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?
Gemma says
Hiya,
I have just come across your website. I opened an account between 2008-2009 with Nationwide when I was 18. I was given 1200 of credit which I quickly used and only paid min payments as it was all I could afford. This got increased and increased over the years up to 6k. At the same time I had a Topshop account card with a low credit limit but constantly getting late payments.
I have since paid off these accounts and can’t find many details on these accounts can I still write with limited details? Have people had much success?
It took me around 8 years to pay off that account and I only could once in much better employment years later so I definitely think I have a case.
Thanks xx
Sara (Debt Camel) says
The lending may well have been unaffordable but do you have any evidence to show this? This can be hard with very old complaints as the article above says.
John says
Hi,
I am planning on sending a complaint to Barclaycard for a credit card taken out in 2016. At the time I was on a relatively low graduate salary and already had high usage on a Santander credit card, had taken another loan just before I applied for the Barclaycard and another before Barclaycard increased my limit for a second time from memory. Throughout the first few years of having the card I was rarely paying more than the minimum and my balance was always increasing until I hit the limit in 2018. I feel based on the above and other examples that this will have a good chance of success.
My question is in relation to the debt eventually being sold to PRA Group in 2021 with defaults on my file showing against Barclaycard and PRA now. If I am successful in my complaint against Barclaycard and they removed the negative credit info on my file, what is my recourse to having the PRA credit info also removed?
Thanks, John
Sara (Debt Camel) says
if you win your complaint against Barclaycard, they will sort out the balance at PRA and the default there will be removed too.
John says
Thank you.
Are you aware of an email address to send complaints to at Barclaycard? The only options on their website are phone or letter.
John
Sara (Debt Camel) says
mark.gansbuehler@barclaycard.co.uk, put affordability complaint as the title of the email
John says
Thank you, I have sent an email to Mark and will report back.
My next target is Santander with a credit card from 2013 at a time when I had two current accounts with Santander constantly within their overdrafts plus a loan from Santander. I’ve requested statements from Santander so I can form a clearer picture of the values etc.
Do you expect the age of the account to affect the claim? How do Santander normally respond to claims? This one never went to default but ended up with missed payments and an agreement to pay. Overall it contributed massively to my spiralling debt at a time when my income was very low.
Thanks,
John
Sara (Debt Camel) says
Send in the claim now. There is no reason to delay. Santander will reject this whatever you say because the account was opened over 6 years ago so it will have to go to the Ombudsman.
John Hubbard says
Thank you.
Is there an email address to use for Santander? Nothing online as with Barclaycard.
John
Sara (Debt Camel) says
use consumerservice@santander.co.uk with COMPLAINT as the title
John says
Thank you, have sent the email for this now too. Now we wait!
Katie says
Finally got a reply from ombudsman after 4 months from raising my complaint with them, they have asked for bank statements from 9 years ago from a bank I am no longer with. Looking on the bank website I think I will struggle to get this information.
Sara (Debt Camel) says
Explain this to them.
Do you have any info about your finances at that point?
Katie says
I have emailed them back and advised this morning, I have contacted the bank to see if they can provide anything. I have copies of P60s I can supply to them.
Sara (Debt Camel) says
do tell FOS that you have your P60s
Sara (Debt Camel) says
Has anyone had an email/ letter from their credit card about rates going up? I would like to collect some examples
Matthew says
From Zopa:
“ We’re getting in touch to let you know that the annual percentage rate (APR) on your Zopa credit card will be 35.95%, starting from 22 September 2022.
Here’s a quick recap:
The new rate: 35.95% variable
The old rate: 35.45% variable
Why this is changing
Most lenders – including Zopa – link their interest rates to what’s known as the Bank of England ‘base rate’. This means that if the base rate goes up or down, your rate may change by the same amount. The Bank of England changed the base rate on 04 August 2022, which is why your rate’s updated now.
This won’t happen every time – any changes to the base rate that occur below 0.5% don’t affect you. So, if the rate changes from 0.1% to 0.4%, it wouldn’t impact your card. For more information, here’s our FAQ.
You don’t need to do anything
We’ll automatically apply the new rate to your account after your next statement, on 22 September 2022.
If you change your repayment day, the date of your next statement may change.”
Sara (Debt Camel) says
thank you.
Darren says
I had this from 118:
We are writing to let you know about an upcoming increase to the interest rate and annual percentage rate (“APR”) on your 118 118 Money Credit Card, which is being made in accordance with the terms of your credit card agreement with us. Please take a few moments to read through the changes detailed below and the options available to you.
What this means to you
From 11th November, your APR and interest rate will both increase. These changes to your credit card agreement are detailed in the table below:
Current Interest Rate
33.4% p.a
New Interest Rate
37.0% p.a.
Current APR
39.0% (variable)
New APR
44.0% (variable)
Sara (Debt Camel) says
Thanks. Was there a bit saying that yo7 could decline that increase and close the account? That would allow you to continue to pay it off at the previous rate.
Darren says
Yes they did, it says this:
Your right to opt out
You have the right to opt out of and reject this interest rate and APR increase, and close your credit card account, within 60 days of this notice.
If you decide to opt out of the interest rate and APR increase, your credit card will be blocked for new purchases. You will have to continue to pay at least your minimum monthly payment at your current interest rate and APR, until you paydown your outstanding balance and then your credit card account will be closed.
We will remind you of your right to opt out of this interest rate and APR increase before the end of the 60 day notice period.
Mike says
Hey Sara,
Have a jurisdiction argument with MBNA currently.
It was 6 years and 11 days after the initial lending decision that I raised the complaint. I argued the 3 year rule and the investigator found in my favour but MBNA rejected this and said
“ So I can do this, I need your comments on the following:
MBNA have said a block was placed on your account in October 2017 due to financial difficulty.
Why did you not think MBNA had done anything wrong or were responsible for unaffordable lending when they blocked your account in October 2017?
I’m trying to think of the best way to answer this as it seems at whatever possible stage they are trying to shoot this case down.
I didn’t think I had any right to complain even 2017, I was in financial difficulty and still gambling heavily. It wasn’t until I had a clear head and I could take an over view of my finances after stopping the gambling. I discovered this site in 2020 and that’s when I started opening complaints, first for payday loans and then a lot later for credit cards (didn’t realise I could)
Just don’t want to trip up over my words here.
Thanks in advance
Mike
Thanks in advance.
Sara (Debt Camel) says
When there was a block placed on your account – was your assumption that this was because you had shown you could manage the repayments? That has nothing to do with whether MBNA were at fault for failing to check it was affordable. You may have thought you were at fault and not MBNA.
Mike says
The block on my account was due to missing payments and they removed the use of my card/additional spending but still charged me interest and charges until i managed to clear it in 2020.
They are trying to argue that “any logical person would of known they were in financial difficulty in October 2017 when they blocked the card so why didn’t i raise the complaint then”
they are basically trying to say that i knew they had done something wrong and had right to complain in 2017 and it’s been over 3 years so is out of jurisdiction for the complaint.
So i guess the question is – When did I think they were responsible or had done something wrong, If it wasn’t October 2017 when was it and why?
To note, the initial limit of £2500 is out of jurisdiction by 11 days, the raises of the limits there after are well within.
they are only arguing that the £2,500 opening borrowing figure can’t be considered due to reason above.
Sara (Debt Camel) says
your reply is yes you knew you were in financial difficulty in 2017 but you thought it was your your fault for borrowing too much. You had no idea the lender should have checked affordability so you did not know they had done anything wrong so why would you complain?
Mike says
Thank you Sara, is it quite a common tactic for them to try and poke so many holes in my case before the investigator has even had time to look at the facts of my case?
Feels like this is such an uphill battle, i again thank you for the service you provide
Can you also provide me with the date i first commented/signed up to Debtcamel incase they ask.. thank you
Sara (Debt Camel) says
yes this is normal. Any jurisdation (time limit) issues have to be looked at first.
Sara (Debt Camel) says
this was your first comment: https://debtcamel.co.uk/how-to-complain-guarantor-loan/comment-page-60/#comment-392261
Chloe says
Hi
Does anyone have a complaints email address for Simply Be as I’m struggling to find one?
Thanks
Sara (Debt Camel) says
See this new list https://debtcamel.co.uk/email-addresses-banks-credit-cards/
Dan says
Hi Sara,
Received a reply from FOS who upheld my complaint vs Barclaycard. I was given a card for £9200 (now £7200) and they are refunding interest and charges of £615, I thought there would be 8% on top but this is only if there isn’t an outstanding balance is that right?
I’m not happy if I’m honest, my total debt currently is around £32k and Barclaycard shouldn’t have even given me this at all, the FOS say I should be put back in the position I was in prior but this seems quite unfair from my pov. The £9200 added around 25% to my debt at the time and that was back in 2018, I was already in close to 30k of debt while not earning much more.
I think it’s unfair they just pay back the interest and charges meanwhile I am left with a debt and facing insolvency which would possibly mean me losing my job. They said I have until the 5th to respond but it’s difficult to make decisions when I have 5 other complaints open with FOS too for the same thing. If I can’t drastically reduce the outstanding balance and offer a full and final that they accept I don’t think I can face having this debt over me for so long. I don’t know if it helps my case but I have been on and off medication because of the worry and stress and now having to get therapy. I do feel I should be compensated and not just refunded, am I asking for too much?
Sara (Debt Camel) says
Do you think it is right that you only paid £615 in interest? Was this card originally at 0% interest.
Dan says
I think so, I was drowning in debt I got this in April 2018 and ended up in a DMP within a year. I think I balance transferred £7200 once opening but I can’t find out what my terms were now.
Dan says
I think it was 0% with a 3.5% balance transfer fee on the £7200 and there was a purchase rate on the remainder limit but I think that ended up accruing interest. I can’t login to my online account anymore or get access to the statements
Sara (Debt Camel) says
First your question about 8% interest – yes it is only added when there is no balance remaining.
So £612 may well be correct – not much interest was added at the start because of the 0% then you went into a DMP and interest stopped.
It would be VERY unusual for FOS to say that a bank should do more than refund the interest it added. This was a balance transfer, so it was saving you interest. FOS takes the view that you borrowed the money and should repay it. Compensation only comes in unusual cases eg where the bank had previously been asked formally in writing not to lend, or told told the person had an addiction or a major mental health problem and had ignored this.
Let’s look at your other options…
– you may be able to make an affordability complaint about the previous credit card(s) that you balance transferred over to Barcalays.
– has this debt been sold to a debt collector?
– with rising cost of living, you may be unable to pay as much to your DMP – is that right?
– where could you get the money for a full&final settlement from?
– insolvency may be a sensible choice if nothing else is going to work.
Dan says
I’m currently making affordability complaints on the other cards and loans already.
It has been sold to PRA who also hold 2 other accounts which total around 30k
I changed career so although at the start I will be earning more than I was previously in a year but I just need some more time
Parent / Friend may be able to help with F&F depending on what I could negotiate
Insolvency would affect my job (I’d likely lose it because we work with banks although I need to confirm this)
Sara (Debt Camel) says
i think it would be good to find out about insolvency and your job. A lot more people are worried about this than the small number that are actually affected by it.
Sara t says
Hi Ive reached the front of the que with FOS after 4months as stated when they received my complaint, the adjudicator wont accept that I didnt know I could complain to Barclaycard so it will have to go to ombudsman, do we know a timescale to wait for an ombudsman decision? The other adjudicator looking at my Aqua complaint seems much more understanding although still gathering evidence.
Sara (Debt Camel) says
sorry, no idea about Ombudsman queue timescales.
Mike_p says
My last two have taken about 7 months to get an Ombudsman decision.
Sarah says
Hello! I’ve had a complaint about unaffordable lending & credit increases with my bank for a credit card. It went to the ombudsman who ruled that we can look into the complaint (it was over 6 years) today the adjudicator has come back with this —
The business has sent me their full file on the case and have provided the following information about the card you had with them:
Account Opened-July 2010-Limit Unknown
Credit Limit Increase 1-September 2012-Limit 3,450
Credit Limit Increase 2-December 2014-Limit 4,200
Credit Limit Increase 3-November 2015-Limit 5,200
Due to the times the borrowing was taken Halifax have provided very little information about the results of their checks. As the account opening happened in 2010 it is very likely I will not be able to make a decision either way on it. As for the rest of the borrowing I will need some more information from you if you are able to provide it please can you send me this information by 11 October 2022. If you need more time please let me know.
Full credit file –
Bank statements for the periods July-September 2022, October-December 2014 & August-November 2015
I am going to provide the information but I don’t really understand the response. Does it likely mean they can’t provide an outcome because the bank have little information? Would this not mean it’s upheld if the bank can’t provide supporting evidence? Just looking for your knowledge!
Thank you
Sara (Debt Camel) says
FOS will not uphold a complaint unless there is some evidence to support it. This could come from the bank – but Halifax says it no longer has much – or from you.
So what do you have? Defaults, DMPs and CCJs over 6 years old will have disappeared from your current credit record, so unless you have other things (letters? emails? bank statements? old credit reports? information about other old problem debts? ) it can be difficult. You don’t need all of those things, but you need enough to show that you had problems.
Bella says
Hi Sara, I don’t suppose you’d be able to offer some words based on your experience, as I’m becoming quite disheartened.
Between 2010 and 2016, I was in a BAD way financially. 2016 was particularly tragic and is when the bulk of my borrowing happened. I won’t go into all the detail now, but after reading a lot of the comments of this forum, I felt I was in a really strong position and likely to get some money back from lenders, with minimal fuss.
I sent complaint emails to all creditors 6 weeks ago (except NatWest which I sent this week), but so far 4/7 have not upheld my complaint. Bamboo didn’t uphold either but still offered to refund all the interest (which I accepted). I’m still waiting to hear from Shop Direct and 118 (my biggest lenders).
In your experience, would you say this is normal behaviour from the lenders?
I’ve sent 2 complaints to the FOS, and I’ll send a third this weekend.
I know this is perhaps impossible to say, but do you know if the FOS has a history of favouring the creditor or customer, so I can manage my expectations?
After discovering your website and hearing peoples similar experiences I was starting to see light at the end of the tunnel, and I was hoping I could pay of my DMP far quicker, but after these knock backs I’m losing hope.
Thanks
Sara (Debt Camel) says
it all sounds pretty normal to me. “with minimal fuss.” is always pretty unlikely.
the 4 rejections – they know that if only half the people give up, they will be much better off by rejecting and hoping you don’t go to the Ombudsman. Have you sent these to FOS now? Don’t wait, do them one by one. After the first couple you get fast at them.
Nice to have one win with Bamboo.
It’s quite normal for lenders to only reply at 8 weeks, it doesn’t mean your complaint is difficult, it means no one has looked at it yet.
Hpw large are the debts in your DMP? how much are you paying a month? is this affordable at the moment and are you accululating and debts or arrears outside your DMP?
Bella says
Thanks Sara, this is reassuring.
Yes I’ve sent two to the FOS already (within the last month), I’ll send the third this weekend (only got the final statement this evening) and the 4th was bamboo so I didn’t send that one since I got the interest back anyway. Should I expect separate responses at different times from FOS, or do they consider complaints from the same person together? Not that it matters too much.
The current debts in my DMP total c.£15k. It was £23k to start with so it’s certainly gone down a lot! I’m only paying a small amount at the moment as I’m off work on maternity leave, but when I return to work, my target is to pay the DMP off by 2026. It’ll take a lot of incredibly hard work but so far it’s all worked really well and is very manageable, so no worries there. I’m trying to save what I can at the same time so that I can offer full and final settlements in the hope I can chip a bit off at the end. Everything I owe is in the DMP and there is absolutely no danger of me getting any further credit – debt is not a position I want to be in ever again. I’m working on getting then keeping my credit score clean, so that in the future I can apply for a mortgage. Wish me luck!
Sara (Debt Camel) says
each complaint at FOS is handled seperately. But if you send a credit record and bank statemente with one, you can ask for them to be shared across your other complaints.
Get organised and get your bank statements going back as far as you can. And a credit report downloaded if you havent already got that.
Bella says
Good tip, thank you.
I’ve only got my credit record going back from August, but I’ve managed to get bank statements from Jan 2015. I have email evidence of payday loans too from 2010/11 (I know this timescale is out of scope but at least it can help demonstrate financial despair).
Thanks again.
Josh says
Hi sara, what is the best way to convince fos for 6 years rule. Aqua not upheld my complaint and adjudicator had same opinion. Now I am waiting for fos review on this matter. Can I add any points at this stage to consider….
Sara (Debt Camel) says
First, some of these cases are won at the Ombudsman – see Sarah’s recent comment on this page.
But really just use what I said before. https://debtcamel.co.uk/refunds-catalogue-credit-card/comment-page-35/#comment-492593
Jax says
I’ve still heard nothing from MBNA 6 weeks after they accepted the adjudicator decision. PRA Group say they have heard nothing either. I contacted the adjudicator and he said to give them a further 4 weeks. He said that sometimes it takes a while as the court has to approve the buying back of the debt. I just wish MBNA could have written to me to tell me what’s going on. They are ignoring my emails. Thankfully PRA Group has put a hold on my account. This is my last remaining debt and I’m hoping that the redress wipes the small balance so I’m debt free.
Sara (Debt Camel) says
court? is there a CCJ on this debt?
Jax says
No, just a default.
Sara (Debt Camel) says
Then I have no idea why your adjudicator said it has to go to court. The sale of a debt – and buying it back – is a private contract between MBNA and PRA group.
But give it another few weeks then go back to the adjudicator.
Jax says
Thanks Sara
Sarah says
Finally got some good news yesterday, after aqua declined my unaffordabilty without even looking into the claim, i took it to the financial ombudsman and they have agreed in my favour, now just have to wait for a settlement figures etc..
Helen says
Hi Sarah
I’m just submitting an unaffordability claim to Aqua now and I’m really anxious to hear their response. How do you know they didn’t look into your claim properly just out of curiosity? And how long did it take for them to reply to you please?
Thanks
Helen
Sarah says
They didnt even look into it they rejected it straight away and said they followed the right checks, but sent it to FOS and they went in my favour as i sent them 3months worth of bank statements and credit file.
Jason says
Hi Sara, I have had a complaint upheld by an adjudicator for my aqua and marbles card, newday have agreed with the adjudicator and agreed to repay interest from my aqua card of a credit limit increase from September 2016 and my marbles card from inception which was January 2017 my problem is I’ve no idea how much interest I will be due, I went in a dmp in June 2019, I don’t have any statements from the cards and they haven’t sent my sar information through as of yet, how likely are they to pay the correct amount owed?
Sara (Debt Camel) says
I suggest you tell Newday now that you still want the SAR information.
Jason says
Thank you Sara, I have done this I will see what happens
Pippa says
Hi everyone,
I have just had notification from the FOS Adjudicator that JD Williams have agreed with the adjudicators decision to uphold my complaint. They have until the end of the month to contact me.
My question is do they have to pay the redress by then or simply make contact with me?
I would also like to encourage anyone who is thinking about making an affordability complaint to do so. JD Williams rejected my initial complaint but it was well worth pressing on and contacting the ombudsman. Thank you Sara for your help – this site has been invaluable to me in helping me with the process.
John Duddigan says
Well done
I Have a JD Williams complant with FOS as we speak.
Catherine says
My cheque from Very is on the way to me. The adjudicator upheld my complaint. Very partially upheld it and refunded around £1200 which was just taken off my balance. I sent it to the FOS because they didn’t uphold it from when I opened the account only when credit was increased. They’ve now refunded a further £1800 which has paid the remaining balance of £588. So leaves me around £1200. I’m so happy.
Elle says
Hi again Sara,
I’ve finally had my complaint with Very upheld by the adjudicator, after 3 years.
She has stated that Very acted unfairly from 22nd May 2010 and I’m due a refund/8%..this is based on the credit increases they added after that date, when they should have seen I was already struggling,..which I thought okay that’s sounds good…
But, when I have since asked the adjudicator to clarify which catalogues (of 6) and from when these repayments apply she has now stated in her reply email…
“But please note that the redress calculated would be where the account balance went over the previous limit, prior to the increase in May 2010”
I’ve no paperwork to check my account totals on the dates of credit increases but I likely didn’t reach the upper limits because they always upped the credit limits before I did so…but at the same time this was surely enticing me to borrow/spend more and also unfair…So how does that actually play out for me?
Should I just wait and see what Very come back with, they have until the 18th Oct to respond, or should I question this now and if so, what do I say?
Sara (Debt Camel) says
Were any of the 6 accounts opened after May 10?
For the accounts that were open on May 10, do you know what the credit l8mits were at that point?
Elle says
Hi Sara,
No, all of the accounts were opened much earlier.. 3 were no longer used/closed prior to 22nd May 2010 or had no details held now, and the other 1 apparently only ever had £86 of £2100 credit used in 2009 and was later closed.
So, the adjudicator has only considered 2 of the 6 accounts which I completely understand, these are shown below.
I’ve checked the details Shop Direct gave me in their final reply letter for these and the limits and increases they raised them to, so the 22nd May 2010 onwards the increases were as follows.
Littlewoods, opened 1997.
Prior to 22nd of May 2010 credit limit was £1100.
May 22nd 2010 = £1400
August 2010 = £1700
Dec 2010 = £2200
July 2011 = £2700
Dec 2011 = £3200
Very/Isme, opened 1999.
Prior to 22nd May 2010 credit limit was £1000
May 2012 = £1300
July 2012 = £1600
April 2013 = £2100
June 2014 = £2300
Sept 2015 = £2600
Jan 2016 = £2850
August 2016 = £3100
Thanks again,
Sara (Debt Camel) says
“when I have since asked the adjudicator to clarify which catalogues (of 6) and from when these repayments apply”
well you know they don’t apply to the 4 accounts that were closed. Not sure why you were querying this?
There will be a refund on the Littlewoods card for interest charged over the limit of £1400 and on the Isme card for interest charged over the limit of 1000.
You can wait and see what the lender calculates this all as.
Or you can go back to the adjudicator and say this is unfair, in May 2010 the lender should have known you were in financial trouble and they should have offered you forbearance and frozen interest at that point.
Elle says
Thanks Sara,
Apologies for the misunderstanding above, I hadn’t known when it was exactly that each account had been closed as the adjudicator had gotten her dates wrong in her recent letter to me,.. she’d miss typed a couple of years!,.. and hence why I’d asked her to clarify a few things..
… but what you’ve suggested is most helpful, thank you,..
Helen says
Hi, has anyone had their credit card blocked whilst the lender is investigating an affordability claim, I guess this is normal?
Thanks
John says
none of my credit cards with barclaycard, cap one, aqua or vanquis were blocked while investigation my affordability complaints so not sure if that standard, sorry I cant be of more assistance
Helen says
Thanks for replying John. The one in question is Vanquis so I will ask them what’s going on! Cheers
Jax says
Apologies for being dim but surely if you’re saying it’s unaffordable you shouldn’t be still using the card and it makes sense for the company to block it. Sorry if I have misunderstood your original post.
Sara (Debt Camel) says
an affordability complaint relates to your position at the time the loan was given or a credit limit increased. A lender should not assume that you are unable to pay the current monthly payments – that may be the case and the lender could offer to help with lower / token payments and a freeze on interest and charges. But not simply suspend the account.
Helen says
Hi Jax, that’s what I assumed their position would be but I thought they should have at least notified me if that was the case.
Thanks for clarifying Sara, your posts/website are so helpful.
Vanquis have just confirmed they won’t uphold my complaint anyway so to the ombudsman I go!
Kathleen says
I am a bit out of touch with rules on debt, however as an ex Credit Control Manage has the rule changed, that instead of getting involved in debt management, you can make a reasonable offer to pay so much a month to a company that you owe money to. Not of course a car on finance but other debts.Also for people who have been given more credit than they should have been given, what has happened to the irresponsible lending recourse.I have received waiver on two debts, one resulting in a refund of interest, one through the Financial Ombudsman and one myself with another pending as they a relying on the 6 year rule. Also on the 6/3 year rule as I understand it, there has to be a reasonable reason why you did not claim earlier. This does not involve, that you did not know you could but has to be, as quoted by one member of the FO staff, you were in a coma or seriously ill. However, the company I am paying back this debt to, still send me statements with my balance, a credit limit of 850 pounds and a balance to spend of 85 pounds to spend. Surely this means they are still currently offering me credit I can not afford.
Sara (Debt Camel) says
You have 2 separate questions.
I am not sure exactly what you are asking with the first one, could you rephrase it and be more specific about the debt you are concerned about and where you complaint is at the moment?
The second question – you have made a complaint about a card or catalogue which is now with FOS where you are disputing the 6/3 year rule? You do NOT have to have been in a coma not to claim, plenty of people are winning these complaints because they did not know the lender should have checked the credit limit was affordable for you.
They haven’t closed your account because they would get a lot of complaints if they automatically close any account someone made a complaint about.
Eve says
Hi Sara,
The adjudicator emailed me to ask for my bank details to process a redress from Newday a week ago. I haven’t heard from Newday at all since the final response. Will they be able to give me a breakdown of the redress or tell me how much it will be? I’m not sure who to contact. It was an aquacard credit card.
Thank you
Sara (Debt Camel) says
tell your adjudicator you would like a breakdown of the redress
Eve says
Hi Sara, I did ask them and they said they couldn’t provide this and I’d have to ask Newday
Sara (Debt Camel) says
have you asked newday?
Mike says
Hi Sara,
Just an update on my affordability complaint with MBNA and your advice for next steps.
The Adjudicator had found in favour with me vs MBNA for the more than 6 years rule.
However MBNA rejected the decision and the Ombudsman has come back and ruled in their favour stating
“I consider that the point at which the three year part of the rule should start is from 25 October 2017, at the latest. This means Mr C ought to have raised his complaint with MBNA Limited before 25 October 2020, but he didn’t do so. I therefore don’t think the three year part of the time limit rules gives Mr C longer to complain. I therefore think he’s brought his complaint too late as it is outside of the relevant time limits.”
To remind you the context of why 25th of October was the latest is because this is when they froze my account due to missed payments etc.
Not sure how to proceed here, feels like a big knock-back.
What would you recommend as a response?
Thanks in advance
Sara (Debt Camel) says
can you list the date you opened this account and the dates of any credit limit increases?
Mike says
Opened the account February 22nd 2016
One limit increase in October 2016 (not disputed)
Complaint raised March 15th 2022 (3 weeks after the 6 year rule)
also a point i’m wondering if helpful for my case – I was not in any reasonable thinking mindset. I was gambling continuously right up until the start of 2020. It was only then that i sought help and having since stopped gambling could take a moment to look back at the damage that had been caused.
It seems wild to me that an Ombudsman can attest to my mental state/thought process in relation to “or when you should reasonably have become aware” without further enquiring about the facts and details at that time.
thanks
Sara (Debt Camel) says
how large was the limit increase?
is FOS saying it can look at that, just not the initial limit?
Mike says
initial limit was £2500
Increase was £1700
so £4200 total
yes they will look at the increase as within 6 years
Sara (Debt Camel) says
The argument here is not whether you knew you could complain – anyone could always say that they didn’t know – but whether a resonable person in your situation would have known. (Thiose are not the words in the regs but that tends to be the test)
So how to argue that the initial limit should be considered. You may already have seen a variation on this but you can go back to the ombudsamn and argue the following, changing it so it is exactly right for your case:
—————————————————
I have read the 2 key Ombudsman decisions about payday loans https://www.financial-ombudsman.org.uk/files/17783/payday-loans_time-limts_final-decision-lender-C.pdf and https://www.financial-ombudsman.org.uk/files/17784/payday-loans_time-limits_final-decision-lender-D.pdf. It seems to me that the approach used there is directly applicable to my MBNA case.
One says “Mr H would also have been aware, or ought reasonably to have been aware, that he was paying an increasing amount of interest the more loans he took out. So I think that Mr H also ought reasonably to have been aware that he may have suffered a loss, or that he was suffering a loss as he was taking out these loans. But I wasn’t persuaded that Mr H realised that Lender C might’ve been responsible for his repayment problems – nor did I think that Mr H ought reasonably to have made that connection either. In my view, Mr H would, quite reasonably, have seen Lender C’s offer of further loan as a solution to his problem, rather than a cause of it.”
The other said:
“Mrs W appears to be an intelligent and articulate individual who is capable of using the internet to access information. But I do not think it necessarily follows that a reasonable person in those circumstances, who became aware of affordability problems with her loan and who understood that she had suffered loss as a result, would also become aware that her difficulties could be due to failings on the part of the lender. In my view, a reasonable person in Mrs W’s circumstances would be more likely to take personal responsibility for the difficulties she faced.
I am satisfied that a reasonable person in Mrs W’s position could not reasonably be expected to have understood from her contract with LENDER D that the lender had an obligation to check that her loan was affordable before agreeing to provide it to her.”
Like Mr H and Mrs W, I realised that the MBNA credit card was causing me problems – and obviously at 2017 when the account was blocked. But I assumed I was too blame because of my gambling problem. I didn’t realise MBNA should have checked that the initial credit limit in 2016 and the increase later in that year would be affordable for me, so I didn’t see MBNA’s decision as the cause of my problem. I wrongly saw the credit card as a help. Until I found out what affordability complaints were, I did not realise I had a cause to complain. The fact I was in a financial mess doesn’t to my mind mean that I should have thought that it was the lender’s fault.
Were there any affordability complaints about credit cards in 2017? I don’t remember ever hearing about any. I am not sure how FOS can have expected an ordinary person like me, someone who had no knowledge of financial regulations, to have had a brainwave and decided to make a type of complaint I had never heard about.
—————————————————-
If this doesn’t succeed, then the complaint will proceed to look at the limit increase in 2016. you should be arguing that at that point MBNA should have not just decided to to increase your limit but have realised that you needed help and offred forebearance and a block on the account. So from there you would like all interest refunded, not just the interest over the original credit limit.
Mike says
thank you very much for the comprehensive response sara, wish me luck
Sarah says
Hi Sara,
I have 2 Barclaycard’s limit of 7000&9000 it was increased 3 times between 2010 and 2016.
I called Barclaycard to get the status of my complaint. The advisor advised me I should have record the letter but proceeded to read the outcome. It was strange as he asked me if I had passed it to the ombudsman as it was their ombudsman team dealing with the complaint.
From what the advisor read, it was very thorough and mentioned a few of the rejection reasons that have been mentioned on this site from people who have been rejected from FOS like the 6 and 3 year rule. They also claim they did all these checks and it was my responsibility to tell them I was in financial hardship and my credit checks didn’t show I had issues as at time of each of the increases. They claim to have followed all the appropriate financial rules and checks and therefore cannot uphold my complaint.
Once I receive the letter I can give more info, but as far as I’m concerned there is a lot of detail but where is the proof of all this due process and financial responsibility from them. Especially, claiming I didn’t have any late markers is false.
I would like your advice to know if I should to the FOS and are there many people on this site who had been successful against Barclaycard with the ombudsman.
Sara (Debt Camel) says
Send this to the Ombudsman now! yes quite a few people here have won cases against Barclaycard – but many stop checking this page when they have won so you may not get many replies.
AL says
Hello Sara
I’ve had a response from adjudicator on a mbna complaint. The reply was…..
In june 2017 your account opened with a credit limit of £3000. The credit limit on the account didn’t increase. MBNA says it carried out a review of your credit file before it agreed to lend. There’s no information to suggest that the credit checks on their own revealed anything that would’ve stopped MBNA from opening the account. You confirmed on your application that you were on a salary of £30,000. I think it would’ve been better for MBNA to have taken a closer look at your affordability. This could’ve been done by asking you to provide bank statements. I’ve looked at the bank statements you’ve provided prior to taking out the card. I can see you had a £1600 overdraft facility which you regularly used. I’ve also considered that you had other unsecured debts however, you applied for the card to take advantage of the introductory o% interest offered. Overall looking at these things, I can’t see that MBNA were irresponsible to open the account.
My main argument was that I had 2 large overdrafts (he only stayed 1 in response) that I had been living in for a number of years and felt this shoukd have been a red flag that I was not managing my finances very well. I also had 2 other credit cards, a home shopping account, car finance and another loan that was only taken out 8 weeks prior to the mbna credit card. I’m also a bit confused that although he feels that mbna have done nothing wrong he also feels that they should have done better checks. I’m unsure hiw to proceed with this one. Thanks
Sara (Debt Camel) says
I think you should go back and tell the adjudicator all those points.
AL says
Do you think the point he made about the credit initially being 0% is valid?
Sara (Debt Camel) says
I think the question is whether you afford to repay this credit in a reasonable period of time. the fact that it is intially at 0% helps thatbut doesnt mean the credit is necesssarily afford =able.
AL says
Hi Sara
I made the further points I said but adjudicator still has said that mbna acted fairly. He is saying I need to provide more evidence if I want it to go to ombudsman. Can I not request that I want it to go to ombudsman even though I have no more evidence? I would like the ombudsman to look at what I’ve already said to adjudicator but the adjudicator is saying I need more evidence if I want to take it further?
Sara (Debt Camel) says
That isn’t right – you have the right to reject the adjudicator’s decision and ask for an Ombudsman decision. reply saying this and that you will be lodging a formal complaint if they do not agree.
Ernest says
Good morning Sara .. pls l need your advice on this barclays card 2009 – starting with £3500 increased x2 to £7000. Then decrease by the bank not me. I just received the email from adjudicator from Ombudsman.
Your credit limit was decreased in November 2007. You may not remember, but can I ask if you have any recollection of the credit limit decrease? Was it requested by yourself or did the business do this?
DISP rules state we can’t look into complaints made too late, unless they were as a result of exceptional circumstances. Please can you let me know if there were any exceptional circumstances that prevented your complaint from being made sooner?
Sara (Debt Camel) says
did you have this card in 2007?
Ernest says
Yes pls l have the card till 2011.. l just check some of my statement now .. l request from them… the limit decrease to £4100
Sara (Debt Camel) says
so can you list the dates and limits, starting with when the account was opened,. And say which of the increases / decreases was requested by you or proposed by the bank.
Ernest says
Thanks so much Sara… how about this part pls.
DISP rules state we can’t look into complaints made too late, unless they were as a result of exceptional circumstances. Please can you let me know if there were any exceptional circumstances that prevented your complaint from being made sooner?
Sara (Debt Camel) says
those are the DISP rules which by now having made so many complaints you must know all about!
Sarah says
Does anyone know if aqua agree first hand with the financial ombudsman or do they disagree and then have to go bk for a final decision? Just asking because today is the deadline for them to agree and still waiting to hear back weather they are going to be dragging there heels some more.
Dave says
Hi, I have a problem with the MBNA complaint. Here’s what happened so far:
1. Complaint went to FOS.
2. FOS adjudicator did not uphold so it went to the FOS Ombudsman.
3. The Ombudsman agreed with me and sent a provisional decision for redress. They gave time to both parties to respond to the provisional decision before giving the final binding decision.
4. I agreed with the provisional decision and waited for the final response from FOS.
5. After not getting any response I called my FOS adjudicator and was told on the phone call that MBNA agreed with the provisional decision.
6. My adjudicator asked MBNA to settle the case directly with me and the case was closed without the final (binding) decision from FOS
7. MBNA ignored it and did not contact me. I tried calling MBNA but customer support does not deal with complaints and when transferring to the complaints team the phone lines just restart and it puts me back in the customer support queue. It’s impossible to contact complaints directly.
8. On the FOS website it says: “The ombudsman will issue their final decision to both parties in writing. You will then be asked to confirm by a specified date whether you accept or reject it.”
The problem is my FOS case was closed after the provisional decision but then they ignored it anyway.
Any suggestions on what should I do now?
Maybe someone has any direct contacts or email addresses to MBNA complaints or maybe the email address of the CEO?
Thanks,
Dave
Sara (Debt Camel) says
How long ago was this case closed?
Dave says
I don’t know the exact date but it was some time after the provisional decisions by the Ombudsman (mid August 2022) and before I started chasing it (mid September 2022)
Sara (Debt Camel) says
Ok, then go back to your adjudicator and say this hasn’t been paid. You could also try emailing chris.gowland@lloydsbanking.com and chris.gowland@mbna.co.uk but I don’t know if either of those addresses will work.
Dave says
Thank you Sara, I will try and let you know how it is going.
Jacqueline says
Hello there, Tesco were pretty speedy with their rebuttal of my claim. They said ‘During an application we ask for information about a customer’s income, outgoings and outstanding debts with other lenders. Whilst we didn’t obtain any evidence of the income you stated on each application, there would be no obligation for us to do so, based on the other checks we carry out as above. It’s reasonable for us to work on the basis the information we’re being provided is truthful. If it’s later discovered lending was based on false or misleading information, there may be further reaching implications for the consumer.’ Could the fact that they didn’t obtain any evidence of income work against their favour? I’ve had to take out loans to refinance, my total debt was £27 k and my income was never above £29k meaning obtaining repeated credit. In addition, they got my name wrong – I had 2 accounts which reversed my first and middle name meaning that I think for a while, the system probably thought I was more than one person. They gave me two credit cards within less than a year- not the same as increasing credit, but due to admin error it’s as good as- surely it’s better to increase a limit than have two cards? I rectified it myself calling them, but I’m sure it didn’t help matters. Any advice would be greatly appreciated.
Sara (Debt Camel) says
Why did you apply for a second card?
How large were the limits on these cards?
When did you tell them about the names issue?
Did you have other bank accounts with different name spellings, because whilst they may not have had to verify your income, they should have done an identity check on anyone that applies for a card.
Jacqueline says
Hi Sara, I applied for a second card to help with living costs.
Limit was £3200 on first one and £1500 on the second.
I told them about a year later.
My main banking account had the order of my first and middle names incorrect.
I have been diagnosed with adhd and dyspraxia recently and there are ever so slight issues with comprehension. I am also known by my middle name, so that doesn’t help matters.
Any thoughts would be greatly appreciated.
Sara (Debt Camel) says
I suggest you send it to the Ombudsman and let them consider this.
There are two issues. Whether 3200 was too high a limit on the first card? And whether they should have given you the second card, or shoyuld their id checks have realised you already had a card.
Jacqueline says
Thank you. I used the email address you suggested and I’ve received a response saying that they are going to reopen the claim.
John says
Hi, just a quick question, I made an affordability complaint to my Aqua credit card about 7 weeks ago. I haven’t received their official response yet but I can tell from the balance on the app they have refunded the interest and charges I have paid since they gave me a credit limit increase in June. My question is can I still take this complaint to the ombudsman for the initial credit card as it seems they have upheld my complaint about the credit limit increase but not the initial credit card. Hope that makes sense! cheers
Sara (Debt Camel) says
This was the first credit limit increase? To how much? What was the original limit and how long ago was the account opened?
John says
yes, this was the first limit increase, initial limit on the card was £300 and the account was opened in March 2018, in June of this year they increased the limit to £1250
Sara (Debt Camel) says
yes you can reject that when you get the response. It is however pretty hard to win a case saying an initial credit limit of only £300 is too high.
Jacqueline says
Any contact email for tescos bank products would be greatly appreciated.
Sara (Debt Camel) says
Try tbexbankcomp@tescobank.com
BECKS MASH says
Hi Sara
Quick question. Just 2 weeks ago I lodged a complaint with Capital One. Monday they came back to say they had rejected the claim. But today they said they have changed their minds.
They came back with this….. (it was a £2000 limit started in 2018)
We’re giving you a refund
To put things right, we’re going to give you a refund of £1768.43. This amounts to all the interest and fees we’ve charged as a result of our decision to lend.
Here’s how the refund has been calculated:
Fees: £355.50.
Contractual Interest: £1412.93.
The refund will be offset against the current balance we hold of £36.27, and in accordance with your credit card agreement.
The surplus amount of £1732.16 will be issued by way of cheque. It should reach you within the next seven working days
Should there be 8% interest on top too?
Sara (Debt Camel) says
yes from the point your account would have moved into credit, What was the balance 3 months ago? 6 months ago? A year ago?
BECKS MASH says
£2000 since 2018 until a week ago
Sara (Debt Camel) says
£2000 debit or credit?
BECKS MASH says
Oh sorry in debit. Up to the credit card limit all the time
Sara (Debt Camel) says
In that case after this refund has been added back into the account, you would only have moved into credit in the last week. so there will be only a few pennies of 8% interest to be added.
Jacqueline says
Sorry if this is an obvious question- but if your complaint is successful, will the refund be paid directly to you, or will it be used to pay off any remaining balance you have with your creditor? I also want to argue for debt forgiveness, as I have been recently diagnosed with ADHD and research suggests that those with ADHD have issues with money management. In an ideal situation, I would like the debt to be written off, and have any refunds owed, paid directly to me.
Sara (Debt Camel) says
it is used to clear any balance.
Jax says
Hello, is anyone aware of an email address for the CEO at Newday please?
Jax says
Hi Sara I’m looking for some advice please. I am having some issues with MBNA and PRA group. MBNA sent me a letter a couple of weeks ago following my escalation of the complaint to the Financial Ombudsman Service. The adjudicator had found in my favour and said MBNA should repay all interest and charges and remove all negative information from my credit file. The letter MBNA sent to me stated the amount of redress and they said the remaining balance would still be payable to PRA. When the adjudicator had previously followed up with MBNA on my behalf they had told him that they were midway through the process of buying the debt back from PRA.
The letter they sent me mentioned nothing about the removal of the negative information from my credit file. I asked the adjudicator to confirm that MBNA had also agreed to the removal of the negative information. He replied saying that I have a letter from them stating what the redress is and that they will apply it, although he didn’t respond regarding the removal of the negative information.
Jax says
I contacted PRA this week to ask them when the amount that MBNA have calculated will be applied to my account and when they will remove the negative information. They replied saying the finance department there have said it will be updated by the end of the month. They didn’t respond to the query about my credit file. I went back to them and asked them to respond to the credit file query. They have come back to me today saying they haven’t received the payment from MBNA yet and they will let me know when they have. They asked me to send a screenshot so they could forward it on to their credit file team. I have no idea what screenshot they are referring to. They must know what they are reporting to the CRAs? I have asked them for clarity.
I feel like I am being given the runaround and I don’t feel I can go back to the adjudicator given the tone of his last email to me.
Will this work itself out or should I be worried? I’m just getting very inconsistent responses that seem to be contradictory and it’s making me anxious.
Sorry for such a long post!
Sara (Debt Camel) says
what was the date of the MBNA letter to you?
Jax says
It was 6 October Sara.
Sara (Debt Camel) says
I would give it another 2 weeks then go back to your adjudicator
Jax says
Thank you. I will do that.
Jo says
Hi sara
My vanquis complaint closed by adjudicator as I partialy accepted ROP and vanquis refunded £82 but my original complaint was irresponsible lending. Vanquis and adjudicator rejected over 6 years plus 3 years aware rules. My adjudicator not willing to review my complaint by FOS as I partialy accepted and the complaint closed. I asked her to reopen my complaint as i had some email and calling history evidence that I started my complaint procedure back in December 2020 (which cover 3 years rule ) but my adjudicator not accepting cos lack of evidence as I did not specify” irresponsible lending in written”. Also call history not available to track down. What should i do further. Thx
Sara (Debt Camel) says
In Dec 2020 what did you complain about? How was this complaint made/
Jo says
In December 2020, I contacted vanquis over the phone to get SAR for irresponsible complaint procedure but the reply was ” account opened in 2010 and defaulted in 2011. Vanquis updated to new software therefore old records are not avsilable” I aceepted the reply and stopped further complaint procedure. In early 2022 again i started the complaint procedure after reading debt camel. Now the adjudicator needs valid evidence to show that i have started my irresponsible complaint in 2020 which I dont have. Call history not available to track. Thx
Sara (Debt Camel) says
So when did you complain about ROP?
Josh says
March 2022.
Jo says
Please read Adjudicator reply when i questioned about Rop refund and irresponsible lending rejection.
That’s a good question – especially as when Vanquis issued its final response on 3 June 2022, it said you’d raised your ROP concerns too late in relation to the 6 and 3 year DISP 2.8.2 rule, but it didn’t then try to also time-bar your irresponsible lending concerns.
I’ve managed all of the ROP complaints we’ve received for the last 5 years. It might’ve been possible for Vanquis to raise an acceptable reason to time-bar your ROP concerns. But, due to the long relationship we have with Vanquis about ROP complaints, our usual practice is to forward ROP refund offers to the consumers without first checking if Vanquis instead wants to raise a time-bar objection. In other words, when we asked Vanquis for its file for your complaint, instead of it telling us why it thinks your ROP concerns should be time-barred, Vanquis offered to refund your ROP. And I then forwarded that offer to you, without first asking Vanquis if it instead wanted to time-bar your ROP concerns.But just to clarify: if we receive an offer for a different kind of complaint but we notice a reason the business could instead time-bar the complaint, we are usually obliged to make the business aware of this and to make sure the business is still happy to go ahead with the offer. So in summary I don’t know why Vanquis decided to offer to refund your ROP instead of it raising a time-bar objection
Jo says
Continuation……
but what I will say is that the offer was made by a different person compared to the person who wrote the final response.
I appreciate Vanquis didn’t try to time-bar your irresponsible lending concerns in its final response. However, all businesses have the right to raise a time-bar objection with us even if the business didn’t initially raise it in the final response. In other words, when we asked Vanquis for its file for your complaint, Vanquis said it thinks your irresponsible lending concerns should be time-barred under DISP 2.8.2. And as detailed in my view I agree that you’ve raised this part of your complaint too late.
I trust this clarifies your question. But if you want to discuss it with me, you’re welcome to call me. I should be available until 4pm today. My phone number is below.
Sara (Debt Camel) says
“Now the adjudicator needs valid evidence to show that i have started my irresponsible complaint in 2020 which I dont have.”
I don’t see why what happened in 2020 is relevant. If you are time barred now, you would have been time barred in 2020. I suggest you concentrate on getting the adjudicator to decide you are not time barred now. Ask for this to go to an Ombudsman if you arent getting anywhere.
Jo says
The problem is I had some pay day loan complaints with FOS back in 2018 which means I am already aware about complaint procedure. Therefore 3 years rule ended somewhere late 2021 according to Adjudicator review.
Pls see adjudicator response.
I also note that you bought affordability payday loan complaints to us in November 2018. Therefore, I’m satisfied you knew you could raise affordability / irresponsible lending complaints in 2018. I appreciate you’ve made a distinction between payday loan affordability / irresponsible lending complaints and credit card affordability / irresponsible lending complaints. However, I don’t think this is sufficient to be able to say you shouldn’t reasonably have been aware in 2018 that you could then raise an affordability / irresponsible lending complaint in relation to your Vanquis credit card account.
So, I believe when you learned about payday loan affordability / irresponsible lending complaints in 2018 you should then (more than 3 years before this complaint was raised) have been aware you could also raise a complaint about affordability / irresponsible lending for your Vanquis credit card account.
Therefore, I believe you’ve raised this part of your complaint too late – given DISP 2.8.2.
Sara (Debt Camel) says
yes but proving you complained tin 2020 doesnt help at all because you then did not take that to the Ombudsman within 6 months so you would be barred on those grounds.
I suggest you go back and say you think this is unreasonable because there was a lot of publicity about payday lenders and their poor practices and sky high rates and the regulator had introduced special rules for them, so you had no idea that a similar argument could be made about credit cards, where the monthly repayments were so much lower. It had never occured to you at that point that you would not be able to clear the card in a reasonable period of time or that this was something you could complain about. Ask for this to go to an Ombudsman.
Jo says
Okay, i will do it now. Thx
Elma says
Hi there.
Can anyone advise the shop direct/very complaints email address for irresponsible lending? Thanks
Sara (Debt Camel) says
see https://debtcamel.co.uk/email-addresses-banks-credit-cards/
BECKS MASH says
Try CEExecutiveteam@theverygroup.com
LAA says
Hi sara
Can you give the email address for capital one please I am looking to make a complaint
Thank you
Sara (Debt Camel) says
see https://debtcamel.co.uk/email-addresses-banks-credit-cards/
Matthew says
Hi Sara, so I recently complained to Capital One about allowing me to open a second credit card on Jan 23rd 2014 they explained it was out of the 6 year rule.. so I took it to ombudsman, this was the adjudicators reply.
“Capital One have sent us the statements that show that you were over the limit and returned direct debts from 2011. Between March – September 2017 you had six months of unpaid direct debits and late payments fees. They have also sent you notice of arrears from July 2017 when the account started to fall in arrears. This continued until a default notice was sent to you in June 2019 and a payment plan was set up in July 2019”.
“As there were clear signs of financial difficulty surrounding the agreement, I think you ought to have realised at this stage the agreement was unaffordable to you and that Capital One may have been at least partly responsible. I therefore think you ought to have realised at this stage the agreement was unaffordable to you and that Capital One may have been at least partly responsible”.
“This means that you had three years from September 2017 to raise your complaint or six years from June 2011, whichever gives you longer. As you didn’t raise it until 13 June 2022, it was after both of these timescales and has therefore been brought too late”
I only genuinely realised in Jan 2022 (after reading a similar story on here) that I could complain to Capital One, so I find it worrying the adjudicator has made assumptions to try and prove me wrong as supposed to be impartial? Surely if I “should’ve known” it was when the notice of arrears hit in 2019??
Both the cards I took out are still “live” with a couple of hundred on each of the balance.
I have mentioned that on September 2019 I suffered an out of hospital cardiac arrest whilst out running, of which meant around 18-24 months of recovery, procedures and tests.. surely this is an exceptional circumstance?
I can’t stop reading the reply from the adjudicator and everything that’s been said indicates wrongdoing on the side of Capital One and mismanagement of my account.
Any help is greatly appreciated!
Sara (Debt Camel) says
I suggest you reply that you had no idea that Capital One had a regulatory duty to check payments were affordable, so although you knew you were in difficulty you thought it was just your ownfault. That should be your base position.
It is also worth pointing out your health problems in 2019-2021.
Matthew says
Thank you very much for the reply! I’ll give that a shot, although I feel the adjudicator has already made a judgement on my case and sided with Cap One, I’ll take it to the Ombudsman if needed and will fight it.
Mara says
Dear Sara,
I hope you are very well.
I would like to express my gratitude- Thanks to you my financial nightmare is almost over :)
I have a question regarding the Barclaycard
I have it since 2010 and my limit was increased from. 500 to 1000 at some point. My financial situation was not the best over all those years (overdrafts, multitalent payday loans, catalogue charges). Last summer I got a good will gesture from them – then have sent me 1000.
However, as I was still paying off quite a lot at the time- didn’t help me much
My question is can I still make a complaint or they will use their Good will gesture to refuse it?
Thank you in advance
Sara (Debt Camel) says
Last summer I got a good will gesture from them – then have sent me 1000.
this was out of the blue? You hadn’t complained?
Mara says
Yes. Completely out of blue. I didn’t even know back then that I can make complaints at all.
Sara (Debt Camel) says
Then you can still complain. There may be problems if they increased your limit a long while ago, but make a complaint and ask for the details as the template letter in the article above suggests.
Mara says
Should this not be my argument then?
It was increased long time ago indeed. My card was in arrears for almost all the time I had it, and I was mostly covering default payments for the card rather then paying off the card itself.
Sara (Debt Camel) says
so you were having charges added for missing payments? In that case say that these should have alerted Barclaycard to your difficulty and they should have offered to help. Add that you had no idea that a credit card lender should have considered affordability and so you did not complain before as you thought your problems were your own fault for being bad with money.
Mara says
Thank you so much, Sara! Got it.
Sent the complaint through. See what they say
Jax says
Hello, I’m getting fed up now with the situation with my MBNA complaint. This is the latest response from PRA.
Thanks for your reply and providing a screenshot of your credit file and outcome of your Financial Ombudsman complaint regarding MBNA.
As the account defaulted on 30/04/2020 with MBNA on this date. This will remain on your credit file until 30/04/2026 or will show as fully satisfied if the balance were to be paid in full before this date.
As we are awaiting the refund of £1,133.45. The balance of your default will be updated to reflect an updated balance, once this has refund has been received.
MBNA said in their letter dated 6 October that they had sent redress to PRA. Also the adjudicator said that all negative information should be removed from my credit file and that the credit card should never have been given in the first place.
I am exasperated!
Sara (Debt Camel) says
go back to your adjudicator and explain what is happening – this will all be sorted in the end.
Jax says
Thanks Sara. Just checking but should PRA remove the account completely from my credit file or should I just expect this to show as settled but still with a default date?
Sara (Debt Camel) says
This depends on what MBNA does. They could buy the debt back in which case the PRA record vanishes. Or they can settle the refund with PRA in which case PRA should remove the default but not the record.
Jax says
That makes sense now. Thank you as ever.
Ryan says
Has anyone had any dealing with newday recently. I sent my complaint to the FOS and the FOS adjudicator decided in my favour. However after 3 weeks newday haven’t replied to the FOS and the adjudicator has given them until Monday and then he will send it to an ombudsman. I tried calling newday myself today and was on hold for an hour 27 and then got cut off.
My second question is, has anyone had any experience of sending their complaint from adjudicator to an ombudsman? How long does this process take roughly? Also I’m concerned the ombudsman may not see the case in my favour still?
Sara (Debt Camel) says
It is unpredictable how long the wait for an Ombudsman will be I am afraid.
About 10% of cases go to an Ombudsman. Of these, the Ombudsman agrees with the adjudicator 90% of the time.
Jax says
Newday responded to my complaint and agreed to refund interest and charges following my second credit limit increase. I calculated whether it would be more beneficial to send it to the Financial Ombudsman Service or whether I should contact them with my bank details for them to make the payment they proposed. The difference between the two amounts wasn’t huge. I called them 2 weeks ago and provided my bank details for them to make the payment and they said it would be sent within 3 to 5 working days. I still haven’t received the payment 10 working days later and they haven’t contacted me to explain why despite me chasing them. The wait times when calling them are ridiculous. In short, I wouldn’t hold your breath that they will follow through even if they do agree with your adjudicator.
Sara (Debt Camel) says
Tell Newday in writing (ie email) that your complaint goes to the Ombudsman if they haven’t paid you within 2 weeks.
Jax says
Thanks Sara, I have emailed them.
Eve says
Hi Sara,
The adjudicator has ruled in my favour for my newday credit card and has suggested a refund of interest on amounts over balances of 2100 since July 2018. Is this usual practice? I thought it would be interest and charges paid from the increase to 2100 and not interest on balanced exceeding 2100.
Many thanks
Sara (Debt Camel) says
How bad was your situation July 2018?
Eve says
I had about 10k of other debt and on reduced income.
Sara (Debt Camel) says
Go back to your adjudicator and argue that your situation was so poor in July 2018 that when they considered whether to increase your credit limit they should have realised the current limit was no longer affordable so they should have offered you forbearance at that point and frozen interest. Therefore you think you should get a refund of all the interest you have paid since that point.
Eve says
Okay thank you for your help
DBUK says
Hi Sara
Thanks for all the help you provide personally and through this site, its been very valuable in my own successes and I’ll share my success story in my next post.
I wonder how you would position this scenario as a complaint;
I had a Tesco Credit card and in 2021 I missed 2 payments, when I realised I was going to miss my third, I called them on two occasions and was told there was nobody available from that team at the moment. I then wrote to them (handwritten snail mail – they don’t have any other contact means) explained the situation and asked for a payment freeze. As I said in my letter, I made a payment to the card in April 2022 which covered all of the missed payments. In May, I made the minimum payment but the same month found out it Defaulted and the debt was sold. I don’t want any refund, I just want them to request the account back, charge me interest and remove the default.
Cheers in advance
Sara (Debt Camel) says
What months did you miss in 2021?
DBUK says
In 2021 I missed November and December.
Sara (Debt Camel) says
and then didnt pay anything until April when you paid the arrears?
DBUK says
I just checked and the payment was actually made in March 23rd 2022, and cleared all previous missed payments
DBUK says
I had missed other payments by this time, including my mobile bill which had been disconnected – preventing me from calling or receiving calls.. I was also bombarded with mail although I don’t recall seeing any from Tesco.
Should I just explain all this and the fact they ignored my request?
Sara (Debt Camel) says
I’m sorry but the credit score reporting rules say a default should be registered if someoneis 3-6 months in arrears. Which you were.
Obviously they should have responded to you. But you still missed a lot of payments. You can try to get them to remove it but they have recorded what was factually acurate.
Have you looked at whether you may be able to make an affordability complaint seperate from this issue? See the article above these comments. If you win this then any negative marks are removed, and you may get some interest refund as well.
DBUK says
Thanks, Sara
Sadly it was opened in September 2015 – over 6 years ago. So I think it’s my only option however unlikely it is they’ll uphold it. Wish me luck, I’ll need it with this one.
Sara (Debt Camel) says
did they increase your credit limit after it was opened?
DBUK says
No afraid not. Opened at 2k and stayed that way :(
I’ve just finished writing up my complaint letter. You’re welcome to take a look if you have time..
John says
quick question, finally received my letter from Aqua with their final decision, they’re upholding my claim for the credit limit increase of £1000 in June of this year but not upholding the initial credit card. They’ve refunded the extra interest I paid after the limit increase but they haven’t added on an extra 8% statutory interest to this amount. It says in the letter
“Regarding your request for 8% simple interest to be added and refunded, this is not applicable in this scenario. 8% is a rate generally awarded to compensate a consumer where they feel that they may have been “out of pocket” or at a financial loss. However, your account balance was not being paid in full, so the 8% is not applicable in these circumstances.”
does this sound correct or should they have added on an extra 8%? it wouldn’t be that much extra money so not the end of the world but I will complain if they shouldve added on this extra 8%, cheers
Sara (Debt Camel) says
Yes it’s normal to not get the 8% paid unless you are back in credit.
BUT how much was the initial limit and was that unreasonable from the start? And how bad was your situation in June this year?
Jacqueline says
Firstly, this site is amazing. Thank you so much for your service. This is just a general question, but what are the repurcussions for a bank if taken to the ombudsman? Is it just reputational/financial or both? I’m talking more about high street banks rather than smaller pay day lenders. Sorry if this is obvious!
Sara (Debt Camel) says
It may be easier to answer if you explain why you are interested?
Jacqueline says
I received a rebuttal of a claim very quickly (outlined in an earlier comment) from Tesco, but as soon as I mentioned that I will then proceed with the ombudsman they reopened my claim. I also raised your suggestions in my response. I’m just curious to see if I get refusal on my other claims, that if I say decidedly I’m going to the FSO outlined with reasons, whether that will prompt a similar response. It’s just curiousity about their reluctance.
Lynn says
Has anyone had success with next directory? Thanks
Sara (Debt Camel) says
yes!
Lynn says
Thanks, going to sit down and type mine up tomorrow 🤞
alice says
Has anyone ever had any luck with Tesco Credit Card before? Wondering if i am fighting a losing battle with this one.
I put in a complaint using the template last week but now wishing i got my details clearer!
I got the card in 2018 with a £4300 limit. Was upped several times but now at £10,500 limit. I only earnt 25k at the time! I have about 9.3k on it now and drowning in nearly £300 a month interest. During this time they also gave me an 11.5k loan for a car (this was paid off and closed though so thinking this may work against me!) used to pay off more debt but over the past few years its just been minimum payment every month as all i can afford.
Sara (Debt Camel) says
It sounds a potentially good complaint to me. Those were large credit record increases.
the fact you took out car finance and repaid it doesn’t mean that larger credit card repayments were affordable – it means that you paid a priority debt – the debt finance – and could only afford the minimum to your credit card.
I suggest you send the complaint to the Ombudsman if Tesco reject it or make you a poor offer.
alice says
Thank you Sara, that is reassuring to hear. I will keep my fingers and toes crossed to hear back in the coming weeks. I will keep the post updated with hopefully some good news :)
alice says
Hi Sara,
I have just received the below from tescos. Is the bank statements normal?!
“I’m sorry it’s been necessary for you to complain, however thank you for raising your concerns with us. You’re unhappy the limit on your Credit Card was increased several times, as you believe your financial circumstances shouldn’t have permitted additional borrowing.
Credit Limit Increases
Date of Increase Previous Limit New Limit Increased by
August 2018 £4,300 £5,500 £1,200
February 2020 £5,500 £8,500 £3,000
November 2021 £8,500 £10,500 £2,000
In order for me to fully investigate your complaint, we require some information from you to determine if we’ve unfairly increased the level of credit available to you. Listed above are each of the increases applied to your credit limit during the life of your Credit Card account. Please provide three months personal bank account statements prior to each of the increases. Once we’ve received this information, we’ll continue our assessment and aim to provide a final response as soon as possible, and no later than eight weeks from the date of your complaint being raised. “
They’ve also recommended putting a block on my credit card?
Sara (Debt Camel) says
Asking for bank statements is sensible – the Ombudsman will do this. There is no reason not to supply them to Tesco, they can only help your case.
Your credit limit at the start was £3,100? When was the account opened? Do you think that was too high a limit?
What is the current balance on the card?
alice says
Ok good to know. I just wanted to be sure!
Credit limit started at 4,300 – increased to 5,500. then another 3k increase, then another 2k increase! the account was opened in March 2018 (i think!) so they increased my credit within the first 6 months of me having the card. Realistically i think even £4,300 was too high for me at the time. It was 0% at first however i was only earning £1,300/1400 a month at the time.
The current balance is 9300 so i am using a lot of the utilisation i have. I pay off £300 a month which is all i can afford but that only covers the interest plus a tiny bit more. So realistically i am only paying off about £30/£40 a month after interest which is soul destroying!
Sara (Debt Camel) says
I suggest you also send the bank statements from the 3 months before the account started and 3 months after and tell Tesco that you consider the initial credit limit was too high and you would like a refund from the start. (This matters as other wise they may decide the 4300 was find and you will only get a refund of the interest charged on borrowing over that amount.)
I think you should consider asking for interest to be frozen on the account – this will harm your credit record but it’s realistically the onl way to ever get the debt down. And if you win the affordability complaint any negative marks of your credit record are removed. Do you have much other debts apart from this?
alice says
Bummer. I have just noticed when downloading all bank statements i was not with my current bank until 2019. I have no access to my previous bank statements. Will this be a serious negative to my case if i cannot provide?
Sara (Debt Camel) says
you can get bank statements from closed accounts going back 6 years. Ask for these now and tell tescos what you are doing.
alice says
Thank you Sara, i have requested bank statements from my old bank which will be arriving in the post and kept Tesco in the loop in the mean time.
I have £2500 on another card which was balance transferred off of the Tesco card but that is the only debt i have otherwise.
Jacqueline says
I sent a complaint to their generic customer service team/online function which was rebutted. I objected with a bit more detail to the specific email address on here, and it’s been reopened which seems to be a promising sign. I will let you know how that goes.
alice says
Thank you Jacqueline that would be helpful! Was it originally rebutted quickly? I put in my complaint Thursday. but expecting a bit of a wait until i hear back.
I hope you get the result you are after!
Jacqueline says
Hi Alice, thank you! It was rebutted within 48 hours initially, but it’s now almost two weeks since it was reopened. To be honest, I’m guessing it may be successful, as I’ve calculated that once my outstanding debt is paid off (£426) any refund after that will be in the £500 region so not the largest of complaints and I’ve got a good case re incorrect version of my name, which allowed me to get more credit (I think), and also affordability. I should never have had such a large credit limit opened on top of an existing loan. If unsuccessful I will pursue it with the ombudsman, and Natwest, who I banked with at the time, have sent me 7 years worth of bank statements so I can prove I wasn’t a good candidate. I hope you get your desired result too!
BECKS MASH says
Just to give people a positive update. So far I have had the below refunds (without any Ombudsman intervention)
Capital One – £1732
Very – £2054
Lending Stream £750
Money Platform £200
Other payday lenders I cant now remember – approx £500
Currently with FOS
Barclays (FOS are saying they need to refund interest and fees from March 2017 but they are delaying and not responding to FOS deadlines, but if they agree with FOA will be approx £5000)
Barclaycard – despite lending to me after the time FOS have said I was in financial difficulty, in regards to the overdraft with Barclays, Barclaycard are still rejecting the complaint so that will go to FOS
Next – Next complaints department looking into this complaint
American Express – AmEx complaints department looking into complaint.
It’s so worth doing!! Thanks everyone for any advice I have been given on this site
Sarah says
Thats really good, i had some that paid out and other that gone to fos… aqua newday was one that went to fos, they went in my favour and were given 17th october to agree or disagree but they ignoring fos, just thinking this is a stalling tactic by newday
BECKS MASH says
Annoyingly though Barclays originally had until 17th Oct otherwise an Ombudsman would decide but then they gave them an extra 14 days which after 6 months of originally having the complaint doesn’t really seem fair as they have had long enough
Sarah says
Yea it is annoying, did it orginially go to ombudsman? Mine did and the adjucster went in my favour and newday havent responded, feel like im forever chasing it, yea you just want it all to be over with.
Lynda Parris says
Hi
I recently had a irresponsible claim upheld by the Ombudsman against MBNA who agreed to buy back a credit default sold to the PRA Group. That claim related to a period from 2015 when there was an credit increase to when I went into a DMP in 2019.
Unfortunately, MBNA refused to let the Ombudsman investigate from when i opened the account in 2005 when MBNA issued me a £5,000 credit limit and my monthly wage was around £800. In 2006. MBNA also issued me a loan of £5,000. I struggled to make minimum payments and settled my credit card debt in 2015 when i took out a consolidation loan.
The Ombudsman agreed there were exceptional circumstances and there was financial hardship but because I had been in contact with MBNA in 2010 to claim back PPI through a company Wade Claims said I should have been aware of irresponsible lending at that time but in their decision also accepted I only found out around October 2019, which is a bit puzzling.
Anyhow, the Ombudsman said they could not investigate the initial lending decision because i was out of time limits, so I now want to take the matter to Court and need to do a letter before action but do not really know what to do or the time limits for that. I got the Ombudsman decision about this in about July or August this year I think.
Can anyone help?
thanks
Lynda
Sara (Debt Camel) says
I’m sorry but pre April 2007 is going to be EXTREMELY difficult, as that’s when the law changed. I do not know anyone that has won a case that old. I can’t make any useful suggestions.
Lynda Parris says
Is it possible to proceed with Court Action for irresponsible lending as they increased my credit card limit after 2007 and before 2015 but the Ombudsman was unable to consider this part of my claim as I was outside their time limits. I got a final decision accepting I was in extreme financial hardship and exceptional circumstances but should have been ‘reasonably’ aware of irresponsible lending – as exceptional circumstances were not enough on their own – The Ombudsman accepted I became aware around October 2019 of irresponsible lending.
thanks
Lynda
Sara (Debt Camel) says
I think it’s going to be very hard but I cannot give you legal advice.
There has only been one court decision on irresponsible lending. I summarised it here https://debtcamel.co.uk/kerrigan-elevate-credit-unfair-relationship/. Paragraph 10 of that judgment noted that the changes to the CCA to bring in section 140 came into force in April 2007 and paragraph 11 said “a failure by a creditor to undertake a proper creditworthiness assessment prior to entering into a regulated credit agreement would almost certainly affect the fairness of the relationship and so trigger the Court’s power to make appropriate orders under section 140B”. But all the details of that case happened after 2007.
So in 2007 there was a law change and it was on the basis of that new law that the only irresponsible lending case has been won in court. I cannot say what you would have to argue in a case about a lending decision before 2007.
I strongly suggest you need help from a solicitor if you want to go to court.
BECKS MASH says
Barclays had it from April to July, didnt look at it. Went straight to FOS after this. They have had it since. Came back and said they had sent findings to Barclays with a deadline of 17th Oct. No response. Gave them until today still heard nothing
Sarah says
Its appalling how they can do this, so my adjusitor come back today and said newday didnt agree with them so now has to go back for a final decision, and have asked for more info and another 6months worth of bank statements 🙈, wonder how much longer i will have to wait now
T says
I’ve put in complaints to Halifax and Barclaycard and both have rejected my complaint.
Halifax rejected it on the basis that some of it was over 6years, ignoring the 3year period and saying that I could have opted out of the increase in limit. I have opened a case with FOS but wondered if their grounds for rejection are reasonable.
Barclaycard also made reference to the 6year period but also noted that I had paid the card off at one point. However this would have been due to shifting debt around and I was soon accumulating a balance on the card. Does the fact I paid off the card at a point have any bearing on my complaint?
Sara (Debt Camel) says
I have opened a case with FOS but wondered if their grounds for rejection are reasonable.
FOS are often upholding credit card affordability complaints older than 6 years.
The fact you did not opt out of increased limit offers does NOT absolve Halifax of checking they were affordable.
Does the fact I paid off the card at a point have any bearing on my complaint?
If you paid the card off out of income, that is obviously relevant. But shifting balances is not paying this out of income.
You have to be able to make a case for this balance being not possible to repay on a sustainable basis in a reasonable length of time. Shifting balanmces around complicates what Barclaycard could see but if your base case is good then they should still have seen you were in difficulty.
T says
Thanks Sara, really appreciate your response and for all the advice on the site.
Katie says
I think it is a standard line from barclaycard about paying balance off at one point, they said this to me in their rejection letter. I know I did not pay the full balance off it was a transfer to another card. I have taken barclaycard to the FOS and this is currently with a case worker awaiting barclaycard reply
DC says
Hi
Does anybody know if you can still make an irresponsible lending complaint if you have paid the debts off?
Sara (Debt Camel) says
Yes you can! The fact the debt has been repaid does not mean it was affordable.
John says
Put in affordability complaints for 3 credit cards in the last 4 weeks. To my surprise, 2 of them have already been assigned with case handlers and even received a decision about one of them this evening. This was a barclaycard account, the adjudicator has not upheld my complaint about the initial credit card but has upheld my complaint about the credit limit increase back in sept 2018. That should get me a decent refund of interest with it being 49 months. Im wondering if anyone can confirm it but the ombudsman must have different departments for credit cards and payday loans. The reason I ask this is because I have 2 payday loans I put in complaints about from almost 7 months ago and they still haven’t been assigned an adjudicator yet 2 of the credit cards I complained about with the last 4 weeks already been assigned, a bit strange that one, cheers
Jack says
Finally some movement on my FOS complaint, been waiting for some months now.
NewDay have come back to the adjudicator and said they are now going to overturn their own final decision and refund interest and fees of the Fluid card and remove any adverse info, which was the last one I had. They’re still investigating marbles and Amazon. I’m hopeful that they’ve accepted this card should never have been given and that the adjudicator will agree that the Amazon card shouldn’t have and some marbles limits should not have been given too.
Honestly I’m not sure how much refund we’re talking for Fluid but least it’s a dent to start paying off these debts.
Feels good to win that, I knew it felt wrong to have been given these cards in the first place, hopeful for a good refund from the others and who knows, maybe pay all the debt off. It would be a relief. Takes time but so worth the wait from FOS so far.
Helen says
Hi Sara
Just wanted to say a big thank you for the advice on your website and use of the templates above. Aqua have just refunded me £1200, I can’t tell you what a weight it’s lifted!
I put in the complaint on 4th October so it’s taken just over 4 weeks, not bad at all.
Thanks
Helen
Sara (Debt Camel) says
nice one!