Have you had a credit card, store card or catalogue where your credit limit was too high? So high that the monthly repayments were hard to manage and you got into more debt?
Many people were originally given an OK limit, but the lender kept increasing it.
You may have a good affordability complaint that the lender was irresponsible in allowing you to borrow so much. This applies even if you made every payment on time, as you may have borrowed more elsewhere.
This article explains how to ask for a refund of the interest you have paid.
Contents
What is “affordable”?
The regulator’s rules
Even if you made every payment on time, the debt may still have been unaffordable.
The following is my summary of the regulator’s rules:
- a lender must check if credit is affordable when you apply for it. For a very low limit, not many checks are needed;
- a lender should make checks before increasing a credit limit;
- credit isn’t affordable if paying it leaves you short of money for your bills, normal expenses, and your other debts;
- if you have to borrow more most months, this would not be affordable;
- you must be able to repay the limit set within a reasonable period. Paying the minimum amount is OK for a while, but not for a long time.
Good reasons to complain
If the lender could see any of these on your credit record, they should probably have declined your original application:
- a level of borrowing that looks too high in relation to your income; or
- you had a different credit card with the same lender where you were only making minimum payments; or
- other credit cards where you were near your limit and persistent overdraft usage. Here is an Ombudsman decision saying Zopa should not have given quite a low initial limit in this situation; or
- recent credit record problems: defaults, missed payments, or arrangements to pay, mortgage arrears; or
- recent payday loans or a lot of recent credit applications.
Your credit limit should not have been increased unless you could afford it. In addition to the points above, any of the following should have also warned the lender you were already in difficulty:
- making minimum payments for a long while;
- making a minimum repayment but then using the card to pay for food or petrol so the balance never drops;
- using most of your limit for a long period;
- significant gambling the lender was aware of;
- recent missed payments or an arrangement to pay on your credit record;
- your overall level of debt on your credit record has increased a lot.
NB many cases are won when someone has never missed a payment.
You don’t need to know the dates and amounts of any limit increases before you start your complaint – my template asks for these.
0% balance transfers
Here the lender should check that you would be able to repay the whole limit within a manageable length of time (say 5 or 6 years) taking into account the interest that will be charged when the 0% term ends.
So if you were ok during the 0% term but then you couldn’t afford the payments when interest started being added, you can complain. Ask for any interest to be refunded and to be able to repay the rest with no interest.
Do I need to know the limit and date details?
No. My template below asks for these. The lender already knows the details it doesn’t help your complaint by listing them. So don’t delay trying to find them out first.
How to complain
The email address to use
The best way to complain is by email.
I have a list of EMAIL ADDRESSES to use here:
Credit card and catalogue email addresses
Start with this template
I’ve invented this example so you can see how a complaint could read.
Change/delete the bits in italics to tell your story. Miss out dates if you don’t know them, this isn’t a problem
I want to complain about irresponsible lending for my Barclaycard account number 987654/444.
My date of birth is dd/mm/yy. The email address I used for this account was myaddress@whatever.com.
Put this in if you think the lender may have an old address for you
I have moved and my home address is now xxxxxxxxxxxxxxxxxxx. Please do not send any letters to any older addresses on your system.
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.
On my income with my regular household expenses and other debts I could not manage to repay that amount in a reasonable time.
[if you had already missed payments] When I applied, you should have checked my credit record and would have seen I had recent missed payments to a credit card and a default only five months before on a loan.
[If this started as a 0% transfer: You should have seen that I would not be able to clear the balance in a manageable length of time, and that after the 0% period ended, I would struggle to pay the higher minimums once interest was being added.]
AND/OR say that they should not have increased your credit limit:
You should never have increased my credit limit [in 2022] At that time I had only made minimum payments on this credit card for a long while and/or I was using a very high level of my credit limit.
If you had properly checked my credit record before increasing my limit, you would have seen that in the two years since my account with you was opened, I had got additional late payment markers and defaults and/or taken out a lot of other credit. This should have warned you I was struggling with my finances and it was not responsible to lend more. By increasing my credit limit you made my financial position worse. Instead you should have offered me forbearance by freezing the interest on the card.
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 of all limit increases, even if these happened over 6 years ago.
If the lender should have known you had problems with your account, mention these
You should also have realised that I was having difficulty because:
of the late payment charges you added to my account
I had missed 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 2021.
OR
I would like you to refund all the interest I have paid since the 0% period ended and allow me to clear the balance without adding interest.
I would also like any late payment and default markers to be removed from credit records after this point.
Think about these points before complaining
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.)
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 reject complaints about something that was more than six years ago and say the ombudsman won’t look at them. FOS will often look at these “old” accounts if they have still been open within the last six years, but you may have problems producing bank statements or other evidence from over 6 years to show that a limit was unaffordable.
If your account was opened in 2015 but the lender increased your limit in the last six years, then those limit increases can definitely be looked at. And you can always get bank statements going back six years even from closed bank accounts.
A alternative for old defaulted accounts?
If your account was opened a long while ago, you defaulted and still owe a balance, perhaps in a DMP, think about asking the debt collector to produce the Consumer Credit Act agreement for the account.
If the current creditor can’t produce a proper copy of the agreement, the debt cannot be enforced in court and you can simply stop paying anything to it. This applies to all credit cards, store cards and catalogues.
It may be that the balance on the account is larger than any refund you might get. In which case if the CCA agreement cannot be produced, you would be better off.
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.
You won’t win an affordability complaint if something unexpected went wrong later in your life. If you had been managing a credit card fine for years but then you lost your job or separated from your partner, this isn’t the lender’s fault. Here you may still need help to get interest stopped on the cards – talk to StepChange or National Debtline.
Don’t be put off by a rejection or a poor offer
Lenders often reject good cases
If a lender rejects your complaint or offers a low “goodwill” gesture, don’t be fobbed off – they want you to give up.
Here are some bad or irrelevant comments lenders sometimes make when rejecting a complaint:
- you made the payments to them on time – that doesn’t mean you could manage a higher limit;
- the account was opened over 6 years ago – if it was still open in the last 6 years the Ombudsman may look at it;
- you accepted the limit increase – that doesn’t make a difference, it increase should not have been offered it if it was unaffordable.
You know if this card or catalogue has caused you difficulty – it’s easy to send a case to the independent ombudsman. Don’t delay doing this!
How to send a case to FOS
Send FOS a complaint using their online form. You can use bits of what you put in your complaint to the lender. If the lender has rejected your complaint or given a poor offer, say why you think this wrong.
The FOS form at the end asks you to add supporting documents. Don’t bother to send A copy of your credit or finance agreement – the lender will supply that if FOS asks for it.
Send FOS a copy of your credit report, they always want to see it. If you have any old credit reports, send the oldest one you have, otherwise send the current one. You can download a statutory TransUnion report for free.
Also get your bank statements if they will support your complaint and send those to FOS too. Do not wait to be asked by FOS for these. Ideally you want them 3 months before and three months after the account was opened and before /after any limit increase
FOS is a friendly service but not fast. Just use normal English, not legal terms. Using a claims company or a solicitor doesn’t help or speed this up.
Ask questions below!
There are hundreds of comments from readers who are using this template. It’s a good place to see how these complaints often go and to ask any questions.
FAQs about Affordability claims
Can you get an overdraft refund?
Could a Debt Relief Order help you?
Nikki says
Sara, just wanted to say a huge THANK YOU for doing such amazing work! AMEX just agreed to refund me £8,433 in interest after increasing my credit card limit without checking my income. I blamed myself for my debt and wasn’t going to apply for a refund until I read the article and realised I had a solid case. It didn’t even go to the ombudsman. Can’t even tell you the relief I feel having received this update. You’re doing incredible work and are literally changing lives. Thank you
N says
Hi,
Could I ask what email address you used for Amex pls? I’m trying to submit a complaint but the email address listed on the other page generates an out of office with no return date and a name of who to contact but not their email address…
Thanks
Mr Jason says
Hi, I’ve been living to the limit of my credit card with capital one and every time they increase I live to that limit. I’ve never missed a payment but they are nearly always minimum and I’m always ending each month short because of my credit agreements.
They have just asked for bank statements over when they increased my limits and I’m worried they will say it was affordable because I could make payments. Is it worth pursuing?
Sara (Debt Camel) says
yes, making minimum payments almoist all the time will take 15, 20 or more years to clear a card. A lender like Cap One should check that you could afforda to repay a limit in a manageable period of time.
do you have a list of the credit limit increases?
Jason says
If they look at my bank statements and decide it was affordable will that likely cause me issues?
I do overspend but the limit increases could be considered in budget if I didn’t overspend the way I have.
Unfortunately I only have the dates of the increases not the amounts
Sara (Debt Camel) says
well send the bank statements and see what the Cap One response is.
Also look at cutting back on the overdspending! If you cant get through the month without using credit cards, then talk to Stepchange about a DMP to get interest stopped.
N says
Hi Sara,
I complained to Santander about irresponsible lending and lack of forbearance. In my original complaint I said they should have frozen interest.
Santander rejected it. The FOS investigator originally sided with them and it was put in the Que for obdusman, but now another case handler has told him to look again because the forbearance point hadn’t been addressed adequately.
Now it’s back with the same investigator, and he’s saying Santander claim forbearance wasn’t part of my complaint even though my wording and later emails clearly show it was. He’s given them until 10 Oct to respond.
The affordability part has already been referred to an Ombudsman – so my concern is, can FOS really just remove the forbearance element now, when it was clearly raised and when Santander had a regulatory duty to consider it anyway?
Sara (Debt Camel) says
Well lets see how this goes.
It does get confusing when different complaints are combined into one.
Pamela says
Hi
If my case has been upheld by ObM how long until my interest is refunded ?
Sara (Debt Camel) says
Is this a final decision by an Ombudsman?
Or an initial decision from an investigator?
PMela says
Your complaint about Capital One (Europe) plc
I wrote to Capital One today to explain what I think about your complaint – and I attach a copy of what I’ve said.
As you’ll see, I’ve given Capital One time to think about what I’ve said and reply to me. They have until 10 October 2025 to do this.
Capital One might come back with new information that changes things. If that happens, I’ll let you know.
This is what it says
TM says
I recently submitted 2 affordability complaints, one with Barclays and the other with Capital one. Barclays got back to me to deny the claim and I am going to send it to the financial ombudsman. However today, capital one got in contact with me and have agreed to refund fees mounting to £985. This has been subtracted from my balance and they have also decreased my credit limit to the new figure. Which I am happy with as it means I will not be spending in that card again. Nearly £1000 back just by following all the information on this page. I’m truly greatful and thankful as without this information and guidance, I would never of been able to get these fees back. It’s definitely worth a try. Highly recommend 😊
AQ says
Hello,
I am intending to make irresponsible lending complaint against Jaja. I still have balance of nearly 3k. I was wondering can I register this complaint without clearing this balance in full and if I do this will this affect my credit score in a negative way ? Will I be able to make regulars payments the way I am right now. I understand they will stop my access to this credit as soon as I make this compliant. I’m just worried I don’t want them to record mis-payments or default. Thank you
Sara (Debt Camel) says
you can complain now and still make the normal payments, if you do they cant register a default or missed payments. Some lenders will close the account but many don’t.
Lauren Perry says
I made a complaint to aqua, they’ve declined the complaint but closed my card with no notice, I have a £6k balance on there and when I spoke to them they have said it’s because I made a complaint, I’m confused they rejected my complaint but have closed my account, should I complain to FOS? And is this negatively going to impact my credit score having a closed account that has such a large balance on it?
Sara (Debt Camel) says
You can carry on making payments to a closed account as normal.
Send this to the ombudsman if you feel it was unaffordable
Hannah says
Hi
I have been in contact with Newday to get copies of my statements as my accounts are now closed, this was requested over a month ago and still not received anything, I have contacted them again today and they have said they will raise this to see if it can be sent. How long should they take to send this out? I did it with capital one and had the information within 5 days.
Sara (Debt Camel) says
why do you want these statements?
Hannah says
It was to view when I had credit increases and how often I was near to my credit limit, am I able to proceed asking for an interest refund without this information? My accounts are all closed so cannot access any information
Sara (Debt Camel) says
You don’t need those. My template in the artyicle above asks for some of them and you can change that to ask for anything else you want
Becky says
So glad I came across this site. Over the last couple of years I’d really gotten myself into a pickle and have been desperately trying to clear my debt. So far I’ve had success with Capital One refunding me all interest and Halifax have now cleared the remaining £2,000 of my balance PLUS a £1,500 cheque refund in the post.
Currently going through the motions with the financial ombudsman who agrees with my case for Fluid (NewDay) and NatWest. I understand these companies can be a bit trickier!
Thank you so much for all of the advice and tools on this page, my mind feels so much clearer and has lifted the biggest weight off my shoulders.
Becky says
Just to add today, NewDay have now agreed with the decision from the Investigator at the FOS and being refunded £3.5k!
Ann says
This is amazing!
I’m curious, how long did it take to respond to your complaint? And did they keep your credit cards open or were these closed as a result?
Lucy says
Hi Sara
I can’t thank you enough for this template the FOS upheld my complaint with New day and I got £4k refunded. MBNA have replied to me today and refunded £500. Virgin have declined my complaint so this is now with the FOS. I had a closed account with NatWest so have contacted them today. You have changed my life! Thank you!
Sara (Debt Camel) says
And a message I have just been sent by GD:
Complained to newday and they rejected the complaint. Took it to the financial ombudsman and without them looking at the account newday offered me nearly £1500 which includes all interest paid and an extra 8%. Delight with this outcome, really wasn’t expecting that amount.
Fran says
Hi,
I recently sent a complaint to PayPal and in my complaint asked for the default to be removed from my file. I have started a DMP with Stepchange in Feb 2024.
PayPal have rejected my complaint and I will take to the ombudsman. I asked a follow up question to PayPal about the date of default as they didn’t register the default until July 2025 and that is the date on my credit report with missed payments up then. My worry is that all my other defaults will clear in 5 years but I will still be left with PayPal for an extra year now.
There answer is unclear and they said it is the date of incident and not the date of reporting. Does that mean it will be 6 years from when I changed to a DMP or from July 2025?
Sara (Debt Camel) says
that is unclear. Go back and ask for clarification of what date they mean, ask if you need to start a new complaint about this
Zoe says
Hi Sara,
I had a response from Zable today:
Original credit limit £200 taken out on 04/02/2022,
Increased to £350 on 07/02/2023
Increased to £800 on 11/07/2025 (I was out of work)
The card is maxed out at £800
They have upheld the claim and said:
I will refund any interest or fees paid in respect of the initial lending and credit limit increases. The total refund amount will be £349.48 the remaining balance is still left to be paid (£443.42) and they have placed the card into pay down all interest frozen and can no longer use the card.
Is this pretty much the best outcome I can expect on this?
Thank you
Sara (Debt Camel) says
The total refund amount will be £349.48
Do you agree that is the sum of all the interest you have paid?
Zoe says
Yes I’ve added it up from each statement and that’s how much the total is.
Sara (Debt Camel) says
then that is the best outcome you can get
Zoe says
Great, thank you :)
Kate says
Hello and thank you so much for the templates. My husband and I are drowning in debt and are desperately trying to claw our way out. I have put in affordability complaints to Nationwide using the Karlene white email on this website but haven’t heard back (sent 25th august) not even an acknowledgement. I also haven’t heard back from Halifax. Is this normal? Virgin got back to me within two weeks (rejecting).
Sara (Debt Camel) says
I suggest you phone Nationwide up and ask when you will be getting a reply to your complaint.
Halifax are very slow and you will probably get a text message at 8 weeks saying they need another 4 weeks. AT that point I suggest you send the Halifax one to the Ombudsman (use link in the article above). Also send virgin to the Ombudsman now. Do these one by one, you don’t have to waith for a all the rejections to send them all to FOS.
BUT if you are drowning now, you need immediate help. I suggest you talk to Stepchange about a debt management plan (DMP) for all your debts to get new interest stopped. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx. A DMP hurts your credit score BUT you will still be able to get a new fix from your current mortgage lender when the current fix ends.
In a DMP winning any affordability complaints will help speed up the DMP and may be able to clean your credit record sooner. But these complaints are to slow and uncertain to rely on when you need immediate help now, so a DMP gets you into a safe financial space.
M says
Hi Sara,
I made a complaint to NewDay which they rejected and the FOS investigator had upheld in July. However as NewDay didn’t come back there’s been no response and the investigator has gone silent on me, I have followed up multiple times but get no response. If you could please advise on what I could do next as it has been pending with a response from NewDay for the past 3 months. Is it worth asking them to put it into the ombudsman queue?
Sara (Debt Camel) says
have you always followed up by email? If you have, try phoning the Ombudsman and asking what is happening
John says
Seems like same thing happened to me few months back.
I rang the Fos and Newday complaints department. The Newday complaints dept asked the investigator to respond to FOS and they did and agreed with the complaint. Its best to chase up
Faith says
I have an IVA, you stated it is complicated to claim affordability when you have one of these, can you help?
Sara (Debt Camel) says
So the claim process is the same. It’s just that very often winning the claim may not help you.
The standard situation is where someone is paying significantly less than their debts in an IVA. here is they win an affordability complaints about a debt in the IVA, it will just reduce the balance in the IVA – this doesn’t reduce what you may each month (which is as much as you can afford) or make the IVA eand earlier (unless your debts will be repaid IN FULL plus the IVA fees, which is unusual)
So the 3 exceptions are
1) if your claim could result in a very large reduction in the balances, so your IVA would end early
2) if the IVA appears likely to fail soon, in which case any reductions in the debts balances may give you more options
3) if you may need to release a small amount of equity in the last year of the IVA, in which case getting any of the debts down may mean this will not be required.
But if none of those 3 sound like you , it probably isn’t worth bothering with
Sanam says
Hi, thanks so much for this! I’ve sent a complaint to Barclays and they’ve replied asking for my bank statements and payslips for 6 months before and after the credit application or credit limit increases. Is this normal? And should i send this information? Feels a bit intrusive but if thats the norm i can look at sending it over to them.
Thanks
Sanam
Sara (Debt Camel) says
they normally do this. You don’t need to send payslips if you have bank statements.
Do you know when the account was opened and when any limit increases were?
Sanam says
Hi, thanks for getting back to me. I don’t know the exact dates so should I reply and ask for them? I’m guessing they’re asking for my current account statements (which is natwest) is it so they can see what my spending habits were at the time? Or are they asking for Barclays statements the account is closed so i don’t have access to these anymore. Any advice would be greatly appreciated. Thanks so much.
Sara (Debt Camel) says
They want your bank statements not the card statements, they can see those.
Bank statements show your income and bills and other debt payments. They don’t need payslips if you send them
Yes I suggest you ask for the limit increase dates.
And now download the NatWest statements as far back as you can. Don’t wait and find you can’t go back as far
Ruthie says
Hi there, firstly, thank you for all this valuable information. I sent a complaint to Capital One that has been rejected – they felt it wasn’t irresponsible etc. I hadn’t had my limit increased, just been struggling to keep up minimum with payments since opening it in 2019 and maxing it out. I had 3/4 other credits cards at the time plus a Next account and an overdraft. Should I continue with this complaint? It;s been relentless. Thank you! :)
Sara (Debt Camel) says
how large was the limit?
is your current financial situation mainly difficult because cost of living increases?
Gail says
My Sainsbury’s credit card account was recently moved over to NatWest due to a buy out. Can I complain to Sainsbury’s still as they were the initial provide?
Thanks
Sara (Debt Camel) says
Yes, at some point this will probably switch to NatWest, but at the moment complain to Sainsburys and let me know if they say to complain to NatWest.
Emil says
Can I make affordability claim while in DMP? And can I just say thank you, I am sitting in my bed reading this with hope in me, that website is great and it’s a shame I got on it so late. Yesterday I was sitting in the same bed staring into the darkness depressed about my debt. To be honest I was thinking about ending it but reading your website gave me hope that I will
Be able to to get out of them… thanks again
Sara (Debt Camel) says
Yes you can! Being in the first few years of a DMP is a great time to make these complaints. Winning any will really speed up the DMP and can sometimes help to clean up your credit record sooner. And the DMP means you are in a safe financial space, so when complaints are rejected and have to go to the Ombudsman, you don’t care about the extra time
But if the DMP has been running a while, you may Have other better options?
HS says
Hi Sara, I just wanted to say thanks – I’ve had my 1st affordability win today!
Capital One agreed that they shouldn’t have lent due to my history (i’d had and defaulted cards with them before) so I’ve had both accounts cleared and they will be removed, with the defaults, from my credit report.
Refunds of £412 and £459 applied this morning.
I am in a DMP so this will reduce the overall length and allocate the payments to others.
Just wanted to say a huge thanks for all your help and guidance on this website :)
AJ says
I am currently escalating my Section 140A (Unfair Relationship) complaint against Tesco and HSBC after the FOS Investigator sided with them. I rejected their view and demanded immediate referral to an Ombudsman.
My case relies on three key pieces of evidence:
Proof of Severe Default (Credit File): My credit report for the card shows multiple instances of ‘4’ payment markers (meaning four months late).
Proof of Chronic Distress (Bank Statements): I reviewed my current account that covered the same time period and found over 500 separate Overdraft/Daily OD charges. This proves I was in a severe, chronic debt cycle, using high-cost debt to survive and service payments.
Late Intervention: The bank claims its credit limit reductions were responsible, but the evidence proves they were too late. The reduction only occurred months after the bank had already logged a severe ‘4’ default marker on my file.
The core argument is that the bank allowed interest and fees to compound despite clear, overwhelming evidence of my severe financial distress, failing its duty of care.
The case is now in the queue for the Ombudsman’s final binding decision. The goal remains: refund of all interest/charges, statutory interest, and removal of all adverse credit markers. I will update when I hear the outcome!
EB says
I used this template and MBNA have upheld my complaint on 2 credit cards and have refunded all interest and charge plus an additional 8%. I’ve managed to clear both of these cards now with money left over.
Dee says
Hi Sara,
I’d really appreciate your opinion on this.
I’ve submitted a complaint to the Financial Ombudsman about two Virgin Money credit cards I was given — one in 2022 for £23,900, and another in 2023 for £25,000 — despite already having maxed out the first. I was self-employed at the time with very irregular income, and I often had to borrow from others or use credit to repay credit.
Virgin Money based their lending decision on household income, even though I alone was responsible for the repayments.
I submitted HMRC records, personal and business bank statements, and a detailed explanation of my circumstances. The case was progressing, but suddenly a new adjudicator picked it up on a Tuesday and by Friday, she had issued a rejection. She stated that because I appeared to be “managing,” there was no cause for concern.
I find this logic flawed — it’s almost like saying someone with depression must be fine because they show up to work. Just because I was “managing” on the surface — by borrowing from friends and juggling credit — doesn’t mean I wasn’t in financial difficulty.
I’ve now asked for it to be escalated to an Ombudsman, because I don’t believe my case was reviewed thoroughly or fairly.
Do you think it’s likely an Ombudsman would overturn this decision?
Sara (Debt Camel) says
those were very large limits. I think Virgin should have looked very closely