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Types of complaints we see
The complaints we see about unaffordable or irresponsible lending usually involve the borrower saying their credit was unaffordable and that they believe the lender acted irresponsibly in providing the funds.
Handling a complaint like this
We only look at complaints that you’ve had a chance to look at first. If a customer complains and you don’t respond within the time limits or they disagree with your response, then they can come to us.
What we look at
In the same way as for other types of complaint, when a consumer contacts us about unaffordable or irresponsible lending we’ll ask:
- Did the lender do everything it was required to do?
- And if they didn’t, has their customer lost out as a result?
As with every case, our answer to a complaint will reflect what’s fair and reasonable in the circumstances. And in considering what’s fair and reasonable, we’ll consider relevant law and regulation, regulators’ rules, guidance and standards, codes of practice, and what we consider to be good industry practice at the time.
If there are disagreements about the facts, we’ll make our decision about what probably happened using evidence provided by you, your customer and relevant third parties.
When a borrower complains about credit having been provided irresponsibly we’ll ask questions such as:
- Did the lender complete reasonable and proportionate checks to satisfy itself that the borrower would be able to repay any credit in a sustainable way?
- If reasonable and proportionate checks were completed was a fair lending decision made?
- If reasonable and proportionate checks weren’t carried out, what would reasonable and proportionate checks more likely than not have shown?
- Bearing in mind the circumstances, at the time of each application (or increase in credit), was there a point where the lender ought reasonably to have realised it was increasing the borrower’s indebtedness in a way that was unsustainable or otherwise harmful and so shouldn’t have provided further credit?
- Did the lender act unfairly or unreasonably in some other way?
How does it work?
We have a team of professional accountants, who specialise in looking in to every detail of your loan, more often than not, when people feel the need to complain, there is a reason and if there are any overcharges, they will find them.
Once your loan account has been professionally scrutinised, we then set to work negotiating with the lender(or receiver if your loan is in default) and we negotiate a portion of your debt to be written off, this can range in value, but sometimes the amount that is ‘written off’ is significant.
It is important to address this as soon as possible, because once the case reaches the courts, the cost can spiral and this can make a reasonable settlement much more difficult to achieve.
Want to know more?
If you are in a difficult situation with a loan do not delay!
WHAT WE DO
WHAT THEY SAY
