What is irresponsible lending?
Before lending, or raising a limit, lenders must check you can afford to repay without hardship. If they didn’t, or ignored signs you were struggling, the lending may have been irresponsible.
Where a complaint is upheld, the Financial Ombudsman usually tells the lender to refund the interest and charges, add 8% simple interest a year, and remove negative entries from your credit file.
Overdrafts
Left in your overdraft for months, or the limit kept going up.
Credit and store cards
Limits raised while you were only making minimum payments.
Payday and short-term loans
Repeat loans, or borrowing to pay off the last one.
Personal and guarantor loans
Loans that left you short each month once paid.
Catalogue accounts
Credit that kept growing while you fell behind.
Car finance you couldn’t afford
Separate from commission claims: payments that were never affordable.
Who are CreditRights?
CreditRights is another trading name of Claim Simple Ltd, the FCA-authorised claims management company (830182) behind Check Finance. It checks which of your credit agreements could be claimed for and connects you with a firm to handle the claim.
Is this the same as a car finance commission claim?
No. A commission claim is about how your car finance was sold. An irresponsible lending claim is about whether the lender should have lent to you at all. You can have both.
Can I claim if I’ve paid the credit off?
Yes. Claims can cover credit you’ve paid off as well as credit you’re still paying, usually going back six years, or longer if you only recently found out you could complain.
Do I have to use a claims company?
No. You can complain to the lender yourself, then to the Financial Ombudsman Service, for free.