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 it too high.
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 have paid.
Contents
What is “affordable”?
The regulator’s rules
You may have made every payment on time, but the debt is still unaffordable.
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 £400 credit limit doesn’t have to go into so much detail;
- a lender should also 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 balance 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:
- 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;
- 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;
- making a minimum repayment but then using the card to pay for food or petrol so the balance never drops;
- using a lot of your limit for a long period;
- significant gambling the lender was aware of (this could be gambling on your bank statement if the credit card lender was from the same bank);
- recent missed payments or an arrangement to pay on this account or any others on your credit record;
- your overall level of debt on your credit record has increased.
When your lender increased your credit limit, you don’t need the exact dates before you start a complaint, my template asks for the details.
How 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 for the banks and major lenders.
Template to use
I’ve invented some examples so you can see how a complaint should read. Change/delete the bits in italics to tell your story.
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.
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 2018, you should have checked my credit record and would have seen I had recent missed payments to a credit card and a default only two months before on a loan.
AND/OR say that they should not have increased your credit limit:
You should never have increased my credit limit in 2021. 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.
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
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.
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.)
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 six years ago and say the ombudsman won’t look at them. But FOS will often look at these “old” accounts if they have still been open within the last six years, although you may have problems producing bank statements or other evidence from a long while ago 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 better approach for old defaulted 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, 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 had made all 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 open in the last 6 years the Ombudsman may look at it;
- you could have rejected the limit increase – they still shouldn’t have offered it if it was unaffordable.
You know if this car or catalogue has caused you difficulty – it’s easy to send a case to the 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 worry if you don’t have A copy of your credit or finance agreement – lots of people don’t. 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 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.
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?
Peter says
I have an account with Very where my credit limit has increased over time in increments of £400 or so. I have also been able to buy large quantities of PS5 gift cards that I have been able to sell on line to help keep up with increasing debt repayments for my personal loans. By going through everything, I have established the following:
Credit Limit Increases:
January 2023 – £5,000
June/July 2023 – Reduced by me to £4,500
October/November 2023 – Increased to £4,900
February/March 2024 – Increased to £5,300
June/July 2024 – Increased to £5,700
January 2025 – Increased to £6,700
Significant Borrowing from Other Lenders:
My financial commitments were growing unsustainably, yet Very continued to extend credit instead of conducting a proper affordability assessment.
Personal loans taken from multiple institutions totaling £30,000
Maxed-out credit cards:
Barclaycard – £2,000 limit
Tesco Bank – £9,500 limit
Excessive PlayStation 5 Gift Card Purchases: I purchased a total of £3,660 worth of PlayStation 5 gift cards between October 2023 and March 2025, often in large increments of £100.
I am really embarrassed about the situation that I have got myself into and I hope that this might be a reasonable case to at least stop the interest. Do you think there’s a case here? Thank you!
Sara (Debt Camel) says
The account was opened in Jan 2023?
What was your financial situation at that point?
Have you also made complaints about your personal loans, as these appear to have also been unaffordable?
Apart from this Very case, what other debts do you have at the moment and what is your credit score?
Peter says
My financial position was starting to deteriorate with a number of personal loans and credit agreements being taken out in quick succession over the 4/5 months before Jan 2023.
I am currently putting in affordability complaints in against all loans at the moment thanks to being empowered by this site.
I really want to find a way out of the mess that I am in. It’s really impacting me at the moment.
My credit score isn’t horrendous as I always find a way to make all payments for things that I owe.
It doesn’t leave me with much money left though.
Sara (Debt Camel) says
I think you should consider a debt management plan to halt all the interest being added on Very and other debts. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx
Where you have a number of accounts opened in quick succession, although the end result may be clearly unsustainable it may be difficult to show that the lenders knew this when they made the credit offer as credit records can take time to update. I cannot guess which cases you are likely to win, it may be a lot, it may only be a few. And in any case you need to repay the amounts borrowed… so I don’t think you can reply on affordability complaints, many of which may have to go to the Ombudsman, to resolve your situation in the short term .
Winning any cases in a DMP will speed up the DMP, but the DMP gets you into a safe financial space while they go through at the Ombudsman.
Peter says
Very have come back with the following. I’m a bit concerned about what they say they are registering on my credit file:
“We wanted to let you know, we have received your complaint in relation to affordable lending.
Within your complaint you have told us that your account is not affordable which indicates you may be experiencing, or have experienced, financial difficulty. As a precautionary measure, we have suspended your account. This means you will not be able to place any orders on your account at this time and your credit file will be noted to reflect that your account is under review.”
Sara (Debt Camel) says
They normally remove the “under review” marker when they respond to your complaint
Matt says
Some good news this morning Capital One , have decided my card was unaffordable and should not have been given . The limit was £700 the interest paid was £450 , but they are removing the £250 as a gesture of goodwill. The account will be closed . Saving another £40 . Just waiting on AMeX and vanquish . This website has been amazing, would not have had the confidence with out everyone on here’s support but big thanks to Sara for always answering all our questions. I will keep you posted on my other two complaints.
GiddyBiscuits says
After reading Sara’s advice on affordability complaints, I sent one over to my Simply Be account. I had initially asked for all interest to be refunded from when my credit was increased. However, the team looked into my credit facility and stated that “it was obvious a higher credit facility was not in the client’s best interest.”. I was awarded back £646 from a credit facility of £1200. This took around 5 weeks for a decision. I now have affordability complaints in with a couple of other lenders. Thanks so much for the templates and information, Sara! X
Claire says
Hi can I ask if I have 2 new day cards that are still open can I still make an affordability complaint? Both cards were given to me whilst in a DMP (Pulse have even increased to £8000 limit over the 2 years of having the account) I have recently cleared both with a family loan so wondering can still put an affordability claim in?
I was also wondering the cards were opened 4.5 years ago but the Pulse was originally Amazon… not sure how I go about getting the information around exact dates they increased my limits as my statements on the pulse app only go back to April 2023? Thanks
Sara (Debt Camel) says
An 8000 limit!
Yes you can make c0mplaints about these, you only cleared them with more borrowing, that doesn’t mean you can afford it.
You will see that my template in the article above ask for the deatils of the limit increase dates and amounts if you don’t know them.
Kath says
Can making an affordability complaint have a negative impact on a DMP – ie, do lenders ever renege on the DMP agreement as a result?
Thanks
Sara (Debt Camel) says
No.
Winning affordability complaints is an excellent way to speed up a DMP and it may help you clean up your credit record a bit sooner. Think about all the debts in your DMP for these complaints!
Chloe says
Dear Sara,
The Ombusmen has requested I send them a full copy of my credit history by email, how do I do this?
Many thanks
Sara (Debt Camel) says
Download your statutory credit report from Transunion https://www.transunionstatreport.co.uk/CreditReport/AboutYou
Also send your bank statements!
Chloe sims says
Thank you, I have already sent bank statements so I am hoping to hear something soon, my case was giving to a case handler on the 5th March. Any idea on how long this part takes?
Many thanks
Sara (Debt Camel) says
Once they have the requested details, hopefully only a few more weeks
Jo says
Just wanted to leave a huge thank you! After coming across your page on Instagram I sent off a few affordability complaints. Santander cleared my overdraft of over £2000. NewDay initially disagreed with my claim so I took it to the FO. They said it was irresponsible lending but NewDay still disagreed so it was being taken to the ombudsman for a final decision but then they did a u-turn! Refund of over £1800. I’m delighted and I can’t thank you enough for your page!
Richard says
Hi Sarah thanks to you I have received an offer from Newday on my credit card from the second increase but it seems lower than I was expecting. How do I calculate it? Do i add up all the interest and the payments I made throughout the time and then deduct the amount I owe from the credit limit? Also do they always add 8% as per the recommendation as they don’t mention this many thanks
Sara (Debt Camel) says
Have they just offered a “partial refund” for interest over a certain limit?
What limit was the account opened with, what was the first increase and the second increase?
You don’t get 8% interest unless the refunds clears the balance.
Richard says
Hi sara it was opened at 300 limit and the refund is from after second increase of 950 this is back from 2016. They accepted adjudicator decision offering refund approx 5500 and clears the balance of approx 4500
when I was waiting for a reply from new day about the decision the adjudicator made, the debt collection company was threatening legal action so the adjudicator put it in the queue for an ombudsman to look at. They said if new day responded then they would take it out the queue if they accepted the decision. However now they are asking if I want to take it out of the queue? What would be the advantage of getting an ombudsman decision at this point if new day has accepted the decision? Is it just for a legal time line to put things right or am I missing something? Because I don’t really understand that part, many thanks
Sara (Debt Camel) says
As that cleared the balance, it should include an 8% amount.
I have no idea what the advantage of going to an ombudsman decision is if you are happy with the offer from newday. As this is with a debt collector, has newday also agreed to clean up your credit record?
Richard says
Thanks Sara yes I am checking they will clean up file and include 8% how would I work out the 8%? Also does payments I made to the card all count minus the outstanding balance owed I am not sure how to work it out but the figures are less than on my statements even the fees they charged!
Sara (Debt Camel) says
The 8% will be very little as it is only paid from the point you account would have gone into credit, as as you aren’t getting a large credit balance, that will not have been long ago.
No you arent getting all the interest from that point back. The decision is that the first increase was OK, but the second one wasn’t. (or it may have been that the second increase was OK but the thrid one wasn’t. I can’t tell from what you have written). So if the first limit increase was to say £600, and your balance was £1000, then newday are allowed to charge interest on the first £600 but the interest charged on the next 3400 will be refunded.
Annabel says
Hi, I have submitted complained to MBNA, Lloyds and Halifax for credit cards and lending. I have received replies from all, and they are not upheld. 2 have said I paid regularly and didn’t decline the increase so therefore not irresponsible. The MBNA interestingly says they cannot find my credit agreement, but believe they wouldn’t have leant if I couldn’t have afforded it! Should I take these to FOS?
Sara (Debt Camel) says
Were these all credit card complaints or overdrafts/loans as well?
How long ago was the MBNA account opened? When were any limit increases? Is it still open?
Same questions for lloyds & Halifax.
Annabel says
All credit cards. (I do have a loan to do)
Halifax (1) opened 2014, initial limit £1500, increased limits Dec 2014 £2000 , July 2015 £2750, May 2016 £3500, Feb 2017 £4500 – still open
Halifax (2) opened Jan 2024 limit £3,000
Lloyds opened 2015 initial limit £6,000 Decreased to £4500 in 2015, increased to £6000 in 2017- account still open
MBNA opened 2020, initial limit £8,500, March 2021 increased to £12,000- account still open
Sara (Debt Camel) says
yes I think these should all go to the ombudsman.
How far back can you get bank statements?
Annabel says
Thank you. Should I add all to one complaint? I can access bank statements for the past 7 years via online banking
Sara (Debt Camel) says
No, send one complaint about each lender to FOS. So both Halifax cards go in one complaint.
Annabel says
Thank you. Is there anything specific you recommend I should add about this? Or just follow your example wording.
Can I also just ask you about old DMP’s- I have one that has been running for 20 years from an old relationship! But of course it had dropped off my credit file when I took out the credit cards. Would it hold any relevance to my case?
Sara (Debt Camel) says
Use the Ombudsman’s online form to send them each case https://help.financial-ombudsman.org.uk/help. You can use resuse bits from your complaint
And I suggest getting on with the loan complaint!
Annabel says
Thank you! I’ve now done the loan complaint and will raise the others with FOS. Do you feel I have a good case, or is it really hard to tell?
Sara (Debt Camel) says
The second Halifax card and the MBNA complaint look strongest, but a lot depends on your income at the time. Often loan accounts are simpler to win
Natalie says
Hi.
Some advice please. FOS have upheld my complaint with creation credit card from 2010 and creation have agreed with the decision , however they claim they can only refund from 2018 as they don’t hold any information before this date. What is likely to happen in this case. Has anyone else come across this issue?
Sara can you advise? I will of course ask FOS but wondered whether you could provide some info?
Sara (Debt Camel) says
do you have any evidence from further back?
Natalie says
I don’t have credit card statements, but had all bank statements.
Have you come across this situation before and what was the outcome?
Sara (Debt Camel) says
So your bank statements show the payments to creation?
Do you have any other evidence from further back? eg any stray creation statements? or downloaded credit records?
Antonia says
Hi Sarah,
The investigator had agreed with my complaint on my Barclaycard credit card but Barclaycard don’t agree, what normally happens next please. The investigator has now given Barclaycard another week to come back with additional information. But I’m wondering if investigators tend to change their minds or is it likely to go to the ombudsman
Sara (Debt Camel) says
Sometimes investigators change their mind. All you can do is wait.
Is paying your current barclaycard bill causing difficulty?
Antonia says
Thanks Sarah, I’m just very anxious and hoping I get some positive news soon. Currently my situation:
Barclaycard – Investigator upheld, Barclaycard disagree
NatWest loans x 3 – Investigator didn’t uphold off to ombudsman
Amex – with investigator
Bamboo – settled directly and refund all interest
Moneyboat x 3 loans – investigator didn’t uphold, with ombudsman
PayPal 2 accounts – investigator didn’t uphold, with ombudsmen
NatWest overdraft £3k maxed, investigator part upheld, with ombudsman
My Community Bank – investigator didn’t uphold, with ombudsmen
Vanquis – investigator didn’t uphold, with ombudsmen
Zopa x 2, settled directly upheld and interest waived
118, settled directly interest waived
Conduit – awaiting investigation
Very – investigator didn’t uphold, with ombudsmen
Capital one – awaiting investigation
Reevo – awaiting investigation
Finance club – awaiting investigation
Quidmarket – settled directly interest refunded
Fernovo – settled directly interest refunded
Credit spring, settled directly fees refunded
I submitted most end of October 2024.
Sara (Debt Camel) says
If you are in financial difficulty at the moment, talk to StepChange about a debt management plan for all the debts. https://www.stepchange.org/how-we-help/debt-management-plan.aspx
This gets you into a safe financial space
Jen says
Hi Sara
My case has been with Financial Ombudsman Service since the start of the year about a credit card I had with Barclays since 2016 with large increases till 2018, which defaulted in 2021. I’m having difficulty proving to them I only found out I could complain last year. I have been asked lots of questions by the investigator and been back and forth, Iv explained I had multiple debts at the time and blamed myself for the debt and didn’t think they had done anything wrong. They don’t seem to agree though and think I would have know I could complain when I defaulted on the debt. I’m not sure what more I can do or say to help. Is this common for debt that is over 6 years, does anyone tend to win these cases and prove that they didn’t know they could complain earlier? It doesn’t make sense to me as if I knew I could complain earlier I would have.
Sara (Debt Camel) says
Did you take any debt advice after you defaulted?
Jen says
I went to StepChange when I couldn’t afford to keep up with the min payments anymore (I was continually getting more credit out just to keep up with min payments for years) they put me on a DMP in March 2021 and that’s when I defaulted on all my cards and loans. I never talked to my creditors separately after this it was all done through StepChange.
Sara (Debt Camel) says
Then go back and make the point that you thought you were doing the responsible thing by taking debt advice from Stepchange in March 2021 and they said there was no need to talk to your creditors. Say they never advised you that you may be able to make this sort of complaint, and if professional debt advisers didn’t tell you, you don’t understand how you could be expected to know. Ask what you were expected to complain about in 2021, when you had no idea that Barclays had done anything wrong – surely FOS doesnt expect every default to result in an affordability complaint?
Jen says
In the investigators reply – At the very latest, you were sent the first default letter by Barclaycard on 1 April 2021, so you’d have known by this point there was a problem.
So, I think there were several occasions when you ought reasonably to have been aware there was a problem, and it was causing you a loss. However, I also need to consider whether you ought reasonably to have thought Barclaycard might have been at least in part responsible. This doesn’t mean you need to have had a thorough understanding of Barclaycard’s obligations as a lender, only that it might have done something wrong when agreeing to lend.
You’ve explained you started struggling with your finances in July 2016, however Barclaycard went on to increase your credit limit on a further two occasions in 2017 and 2018. You also said you were struggling to meet the minimum repayments prior to the increases. As you were already struggling, I think there was reason to question whether it was right for Barclaycard to extend further credit to you. I’m not aware of any changes in your personal circumstances, so I think when you had difficulties making the repayments it was reasonable to think Barclaycard might have done something wrong by providing you the credit you were struggling to repay.
Sara (Debt Camel) says
I suggest you reply that is bizarre to suggest that anyone with a default should decide the lender had done something wrong when they had no idea that the lender should have assesses whether a limit could be repaid in a manageable fashion. And that the increases offered by Barclaycard seemed helpful at the time as you were struggling. Now you realise that you should not have been lent more money but it seems extremely unfair to say that you should have known this at the time, or at the point your defaulted. Especially as Stepchange never mentioned the option of an affordability complaint to you. Ask for this to go to an Ombudsman
Emma says
Hi guys has anyone had any really negative experiences with NewDay. I wrote an email to them and heard back pretty quickly about a £5000 credit card that I believe was increased on multiple occasions irresponsibly. They said they do not believe they loaned irresponsibly and have closed the account with immediate affect leaving me in a worse position. I was also on a payment holiday and they have now reported 2 missed payments for those months as well.
Sara (Debt Camel) says
Send the affordability complaint to the Ombudsman.
Did they tell you the payment holiday wouldnt affect your credit record?
What is the rest of your financial situation like? Do you have other minimum payments that aren’t affordable? Have you made other affordability complaints?
Emma says
Hi Sara,
I’ve sent the complaint to the Ombudsman last Friday so just waiting to hear back from them. They didn’t tell me that it would no and I had a payment holiday in the past and no missed payments were reported. My situation is pretty dire, until this month I had been managing to at least make minimum payments on everything and to stay afloat but now with them closing the credit card and reporting missed payments I’m worried it’s going to get worse. I have made an affordability complaint with Santander as well about an overdraft. If I could get the fees and interest I’ve paid for both of them back it would seriously help the situation and then I’d be able to pay down the rest of my debts within the next couple of years.
Sara (Debt Camel) says
I think you should talk to StepChange about a debt management plan for all your debts, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx. That gets interest frozen permanently and allows you to get into a safe fianncial space.
Winning any affordability complaints will then speed up the DMP by reducing the balances and may mean your credit score is cleaned up sooner.
But these affordability complaints on their own are too uncertain and take too long for you current precarious situation.
Stacey says
Hi
I have a argos card and i make the payment each month but it doesnt seem to help very much. Its still iver 1000 pound the interest is alot so im bearly making a dent to it. How do i stop the interest so i can repay and clear the card they never should have increased the limit.
Sara (Debt Camel) says
You can make a complaint about them increasing the limit using the template in the article above these comments.
But you still have to keep paying while the complaint goes through – is this your only debt?
Scott says
Hi. id like to make multiple complaints against credit card companies. Unfortunately i dont have account numbers or dates for the limit increases. Am i still able to make these complaints ?
Sara (Debt Camel) says
How long ago were these accounts settled or defaulted?
scott dean says
Hi Sara.
All accounts defaulted in the last year.
Sara (Debt Camel) says
That is fine – if they had defaulted over 6 years ago there would be little chance of winning.
Give enough details in your complaint email for the lender to be able to work out what your complaint is – your full name, date of birth etc
You don’t need to know the dates of limit increases before complaining, my template letter asks for that information.
scott dean says
Thanks Sara. Complaints sent. Let’s see what happens.
scott dean says
Hi Sara.
Just wondering if there is a timeframe for when a lender should reply to a complaint ?
I’ve sent one to Capital One, another to Newday. Newday have as yet not replied or at least acknowledged the complaint , Capital One did within 24 hours
Kind regards
Scott
Sara (Debt Camel) says
They have 8 weeks to reply. But if you havent heard anything, not even an acknowledgement, I suggest phoning them after 4 weeks and asking why?
Anon50 says
I’ve submitted complaints to both MBNA and Barclaycard about what I believe was irresponsible lending. MBNA increased my credit limit to £14k even though I was only making minimum payments. I later took out a Barclaycard with an initial 9k limit, which was also increased to £16k over time. I was trying to manage both by moving balances around, but the debt became unmanageable, and I ended up trapped paying huge interest and only able to make minimum payments.
An old Equifax report shows I was already heavily reliant on credit and making only minimum payments — this should have raised red flags, yet both lenders kept increasing my limits. MBNA also changed the terms and conditions several times, giving me no choice but to accept more expensive terms as I couldn’t afford to pay off the balance in full.
Both lenders have rejected my complaints as being time-barred. However, I only became aware that I might have a valid complaint in 2022, after getting debt advice.
I’ve escalated both cases to the Financial Ombudsman but I’m unsure if my argument is strong enough. What do you think?
Sara (Debt Camel) says
When in 2022 were you told about affordability complaints and why have you waited so long?
Anon says
Thanks for responding Sarah
I became aware about affordability claims when I accessed help through Business Debtline. Until then I just thought it was my bad management with money. I was trying to survive but actually making the situation worse. I had no clue that organisations also had a responsibility.
I waited because I was trying to sort my debts out first. Repayments are now stable and I have the bandwidth to address this aspect.
Have I waited too long?
Sara (Debt Camel) says
These complaints are always easier sooner rather than later. It may now be hard to produce bank statements going back more than 6 years.
Have you told the ombudsman when you got the advice about affordability complaints? Was it more than 3 years before the date of the complaint to the lender?
Anon says
Apologies. I took advice from Business Debtline in 2023.
So no, it wasn’t more than 3 years before the date of the complaints to the lenders.
I was afraid of angering the companies I was asking for help from so waited until agreements were in place with everyone and things had settled down before starting the process.
I said to to the FOS that while some of the lending decisions occurred more than six years ago, I did not realise at the time that I had grounds to complain. I was unaware that the company had a responsibility to assess affordability before increasing my credit limit. It was only since taking debt advice in the last couple of years that I learned about affordability complaints and realised that Barclaycard and MBNA may have acted irresponsibly and that I am aware the FCA allows complaints beyond six years if the customer was not aware (and could not reasonably have been aware) of the issue earlier.
Sara (Debt Camel) says
That is good news. Good luck with the complaints!
Catrin says
Keen to see how you get on! After the bank rejected my complaint, I contacted the Ombudsman and they replied a week later (25 March) to say they are waiting to assign it to an investigator. So keen to see how long it takes them to get back to you!
I have similar circumstances and have complained to Barclaycard, they rejected based on the 6 years.
Jen says
I also have a similar case with Barclaycard which they rejected straight away as it was over 6 years and i sent it to the FOS early January it took about 3 months and the investigator came back to me last month and rejected it saying I should of known I could of complained more then 3 years ago as that’s when I had my first default (which it’s by true). It’s now been redirected to an ombudsman manager and Iv been waiting again for a few weeks now.
Emma says
Can not thank you enough!
• Vanquis taken to FOS, upheld, refund of £2,000.
• Newday Aqua taken to FOS, upheld, refund of £2,684.
• Newday Marbles taken to FOS, upheld, refund of £3,335.
All after financial abuse, I am now finally back on my feet thanks to you and your templates ❤️
Lena says
I wonder if I can complain, about irresponsible lending, if all my credit cards have been interest free. I was taking new ones due to not being able to keep up with previous ones.. I have mostly always done minimum payment for them
1st credit card £500 Natwest – Maxed out for a long time
2nd credit card £5000 (2021) Lloyds – Hit limit (Occasional overpayment above minimum) Used money transfer multiple times to pay off Monzo Overdraft)
3rd credit card £4000 (2022) Halifax – Split the Lloyds and balancing debt between this and Lloyds
4th credit card £5850 (July 2024) Capital One – Tried to consolidate debt
5th credit card £1500 (July 2024) Barclays
6th credit card £10,100 (September 2024) Used to consolidate all debt into one and maxed out only making minimum payment
Not sure where to begin but I cannot continue with this looming over me, any advise is massively appreciated.
Sara (Debt Camel) says
The dates are when the card was opened?
The balances are your current balances? So about £27,000?
Are the current minimum payments unmanageable or are some 0%s ending and you can’t get more?
Lena says
The dates are when they were opened and my most recent one has 15-20 months interest free on it.
From transfer balances and moving money between the latter ones. I’ve got about £14,000 now but according to my credit scores I can still take out more credit cards (mind blowing) and my score actually increased wildly too.
Sara (Debt Camel) says
So for a card that was originally 0%, but which has now been has been closed or has no balance as you transferred it before the interest started, you can make a complaint and ask for the original BT fee to be refunded. It won’t be much, but every £100 helps?
If a card that was at 0% is now charging interest, you can make an affordability complaint ans ask for the interest to be halted and the BT fee refunded.
But if most of your balance is currently at 0% and you cannot increase the payments to them, then the best option is a debt management plan from Stepchange https://www.stepchange.org/how-we-help/debt-management-plan.aspx. That ensures no interest is added and lets you pay a lower amount.
James says
Hi I’m currently going through the ombudsman process (seemingly successfully so far) and have got a question about credit scores.
Clearly as and when missed payment marks or defaults are removed from my credit score my current credit score will go up. Do lenders (thinking mortgage in the future) look at your credit score historically too? If so will my historic credit scores also get updated to reflect the backdated removal of negative marks?
Hope that makes sense
James
Sara (Debt Camel) says
It isnt possible to look at someone’s historic credit score.
But if a lender removes a default, all the months where there was a D showing are then changed to not have a D. Some lenders see this as too much of a nuisance and they then just delete the debt that had been defaulted.
Molly o says
Can I put through a claim even if it has went to a debt collection company.
Does this work for pay day loan company
Sara (Debt Camel) says
yes you can.
which lender and how much did you borrow? If there were several loans, can you say how large each of them were?
what other debts do you have, most people who have to use a payday lender are already in a mess, so you may well be able to win affordability cases against some of the other loans, cards etc as well.
Courtney says
Hello there
I had a credit card account with vanquis bank from 2014. Ended up in a financial mess. Lots of credit increases, missed payments, extra loans needed to pay my monthly payment etc. now in a DMP. I have complained using your template (thank you so much). They’ve sent a final response stating it’s over 6 years old so they won’t take it further. I’ve now complained to FOS but is it a waste of time considering how long ago it was.
Sara (Debt Camel) says
did they increase your credit limit? if so, when was the last increase?
how far back can you get your bank statements?
How long ago did your DMP start?
Courtney says
They increased it 5 times., within 2 years. The last increase was nov 2016.
And I can get bank statements from this time period also. Thank you
It started 2021. This debt was included, it was passed to a debt collection agency due to missed payments and defaults
Sara (Debt Camel) says
Has it been sold to a debt collector? Or passed to one to collect on behalf of Vanquis? What is the current balance?
Court says
Sorry yes I mean they collect for vanquis now. Vanquis passed it on
Sara (Debt Camel) says
So this is worth sending to FOS as you have the old bank statements.
Mary says
I have just seen this information, and interested in making complaints. However, I was in an IVA which was successfully completed. I’m assuming I can’t do anything?
Sara (Debt Camel) says
do you want to complain about the debts that were in your IVA? or any afterwards?
Sara says
Hi
I stumbled upon this whilst looking for something else. I was able to get a credit card when in the middle of an IVA, subsequently defaulted on it due to the cost of living crisis. After reading this I wrote to the credit card company to complain. They have upheld the complaint and are arranging for the default to come off my credit file plus giving a refund just shy of £700.