector adding interest? HAve you asked them to stop and accept an affordable repayment each month? (Sorry for all the Qs)
David Scully says
Hello, I’m looking for some advice regarding irresponsible lending on my Barclaycard (credit card). Prior to 2014 the card had a £1600 limit on it, I had only ever paid the minimum payments and never paid it off fully. At this time I was also using various Payday loans in order to get by. Then in 2014 I had a credit limit increase to £4800, I know I accepted the increase but I saw it as a means to an end with regards to Payday loans etc. This wasn’t the case as I wasn’t making good financial decisions at the time and the card went up to its limit. I have been making the minimum repayment ever since. Does this sound like a good case in your experience? Cheers
Sara (Debt Camel) says
What was your credit record like in 2014, any defaults or late payments?
David says
I don’t think my credit report was great at the time. To my knowledge I never defaulted on my payments, I just purely made the minimum payment only.
Mark says
The size of that increase could be what swings the complaint, can they suggest how it was sustainable? How you would not only service the debt but pay the balance? Did you pay any payday loans off with the card or did you bank with barclays so they could see more of your issues?
Sara (Debt Camel) says
Well it is a huge increase so it is worth complaining about. Some of these complaints succeed, some don’t. To give yours the best chance, do three things.
– get hold of your Experian credit record (you can do this for free using MSEs Credit Improver, see https://debtcamel.co.uk/best-way-to-check-credit-score/) and see if there if there are any problwere any problems showing in 2013 or 2014 – if there were, then when this goes to the Ombudsman, enclose a copy of your credit record and point out the problems that Barclaycard should have noticed.
– get hold of your bank statements from the few months before the credit limit increase and send these with the complaint to the Ombudsman. Use those to explain to the Ombudsman how your finances were difficult and this credit limit increase was not fair to you.
– Emphasis the fact that you only made the minimum payments and point out that CONC 6.2 says the lender should have considered the potential for the increase to adversely affect your situation.