How to get a refund on store and credit cards
⚠️ CREDIT LIMIT REVIEWS — CHECK IF YOU’RE AFFECTED
🧠 INTRO: WHEN CREDIT LIMITS KEEP RISING
Store cards, catalogue accounts, or credit cards can be useful, but if your credit limit was increased several times without checks on your situation, the borrowing may have become difficult to manage. If this happened to you, it could be worth reviewing your account history and raising it with your lender.
“If your credit limit went up several times while your debt kept growing, it may be worth looking more closely at how that was handled.”
📣 HOW TO RAISE A COMPLAINT
If you’re concerned about how your credit limit was managed, here are some practical tips:
- 📁 Gather your documents:
- Statements showing when your limit was increased.
- Credit reports showing how your borrowing changed over time.
- Letters or emails from your lender relating to account changes.
- 📬 Contact your lender:
Write or email your lender’s complaints team. Be clear that you are raising a formal complaint about how your credit limit increases were handled.
- 🧾 Set out the facts:
- When you opened the account.
- Your starting credit limit.
- Each increase — with dates and amounts if possible.
- How the increases affected your ability to manage repayments.
- 📂 Keep records:
Save copies of your complaint, supporting documents, and the lender’s response. This will help if you need to escalate further.
- ⚖️ If unresolved:
If you’re not satisfied with the response, you can refer your case to the Financial Ombudsman Service for an independent review:
💡 AFFORDABILITY CHECKS
Lenders are expected to consider affordability before increasing limits. It may be worth noting if:
- Your income was low or irregular.
- You already had significant existing debts.
- You had missed payments or charges on the account.
- Your limit was raised despite signs of financial difficulty.
🎯 MAKING YOUR CASE STRONGER
When raising a concern:
- Stick to the facts and provide dates and figures where possible.
- Be clear about how the limit increases affected your ability to repay.
- Keep your explanation structured and focused on affordability.
❌ WHAT IF THEY SAY NO?
If your lender rejects your complaint or you’re not happy with the outcome, you have the right to take it to the Financial Ombudsman Service. You usually have 6 months from the lender’s final response to do this.
This content is for general information and tips only. It is not financial advice. For guidance specific to your circumstances, please contact your lender or the Financial Ombudsman Service.
Affordability Complaints
What is “Affordability”?
Here’s a summary of the regulator’s rules:
- Checking Affordability at Application:
- Lenders must assess whether credit is affordable before approving it.
- The level of scrutiny depends on the type of credit. For instance, a mortgage application might require bank statements, whereas a £200 catalogue credit may need less detailed checks.
- Reassessing Affordability for Credit Limit Increases:
- Lenders should carry out new checks before increasing a credit limit to ensure it remains affordable.
- Defining Affordability:
- Credit isn’t affordable if repaying it leaves you without enough money for essential expenses, bills, or other debts.
- Signs of Unaffordable Borrowing:
- Relying on further borrowing to make ends meet—such as using a credit card to pay for necessities after making the minimum repayment—indicates the credit is unaffordable.
- Repayment Within a Reasonable Timeframe:
- Repaying only the minimum amount is acceptable for a short time but not over an extended period.
How to Complain
Reasons to Complain
You may have a valid complaint if the lender failed to recognize affordability issues. Consider these situations:
- At the Time of Application:
- Your credit record showed recent problems (e.g., missed payments, defaults, payday loans, mortgage arrears).
- You already had an account with the same lender, where you were only making minimum payments or using it for essential expenses like food or fuel.
- You were close to the limit on other credit cards or had persistent overdraft use.
- Your total borrowing was disproportionately high compared to your income.
- When Your Credit Limit Was Increased:
- Lenders should not increase limits if:
- You’ve only been making minimum payments for a prolonged period.
- You’ve used most of your credit limit for an extended time.
- Gambling transactions appear on your account.
- You’ve missed payments or entered into payment arrangements.
- Your overall debt has significantly increased on your credit report.
- Lenders should not increase limits if:
What You Need to Start Your Complaint
- Details of Credit Limit Increases:
You don’t need specific dates; stating “my limit was increased several times” is sufficient. - Credit Records:
Your current credit report (e.g., a free TransUnion statutory report) can help demonstrate pre-existing issues, even if you can’t access historical scores. - Complaints Process:
- Best Method: Submit your complaint via email for a clear record.
- Include your account details, date of birth, and the email address linked to the account.
Template for Complaints
- Start with Account Details:
I want to complain about irresponsible lending by you for my [credit card/catalogue] account [account number]. My date of birth is [dd/mm/yyyy], and the email address I used for this account was [your email].
- Explain Why the Account Was Unaffordable:
You should never have allowed me to open an account with such a large credit limit. When I applied in [year], my credit record would have shown [examples of financial difficulties, e.g., recent defaults, missed payments].
- Highlight Issues with Credit Limit Increases (if applicable):
You should not have increased my credit limit in [year]. At that time, I was [examples: making only minimum payments, using a high percentage of my limit, showing financial problems on my credit record].
By increasing my credit limit, you worsened my financial situation instead of offering help. For example, you could have frozen interest charges.
- Request a Refund:
I would like you to refund all the interest and charges from [specific date or the account opening], and I request that any late payment or default markers be removed from my credit records.
- Request Specific Details:
Please provide the dates and amounts of any credit limit increases in your response.
Points to Consider
- Timing:
Complaints can be made for open, closed, or sold accounts, including those with CCJs. If the account is older than six years, the Financial Ombudsman Service (FOS) may still consider your complaint if you’ve only recently learned about this process. - Evidence for Old Accounts:
Complaints for issues over six years old may be harder to support, but the FOS can decide whether to investigate. - Debt Alternatives:
If your financial problems are significant, consider debt solutions like a debt management plan (DMP). Contact National Debtline for advice. - Refund Expectations:
A refund typically covers interest and fees. If the balance owed is greater than the refund, consider asking if the debt collector can produce a valid Consumer Credit Act agreement for the account, as unenforceable debt cannot be pursued in court.
Responding to Rejections
- Rejections:
Lenders often reject complaints or offer low refunds. If you believe your
