Have you had a Credit Card,
Store Card or Loan?
You could claim £1,000's back in compensation!
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What Is Unaffordable/Irresponsible Lending?
If you've taken out a loan, credit card or store card, or your credit limit has been increased, or you were encouraged to apply for further borrowing, then you could be owed compensation.
Lenders are required to make appropriate checks, in accordance with industry practice and guidelines, to ensure that any borrowing you take will be affordable and not place you in financial hardship. If you've struggled financially as a result of making your monthly repayments, or have only managed to usually pay the minimum repayment amount, then the credit may have been unaffordable. When you're unable to complete repayments, your credit score suffers. By making a claim for unaffordable lending, a successful claim compensates you for the losses and could remove any negative information from your credit history.
How Does Affordability Work?
Before you're given a credit card, store card or loan the lender should look at your income and regular expenses. This information, along with details of other debts you may have, is used to determine if you can afford the new monthly repayment. As a case in point, guarantor loans need the affordability checked for both the main borrower and the guarantor. If the agreement proves to be financially manageable, you can afford the loan. If not, the lender should refuse to lend to you.
How is Unaffordable Lending Helpdesk Paid?
What Issues Count?
With unaffordable lending, some or all of the following issues make you eligible to make a claim:
No affordability checks took place
You have been unable to pay your bills or mortgage payments
You took out an additional loan to pay the first one back
The lender didn’t clearly explain the risks involved with further borrowing
The fees and charges were not made clear
You were encouraged to borrow more money for a better deal
The lender did not take into account personal circumstances
Debt consolidation was offered by your lender with additional credit
The lender kept increasing your credit limit
Your balance was close to (or exceeded) your credit limit
You are/were in a cycle of debt
See If We Can Help
Unaffordable Lending Claims are covered by our No Win, No Fee service. If there is no refund, there is no charge for the service. You don't need any documents, we will get all the account paperwork from the lender.Start Your Claim
Frequently Asked Questions
Are unaffordable lending claims No Win, No Fee?
They are. If your claim is not successful, or there is no refund due, then you won't be charged a penny. You only have to pay if your claim succeeds.
What happens when a claim is successful?
When an unaffordable lending claim is successful, you should receive a refund of interest and charges associated with the borrowing or limit increase.
If a balance is still outstanding your refund will usually be used against this and if there is any remaining refund after this, this will be paid to you.
A lender may choose to close an account following a successful claim.
Will a claim affect my credit score?
If an unaffordable lending claim is successful, the negative data caused by the account may be removed from your credit report. Your credit score will not be affected by making the complaint initially.
Can I stop repayments when I make a claim?
You shouldn't stop paying towards your account if you've made a claim for unaffordable lending. Stopping payments could cause you to incur charges and missed payments or a default on the account will show on your credit report.
If you cannot afford to make your payments you need to speak to your lender.
What happens to my account whilst it is being investigated?
If your account is still open the lender may suspend it's use whilst they investigate your claim. The lender may also review your credit limit and discuss with you a more appropriate borrowing level.