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?
Sam says
Hi,
Is there an email address to complain to Capital One? Looking on their website it says to login and then send a message, but I no longer have an account
Sara (Debt Camel) says
yes there is one in here https://debtcamel.co.uk/email-addresses-banks-credit-cards/
Hannah says
Hi Sara I’m feeling really disheartened and stressed. I took out a card with Vanquis in 2018. They increased my limit on 3 occasions 500, 1000 and 1750. When they agreed to the credit card I had defaulted on 3 other credit cards a few months previous. I ended up using card at maximum capacity and recently missed payments so they have issued a default. My other defaults drop off next year and now I have another default which has caused me so much anxiety. They sent me a final response letter yesterday saying they Do not think they lended irresponsibly as when they did the checks, they could see I had 3 defaults but no ccjs or new defaults in 7 months. Surely this isn’t acceptable?? I’ve sent it to the ombudsmen. They said each time they increased limit they checked for ccjs but there wasn’t any so they said I met the criteria? Even though I had 3 recent defaults on 3 cards? My overdraft was constantly being used with returned direct debits. I can’t understand how they think this is responsible lending? I’m absolutely distraught to have another default.
Please can you advise me if this is worth taking to ombudsmen?
Sara (Debt Camel) says
yes definitely send this to the Ombudsman!
Recent defaults is a good reason why your limit should not have been increased. Especially if you were only making minimum payments to the balance each month.
Can I ask what other debts you have at the moment? Your credit record is not your main problem here, it is the amount of unaffordable debt. These complaints take many months at the Ombudsman, it may well be a good time to talk to StepChange about a debt management plan for all your debts so you can get them under control.
You can still carry on with affordability complaints in a DMP and winning one will speed up your DMP as your balance will be reduced.
Hannah says
Thank you for your reply. I only have the Vanquis card and an aqua card. Aqua refunded my charges and interest but there is £100 outstanding which they still want me to pay.
I have also sent irresponsible lending complaint to Halifax, mbna and capital one for the defaulted cards.l in 2018. MBNA got back to me and said due to the time limits they have I will need to send it to the ombudsmen. He was very nice and encouraged me to do this.
I just cannot believe Vanquis have refused just because I didn’t have a new default in 6 months.
Thank you for your advice
Phil says
Hi does anyone have the email address for freemans catalogue.. Can’t find it anywhere and the one I found online and used to complain, has bounced back.. Thanks
Sara (Debt Camel) says
use iola.sanger@fgh-uk.com
(I am adding that to my list of credit card and catalogue emails)
Phil says
Thankyou so much
Amber says
Hi Sara, are you able to offer some advice on this one please.
New Day have agreed they should not have increased my credit limit in October 2015 for an Aqua card. They also agree they should never have given me a Marbels card in 2018.
Their calculations are a refund of 2134 and a refund if 2557.
I’m not sure how they came to these calculations but I think they’re way off. They have not provided a breakdown. They also state they are unable to provide me with 8% stat interest (but I know I would be owed this both cards were closed in 2021.
I referred the complaint to FOS earlier this week as I thought Newday weren’t responding. The response has come at around week 10.
What should I do? I’m happy they agree but I don’t want to accept their refund if it wrong. Is this something I can advise the FOS of? It hasn’t been picked up by an adjudicator and I imagine I’ll be waiting a while, do you think I should go back to New Day? Or shall I just update the FOS with what has happened?
Also is there a chance the FOS would not agree with Newdays own decision of agreeing with my complaint? I don’t want to lose out.
Sara (Debt Camel) says
So have they offered you a full refund of all the charges on the Marbles account? If they have, do you think their offered amount for that is incorrect?
The Aqua card, have they offered a “partial refund” of all interest on balances over the amount the limit was in October 2015? What did the limit change from and to?
Amber says
On the Marbels account they have offered a full refund of charges and interest but not included 8%. The amount of 2557 is correct if it is without 8% but the account was paid off in full by me in 2021, so i feel the refund amount should include the 8%.
The aqua card was given in Jan 2015 with a limit of 300.
increase 1. May 2015 to 1300
increase 2. October 2015 to 1600
They have offered a refund on interest since increase number 2 on the Aqua card and stated it will proportionate interest only on the increased amount, refunding total amount 2134.
Am i best not accepting anything and just sending an update to FOS? Asking for ALL interest and charges to be refunded?
Thank you.
Sara (Debt Camel) says
I suggest you tell Newday that you are happy to accept the Marbles offer if they add on the 8% statutory interest per year onto this.
And say that you feel it is clear that that Aqua should never have increased your limit from 300 to 1300 in May 2015, and if they change their offer to include that you will accept it and withdraw your Ombudsman complaint.
You are pretty unlikely to get a full refund from the start on the Aqua card, but changing it to a partial refund over the £300 will make a very large difference to the amount you get.
If they say No, tell the Ombudsman what they offered and why this is not acceptable. The Ombudsman can theory make any decision but in practice they work from the offer a lender has made and see if it should be better. So you aren’t risking it.
Amber says
Thank you so much. i’ll keep you posted.
Clare says
Hi Sara,
Do hope you are well.
I have been a La Redoute customer since 2016. Only ever made minimum payments at best!In 2020 I was given 6 credit limit increases moving from £320 to £1500 in matter of 6 months. I was most suprised to be given the credit and to be honest felt compelled to spend more even when I could not afford to do so.
I made a complaint recently and it was not upheld. La Redoute said they’d increased my limit as my income was reported as stable by Equifax and my credit management was generally improving. I disagreed and supplied my tax return and credit report to explain that was totally incorrect and sadly it would need to go to the FOS. They replied in 24 hours and said they had made a mistake with regards my income information. They’ve offered to reduce my bill by £119.52 in interest and refund one late fee leaving a balance of £988.75.
Not sure whether to accept this as they have clearly admitted in their response information they supplied was incorrect.
Many thanks for your help.
Sara (Debt Camel) says
When were the increases?
Clare says
Hi Sara,
Jan 2020
February 2020
March 2020
April 2020
June 2020
September 2020
Thanks Clare
Sara (Debt Camel) says
Great, all easily within the last 6 years. I suggest you send this to the Ombudsman.
Clare says
Thanks Sara,
I felt it was a fob off especially given they have admitted they’ve made a mistake when consulting Equifax.
Much appreciated Clare
James says
Hi Sara,
Since our last chat, car is away and finance is paid. Fund ourselves have not upheld my claim as they said from the figures I gave it was affordable(obviously lied), they could not foresee my gambling issues and because I repaid the loans early it showed I could afford them.
What it did not show or they did not look at was I borrowed money twice to clear the loans and the other times it was from winnings from gambling then I took a new loan nearly straight away again as they charge double what you borrow. So if you borrow £1500 you pay £3000 back.
This month I could not afford to pay the money back and they have tried to take the payment 13 times in 3 days which I have a screenshot from my banking app showing this.
I was wondering what my next step would be, I believe the ombudsman? and what type of information should I send across? Should I send the screenshots of them continuing to try and take the payments out the past few days even though I have told them I am struggling and unable to pay?
I appreciate your help.
Sara (Debt Camel) says
You have made an affordability complaint which they have rejected.
You have also told Fund Ourselves you are unable to make this month’s payment?
How are they trying to take a payment – through direct debit or a continuous payment authority?
What are the rest of your finances like at the moment now you no longer have the car?
James says
They are manageable now that I have got rid of a the car, find ourselves have rejected saying because I never missed a payment it was affordable so sent to ombudsman.
I have also spoken to my bank to cancel the CPA and need to fill out an affordability form out for them to get a repayment in place until I hopefully win my case is with the ombudsman.
Sara (Debt Camel) says
You should definitely send the affordabilty complaint to the ombudsman – the fact you have made the payments does not prove that they were affordable.
I am just double checking here – have you also told Fund ourselves that you are struggling to make this months payment?
James says
Yes told them I am struggling, took screen shots of them trying to take the payment 13 times in 3 days. They said they will continue to try and take it(good luck, nothing in account)
I have sent everything to ombudsman stating that I was able to pay back due to loans or gambling wins, also advised them that the affordability they asked was basic and had me down as wrong income(possibly my fault) but if they looked at my credit file everything was maxed out and I was withdrawing money constitutionally just to pay other debts.
Sara (Debt Camel) says
Ok then as you have specifically told them you cannot afford this thiss minth, then also tell the Ombudsman they have treated you unfairly by continuing to try to take the payment repeatedly and attaché the screen shots
Ernest says
Goodmorning Sara .just need you advice on my complain PayPal credit if £4000 limit adjudicator.. reject my complain.The bank statements also showed that Mr Earnest, on average over the three months, was paying around £1,097.61 in normal living costs which includes things such as mortgage payments, food, utilities, council tax etc. And I can see that Mr Earnest was also paying around £474.81 in regular financial commitments to other lenders such as NewDay Limited, Capital One, Aqua and Marsh Finance. Taking into account Mr Earnests’ income and expenditure, this would have left him with a disposable income of £269.97 per month.
So, I think if PayPal had requested further information around Mr Earnests’ income and
expenditure, which Mr Earnest would have more than likely given to PayPal, they would
have seen that the repayments would have been affordable. I can’t say PayPal has done
anything wrong in granting Mr Earnest with the credit. As previously mentioned, the requirement of the revolving credit facility provided is to repay at least the minimum amount due on any outstanding balance each month.
Sara (Debt Camel) says
is any of that wrong?
Ernest says
Not sure to be honest+ In this case, the PayPal application asked Mr Earnest for information about his income and
expenditure, residential status, and address. Mr Earnest said he was working full time and was a homeowner with an income between £2,001 and £2,500 per month. But this was a general banding and PayPal didn’t seek to clarify the actual income that Mr Earnest received.
As part of the application Mr Earnest was asked to provide information about his living expenses and contributions towards his monthly outgoings. Again, both of these were provided in general bands and PayPal calculated that Mr Earnest was a low lending risk suggested that he had around £1,750 disposable income.
I understand he put himself within the generic banding, but I can’t see that PayPal clarified
this information and with him. Considering that he was a homeowner, and earning between £2,001-£2,500 a month, I don’t think the calculation of having a disposable income of £1,750 is a reasonable estimation and they didn’t obtain any statements or payslips to confirm this information.
Neither did they query his expenditure, as he mentioned he was a homeowner, I don’t think a generic band stating between £1-£500 would cover mortgage payments, utilities and other monthly repayments. So, I think PayPal should have obtained further information around Mr Earnests’ income and expenditure.
Sara (Debt Camel) says
So paypal did not make proper checks. But your problem here is that the adjudicator has decided that that if paypal had made proper check they would have still decided the loan was affordable.
Ernest says
Pls what do you want ne to reply to Adjudicator pls? Because is going to Ombudsman+PayPal said they went on to complete a credit search to look at how Mr Earnest handled any other credit he had. PayPal said that these checks showed that Mr Earnest had no defaults in the previous 12 months. However, PayPal didn’t say if they had taken into account Mr Earnests’ other borrowing commitments at the time.
I think it’s also important to note that PayPal weren’t able to provide a copy of the credit search that they carried out and so on that basis and on the information above, I don’t think reasonable and proportionate checks were carried out at the time.
Sara (Debt Camel) says
To win an affordability complaint, the Ombudsman looks at two things:
1) whether the lender made reasonable and proportionate checks it sounds as though the adjudicator doesn’t think Paypal did
2) what better checks would have shown. This is your problem – the adjudicator thinks that the credit was affordable.
So it is that second point you have to challenge.
The bank statements also showed that Mr Earnest, on average over the three months, was paying around £1,097.61 in normal living costs which includes things such as mortgage payments, food, utilities, council tax etc. And I can see that Mr Earnest was also paying around £474.81 in regular financial commitments to other lenders such as NewDay Limited, Capital One, Aqua and Marsh Finance. Taking into account Mr Earnests’ income and expenditure, this would have left him with a disposable income of £269.97 per month.
Is there anything in there that is factually wrong?
What were the minimum payments when you had used quite a lot of the paypal credit limit?
Ernest says
can see that Mr Earnest hadn’t used the whole facility straight away and the balance increased in increments monthly. If we calculated the minimum balance on the use of the full £4,000, then the minimum payments each month would have been around £120. Considering Mr Earnest would have had a disposable monthly income of £269.97, it’s likely that PayPal would have still granted the lending had further checks been carried out as the repayments would have been deemed affordable.
I’ve carefully considered everything provided by both parties while reaching my view. Having
done so, I haven’t found that PayPal lent irresponsibly. I’m satisfied that the lending provided was affordable.
Sara (Debt Camel) says
Do you agree that you had a monthly disposable income of £269 – that is after paying all your essentials (rent/mortgage, council tax, utility bills, car finance, food, transport etc) and your other minimum debt payments?
Ernest says
I just remember l have £3500 overdraft for natwest and £2000 overdraft for Halifax have spent all the money in both accounts overdraft… … l have all the money ..which is not put into consideration
Sara (Debt Camel) says
Go back and remind your adjudicator of the large overdrafts, which should show on your credit record.
Ernest says
Good morning Sare. Just received this from adjudicator ..when l told him about large overdraft.
Pls l need your advice
The overdrafts don’t change the outcome of my view I’m afraid.
The overdrafts are also revolving credit, and upon doing an income and expenditure based on your income and outgoing at the time you were left with more than enough to pay the minimum payments on the credit limit set by PayPal- which is what they would have looked at had they carried out proportionate checks.
So I still feel the credit was affordable.
I have put the case to a final decision for an Ombudsman to pick up.
Catherine says
I had a similar situation but the overdraft should be taken into consideration especially if you were constantly overdrawn as that actually means you didn’t have the funds available to repay debts and you were paying credit with credit.
Overdrafts are debt and revolving credit but are repayable on demand so if you bank demanding repayment you wouldn’t be able to sustainably repay other debt without financial hardship.
I’d ask for another review.
Catherine says
I’d also write back to the adjudicator with additional comments for the ombudsman to consider.(I always do this)
You could say along the lines of(if what I say is correct)
The adjudicator has not considered my overdrafts on my bank accounts that I was fully utilising and reliant upon to meet my daily needs and credit commitments.
I utilised my overdrafts regularly to the maximum combined limit of ……,my ability to reduce these was limited due my debts and as soon as I was paid,it didn’t clear much before I used the overdraft funds again.
The adjudicator states my disposable income as …….but given I was using credit to pay credit,and the negative balances on my bank accounts indicates my inability to sustainably repay the debt without further financial hardship or further borrowing to maintain payments that were unaffordable.
Attach evidence of your usage of overdraft funds.
Ray says
Hi, I have had a high credit card balance for a number of years with a limit of £19,500. I have only had state pension since I retired at 65 years old in 2013, the payments for my credit card contributed to a constant overdraft with my bank, I wS only ever able to pay the minimum payment which was mostly taken in interest payments.
I have recently repaid my outstanding balance of some £17,500 out of inheritance money following my mother’s death and the sale of her bungalow. Can I still put a claim in for irresponsible lending even though I have now repaid the balance in full? Thank you
Sara (Debt Camel) says
Yes you can still make a claim even though the balance has now been cleared.
That is a very high credit card limit. Was this card from your main bank? When was the last time the limit was increased?
Ray says
Hello, Thank you for your reply, no this card is not from my main bank, I am not sure when the limit was increased last but I do still have my statements from sometime back which I am going to check in the morning
Nes says
Hi Amber,
Can i ask how long newday took to respond to you? I am coming close to 8 weeks on my complaint and they haven’t responded yet.
Amber says
They took 10 weeks.
On week 8 I called up and asked what was happening, they said it hadn’t been allocated to an investigator as yet. So I sent it to FOS at their cut off.
2 weeks later I got the partial acceptance (if you can call it that). Their communication is pretty bad to be honest and their offers from I’ve read are just as shocking.
Good luck with yours
Matt says
Hello in a similar situation as you but still awaiting a response from Marbles. Did they at any point put a block on your cards so you couldn’t use any more credit but could still make payments or have they kept your cards active?
Scott says
For me they took the full 8 weeks (till January), at which point they removed the credit facility, but at this point it was only at £250 anyways. Full out rejection for 3 cards which I’d requested £8k interest refund since Jan 2017 after I’d calculated it all out and asked this as part of a settlement. Wrote a long letter with detailed figures and examples and received a generic response for each card, why it took 8 weeks I will never know. Submitted to FOS in Feb and received email 2 weeks ago that they’re looking into it. Fingers crossed
Marcus Barnard says
Hi there Sara! Thanks for all the great advice! Had a refund from Lloyds already so Thankyou again!
In regards to my very account. I’m having trouble with what to do next. I’ve called them after receiving a letter stating that it could take 4 more weeks. When I called they stated that I would receive another letter after the 8 week period advising me to contact the FOS. Whats the best to do in this situation? Wait it out with very or contact FOS? He said on the phone that either is okay but he couldn’t give me a time frame on how long they’d take. Thanks in advance
Sara (Debt Camel) says
so this letter from Very was after 8 weeks? If it was, i suggest you send this to the ombudsman now. Very often reject good complaints, so don’t let them have any more time before getting into the queue at the Ombudsman
Marcus Barnard says
Hi, thanks for replying! It’s nearly at 8 weeks but in phone he advised me that it would take longer. Thanks for advice
Sara (Debt Camel) says
You have to wait for 8 weeks before going to FOS.
Gus says
Hi Sara.tried Barclays email but it didn’t work. Asked online for email and they said that they don’t have any for complaints.
Sara (Debt Camel) says
did it bounce back?
Gus says
Yes address couldn’t be found or couldn’t accept emails.
Sara (Debt Camel) says
I will make some enquiries
Marin says
Hi Sara,
Just thought I’d let you know, I myself emailed Barclays using the email address you provided and they sent me a letter acknowledging my complaint saying they will respond by May 28th so not sure why the email isn’t working?
Best wishes,
Marin
Sara (Debt Camel) says
I asked and was told that the email address was still correct and incoming emails are being received. Then I forgot to reply here… sorry.
I suggest you try the address again. Let me know if there are further problems.
Mary says
Hello, do you by any chance know the emails for Littlewoods and Very to send irresponsible lending claims? I can’t find any email on their websites. Thanks.
Sara (Debt Camel) says
Littlewoods and Very are both Shop Direct brands. You can make a single complaint covering both of them to Shop Direct – the email is in this list https://debtcamel.co.uk/email-addresses-banks-credit-cards/
I am doing a short article tomorrow on making a single complaint about two accounts – look out for it!
F says
Hi Sara,
Hope you’re well!
In a similar position, I had opened a Capital One credit card (£1,500) in August 2019, which had gone into default. At the time of applying, I had a Barclayscard (£500 which Barclays dropped from £800 ) and also a HSBC credit card (£1,000 which had dropped from £4000).
Both had few months where I had missed payments, never paying in full and also minimum payments or slightly more all months. On top of that I also had a personal loan of around £1000 but was actively paying back
My barclayscard and HSBC when applying was (£609 out of £800 balance) and HSBC was around (£405 out of £1000)
Is it still worth me pursuing an affordability claim, none of my other cards have defaulted but you can see I’ve missed a few payments and had both cards limits reduced by the banks.
I was 19 at the time, not sure if age can play a part in claim.
Kindest regards,
F
Sara (Debt Camel) says
Can I ask what you were earning at this time? Were you still living with your parents?
F says
Hi Sara,
Thank you so much for the prompt reply!
I would like to say around £1,400-£1,600 a month, 21k ish annually.
Although a few months after applying I left my job to do a 3 month unpaid internship which was a detriment to my finances but I did not declare this change to Capital One
I was living with parents for a couple months when I started the card but then moved out, unfortunately did not inform the lender at all.
I have just checked my report once over and at the time of applying I had a high interest loan from likelyloans at 59.9% APR aswell but was making all payments (£100 a month) not sure if this is worth mentioning?
I was young and wasn’t very financial literate, I have since cleared all my debt just the capital one remains which I’m paying monthly after default.
I really want to try get this off my credit report but I am not sure if it is worth pursuing so I thought I’d get some expert advice
Sara (Debt Camel) says
so how long before the date Cap One gave you the card were the missed payents on your other cards?
F says
Thank you for taking your time to respond, greatly appreciate your service!
My Capital One was opened in August 2019
I had a missed payment with HSBC on July 2019 and minimum payments on Barclays no missed payments until this point occasionally paying more.
Not sure if it is worthy to note at one point they let me withdraw more than my limit by £13 (August 2021)
Unsecured Loan with Likelyloans taken out June 2019 of £1,100 it seems
Once again, thank you for taking your time to help me and others in a similar situation!
Sara (Debt Camel) says
I think you may struggle with an affordability complaint about this.
You only had about 2k of debt when you applied for this – I know that sounds like a lot aged 19 but as you were living at home it may well have looked affordable.
The missed Barclaycard payments was still in the future. The missed HSBC payment was the month before but it may not yet have been showing on your credit record at the time you applied to CapOne.
But why not give it a try, you have nothing to lose.
F says
Thank you for the reply,
I have sent both Capital One and Barclays affordability complaints on the 20th of May, both have responded an acknowledgment of the request but neither have gotten back with anything.
Barclays have said they’d send it by this week but then got a letter saying we could not get to your complaint on time and they will get a response by the end of the month
CapitalOne have said upto 8 weeks
Is this normal?
Sara (Debt Camel) says
yes, both sound very common.
Michael says
Hi Sara, hope all is well.
I got a Zable credit card back in 2021 when they were called Level and maxed it out after a few months to pay off bills. Around April 2022 my credit limit was raised to £500 which was also maxed out after a few months. Although I have struggled to make the minimum payments since getting the card, I have never missed a monthly payment. A few weeks ago Zable sent me a letter saying they were raising my interest rate by 9% because:
‘ Your interest rate is being increased to reflect changes in our assessment of your credit profile. We consider a number of factors when performing this assessment including how you manage your card with us (such as failed or missed payments on your account, and whether you’ve gone over your credit limit or were close to doing so) as well as how you manage products you hold with other lenders’.
I have cancelled my card with them now and paying back the balance owed with interest set at the original rate. Although I cannot afford the minimum amount I rather pay it, but once the interest is taken out the balance increases. Is it worth me putting a affordability complaint? Any advice would be appreciated. Thanks
Sara (Debt Camel) says
Around April 2022 my credit limit was raised to £500
So at this point, you had only been making minimum payments? and most of the purcahses on the card were for essential bills and everyday expenses such as food or petrol?
Although I cannot afford the minimum amount I rather pay it, but once the interest is taken out the balance increases.
are you saying that the minimum payment is less than the interest being added each month?
Michael says
Hi Sara, thanks for getting back
Point 1- yes that is correct I was making minimum payments and card was used for essentials
Point 2 – I should have been a bit clearer. I pay £25 a month and interest is about £15 per month.
Sara (Debt Camel) says
Well done for rejecting the interest rate hike. But for you the original interest may have been too high…
If making the minimum payments is hard , then you aren’t going to be able to overpay and clear the balance in a reasonable time. So yes, I think you should make an affordability complaint, saying Zable should never have increased your limit – at that time they should have seen you were unable to pay more than the minimum and they should have offered to freeze interest, not make your situation even worse by increasing your limit.
If you are struggling with other debts as well, I suggest you should also talk to SteopChange about a debt management plan, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx. that will get you into a safe financial space.
Also look at affordability complaints about other debts.
natasha says
hello sorry to bother you. i thought that i had paypal credit starting in May 2017 however they say it was actually opened in March and thus outside the six year time frame for me to complain about. i had just had my income drop dramatically in feb that year and was hardcore borrowing on my overdrafts with all other credit also maxed out. they have never given me a credit increase since then so they are saying there is nothing for me to complain about. are they right?
Sara (Debt Camel) says
The Ombudsman may still decide they can look at this if you have only found out that you have a reason to complain within the last 3 year. Send it to the Ombudsman to decide.
Also look at complaints about your overdrafts, if you haven’t already.
Rach says
Hi!
I’ve had an Aqua credit card for quite a few years and managed it well. Last year 2022 my marriage broke down and I became a single parent to two children and had to claim benefits as well as work a full time job. Aqua increased my credit limit 2 times at the end of 202. Once in July and again in the November. If financial checks had been done it would have been clear that my financial situation had changed. Given this, would I in your opinion be entitled to any sort of refund?
Sara (Debt Camel) says
How much did they increase your limit?
Were your overall debt levels going up during this period?
Pre 2022 were you only making minimum payments to the Aqua card?
Do you have any other Newday debt – Marbles, Fkuid etc?
Rach says
They increased my limit by 2.5k overall.
During the period my debts were going up and my usage of my credit started to go up. I have another NewDay which is in the form of Pulse, formally was an Amazon card. The account is now closed but there is still an outstanding balance on that which I pay minimum payments on. Pre 2022 I was making more than minimum payments and had in Dec 2021 cleared the account down to Zero. It’s now maxed out and I can’t afford the minimum payments.
Sara (Debt Camel) says
That is a large credit increase, but the fact that you had cleared the balance in Dec 2021 may make this a hard complaint to win. Yiou can try, but I think you cannot rely on this working well and you should also look at making a payment arrrangement with Newday, so interest can be frozen and you pay a lower affordable amount. If You have any arrears on bills, or other debts, I suggest you should talk to National Debtline on 0808 808 4000 about your full debt situation.
Kris says
i have previously balance transfered and then when he interest rates increased the interest outweighed what i was paying off. can i get the interest payments back? i have 2 CC. one the balance was increased when i didnt really want it and should have said no!
I have taken out a 5 year loan to pay the two off with that hen making it easier for me to do and it saves me over £100 per month in interest payments!
Sara (Debt Camel) says
You can make a complaint about a 0% balance transfer you were given if you feel it was clear that there was no way that you could afford to clear it and also that you would not be able to afford the higher minimums when the 0% period ended.
But if you could easily get a cheap loan to clear them, then it’s possible that the minimums were affordable?
Britney says
Hiya so can I have some advice. Originally I had a lower cc limit and got letters saying you can increase it and I hit accsept. When I was working full time due to helth issues I had to go part time and now I’m struggling with the 4K cc debt. Would this be a reasonable thing to do the complaint about my credit score had gone from very good to fair and I was late on one payment. I’m also going back to university soon so I’ll be on even less income then.
Sara (Debt Camel) says
Were the limit increases before you had to go part time? which credit card was it – one related to your bank?
apart from this credit card, so you have any other debts?
Britney says
After
It’s an aqua card I’m with Barclays for personal.
I have like £200 very
And 20 on Klarna
Sara (Debt Camel) says
ok then as the increases were after you had problems – and were presumably only making minimum payments – then this is worth a complaint.
A G says
Hi,
I have defaulted on 2 Virgin Cards and 2 MBNA cards, both now with DCA.
All taken out to do Balance transfers then carried on spending on the old cards, do I have cause for complaint here? I’ve paid thousands in interest over the years ot them. I’ve also complained to Lendable and Hastings loans as took out a 10k loan on each within 6 weeks of each other, when it was clear at the time of taking them out I already had debt higher than my annual income.
Sara (Debt Camel) says
When did you take out the the cards? You had two Virgin cards at the same time?
how large are your current debts in total?
How long ago were these loans taken out?
A G says
Hi,
Yes 2 virgin cards and 2 mbna cards all running concurrently –
Debts all now on a self managed Dmp totalling 42000 😭
Loans were taken out mid 2021, mid 2022 I took control of the spiralling situation and started a StepChange plan
Sara (Debt Camel) says
ok so complaint to Virgin and MBNA. See https://debtcamel.co.uk/affordability-complaints-2-cards-lender/
Rhiannon Herman says
Hi Sara.
Sent my complaint to the FOS at the beginning of March after Drafty rejecting my complaint. I had an email yesterday from the FOS saying my complaint had been allocated to an adjudicator who emailed me to introduce herself. She advised she has gone back to Drafty asking them for some more information, I’ve sent all I needed to send to the FOS. From experience when the complaint is allocated to an adjudicator how long does it usually take to get a decision? Thanks!
Sara (Debt Camel) says
it can be very variable – nothing is going to happen before Drafty reply to her for a start! But usually you should hear something in a a few weeks.
Lauren says
Hi Sara,
I today received a letter from my credit card company (TSB) reducing my credit card limit to £750 from£4000, effective 1 week from the date of the letter.
Whilst that’s up to them the problem is that on Tuesday I paid the balance of my summer holiday on it which was just over £2000 which leaves the balance at around £2650.
I had intended to use a potential bonus to pay the bonus but didn’t get as much as I’d hoped for (I know, don’t rely on things not certain) but even with that was going to pay the balance down over a few months instead.
The problem is the letter states any balance over the new limit will need paid by the date of the credit limit decrease which I can’t afford.
I’m really worried now but I used the card in good faith and wasn’t aware of the impending decrease when I made the payment on it.
This seems really unfair.
Do you have any advice?
Sara (Debt Camel) says
Yes unfair…
how much can you get it down to by paying the bonus in now? Making payments over a few months just increases the interest you pay.
Lauren says
I can pay about half the balance which I will do, but my point is as I didn’t know the decrease was coming I surely have some recourse to say I made the payment in good faith without the knowledge the they were going to decrease the limit and I shouldn’t be charged over limit charges etc?
Had I known they were about to do this I wouldn’t have used the card but found another solution.
Sara (Debt Camel) says
I agree. A week’s notice is not reasonable, especially as you can show you had already spent more than the new limit.
I think you should go back them and explain your situation. Say that you can clear £x now and ask them to either:
1) only reduce the limit to that amount or
2) waive over limit charges until your balance drops below the new limit.
You can also offer to not use the card until it does drop below that limit.
Sara (Debt Camel) says
if they refuse, say you want to make a formal complaint about this. If the complaint is rejected , you can send it to the Ombudsman.
Jessica says
Hi, I was wondering if you could help. I previously incurred around £13,000 between 2018 and 2020 whilst earning around less than £1000 per month in full time university – most of the debt came from an Aqua card and Barclaycard which I then did a balance transfer onto an M&S card. I’ve paid all the cards off now but wondered if I had a case for an affordability claim? The cards have all closed now however I still have the Barclaycard which I’ve added short term debt onto of around £1000 however the credit limit is £4600. I’m not sure what to do or if claiming is worth my time. I’m not 100% sure but I think my aqua card credit limit was also increased without my permission but I don’t know how to confirm.
Sara (Debt Camel) says
It sounds as though you were given surprisingly large limits for a student. I can’t say you are very likely to win, but it will probably take you less than 30 minutes to make two claims.
If Aqua increased your limit, they will have given you an opportunity to reject this. This doesn’t mean it’s your fault though – Aqua still have to make the same affordability checks. If you were only making minimum payments and had a low income, you may win this claim.
Amy says
Hi
I had a credit card with aqua in 2017 the limit wasn’t too high around £250 then it was upped to £700 which I never asked for , I was also in massive debt and had a gamble problem but i was still approved , I was making the minimum payment every month , but then I stopped paying because I couldn’t afford it , so it was sent to a debt collection agency I have paid this off since 2019, nothing was on my credit file with this card but recently I have made an unaffordable complaint to them and within 6 days there has been a indigo Michael account on my credit file , can anyone help as to why now there is something on my file which I paid off over 4 years ago ??
Sara (Debt Camel) says
An Indigo Michael account has nothing to do with Aqua or any other credit card, it relates to either a SafetyNet Credit account or a Tappily account.
Have you ever had either of those?
Chloe says
Hi, the adjudicator has got back to me not agreeing with my complaint.
They’ve said:
I think it would have been better had Lloyds Bank Plc done an income check before opening the account, but having looked at the information provided, I can’t say that this information would’ve changed their decision to open the account.
I have taken into consideration the information that has been provided by the NatWest and Santander statements. However due to the initial credit checks and the information declared regarding your income, I don’t feel it would be proportionate to request the business to extend their checks any further than they did.
Is there any point in telling them
I don’t agree? I had a number of cards at the time that I was struggling to pay and don’t feel they did look at the credit report correctly.
Lloyds gave a credit limit of 8k.
Sara (Debt Camel) says
what was your income at this time?
How much other credit did you have?
Your credit report would have showed your heavy overdraft usage? Had you recently taken out other credit or had credit limits increased?
Chloe says
My income was £52,000. I was heavily gambling at the time which was obvious on my Lloyds current account.
Lloyds also gave me a £3,000 overdraft limit at the same time as credit card. Lloyds have agreed they shouldn’t have given the overdraft but not the credit card. I don’t understand how they can can agree the overdraft but not the credit which was given at the same time but a much higher limit.
I also had around 10k or 15k in other credit card debt which I was making minimum payments on. No missed payments though. I also owed family and friends which I understand they wouldn’t have seen on the credit report but my account they would’ve seen a lot of transactions backwards and forward.
When I got the Lloyds credit card I used it for balance transfers and also cash withdrawals. I one month they charged me £500 in fees alone for the amount of cash withdrawals. Should they not have reviewed this too?
My credit report would shown I was constantly using my RBS overdraft too which was £1,000.
It all wasn’t sustainable. I have gone back to the adjudicator but am feeling really dejected I thought this was a strong case as the credit limit was so high.
Not sure there’s much else I can say to the adjudicator though.
Sara (Debt Camel) says
Go back to the adjudicator and make it clear that that Lloyds was your bank at the time they gave you this credit card and they should have seen from your bank account that you had a significant gambling problem. By not doing this, Lloyds was not taking into account important infiormation that it already knew – and the size of the credit limit should have meant that they should have made this very basic check..
Ask for it to go to an ombudsman if the adjudicator doesn’t change their mind.
Chloe says
Thank you.I will do.
When I looked at one of my bank statements today I had £80,000 go backwards and forward (not £80,000 in my money but that was the amount of transactions back and forth in one month to an well known gambling company) . That’s an obscene amount and certainly cause for concern.
I really appreciate you getting back to me with your thoughts.
Sara (Debt Camel) says
a good point to make to your adjudicator.
Chloe says
Adjudicator agreed once I got back to them with the above points and today Lloyds have agreed with their recommendations. That’s 2077 refund and I can repay the remaining 4800 interest free. Thank you so much for all the useful advice you provide.
Sara (Debt Camel) says
very pleased to hear that.
Lisa says
I have had a complaint picked up by the ombudsman for a claim to a Lloyds credit card that has gone past the 6 years. He has introduced himself & asked the following questions, in order to work out if he can take it further:
Why didn’t you blame Lloyds Bank PLC when your credit limit increased on 22 August 2014 which was the final credit limit increase applied to your account?
If you struggled to make the payments on your credit card, why didn’t you think Lloyds Bank PLC had done anything wrong?
You’ve told us about when you found out you could complaint about unaffordable and irresponsible lending but when did you realise that Lloyds Bank PLC had done something wrong?
I’m not sure how to answer these & I’m worried I will get it wrong. Is there something specific they are looking for in my answer?
Any advice would be gratefully received.
Just to add, I did think they were doing something wrong at the time, but I didn’t know I could complain then & sometimes when you are struggling financially it just feels like using more credit is the only option.
Sara (Debt Camel) says
Here are some suggestions. They are quite repetitive because the adjudicator is basically asking the same question several times.
Why didn’t you blame Lloyds Bank PLC when your credit limit increased on 22 August 2014 which was the final credit limit increase applied to your account?
I had no idea in 2014 that Lloyds should have checked on affordability before offering you a credit increase, so what could I have complained about? I felt resentment about being in a difficult situation but that doesn’t mean I understood that Lloyds were at fault.
If you struggled to make the payments on your credit card, why didn’t you think Lloyds Bank PLC had done anything wrong?
At that time getting more credit seemed like my only option and I thought I was struggling because it was my fault for needing to borrow so much. I would have complained if I had though Lloyds had done something wrong, but I had no idea that affordability checks should have been made.
You’ve told us about when you found out you could complaint about unaffordable and irresponsible lending but when did you realise that Lloyds Bank PLC had done something wrong?
It was only when I found out what an affordability complaint was that I realised that Lloyds must have failed to make these checks before offering me credit limit increases so that this was irresponsible lending.
Lisa says
What an absolute star you are. Thank you so much. I didn’t even think I’d get a response, let alone so quickly. I will use this if that’s ok?
Sara (Debt Camel) says
Well put it into your own words and check the dates are right!
Holly says
Hello,
I have two credit cards which are currently with the adjudicator at FOS. They have both asked me why I didn’t complain within the 6 years. I’ve told both that I was unaware. Both have now gone back to the credit companies and said they think the FOS can look at the case but if they have information why they shouldn’t or disagree then to let them know.
Neither adjudicator has said whether or not I could win my case just that they believe the FOS should look into it. Is it normal for them to go back to company and ask?
Sara (Debt Camel) says
This is the first step in deciding whether FOS has the “jurisdication” to look into the complaint. That is why neither adjudicator has said if they think you should win the case – they haven’t looked at this yet.
It is normal for them to go back to the lenders – if a lender disagrees, then that complaint has to go to an Ombudsman to make a decision.
It is a slow process, but so far the adjudicators are agreeing with you, which is good!
Holly says
Hi Sara, the adjudicator has advised that Capital 1 have agreed they can investigate the compliant. The adjudicator is waiting on Capital One to send over my file. Do you know how long this normally takes? Will capital one be given a deadline for sending it over?
Sara (Debt Camel) says
there is no set deadline but there may be a delay as your case then needs to be picked up by an adjidciator. That may not be the same one that dealt with the first “jurisdication” issue.
Clare says
Hi Sara
I made an affordability complaint to nationwide regarding a credit card. They agreed it was unaffordable and also found an overdraft I have with them was unaffordable too so have refunded 80% of the balances. Thank you for your help!
I submitted the same complaint to sainsburies credit card – I took this out a couple of years after the nationwide card. I paid it off 4 years later but then went back into it. They then increased my credit limit which I went into. They are saying it wasn’t unaffordable, despite me having 3 other credit cards at the time of the most recent increase. What would you think to this?
Sara (Debt Camel) says
send it to the Ombudsman to look at!
James says
Hi Sara,
118 have came back and not upheld my loan or my credit card claims, they have not even acknowledged the increases in the credit card when I was on holiday and already maxed out.
They have said a few things such as my credit file showed my rent being £600(I rent from family) so I am not sure where they got this from as it is more plus they said they got it from my credit file and they stated some things in there t&c.
“You confirmed this loan/card was affordable at the time”
“You declared all the information was true”
And saying that they are concerned as I agreed to “signing this agreement you confirm all the information is try and accurate”
“If fraud is identified by false or inaccurate information details will be passed to fraud prevention agencies”
This is actually worrying me to send it to FO now, I am not sure wither they have put this in to scare me from going to them but it has worked plus last time I went to FO I lost.
If I go to FO will 118 pass my derails to fraud prevention since I lied in order to get the loan and credit card with regards to my expenditure and if I could afford it or not?
Thanks
Sara (Debt Camel) says
Several lenders say this to everyone who makes a claim – so far no one has had a problem when they have sent the case to the Ombudsman.
Read https://debtcamel.co.uk/payday-lender-says-lied/ which looks at this situation.
Andrew says
Hello,
I am just enquiring whether you think it would be worth me making a claim to Barclays.
Whilst having a poor credit history, I was offered a Barclaycard Forward account with a reasonably low credit limit initially. The credit limit slowly increased and then they allowed me to have a Barclaycard Platinum; which had a credit limit that slowly increased to circa 15k.
I do not recall either being fully maxed out, but there was multiple occasions where I was applying for balance transfers and I also contacted them to ask if I was eligible for any 0% purchases.
From what I recall, my Platinum was initially 0% purchases and 0% balance transfers (with a single fee).
Do you think it is worth making a claim?
I no longer have the Forward or Platinum account, as I now have a Barclaycard Reward account as I was able to borrow money from family to pay off all my credit, so I can pay them back at 0% interest.
Barclays are my main bank.
Thanks,
Andrew
Sara (Debt Camel) says
when your limit was being increased, were you usually making the minimum payments?
Andrew says
There was often times whereby I would be making minimum payments to my cards, as I had other forms of credit at the same time.
Sara (Debt Camel) says
did you often clear the Barclays card down to zero? or make large payments to it?
Shaun says
Hi ,
I have recently put in a complaint against
Vanquis – increased my credit limit in 2021 and I have struggled to make payments since and has been defaulted
I also have two cards with capital one – one was increased credit limit and other card was offered to me while I had poor credit history/missed payments
I also had a salary finance loan some time ago through my old job which I’m paying off and this was given to me
I also have a marbles(NewDay) card
All these spiralled out of control and I feel I should not have been given them looking back and I am now in a DMP as a consequence . All of these range from 2017 onwards . I have put in a complaint against all of them , from your experience do you think there is much chance at being successful?
Thanks!
Sara (Debt Camel) says
Read https://debtcamel.co.uk/affordability-complaints-2-cards-lender/ which covers complaining about a second card from the same lender.
How are you managing at the moment? You say the Vanquis card has defaulted, what about the others? Often a debt management plan is a good idea to get your whole situation under control. You can still make affordability complaints and winning any will really speed up a DMP.
A DMP will let you say No to a poor offer from a lender and send your case to the Ombudsman where you may get a much better result. This takes time, and a DMP by getting you into a safe place, lets you opt for this.
Shaun says
Hi thanks for your reply
Yes the vanquis card defaulted a few days ago and one of the capital one cards also defaulted alll while I have been in a debt management plan
I feel I am making progress with it but I am hoping with some of the complaints I have made I can somehow reduce some of the balance on the cards
It is the vanquis and the capital one increases that have caused me a problem , I am hoping that I could be in for a chance!
Sara (Debt Camel) says
in a DMP I suggest you go after all the others too, not just the very worst. They have all played their part in contributing to your debt spiral.
Chrissie says
Thank you so much for all the help. I am in the process of trying very old cases going back to 2007/2008 but decided it is worth a shot. Would you happen to have any information regarding Egg and if it is still possible to send a complaint to them as I couldn’t see them on your helpful e-mail list. From research I can see they got taken over. I’m wondering if this means I cannot complaint as who owns them now was not the original lender. (The actual account is with a debt collector). Any help/advice much appreciated.
Sara (Debt Camel) says
Egg was taken over by Barclays in 2011.
How large is your current balance?
Chrissie says
Approximately 5,000
Sara (Debt Camel) says
Ok then the other thing you can try is to ask the current debt collector to produce the CCA agreement for the card/loan. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/
If they can’t, the debt is unenforceable and you can simply stop paying.
This may work better for you with Such an old debt where is can be hard to produc3 evidence about affordability
Chrissie says
Thank you , I will try the below e-mail and then failing that I will try this. I have one account for M&S card that I have been allocated a reference number for by the FOB. It goes back to 2008. Is it a good sign that I have a reference number or does that mean nothing, they said it might take four months before I hear anything. I felt I have a case as just this one card (not including all the others that I have since sent off complaints for) was over half my annual income and I had a dependent. M&S said they did not feel I had a case but did supply me with all the dates that they had given me the credit increases which was helpful and said it was my right to take to the FOB but that they probably would not look at it because of the age of the account. I have only recently found out about the affordability complaints when my daughter very helpfully led me to your site. Many thanks again for any help
Sara (Debt Camel) says
Everyone gets a reference number – it doesn’t mean they have agreed they can look at your case.
D says
Hi
Hope this helps. I have put in a complaint to Egg myself recently for a Loan. You can email it to crtpleaseassist@citi.com. They will not communicate with you via Email (except for an automated acknowledge of you initial email) for the complaint but do send letters and their final response via post. They have no telephone access at all. Alternatively you can post your complaint to Canada Square Operations Limited P O Box 4903 Worthing BN99 3AR.
Also, via the above email you can request a DSAR, mine was supplied very quickly and was very helpful in formulating my complaint. I have also sent my Egg Credit Card complaint via the above method, although Barclaycard took the credit cards over in 2011 so it may be re-directed to them, unless it was closed prior to 2011 then it will remain with Egg. If nothing else, its definitely worth submitting a DSAR via the above email, for either loans or credit cards
Good luck
Chrissie says
Thank you I will definitely try this, much appreciated 😀
Sarah says
Hi Sara,
Thank you for this site and your help. Very grateful.
Over the last couple of years I’d say I’ve had 20k in refunds from multiple lenders.
I have won my case against Barclaycard, they initially rejected my claim, I waited months before I sent to FOS because their rejection letter seemed so convincing. I finally sent with 1 month remaining to appeal, FOS agreed with me and upheld. I’m expecting a 20k + refund.
Thanks so much.
Sara (Debt Camel) says
Wow. That is an amazing amount to have spent in interest on a credit card – over how long a period was this?
AL says
Hi again.
I’ve just had another email saying another one of my cases has also been picked up by an adjudicator. This one is in relation to a very old barclay loan. This adjudicator is saying they can look into it. My question is I’ve also made a separate complaint about another barclaycard that was given a couple of months after the barclay loan. This has not been picked up by an adjudicator yet. Should I ask the adjudicator that’s agreed to look into my barclay loan if he can also look into the barclaycard as a joint investigation? I feel that the loan strengthens the case for the barclaycard but don’t know if I should put all my eggs in one basket as adjudicators can vary so much
Sara (Debt Camel) says
You can ask, but at the moment loans and cards are often dealt with by separate teams.
When the card is picked up by an adjudicator, you can make the point that Barclays had given you a loan a few months before and should have taken that into account before giving you the credit card (or before giving you such a large limit on the credit card).
AL says
Thank you, Sara. My other complaint was with aqua who are saying it is time barred. The adjudicator has just picked up that case and is agreeing with them saying he can’t even investigate it. He stated ‘However, I’ve also had to consider whether three-years from when you were aware (or you ought reasonably to have been aware) you had a reason to complain provides you with longer to complain. I can see that you were struggling to meet the repayments and due to arrears on your account your credit card account was sold to Hoist on 29 July 2016. I therefore think you ought to have realised at this stage the agreement was unaffordable to you and that NewDay may have been at least partly responsible.’ Any advice on how to reply? Thanks
Sara (Debt Camel) says
A typical response is as follows, but make sure it is accurate for you – it needs to describe how you actually felt:
When I got into arrears on the Aqua card and it was sold, I knew my finances were in a mess. But at that point I thought it was my fault for borrowing too much. I had been robbing Peter to pay Paul, as they say, for a while with loans and credit cards. I didn’t realise that a lender should have checked affordability, so it never occurred to me that NewDay were partly responsible. So I had no reason to make a complaint to them when I thought I was the one to blame.
Richard says
Hi Sara,
Just looking for a little advice you have already helped with overdrafts and loans. I had 2 credit cards with Lloyds. The ombudsman adjudicator has said my first credit card was ok to supply but the second should not have been given due to increasing borrowing with loans etc. i was in the high end of my limit and taking cash advances. I payed my balance off 2/3 times using new loans. Do Lloyds have a responsibility to check my credit limit (on my first credit card) is still sufficient at set intervals? This was never done and my limit remained open to me to max every time despite major borrowing
Sara (Debt Camel) says
No they don’t, not specific set intervals (unlike the annual review of overdrafts.)
HOWEVER a lender has to take account of all the information they know. So when you applied for the second card, lloyds should not have given it to you, but also at that point if your financial situation was clearly a mess with you taking a lot of cash advances on the first card, you should argue that at that point Lloyds should have contacted you and offered forbearance eg to freeze the interest on the first card. So now they should refund you the interest they have charges from that point.
Richard says
Thanks once again. I will return to the adjudicator and raise this point.
Melissa says
Hi Sara
Thanks for the really helpful article. I’m currently on a DMP via StepChange and all of my debts have now been sold on to 3rd parties. I believe a few of my credit cards were lent irresponsibly.. increasing to more than half my annual income despite me only making minimum payments and having been at my max overdraft for years etc. I just wanted to check is it ok to send these letters to the original lenders if you have an agreement with a 3rd party now to pay X amount as part of the plan?
Thanks
Melissa
Sara (Debt Camel) says
Yes it is. Also about the overdraft? See https://debtcamel.co.uk/get-refund-overdraft/
This won’t cause any problems for your DMP at all – and any refunds may speed it up.
Don’t delay with these, send off them all at once.
MH says
Hi Sara,
Please could you advise how you can view historic credit reports? I am signed up to Experian and clear score but I can’t seem to see where you can view this online? I can only view the latest month
Thanks I’m advance
Sara (Debt Camel) says
Have you been paying a subscription to Experian for their full credit reporting for years?
MH says
No unfortunately not just the free version, presumably that’s the only way of getting them?
The adjudicator has written back stating:
From its checks, RateSetter were made aware that you had:
a net monthly income of £1,949.36 and were employed full time
no dependent children and were renting
existing unsecured debt of £3,000, which consisted of £2,100 credit card debt and £900 overdraft
I am certain I had more unsecured debt at this time and wanted to view the credit report to confirm this.
Also, when the adjudicator has said ‘from their checks’ I’m pretty positive that is the information I had told them on the application form to try and convince them to give me the load. I know my OD was larger than that and was regularly using. Am I within my right to get the ombudsman to review this and say they should have checked my bank statements?
Thank you
Sara (Debt Camel) says
How long ago was your ratesetter application?
MH says
8th July 2021
Sara (Debt Camel) says
Then your current credit record will show what debts were open in 2021. Each debt has a record against it, you are looking for the debts that were opened more than a month before your ratesetter application.
Jason Williams says
Hi Sara,
Back in January I commented how I made an affordability complaint to Drafty which I was unhappy with their offer of just wiping my balance of £2,220 so took to FOS. FOS came back last week with a better offer which Drafty have agreed to clear the £2,200 plus refund me £2,300 interest charged.
As I still owed them a balance (before this complaint was upheld) and I couldn’t pay, they kept threatening to send to debt collectors. As I explained to then that regardless of FOS outcome I wouldn’t owe them anything they kept pushing…
So… they agreed with the FOS that they were to refund me this money last week and now today I received a message from MYCRS debt collectors that the debt is with them! I now have to liase with MYCRS to get this sorted out and is such an inconvenience.
Sara (Debt Camel) says
Well good result from FOS and the debt collectors should get sorted out pretty soon. Make sure your credit record is corrected too.
BT says
Hi I wondered if you could advice please, I have 8 credit cards and one unsecured loan. My husband also has 8 credit cards and 3 unsecured loans and 3 other credit accounts. 86k in unsecured debt in total paying out £2300 a month to device it.. I earn 28k he earns 34k. Three children. House worth 210 mortgage 119, secured loan 60k. Such a mess. Both been bankrupt before myself in 2015 and my husband in 2010. I have serious mental health problems which impact the debt and spending a lot. I wasn’t In paid work for last ten years till a year ago, was a student the 6 years before. I think a debt arrangement scheme is the only answer but now researching more I wonder if there are other things I should be doing first in terms of how we’re we ever able to get in this much debt in the first place. Don’t get me wrong I know it’s 100% my fault but how is it possible to even get so much debt. Really appreciate any advice. Thank you
Sara (Debt Camel) says
are you in Scotland? when does your current mortgage fix end?
BT says
Yes I am, thank you
3 more years
Sara (Debt Camel) says
I don’t think affordability complaints on their own are going to get you out of this massive hole.
However it may be possible to make them in a DAS, which could speed it up considerably. Leave a comment on https://www.advicescotland.com/home/debt-arrangement-scheme/ to ask about this.
BT says
Thank you, do you think it is worth claiming any sort of affordability complaints and irresponsible lending at all?
Sara (Debt Camel) says
Possibly when you are in a DAS. I see no point in making them now and delaying a DAS, but talk to a Scottish adviser about this.
Lauren says
Thinking about sending an affordability complaint but unsure if I have a claim. I took out a Lloyds CC in Dec 2017, when I had no debt but was in my overdraft by the end of each month, limit £3500, which has been increased multiple times, now £8250. Always made at least the minimum payment, never late. However over the last 5.5yrs I’ve done 7 balance transfers and taken out 2 loans to partially /fully pay off the card, only for the debt to rack up again, all the while my credit limit keeps getting increased. Now in £43k of debt and feel like it all started with this card as most of it is cards I used for the balance transfers! Some months I would just pay the minimum, other months I’d put my full wage on it only to add more charges so my balance never really went down. Income has varied over the years but never seemed to have impacted getting more credit.
Sara (Debt Camel) says
how much are you earning at the moment?
Lauren says
About £52k. The balance is now zero, thanks to another balance transfer.
Sara (Debt Camel) says
is that after tax? Is most of the 43k at 0% interest at the moment?
How much can you pay off these credit card debts each month?
Lauren says
Pre tax. £43k is combined debt. Me and my husband. He earns around £45k pre tax, so household income £97k pre tax. Minimums are around £1100p/m which we can afford. £15.5k is interest free. 3 interest bearing debts. Personal loan £14.5k 6.21%, car finance £11k 8.9%, husband Lloyds CC £2k 25.9%. Currently paying off husbands Lloyds CC, should be gone by next month.
Lauren says
Sorry just re read. £1100 minimum payments but we try to put at least an extra £900 towards it each month. So £2000 a month.
Sara (Debt Camel) says
I doubt you will win an affordability complaint then. You can afford a lot more than the minimums, you have just got into what you now probably realise is a foolish habit of spending on a cleared card and not paying down the 0% deals.
So the Lloyds card will be gone in 2 or 3 months – close it then. Then go for the 0% card that ends soonest and close it. Leave the cards at home, take them off google pay and Apple Wallet and and common shopping sites you use such as Amazon.
AB says
Hi,
I’m thinking of filing an irresponsible lending complaint with Vanquis. Signed up in 2013, earning around £300/£400 a month (18). Following an unfortunate IVA in 2016, they gave me 4 increases during my IVA period to £500 > £2000 > £3500 > £4000. They never checked anything again following my first application, I eventually managed to close the account in 2022. So almost 10 years of very rarely paying over the minimum payment. After my IVA, I moved my money to a 0% transfer to clear down.
My only concern is, even with an IVA I maintained my account, although I was clearly not supposed to have this amount of increases, I never missed a payment but was in a horrible loop of paying, then spending and repeat.
Do you think this is enough to take forward?
Sara (Debt Camel) says
was the Vanquis debt included in your IVA? if not, why not?
AB says
To be honest, I’m not really sure! I was really young at the time (19) and I’ve been re-reading my documents, and they’re full of rubbish. I shouldn’t have been pushed to an IVA to begin with as the debt was way under 5k…
Anyway, in my document it say one debt was excluded as it was under the value of £500. I can only assume it was this card, as the OG value was £100.
Sara (Debt Camel) says
Good grief. Who was the IVA firm?
AB says
Hanover Insolvency…
Luckily my IVA is complete now and clear, but wow I wish I was more informed when I was younger as re-reading my paperwork as a real adult, it’s rubbish .
Peter Smith says
Hi Sara,
An adjudicator seen in my favour but when contested by Santander it went to the ombudsman. Their preliminary decision was in Santander favour. They said my income was £ and outgoing £, but the outgoings were lower than they actually were. I put this in my final reply but it wasn’t reflected in the ombudsman final decision. Nor that I used all my overdraft each month.
Sara (Debt Camel) says
is this about your Santander loan? or a credit card?
Sara (Debt Camel) says
I think you have a good case againt Vanquis. Those were large increases and they should have checked your credit record.
You have two problems. First that Vanquis may choose to pay any refund into your IVA. Second that your IVA firm could in theory decide to reopen your IVA as you are in breach of it by borrowing so much.
I have no idea if the first problem is likely to arise.
I think the second one is unlikely. Hanover still exists, although it isn’t taking on any new cases, but it isn’t clear to me that they would gain anything by the considerable hassle of trying to reopen your IVA. Especially as you can argue that they were aware of the Vanquis debt at the start so they should have asked about it at the annual reviews.
AB says
Hi Sara,
Just wanted to say thank you for your advice, had a final response from Vanquis after following your guidance.
Refund of £4.8k coming my way, no problems with the IVA company. Following this I am now 100% debt free :)
Thanks so much,
Amy
Benji says
Hello Sara,
I raised a complaint with Newday regarding my Aqua card back in March, I recently received my complaint outcome which was upheld because they shouldn’t have let me open the account, FYI my balance increased from £900 to £3800 within 12 months
They have refunded me all interest which has been credited to my account, however they said regrettably they can’t provide. a rebate of 8% simple interest for my account Is it with me taking this to FO or will I not get any better than what’s been offered?
thanks
Sara (Debt Camel) says
How large is the refund and has this more than cleared your balance?
Benji says
£1,264.93 was credited to my account, still have a balance of £2,533.91 to pay
thank
Sara (Debt Camel) says
Do you think the amount of 1265 was about right for the interest added? Look back over some statements and check.
Also have they agreed to let you repay the rest at an affordable rate, with no interest added and not harming your credit record?
Benji says
I calculated from my first statement and the figure of interest I got was £80 less so happy the full amount has been refunded.
The letter doesn’t mention anything about repayments at an affordable rate, my latest statement for June shows interest as zero so I presume this has been frozen. till the balance is paid off.
Sara (Debt Camel) says
Good. Always worth double checking as errors have been known.
FOS usually says that on credit cards, catalogues and overdrafts, 8% interest is only payable when a cash refund is owed, not just a balance reduction.
Nesta says
Hi Benji,
I am glad you have had some what of a positive outcome to your complaint. I also raised a complaint in March with NewDay but I haven’t had a response until now. Just wondering how many weeks it took for you to get a reply?
Thanks
Trev says
Hello, I had a Capitol one credit builder credit card which I defaulted on and was passed to a debt collection agency. I’ve been paying off £5 a month for past two years. About six months ago I was offered another Capitol one credit card through the post office. I am now struggling with that. Do you think I have a case of irresponsible lending ? As they give me a new card while I’m still defaulted on the old one.
Sara (Debt Camel) says
I think you should try!
Andrew says
Does anyone have any email addresses or know where I can get these for banking institutes who offer credit cards in the UK? I am specifically looking to contact – Barclaycard; M&S Bank; Tesco Bank; Vanquis; Capital One; Virgin Money; Marbles; and Aqua. I am going to enquire whether I was given unaffordable lending, as these are all of the previous credit accounts I have had. I no longer bank with many of these, so need to contact them via email.
Sara (Debt Camel) says
The article above has a link to email addresses
Andrew says
Hi Sara,
Sorry for the delayed response – my emails haven’t been notifying me of further responses.
I was able to use the emails and have now submitted affordability complaints – thanks again!
Ivan Storin says
Hello Sara.
Just won the case with FSO against Barclaycard. Irresponsible lending, and now they have to make refunds of interest and fees. My card has started from £1500 and credit limit has been rising up to 13000. So ombudsman make decisions that credit limit from 2500 wasn’t affordable, so now they have to refund me all interest started from 5000. Just wondering is there any formula to calculate how much they can refund me. Thank you.
Sara (Debt Camel) says
So ombudsman make decisions that credit limit from 2500 wasn’t affordable, so now they have to refund me all interest started from 5000.
that seems odd. Can you paste in the FOS decision wording?
Ivan says
FOS says that Barclaycard should’t increase my credit limit over 2500. So now they can keep interest wich occured on 2500, but interest wich been accured after they encrease my limit from 2500 to 5000 should be refunded. So I’m just trying figure out how they calculate all interest that need to be refunded.
Sara (Debt Camel) says
ok, that is clear.
There isn’t a formula here as it depends a lot whether you balance was mostly just over 2500 – in which case you will get very little – or just under 5000, in which case you should get a refund of nearly half the interest charged during this period.
Ivan says
Thank you.
chloe says
Hi Sara,
I went back to the adjudicator with some points as you suggested and she has now informed Lloyds that she does agree with me and the initial 8,000 credit card was irresponsible. I know LLoyds may still dispute the decision but i’m thankful to have got it this far. Thank you for your help.
Sarah says
Hi Sara,
I complained to N Brown and Capital One back in April and my 8 weeks are up today.
I’ve not heard anything from Capital One other than an email acknowledging my complaint.
N Brown have also sent 3 holding emails but no findings.
Should I be chasing them now the 8 weeks are up, or should I give them a little more time to respond?
Sara (Debt Camel) says
I suggest you ask both of them tomorrow when you will be getting response.
Carl says
Hi i had a redress outcome sent to me by jd williams, the account was for premier man which was sold to intrum over a year ago which im currently paying off threw stepchange, jd williams have sent my redress to intrum without my consent and refused to send the cheque to me….is this legal ? Surely not what right have they got to send my redress to a company they sold the debt to
Sara (Debt Camel) says
Yes they are entitled to do this.
But how much redress was there? Was this a full refund or a partial refund?
Abby says
Hi Sara,
I filed an irresponsible lending complaint with Very in 2021. They partially upheld my complaint and agreed that the credit limit should not have passed £3250 instead of the £8000 credit limit given. They applied a redress of £178 to the account but the outstanding balance of £9266 remained. I suffered a heart attacked and losses my short term memory so this was on the back burner whilst recovering.
Recently Lowell got in contact chasing for £9266 not the £3250.
I just contacted very this morning and was told that ‘even though they agreed that the credit limit was too high. The outstanding balance of £9266 is outstanding as that is the cost of the goods received’. This is correct?
Can you please advise on how I should deal with that.
Thanks
Abby
Sara (Debt Camel) says
A refund of £178 sounds very low. Can you ask them how it was calculated?
What are the rest of your finances like? I am very sorry to hear about your health problems.
Abby says
I have no idea how it was calculated to be honest with you. I’m just really confused by it all. They didn’t prove a breakdown.
At the moment my finances are a mess, I’m trying to sort it all now to get back on track .
Sara (Debt Camel) says
I suggest you go back to Very and say you believe they miscalculated your refund in 2021, explain your health problems since then, and ask them to provide an explanation of the refund. Say you intend to cake the case to the Finacial Ombudsman.
You are outside the 6 months timescale to do this, but if you health problems begin within the 6 month period from the date of Very’s reply, the ombudsman may agree to take the case.
Tell Lowell that you are disputing the debt with very and ask them to put the account on hold.
Do you have a list of your current debts? because i think it may help you to have a debt management plan through StepChange. You can still pursue affordabilty complaints and winning any will really speed up your DMP and help clean up your credit record.
HH says
Hi
I have recently made an irresponsible lending complaint against MBNA using your template (thank you so much!). I submitted it about 6 weeks ago and today have a missed call with no message from a number that Google tells me is their complaints department. I have a bit of anxiety about talking on the phone, especially about finances, so I’m wondering if anyone has had a call of a similar nature during the process, especially from MBNA, and can tell me if it’s likely to be a difficult conversation or if it could even be a decision discussion or something like that, so I can prepare? I was just assuming they’d send me a letter when they’d decided what they wanted to say! Many thanks
HH says
Just to follow this up, they must have been calling just to say they had made a decision as I had the letter today. They have declined my complaint ( it’s too late to complain because you took out the card in 2008, the massive credit limit increase was 2016, you should have known it was unaffordable, etc etc). However what you think of this line, which I’m paraphrasing slightly as it’s not directly in front of me ‘you should have realised this card was unaffordable to you soon after you took it out as you were receiving minimum payment letters, rate changes…’. Surely that’s a massive own goal for them because if *I* should have realised it then *they* too should have realised and never increased my limit by about £8k in one go in 2016??
My complaint was actually that they never took the opportunity to review and reduce my card limit after I used a loan to pay it off in 2018, with a number of other negative markers on my file at the same time. And I genuinely didn’t know I could complain til I found this site so will say that to the FOS as well.
But the main thing is that line about ‘you should have known it was unaffordable’ also applies just as much to them as the lender, surely? Is there any other way to take that, as I think that will form the crux of my complaint to the FOS?
Sara (Debt Camel) says
Do you recall receiving these letters?
Matt says
Hi Sara,
NewDay have upheld my complaint. I have 3 cards with them, however they have taken over 12 weeks to reach this point. At week 9 I contacted the FOS.
I spoke to NewDay on Monday asking for an update, they told me they have sent a response on 2 weeks earlier. I told them I have not received anything. It then transpired that they have sent this response directly to the FOS. I spoke to the FOS outlining what NewDay have told me and they were able to find the letter from NewDay confirming they upheld my complaint. So I have gone back to NewDay asking for a copy of their response and confirming if they have upheld my complaint I will accept the offer.
However my case handler on Newday side is being awkward. He is insisting this needs to come back to them via the FOS. I have clarified to him that I am willing to accept the offer once I have seen it in writing. Then i can close my complaint with the FOS and NewDay can also have this complaint resolved.
The alternative is to wait for a case handler and let the process drag out. Even the FOS seem baffled by the position this case officer has outlined as they are not working on my behalf they are a mere 3rd party who are impartial.
Do you have any advice please and is there a way for me to escalate this matter?
Sara (Debt Camel) says
It sounds as though you haven’t seen what the offer is yet? I suggest you wait until you see that.
Matt says
Hi Sara,
I haven’t seen the offer in writing yet. As they refuse to share it with me. However the FOS have a copy of it as it was sent to them. The FOS have confirmed they have have upheld my complaint in its entirety. They will refund me all interest from the point of the first credit limit increase on my first card along with all interest on the other 2 cards plus staturoty interest and also remove any negative marks on my credit file.
This is essentially what i asked for in my complaint. The issue now is getting it implemented.
The worst case scenario is i wait 3/4 months for a case handler and accept it from that point. The alternative is NewDay let me accept the offer directly with them and I can withdraw the complaint with FOS. Even the FOS team seemed to think this is logical approach and were baffled at NewDay case handlers reluctance.
Sara (Debt Camel) says
Well it’s a pretty silly situation. You could ask FOS if they can appoint a case handler now as the case can then be disposed of very quickly.
Matt says
Thanks Sara, FOS agreed and have echoed similar sentiments as yours. NewDay for no apparent reason are complicating things when they don’t need to be.
FOS have kindly offered to triage the case which I have been told will result in a quicker assignment to a case handler.
I am still making the minimum payments, the only positive is i’m reducing the balance further by making the payments still. Overall this will clear one card in its entirety plus I will be due some cash back and the other 2 cards will be significantly reduced in terms of outstanding balance.
Chris says
Hi Sara
Again, fantastic site. Just had my final response from M&S Bank, they have rejected my claim, but have completed ignored my main issue that they effectively doubled my credit limit from £5.5k to £11k. It would likely be even higher but I asked for no further credit limit increases. They are saying that because I was often making over the minimum payments (to try and get out of debt) it was affordable, and also that on several occasions the balance (which at times was as high as £8.5k) was fully cleared. This was due to a balance transfers or loans with other providers. However they have not addressed the limit increase so I have asked why this has not been addressed. Should I wait for their response or go straight to the FOS?
Sara (Debt Camel) says
I would go straight to the Ombudsman. I don’t tend to think it’s worth trying to get a bank to change its mind unless their rejection is so odd it looks as though they have mixed up your case with someone else.
Lisa Rhodes says
Hi I was given an aqua card in 2015 they quickly increased my limit up to about £5400 then in 2016 they gave me a marbles card and increased the limit on that also. The accounts have both been defaulted in 2019 and being paid through stepchange.. Will they reject because of it being 8 years. Thanks
Sara (Debt Camel) says
Yes probably, so send this to the Ombudsman if this happens. Let me know how this goes.
You should get all the money back on the Marbles card as they shouldn’t have given this to you with the large Aqua balance.
Lisa Rhodes says
Thankyou so much for your advice
HH says
No specific ones but yes I know I was getting communications from them every now and then (I couldn’t say when or how often as it was so long ago). I don’t think my original card balance was unaffordable or irresponsible lending at all but they seem to be saying it became a problem not long after 2008!
But I was stuck in a rob Peter to pay Paul, consolidation and balance transfer sort of situation and thought I was managing and keeping one step ahead of everything (hence the loan to pay off the card for example), and didn’t have much choice but to find ways to manage as it was my own fault. It wasn’t until recently that I’d even heard of the concept of irresponsible lending but when I did it seemed to fit this relationship with MBNA. All my other cards gradually reduced the limit or were closed as the balances were paid off which was frustrating at the time but I can see now that was them responding appropriately to my customer profile.
Sara (Debt Camel) says
didn’t have much choice but to find ways to manage as it was my own fault.
That is exactly tho point to make to the Ombudsman. You has no idea that MBNA should have checked for affordability so you did not realise they were partly at fault.