If a loan is deemed unaffordable, borrowers may be entitled to redress, such as a refund of interest or fees, or adjustments to the terms of the loan.
🔥 IRRESPONSIBLE LENDING — KNOW YOUR POWER
⚠️ WHAT IS IRRESPONSIBLE LENDING?
Irresponsible lending is when loans or credit are given without proper checks to see if repayments are realistically affordable. Imagine spotting a lifter who’s struggling with the weight — the right support matters. The FCA has clear rules in place to protect consumers from this.
Here are some key points to know:
- Affordability checks: Lenders should check you can repay without it affecting essential costs like bills, food, or rent.
- Consumer Credit Act 1974: This law helps protect you when it comes to loans, car finance, and more — so knowing your rights is important.
- If things go wrong: If you feel affordability checks were missed, you can raise a complaint and, if needed, contact the Financial Ombudsman Service (FOS) for independent help.
If your borrowing feels unmanageable, there are steps you can explore — including asking for a review, requesting clearer terms, or making a formal complaint. These tips could help you better understand your options and regain control of your finances.
🔥 AFFORDABILITY COMPLAINTS — TIME TO TAKE CONTROL!
🤔 WHAT’S THIS AFFORDABILITY THING?
Regulators say lenders gotta check if you can afford the credit before they give it to you. Simple. Here’s the lowdown:
- Before You Get Credit: Lenders must check your cash flow — how much you earn, spend, and owe — before signing you up.
- If They Boost Your Limit: They better double-check that you can still handle it before upping your credit game.
- What “Affordable” Means: You shouldn’t be left broke after repayments — bills, food, and other debts come first.
- Warning Signs: If you’re borrowing just to pay other debts or living paycheck to paycheck, that’s a red flag.
- Paying Minimums: Fine short-term, but dragging that out means trouble.
⚠️ READY TO FIGHT? HOW TO COMPLAIN LIKE A PRO
Why Complain?
If your lender ignored your struggles, raised your limits with zero checks, or kept you trapped — you’ve got a fight on your hands.
Get These Ready:
- Credit Limit Increases: No exact dates needed. Just say how many times they bumped your limit up.
- Your Credit Report: Grab a free TransUnion report or similar — proof of your money situation.
- How to Submit: Email is king — keeps it official. Include your account info, DOB, and registered email.
💡 DON’T FORGET THESE THINGS
- Accounts Matter: Whether your account’s open, closed, or sold — you can still complain.
- Old Stuff: More than six years? Harder to prove, but the Ombudsman might still listen.
- Serious Debt? If you’re overwhelmed, look into debt management plans to get back on track.
- Refunds: Usually, you get back what you overpaid in fees and interest.
👎 GOT REJECTED? HERE’S WHAT TO DO
- If your complaint gets shot down or you get a tiny refund, don’t quit. Take it up with the Financial Ombudsman Service — they’re the referee you need.
