How do refunds work for loans and credit cards?
A loan is affordable only if you can repay it at the start without needing to borrow more. For credit cards, the initial credit limit and any increases matter most. You must be able to repay these debts sustainably.
To make a claim on your behalf, we need to understand your circumstances and ensure the lender followed regulatory rules when providing you with credit. We will request information about your borrowing from your credit provider(s). Using the information we collect from them and from you through our conversations or via one of our documents, we will submit your claim(s) and notify you. Once your credit provider acknowledges your claim(s), they have eight weeks to review and investigate our complaint(s). At the end of this period, they should provide us with a Final Decision. If they exceed this timeframe and fail to respond, we will follow up with them and update you.
Next Steps
On receipt of the Final Decision, we will check that the credit provider(s) has considered all complaint points raised. For each successful Claim(s), our Fee(s) of 25%, will be payable. For a defended Claim(s), your credit provider(s) should offer you the right to refer your Complaint(s) to the Financial Ombudsman Service (FOS), which we can process for you, with your Instruction.
For a Claim(s) where the credit provider(s) has exceeded the eight-week time frame or fails to make a reasonable offer of Compensation we can refer your Complaint(s) to the FOS, with your Instruction. We will not use the Court Service and will not risk costing you any money other than our charges, detailed above.
If you have a current debt, you must continue paying it while the complaint is processed; otherwise, it will show as missed payments on your credit report. If we win your claim, your credit report may be cleaned, improving your credit score. Lastly, making a complaint does not show on your credit report.
Can you make a claim?
How much you are owed will depend on your level of borrowing.
We aim to recover all the interest and charges you have paid on the unaffordable / irresponsible lending.
Reasons why your loan(s) or credit card(s) may have been mis-sold
Proper checks not being made on your financial position.
You were given a loan or multiple loans that were simply not affordable and/or suitable.
Your credit limits were increased and you couldn't afford the minimum payments.
The borrowing formed a significant part of your income and impacting your ability to maintain payments on other priority items e.g. rent or mortgage, utility bills (water, gas, electricity) or just day to day living expenses.
You needed to borrow from elsewhere (other lenders, family members) to cover repayments to previous loans, credit card and catalogues.
Lenders who sell too many loans could be in breach of the regulatory conduct.
Not assisting you when you were experiencing financial hardship.