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?
For some people the limit was too high at the start. Others were originally given an OK limit, but the lender kept increasing it. or it was OK while the 0% offer lasted, then unmanageable.
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 similar 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;
- often taking cash out on the card;
- 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 had 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 so it doesn’t help your complaint by listing them.
How to complain
The email address to use
The best way to complain is by email.
Find the email address 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 any 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.
Put this in if you don’t know some details
I do not know the exact months when the account was opened or any credit limit increases or decreases. In your reply to my complaint, please tell me the dates and amounts of all limit changes, even if these happened over 6 years ago.
Then say IF 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. 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.
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 payments to you in 2023
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 and not deafulted 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 2017 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 asking for this rather tyhan making an affordability complaint.
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. But 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! The increase should not have been offered 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?
Tim says
If I win a unaffordable credit card claim with lots of cash withdrawals,can I claim the ATM withdrawal charges the credit card provider charges for the money out of the cash machine?. I.e. £3 pounds for every £100 pounds withdrawn. Thanks
Sara (Debt Camel) says
yes, that normally happens
Tobias says
Hi Sara,
What does this mean in practice for my redress. still waiting for Ombudsman to review
Tesco should remove the unfairness caused by doing the following:
Re-work the account so that all interest, fees and charges applied from 18 December 2017 onwards (over £2,100) are removed.
AND
If an outstanding balance remains on the account once these adjustments have been made, Tesco should contact the customer to arrange a suitable repayment plan. If it considers it appropriate to record negative information on the customer’s credit file, it should backdate this to 18 December 2017.
OR
If removing all interest, fees and charges results in there no longer being an outstanding balance, then any extra should be treated as overpayments and refunded to the customer, along with 8% simple interest on the overpayments from the date they were made (if they were) until the date of settlement. If no outstanding balance remains after all adjustments have been made, then Tesco should remove any adverse information from the customer’s credit file.
…………..
in 2017 it was already increased to 5,100 although the date of the first increase was November. Then in 2018 February it increased to 6,100. The balance more or less stayed at around these levels.
I cleared in December 23 the balance but then by September 24 re borrowed the same amount even though Tesco new I had an affordability complaint raised. Funnily enough by March. 25 they decided to not renewal my card and the. Subsequently defaulted.
Total repayments made from 2017 dec to now was approximately 34k. Including from 2016 would be 38k.
Based on my understanding if they reworked the balance for when I paid back 2,100 that would be April 2018 of which case I’m looking at 50ish k in redress including the 8%. Is this correct? And this is if it was calculated from the date the ombudsman said.
Sara (Debt Camel) says
I am still trying to work out what the reference to £2,100 in the decision is.
Was the balance increased from 2100 to 5100 in November 2017?
Looking at what you have repaid will not help at all in working out the refund because it is only the interest that is refunded not any amounts that were repaying what was borrowed. And , depending on the answers to my question about the limit changes, you may only get a portion of the interest back.
Tobias says
Hi Sara
The 2,100 relates to the initial credit limit given. It went up from 2,100 then to 3,000 then in November 2016 it went up to 5,100 and 2018 6,100
I stated in the complaint that I thought 2,100 was acceptable lending and that I was complaining about the limit increases of 5,100+ of which lead the the ombudsman rejecting then upholding my complaint. I did also try to argue about being a student and not having letters as I was away for majority of that balance increase as they said I should have known.
I also sent an email to the ombudsman to ask why Tesco escalated the case for final review and he mentioned because they have a different legal interpretation of things. I calculated if it’s included 2017 period then it adds more to my redress and I calculate roughly 50-70k back
They are treating the 2,100 as acceptable lending but the increases not
Sara (Debt Camel) says
You won’t get 50k back.
You are looking at the amount you have Repaid. A lot of that will be repaying what you borrowed, this will not be refunded.
Instead you need to look at the interest paid each month. And if the investigator is saying 2100 is acceptable, then you will not get the interest paid on the first 2100 refunded. So if in a month your balance was 4200 and you paid 80 in interest, you would get half that interest refunded
read the decision, that’s what it says. This will probably still be a very decent refund, don’t be disappointed if it’s not enormous
AQ says
Hello,
I sent an irresponsible lending complaint to barclaycard to wandim.execcomplaints@barclays.com and it didn’t bounce back, does it mean it has gone through , I know you have written that if doesn’t it means it went through. Just wanted to make sure? Complaint is about May 2016 for £6400 limit but had nearly 30k debt already with car finance agreement started in February 2016 and nearly £10k gambling transactions in one month , most probably will need to refer to FOS let’s see 🤞
Sara (Debt Camel) says
Do you have your bank statements for that time?
AQ says
This email address worked and have received complaint reference. Yes I have sent them all the bank statements from Lloyds which had all the credit card payments and gambling transactions. Also sent them Barclays account statement as well to make a point that only a couple of hundred went into Barclays per month so they had no clue about my finances. Thank you
AQ says
just realised I made first complaint to 118118 money and it was a loan. It went to FOS and I won it. It was in July 2022 and that’s more than 3 years ago and FOS knows that I did know about irresponsible lending complaints. Am I out of even 3 year rule ?
but then again I didn’t know about credit card complaints till late 2023 early 2024
Olivia says
Thankyou so much for your template, I have just sent it off to a couple of my creditors and hoping for a successful reply. I have a query about 2 credit card accounts I hold with Lloyds, I have held my current account with Lloyds for 10+years and not keen to change, I still have debt I’m paying off on the 2 cards, will the complaint affect my normal banking account with them?
My second query; I’m already on track to pay off one of the cards this year and they have said when the balance hits 0 they will close my account due to the persistent debt, are the complaints sent off likely to trigger this kind of response from other lenders and if so wont the sudden decrease of available credit of my overall credit affect my score?
Sara (Debt Camel) says
Complaining to lloyds about credit cards will not affect your bank account.
And it won’t affect your credit record if you carry on making the normal monthly payments as they go through.
“Persistent debt” letters and subsequent decisions are triggered by rules set by the regulator. Lender X will only send these letters when the rules says so, and at that point they have no option to not send them… So lender X won’t send these letters because Lloyds has sent one. Nor if you complaint to Lloyds – lender X will not know you have done that. Nor if you complain to lender X itself.
Nara says
Hi Sara,
Thank you so much for your IL template. I raised my complaint with the Financial Ombudsman Service in February and it was upheld last month. NewDay agreed to the findings and were due to contact me by tomorrow with my refund. Based on the Ombudsman’s instructions and my payments since 2022, the estimate is around £15,000.
Instead, NewDay have delayed for a month and even passed my details to a debt collection agency while the case is still active. Today the Ombudsman told me NewDay claim they have completed the rework, but the figures they have provided are completely incorrect. They are saying I still owe over £6,000 and will only receive a refund of £3,055, despite the fact I have paid them over £17,000 since January 2022. Their calculation does not match the Ombudsman’s instructions at all.
I have gone back to the Ombudsman to request a full breakdown and escalation. If you have any advice for situations where lenders behave like this or appear to be deliberately miscalculating refunds, I would really appreciate it.
Thank you again for your help.
Sara (Debt Camel) says
the refund will only be of interest and charges, NOT the full amount of the payments you have made, as much of them will have been repaying what you borrowed.
How large are your other debts?
Nara says
Hi Sara,
Thank you for your reply. In my case the Ombudsman has capped my balance at £2,450 from January 2022 and ordered NewDay to remove all interest and charges above that, then apply all my payments and refund any overpayments with 8 percent interest. I have no other debts, just this one account which had a £7,000 limit and a £6,000 balance before the decision.
Brandon says
This sounds like my complaint as well. But Tesco did not agree and now i’m stuckin a judical review hold!!!!
Daisy says
Hi Sara
After reading a few of the comments and your information. I think this would really help me.
Wondering if this is something I should do?
I currently have debt of £11,700 spread amongst various cards the most being to Natwest at £8,200 on two different balance transfer cards.
I had already had one balance transfer card from Natwest that I got back in 2023 which was at an okay time but since then I have had more credit cards and my balances on debt haven’t dropped any lower.
Back in June I applied for another balance transfer card for £6000 with Natwest and I believe that due to my history of multiple other cards and being unable to pay off the other Natwest card fully and only making minimum payments on it they shouldn’t have approved me for this card.
Would this be an appropriate complaint? I am also going to call them tommorow for a financial health check as my mental health has worsened due to all of this debt.
Sara (Debt Camel) says
are you currently paying interest on these natwest cards?
Daisy says
Yes! the one that I got back in 2023 I have paid over £1200 in interest and the balance is still around £2900 despite the limit being £3500!
The second card that I took out in June is currently interest free and I can’t remember when it ends!
Daisy says
Yes! I am paying interest with monthly payments coming up to £150!!! the newest card is currently interest free.
Sara (Debt Camel) says
ok so make a complaint about all of them
Jules says
Hi Sara,
Barclaycard suspended my credit card 2 years ago due to persistent debt. I have been paying the minimum payments since but they are still charging me interest each month on the balance making it hard to pay off. The day in which they called me to suspend it, they stated they would reduce the interest rate but didn’t. they gave another option to remove the interest rate entirely and that this would impact my credit file I told them to choose the option that doesn’t impact my credit file.
I got busy with life and didn’t check and struggle with various mental health issues including adhd. when checking the statements I saw that they have been charging interest ever since. I Called them and said that there should’ve been a reduction in rate as it’s charging me 22% but they said there was no record of this. I asked them to check the phone call and they said they can’t access it or they can’t see any notes to suggest that I requested the reduction in rate. I quite clearly remember them givign me the 2 options and choosing the one in which would not impact my file and pay off the card.
How can I get them to refund the interest?
the balance left to pay is £700 .
Sara (Debt Camel) says
That may be hard if there is no evidence.
Have you looked at making an affordability complaint? Win that and some or all of the interest may be refunded. See https://debtcamel.co.uk/refunds-catalogue-credit-card/
Jules says
Ok thanks will try that.
Can you do affordability complaints on credit cards that have been defaulted and bought by a debt collector?
MBNA, AMEX and Halifax credit card
Sara (Debt Camel) says
Yes, the complaint still goes to the lender, not the new creditor
But how long ago were the defaults?
Jules says
They were 2 years ago. I’ve paid some small payments to them already
Sara (Debt Camel) says
That’s fine, if they defaulted a long time ago it would be hard to in an affordability complaint, but only 2 years shouldnt be a problem. get the complaints in soon, don’t delay
Alice says
Hi Sara, I used your template to send an email to Lloyds Bank to complain about an unaffordable credit card approved in October 2024 with a large limit when I already had an overdraft, 4 other credit cards and a personal loan. They denied they did anything wrong so I took it to the Ombudsman. While they were investigating, Lloyds admitted responsibility and have agreed to refund interest, the balance transfer fee, allowed me to pay off the balance interest free, and they will remove all negative information once the balance is paid off.
Thank you for your website and your guidance.
Alice
Sara (Debt Camel) says
That is a good result!
Jim says
I accumulated a large amount of debt £75k to be exact, ended up drowning in interest and robbing Peter to pay Paul, compounded by overdraft charges and late fees etc.. eventually I couldn’t cope anymore and was struggling with everything.. thankfully an IVA probably saved me… which I have not long entered into but now having had the time and space to look back at the last 5 years I am fairly sickened by the fact I feel I was taken advantage of and ultimately nearly destroyed me and my family and I have the energy now to get some recourse and fight back a bit. Does the IVA mean that I have zero rights to make affordability claims? Thanks.
Jim says
Hi Sara,
Currently £600 per month.
Thanks
Sara (Debt Camel) says
How much are you paying to the IVA each month?
will you be getting a substantial write off at the end of the IVA from the 75k of debts?
Jim says
Currently £600 per month
Around 40% I believe. Although most of the creditors had already made their money back in interest payments.. my overdraft was probably costing me £50/£60/£70 a month for about 10 years (it was only 1k and £700)
Sara (Debt Camel) says
So you can make affordability complaints in an IVA,
BUT it isn’t normally worth doing this. Because if you win a complaint about a debt in the IVA, the balance just gets reduced. And if there is any surplus, this gets paid into the IVA.
This doesn’t change why you pay in a month and it won’t mean the IVA ends sooner UNLESS you repay all the reduced debts in full plus the IVA fees.
You may think you will… but in a lot of cases including most overdraft cases, you can only get a refund for the last 6 years, and for credit cards it may be only a partial refund if earlier credit limits are considered affordable.
It is very rare for someone to actually have their IVA end earlier because of this. You can try if you want, if you do, do not delay and start by getting your bank statements going back as far as you can as these will be needed at the ombudsman.
Daisy says
Hi Sara!
I have tried to complain to Barclays about my credit card twice as they know about my struggles but everytime I use their chat feature. The chat goes offline but everytime I check on their website it says the app is running fine. What can I do? It feels as if they are doing it on purpose at this point. I don’t want to have to call them as I struggle on the phone due to anxiety.
Do you know of any emails for their company?
Sara (Debt Camel) says
The article above these comments has a link to a page with email addresses for banks and credit card lenders.
AQ says
Anyone whose complaint has been rejected by their lender and are planning to send it to FOS, don’t delay and send it before 1st January 2026. Complaints sent on or after 1st January 2026 won’t be eligible for 8% interest if complaint is upheld by FOS which in some cases £1000’s in interest. It will be Bank of England base rate + 1% . Sara can shed more light on this if I got something wrong.
lou says
hi sarah, i currently am under a debt management plan but i do believe i was loaned to irresponsibly as i had a bad credit score, multiple loans and credit cards all while on universal credit with a small income. does my dmp effect my ability to apply for these? should i get in contact with the company handling my dmp first to discuss it with them?
Sara (Debt Camel) says
when did the DMP start? who is it with?
Carron says
Just wanted to say thank you for your help, earlier in the year I received £1200 back from a Sainsbury’s credit card and I’ve just had the Ombudsman uphold my complaint with Virgin Money for a credit card, Virgin rejected my complaint so the investigator sent it to the ombudsman who have made a final decision that all interest should be refunded to me. Honestly you have been so helpful. Thank you!
Laura says
Hi Sara,
I have debt spread across three cards currently and unsure a) which to complain about and b) what refund to ask for.
My original debt stems from my first card (Tesco) which is about £3,800 and the 0% ended about 2 years ago
My second card (Virgin) I opened to do a 0% transfer away from the Tesco debt. This is at around £5,000 with a second 0% offer running out in June 26 (they seem to offer me new 0% offers all the time – very bad!)
My third card (Santander) I opened last year to do a 0% transfer as the first Virgin 0% offer had ended. This card has about £7,000 on it but the 0% offer is running for another 18 months.
I think with Tesco I can ask for refund of interest however I’m not sure what I would be asking Santander / Virgin given those cards are still 0% interest?
Thank you in advance!
Sara (Debt Camel) says
If you paid interest on the Tesco card, complain about that. If you haven’t yet paid interest on the others, wait until the 0% deal runs out and complain then if you cannot refinance it.
If you are struggling to afford the low minimum payments when they are at 05 interest, talk to Stepchange abut a debt management plan.
Pamela says
Hi!
My OB ‘ checked ‘ my case and closed it within less than 24hours. I want to complaint regarding the service. Is below OK to send ?
I am writing to raise a complaint regarding the handling of my recent case, which appears to have been completed without adequate review, due diligence, or reasonable investigation.
The case was marked as completed within less 24 hours, despite the information clearly needing further clarification and supporting evidence. For example, the assessment referenced expenditure of £1,488 against an estimated post-tax monthly take-home income of £1,641.25. These figures alone should have prompted further questions, as they indicate an extremely narrow margin that would materially affect any fair outcome.
However, no additional information was requested from me. I was not asked to provide bank statements, details of other accounts, or any further documentation that would have allowed you to build a full and accurate picture of my financial situation. This lack of follow-up suggests the case was concluded without the level of scrutiny or fairness that I would reasonably expect from the Ombudsman.
Thank you for re-visiting how the case was handled.
Sara (Debt Camel) says
It is a pity you did not provide the bank statements and a credit record at the start. or at least when you were sent the investigator’s decision. The investigaor should have asked if you accepted the decision or wanted the case to go to an Ombudsman, did they?
Pamela says
Hi,
I’m so confused- so the investigator admitted they didn’t check my bank statements ? My credit card was for £3500
Dear Pamela
Thank you for email, I can confirm safe receipt. I have considered your points raised however as previously stated, I do think the level of checks completed by the business went far enough. Therefore, I don’t think it would have needed to complete further checks such as reviewing bank statements prior to lending due to the size of the credit limit provided. And whilst I understand that you feel that such a review may have revealed that you were experiencing financial difficulty, I don’t think the checks the business needed to carry out would have revealed such information. I can confirm that I have received your bank statements, and they have been attached to your complaint however, I won’t be reviewing them as part of my investigation as I don’t think the business needed to obtain this information from you at the time of application.
I can progress your complaint to final decision should you still wish and should the ombudsman wish to review the bank statements as part of their final decision, they will be able to do so.
Sara (Debt Camel) says
Ok say you want this to go to an Ombudsman
Rachael says
Hi Sara,
I have raised 4 affordability complaints (Virgin, Sainsbury’s (now Natwest), MBNA and Amex).
Still waiting on MBNA and Amex, but Virgin and Sainsbury’s, the initial investigator has upheld my complaint that the credit limit increases were unaffordable. However, their proposal for resolution is that the banks refund only the interest on balances above the limit increase amount (e.g limit was increased to £9000, they would only have to refund the interest on anything over that, so on a £10k balance only the interest on the top £1k would be refunded).
As this is different from the wording used in your template for a suggested outcome, I just wondered if it is worth pushing back on this and re-stating that I want all interest from the date of the increase refunded, or if this is best case scenario anyway and to accept?
Thanks
Sara (Debt Camel) says
was the account opened with a 9k limit? how long ago was that?
Rachael says
Hi,
Yes £9000 was the opening limit in Jan 2021, then increase was to £11,700 in Nov 2022. The investigator said reasonable checks were not carried out at opening, but had they been, they would have found it to be affordable (not sure I agree with that).
Thanks
Sara (Debt Camel) says
A “partial refund” decision is pretty common.
But you should be challenging that the original limit of 9k was affordable. Have you supplied a credit record and your bank statements?
Rachael says
Hi,
Ok thanks good to know. And yes I have done. They had made some incorrect assumptions about household finances so I have corrected that and asked them to re-look at the affordability of the original limit as I’m pretty certain is was not affordable.
Is it ever worth escalating to an ombudsman to try and get a full refund rather than partial, or is that best case scenario if the original lending is deemed affordable and only a subsequent increase is unaffordable?
Thanks
Sara (Debt Camel) says
It’s only worth escalating if you want to challenge the previous limit, which in your case was the original limit.
AQ says
I sent irresponsible lending complaint to Barclaycard on 24th November and received acknowledgement via text with case reference within couple of hours. On 27th November they sent email saying they will come back no later than 9th December. Now they sent another email to say till 29th December. ChatGPT is saying I can escalate to FOS now as Barclays missed their own set date but uncle Google is saying otherwise. Can I escalate now or do I need to wait 8 weeks or frl.
Sara (Debt Camel) says
As my article above says, you have to wait until 8 weeks (unless you get a decision from the lender before then).
Neither chatGPT nor Google can be relied on for these complaints
Ruth says
Just want to say a huge thank you for your information on Instagram and this website! I didn’t know where to start with an affordability complaint but your letter template and information made this process so easy. I have just received a letter from the Bank of Scotland confirming that the continuous credit card limit increases from £2,500 in 2013 to £12,000 was unaffordable and they are refunding me £7200 for the interest and changes. This is a huge help for me in reducing my debts which have spiralled with the large credit limit. Thank you!
Sara (Debt Camel) says
Excellent!
John says
I have 2 complaints with FOS regarding Cashfloat/western circle. The default date complaint has been upheld by adjudicator so i had reached out to the lender saying if they accept then i can pay the balance tommrow and also i will withdraw my irresponsible lending complaint. They said they will push for final om ombudsman decision on both complaints.
How can they tell me via email they will push for final decision on both complaints when one of them had not even been decided? They have preemptively decided to prolong this on purpose. Should i send those comments to the ombudsman? Because i feel this shows their lack of professionalism and seriousness in dealing with the complaint so they just prolonging it on purpose.
Could i also seek more compensation as FOS recommended £100 for the default part.
Sara (Debt Camel) says
if a lender wants to go to the Ombudsman, that’s what will happen. I can’t see you have been harmed much by this.
OE says
Hi Sara, Could i get your advise on a couple things please?
Paypal have offered a goodwill gesture of £200 to help reduce my balance, will accepting the £200 affect my claim to FOS, it doesn’t sit right with me that by their own assessments, i was unemployed and offered £4000 limit on the account at the time of opening. I have been refunded an amount from Aqua but with the credit limit originally offered and the credit increases not investigated due to the timing, should FOS investigate?
Very/ Shop Direct have rejected my complaint. Is it likely to be upheld by FOS?
Aqua/Pulse (Newday) – combined response
Pulse account had 6 credit increases 2018-2021, stated that the complaint was received more than 6 years after the account was opened but have looked at 2/6 and not upheld the claim
Aqua account had 5 increases 2018-2022, also stated the account was more than 6 years old but investigated i believe 2/5 increases and refunded interest for a total of £1006.33 which has cleared the balance!
Sara (Debt Camel) says
That sounds like one of PayPal’s very poor offers. They are hoping you will take it and give up. I suggest you reject this and send it to FOS.
Pulse, can you list the limit increase dates and amounts? Is this still open if it is what is the balance? Can you list the aqua limit increases and dates as well?
Very seemed to reject a lot of good complaints so if you know this account caused your difficulty, send that to FOS too.
Shell says
I’m so happy!! today I received a reply from Zopa after following all the advice on this page and using the templates to submit an unaffordablilty complaint and they have upheld my claim. It was a £1500 credit card I had for a few years just making the minimum payments each month they have agreed to refund me interest and charges plus 8% interest and remove all markers from my credit file. I am so, so glad I found this page. I’m starting 2026 taking control of my finances and have Sara to thank, she has given me lots of advice “without any judgement” which is really helping the process of me taking accountability and planning my future steps when I’ve spent years with my head in the sand avoiding the reality that I needed some help whilst feeling full of shame and embarrassment. I have several other claims submitted so will update but a massive Thank you Sara i honestly would never have done any of this without your page and kindness
Anonymous says
NEWDAY CREDIT CARD WIN
NewDay initially rejected my credit card complaints for multiple credit limit increases on my Aqua and Pulse credit cards. I sent my complaint to FOS and within two weeks NewDay reopened my complaint and made me an offer of £12,096. Clearing my balances and refunding me the remaining £7k. They’ve been made to pay me inside next 14 days! They will always reject you initially to try and make you go away. Do not let them away with it!! The Ombudsman portal takes 10minutes to fill in and is totally worth it! Thanks to the Camel for the great work on raising this awareness, share it far and wide. NewDay are deliberately refusing complaints when they know they are in the wrong!
Sara (Debt Camel) says
amazing.
And very poor that Newday rejected such a good claim initially. How many people have given up when they got a newday rejection, I wonder…
Hp says
Hi, my complaint has been passed onto ombudsman for final decision as lender has declined to agree with adjudicator. What are the time scales for the ombudsman’s decision please?
Sara (Debt Camel) says
It depends on the case, some (but not all) “over 6 year” refunds can take ages. Under 6 year refunds are generally 1-3 months but can be quicker or longer
Claire says
Hi- I won an affordability complaint with Pulse but did not realise they were owned by New day who I have just put a complaint in for my Marbles card. They upheld pulse but have rejected the marbles claim.
I got the Pulse card in 2020 and the Marbles in 2023- but in 2023 I was already in a self managed DMP and had 7 defaulted accounts. They are saying my income was enough to manage repayments and I accepted all the credit card increases however my bank statements show I was almost always in my overdraft every month so clearly could not afford additional lending. Is this worth going to FOS? I can’t understand how they can agree the Pulse one yet not this one when they are the same company!!
Sara (Debt Camel) says
Yes send this to FOS immediately. It sounds a very poor decision by Newday
K says
Hello! I’m looking to make a complaint to Lloyds and Zopa for irresponsible lending. When I send the initial complaint email, what should I be attaching? Bank statements? And if so, should I only be sending statements for the period in which my applications were approved or do I need to go back/forwards more than that? Thank you :)
Sara (Debt Camel) says
These are both for credit cards? Who was your bank when the accounts were opened nd when there were any limit increases?
Louise says
NEWDAY AQUA CREDIT CARD WIN
I made an irresponsible lending / affordability complaint to NewDay in relation to my Aqua credit card where they continued to increase my credit limit over 5 years. They initially rejected my complaint and I sent it on to the Financial Ombudsman. The FO called me to say that they had not yet had the chance to review the file however as I had took my complaint further NewDay have decided to uphold my complaint and refunded me all my interest paid plus 8% and removed all adverse credit history from my file. I received a refund of £4,200 which cleared my balance. Thank you!!
Max says
Hi Sara,
Just wanted to take the opportunity to thank you, as my irresponsible lending has been successful with CapitalOne and they have given their final response last week that they uphold my complaint and they should have not lend me and also they wiped out the whole balance left and just closed my account of £611 and the default and all missed payments have already been deleted from my credit score. Without your page and advices on this site i would be stuck with this default for 6 years.
THANK YOU
Michelle W says
I used the above template to write to Amex about my card that was opened in 2021 and closed in July 2025, with 3 credit limit increases during a period that this clearly wasn’t affordable to me (continually making minimum payments, living in overdraft). I was delighted to get an email today to let me know all interest and late payment fees are being refunded, totalling £2,355. Absolutely delighted with that a week before Christmas!
Thank you so much!
Dani says
Just received a refund from MBNA of £2046.08 who upheld my affordability complaint and said that I shouldn’t have been able to open the account or have my limit increased. Payment received instantly – I’ve been able to clear my balance and close the account and then take a huge chunk off another card! It’s made a big dent and I’m one step closer to being completely debt free. Thanks for your advice and helpful templates!