Loans - Payments too high
Who is your issue with?
Explains your rights to you
You'll find no legal jargon in our simple, comprehensive consumer rights sections. Our guidance is tailored specifically for every type of issue.
Helps you prepare your emails
We provide a wide range of flexible email templates for you to adapt to your needs – just slot in the specific details for your case, and in a few short clicks your issue will be ready to go.
Creates a case file for you
Your case file is a secure online location for all important documents regarding your issue. You can upload photos, tickets, copies of receipts or external emails from before you raised your issue with Resolver.
Lets you record all your communications
One of the most important aspects of a complicated issue is keeping a record of all your correspondence regarding the complaint – Resolver does this for you automatically.
Lets you know when to escalate your complaint
If you’re not satisfied with the initial response from the organisation you have an issue with, our escalation process will let you know when you can raise your complaint to the next level of seniority and, ultimately to an ombudsman or regulator, where appropriate.
If your loan payments are too high, you should consider the cause. If there has been a miscalculation on your account you can raise a complaint via resolver; explain why you think there has been a miscalculation, giving as much detail as possible.
If it is because you cannot afford the repayments, contact your loan provider and explain your situation. They are obliged to try to assist you in resolving the issue.
You should also get advice from agencies that are focused on helping you in this situation: these include the National Debt Helpline and StepChange Debt Charity.
You should know
- Any financial organisation is obliged to treat you reasonably. If you feel that any action has been unreasonable, you have the right to make a complaint.
- Ensure that any complaint is marked at the top with ‘Official Complaint’. After eight weeks you can take your complaint to the Financial Ombudsman – resolver will remind you when you can do this.
- Your bank or building society might not respond back via resolver; however, any case submitted by resolver is recognised as an official complaint by the Financial Ombudsman, and your case will be accepted if you are unsatisfied after eight weeks have passed.
- You have the right to claim for your time and the inconvenience caused if your case goes to the Financial Ombudsman Service; it can also award interest at 8%, but this will not be compound interest.
If you have a complaint with your bank, building society or loan provider, you can use resolver to raise and manage the complaint. While not all financial organisations will respond to resolver, they are obliged to take and handle your complaint when it is submitted via resolver. To ensure that your issue is taken seriously, the email template you can use includes the text ‘this is an official complaint’. This means that, if you are not satisfied after eight weeks, resolver will remind you that you can escalate your complaint to the Financial Ombudsman Service.
Loans - Consumer Credit Act
Most hire and credit agreements fall under this Act. If your loan was signed before 6 April 2008, it is only regulated if the amount did not exceed £25,000. If the loan is regulated under the Consumer Credit Act you must be informed about the type of the agreement, the cost of the credit (APR), the amount of payments and when they are due, and how to repay early.
Financial borrowing that is not covered by the Consumer Credit Act includes mortgage, credit union loans, short-term trade agreements and green deal plans.
Check your credit file
Your credit file will determine the rates that you might be offered as a loan. You can check your credit file from the Credit Reference Agencies (Experian, Equifax and Callcredit) for £2.00.
If you have a secured loan and you cannot afford to repay it, your home is at risk. If you are having problems paying the loan, the provider can apply for a Time Order. This is a special order from the courts that gives you time to pay, helping ensure that you can keep your home even if you are struggling to repay the loan.
Cancelling a financial agreement
You can cancel a credit agreement within 14 days of signing for any credit that you have bought over the phone, via post or the internet, or in person. If you cancel you have 30 days to repay the capital and any interest that you have incurred.
You cannot cancel a bank overdraft, a secured loan or a mortgage.
Paying off a loan early
If you wish to pay your loan off early and it is covered by the Consumer Credit Act, you should get a rebate on any charges and interest that you’ve paid. You should contact your credit provider and ask for the early resettlement figure. You then have 28 days to settle, based on the amount stated by your credit provider.
If you pay off more than £8000 in any 12 months the lender might charge you compensation, but this charge is limited by law.
Even though you have asked for an early resettlement figure you do not have to pay off the loan at this point.
You can also do a partial loan resettlement: your rebate will be less than when paying off the full loan, but it might reduce the amount of your repayments, or the length of the loan term.
If you are struggling with repayments
If you are struggling to pay for your loan, your lender will send an arrears notice and an information sheet from the Financial Conduct Authority. Before it can recover any owed monies, it will need to give you a default notice. It needs to have sent you the right information to take you to court.
If you are struggling with any repayments, you should contact the Citizen Advice Bureau as soon as possible for assistance.
Reasonable & fair
All financial organisations in the UK are required to treat you fairly, and to ensure that their actions are reasonable. These are the key principles for any financial product, so ask your friends or family member for their opinion on whether you have been treated fairly – this is a good way to determine if you have a reasonable complaint.
Discrimination is unacceptable as part of the reasonable and fair approach; if you have experienced discrimination, you have the right to make a complaint.
What you cannot complaint about
Issues such as an investment losing money are not covered by the Financial Ombudsman Service, unless you were not made aware of the risk.
Should I use a Complaints Management Company?
Claims Management Companies (CMC) will handle a complaint for you in certain areas, such as Payment Protection Insurance (PPI). A CMC will charge you a fee, which is often between 30% and 40%. However, following the complaints process is something that can be done yourself, and it is unlikely that you will get a better result from using a CMC than by going directly to the company yourself.
Raising a complaint
If you have a complaint, first ensure that it is reasonable; if you believe that it is, you can use resolver to submit your issue. Any complaint from resolver is an official complaint, and the bank is therefore obliged to act upon it; if it’s not resolved, you can take your case to the Financial Ombudsman Service.
In your complaint, ensure that you state your issue clearly and concisely, give information about when the problem happened or began, and say how you would like it to be resolved. The bank or building society may or may not respond back via resolver, but it does have to respond, as your case will be recognised by the Financial Ombudsman Service.
Managing your case
During your complaint you can use resolver to manage your issue: you’ll be able to upload documents, store emails, set reminders and make notes about your case so that you have a complete file to send to the ombudsman.
If your issue is not resolved
If you feel that your issue has not been addressed, resolver will remind you when you can escalate your case to the ombudsman: this is possible after eight weeks.
From which date can I make a claim?
The statute of limitation in England and Wales is six years; in Scotland it is five years. In theory you can make a claim that dates before this, but the probability of winning is considerably reduced.
You must also contact the Financial Ombudsman Service within six months of your last communication with the financial organisation.
Financial Ombudsman Service
The Financial Ombudsman Service will independently assess your case. There is no charge to the consumer for the assessment, but you must wait eight weeks before you can take your case to the ombudsman. An exception to this is if the issue relates to a payday loan, in which case the ombudsman will accept your case immediately, to ensure that you do not experience hardship.
Can I claim for time and hassle?
There is an award in a quarter of cases that are assessed by the Financial Ombudsman Service. The compensation guidelines state an allowance of £50 to £100 per day, and no more than £10 per hour. Be sure to keep records of the time that you have spent handling your case.
Financial Ombudsman Service decision
The ombudsman will make a decision on your case and provide an outcome that is binding on the company. You can choose whether to accept the decision.
If the decision is held in your favour, and you are awarded financial compensation that relates to miss-selling, you will be awarded interest at 8%. This is not compound interest, so you will not receive interest on the interest.
Payment Protection Insurance Claims
If you think that you have been mis-sold Payment Protection Insurance (PPI) you should read Moneysavingexpert’s comprehensive guide on how to make a claim. This is not something you can currently raise a complaint about via resolver, but it is something that will be added later in the year.
If you are still not happy
If you are dissatisfied with the outcome, you could consider switching bank or provider. The final option would be to take the bank to court; you should get expert legal advice before taking this route.
Bank goes bust
If your bank or another financial firm goes bust, you might be able to claim compensation via the Financial Services Compensation Scheme. You are limited in the amount that you can claim - these limits are:
- Deposits: £85,000 per person per firm
- Investments: £50,000 per person per firm
- Home finance (mortgage advice and arranging): £50,000.
Find the best rights for you
We have 3,754 pages of rights advice for you covering 6,280 companies and organisations across 16 public & private sectors. Feel free to browse companies for this specific issue - they're all listed below - but the quickest way to find the best rights for you is by using our unique Rights Finder to access our extensive database of advice.
Start by telling us the name of the company or organisation you have an issue with.