Select Page


Irresponsible Lending Claims

At Claims Bible, we work hard to make sure that you understand what constitutes irresponsible lending, as well as the steps you should follow if this practice affects you. As financial claim experts, we can help you figure out how to avoid these predatory arrangements, such as by making a formal complaint.

Home E Financial E Irresponsible Lending

Irresponsible lending complaints

An unfair lending arrangement can often be difficult for borrowers to escape, especially if the pressure of their repayment schedule could lead to further borrowing. In this scenario, you may want to consider filing a formal complaint against the lender. This allows you to potentially earn forgiveness for outstanding repayments.

Perhaps most importantly, making a complaint may cause the lender to change these destructive practices for good – letting others avoid these stressful situations. A professional financial claims service such as Claims Bible helps you begin the complaint process and gain a far more reasonable lending agreement.

The first course of action for any irresponsible lending complaint is to try to settle this with the lender. In this case, we would speak with the lending company to reach an agreement on improper practices. Failing this, we can help you escalate the issue to the Financial Ombudsman Service.

These complaints can award you compensation and otherwise prevent you from needing to repay the debts as expected, though this can still be a difficult process. At Claims Bible, our team will walk you through every step, ensuring the highest-quality financial advice and even representation from our knowledgeable legal partners.

What is irresponsible lending?

Responsible lending is when a lender (or bank) accepts your application after ensuring that you can reasonably meet repayment deadlines – typically through a credit check or another type of assessment. The lender should explain the agreement in full and must decline the loan if repayment would be too difficult.

If a lender approves the application without believing that you can repay it – potentially without even checking if this is the case – it becomes irresponsible or unaffordable lending. Though this could be due to a deliberately predatory lender, basic negligence and even clerical errors are other possible culprits.

Responsible lenders generally enact a full affordability check that compares a borrower’s income, including the benefits they receive and even other active loans, against their usual expenses. From the money remaining, it’s a lender’s job to calculate if the borrower is able to afford the loan they’re asking for.

Thanks to the Consumer Credit Act 2006, borrowers can take action against agreements that ignore, or exploit, their financial situation, including an unfair dynamic with the lender. Whilst almost all loans include an interest rate and lenders always aim to make a profit, they cannot knowingly take advantage of desperate borrowers.

Did you know?

The FCA looks at if the lender did everything they were required to do and if they didn’t, did the customer lost out as a result. Financial Ombudsman Service external link icon white

The criteria for irresponsible lending

Here are the main signs of irresponsible lending that you should look out for:

No credit check details

If you hear nothing from your lender about a credit check during your application, it’s wise to ask for a copy of your results. This helps you verify that the lender is aware of your status; and could be instrumental in preventing irresponsible lending practices before they begin.

Excessive interest rate

If your repayments are more than 5% and other services offer lower rates through an online loan calculator, your chosen lender could be taking advantage of your situation. Your credit status often affects your interest rates but a predatory lender can charge you even more.

Unnecessary additions

Irresponsible lenders also push additional services that significantly increase the fees you’ll need to pay – or they might try to downplay the loan’s hidden costs. Make sure you scan all the relevant documentation before signing a loan agreement to check for these additions.

Key Fact

The annual growth rate for all consumer credit increased to 6.9% in July 2022. The annual growth rate of credit card borrowing was 13.0%, while other forms of consumer credit was 4.5%. Bank of England external link icon white

No FCA regulation

If your lender is not recognised by the Financial Conduct Authority, you might not be able to seek restitution from the FOS or the Financial Services Compensation Scheme. This can reveal a general lack of good governance at the company; only do business with approved lenders.

A higher final payment

One common hidden cost is a ‘balloon payment’, where borrowers must pay a much larger fee at the conclusion of the contract. If your lender doesn’t mention this to you at any point throughout the application process, a promise of low monthly payments might be a trick.

If any of these might apply to your loan, make sure you contact our team right away so we can help.

Start your irresponsible lending claim today

Complete the claim form and check your eligibility today. Safe, secure and confidential. Apply online in minutes

How to complain about irresponsible lending

If you already have an unaffordable lending agreement and believe you were misled (or otherwise mistreated) during your application process, you should file a complaint. The usual process is as follows:

1. Contact a claims professional

Your first move should be to get in touch with a financial expert such as Claims Bible, who can help you through the usual complaints process. With ample experience in irresponsible or predatory lending claims, our advisors and legal partners work alongside you to build the strongest possible case. Though you can still file a complaint against an irresponsible lender without professional help, the advice we offer might be critical for proving your claim.

2. Speak to the creditor

It’s often possible to settle irresponsible lending disputes by directly getting in touch with the creditor, and not the debt collection agency. Even if a lender refuses to admit their negligence or malpractice, they could reduce the amount owed to suit your circumstances. As this is a financial matter, the lending company has only fifteen days to respond to your complaint. You might be able to wholly erase your debt, but this is unlikely.

Did you know?

Irresponsible lending contributing to spiralling consumer debt, says Citizens Advice external link icon white 

3. Make a formal FOS claim

If you do not see a suitable resolution from the creditor, you can escalate by getting in touch with the Financial Ombudsman Service within six months of the lender’s decision. The FOS cannot legally dictate an outcome nor can it issue a fine – though it could ask the creditor to pay you compensation. Their goal is to determine if your lender carried out sufficient checks or treated you unfairly at any point.

4. Take the claim to court

If either party is unhappy with the FOS decision, they could escalate further as a last resort. Our associate legal partners can help you argue your case in court; whereupon the resolution will be legally binding. Experience in these situations is paramount when proving a creditor’s predatory or irresponsible practices. With our team of no win, no fee experts by your side, any valid claim is almost guaranteed to be a successful one.

Irresponsible lending success stories

The fear of failure prevents many victims of irresponsible lending from making a complaint, especially with the chance of a court case. However, there are a number of borrower victories which could give you hope for your own claim, such as:

Advantage Finance

After acquiring used car finance from Advantage in 2016, Mr F discovered his repayment schedule was unaffordable and got in touch with the FOS. They found that Advantage didn’t conduct sufficient credit checks, advising that Advantage refund his deposit as well as most of his payments up to that point.


The Financial Conduct Authority discovered that Barclays had failed to accommodate the individual circumstances of their borrowers, making repayment effectively impossible. As a result, the FCA fined Barclays £26 million in December 2020 – reduced from £37 million due to the bank’s proactive compensation efforts.

Did you know?

People in the UK owed £1,839 billion at the end of April 2023, up by £51.6 billion at the end of April 2022. The Money Charity external link icon white

Blue Motor Finance

While he was able to complete his car finance repayments, Mr H could only do this with the aid of additional credit. Blue Motor Finance argued his ability to fulfil the payments showed the agreement was fair, but the FOS declared in November 2022 that it was irresponsible due to Mr H’s poor credit history.

To join the many people who found success in pursuing their irresponsible lending complaint, it helps to have a professional claims service by your side. At Claims Bible, we operate under a no win, no fee agreement and will work tirelessly to help you receive suitable compensation.

If you’re ready to begin, start your claim with us today.

Common questions

Does a complaint show on my credit record?

Filing a complaint will not affect your overall credit rating, nor does it appear on your record – only the lending company can see this. This also has no impact on your ability to secure a new loan from a separate creditor.

Do I still need to pay during a complaint?

You will still need to keep up your regular payments to the best of your ability during the complaint process. If this isn’t feasible for any reason, winning a claim against your lender is able to erase any consequences for your credit.

When should I file my complaint?

You should complain to the creditor as soon as possible if you believe there is something amiss; this might help you reduce these payments before they become overwhelming. However, you can file an irresponsible lending complaint at any point within 6 years of signing the agreement.

Choose claim

Choose from the different claims below. You can either visit the page to read more about the claim or submit your claim straight away.

Payday Loans

Claim compensation for a payday loan that was unaffordable.

Guarantor Loans

Claim compensation for a gurantor loan that was unaffordable.

Short Term Loan

Claim compensation for a short term loan that was unaffordable.

Doorstep Loans

Claim compensation for a doorstep loan that was unaffordable.

Logbook Loans

Claim compensation for a logbook loan that was unaffordable.

Credit Card Credit

Claim compensation for credit card credit that was unaffordable.

Catalogue Credit

Claim compensation for catalogue credit that was unaffordable.

Bank Overdrafts

Claim compensation for a bank overdraft that was unaffordable.

Don’t Delay. Check Now.

Don’t miss out on £100’s or even £1,000’s in compensation you could be entitled to. Starting a claim only takes 5 minutes, so why not do it now?