Credit Card Unaffordable Lending Claims
If you were given a credit card — or a credit limit increase — that you couldn’t realistically afford to repay, you may be entitled to a refund of the interest, fees and charges you’ve paid. This page explains how credit card affordability claims work in the UK, which lenders we cover, and how to check your eligibility.
Check your agreements on Recoup, our claim partner’s site
What counts as unaffordable credit card lending?
Under the Financial Conduct Authority’s rules (specifically CONC 5.2A), a card issuer must carry out a reasonable and proportionate assessment of whether you can afford to repay credit — sustainably, and without falling into financial difficulty. That duty applies before they give you the card, and again every time they raise your credit limit.
Your card may have been unaffordable if, at the time it was issued or your limit was increased:
- The lender didn’t properly check your income, expenditure or other commitments
- You were already in financial difficulty, missing payments or relying on other credit to service debts
- Repayments would have left you unable to meet essential living costs
- Your credit limit was repeatedly increased without a meaningful review
- You only ever made minimum payments for years, and the lender did nothing to help you out of “persistent debt”
- The card was issued despite clear signs of distress on your file — recent defaults, payday loans, missed mortgage or rent payments
If any of this sounds familiar, your case is worth checking.
How a credit card claim works
The process is the same whether you complain yourself or use a claim partner:
- Eligibility check. A quick review of when the card was opened, how it was used, and any signs the lending was unaffordable.
- Evidence gathering. Bank statements, credit-file information and account history are reviewed against the lender’s affordability obligations.
- Complaint to the lender. A detailed, evidenced complaint goes to the card issuer. They have up to eight weeks to respond.
- Lender response. They may uphold, partially uphold, or reject the complaint.
- Escalation to the Financial Ombudsman, if needed. If the response is unsatisfactory, the case can be referred to the FOS, free of charge. FOS decisions are binding on the lender if accepted.
- Redress, if successful. Typical outcomes include a refund of interest and charges, 8% statutory interest on the refunded amount, and removal of adverse credit-file entries linked to the unaffordable lending.
For a step-by-step walk-through of the whole process, see our guide to how an unaffordable lending claim works.
Credit card lenders we cover
We work with claim partners who handle complaints against most major UK card issuers. Pick your card to see specific guidance for that lender:
High street and major banks
- Barclaycard
- Halifax
- HSBC
- Lloyds
- MBNA
- Nationwide
- NatWest
- RBS
- Santander
- TSB
- First Direct
- Bank of Scotland
- Clydesdale
- Virgin Money
- The Co-operative Bank
Specialist and subprime cards
Store and retailer cards
Many UK store cards are issued by NewDay Ltd or other regulated lenders, which means a claim is made against the issuer rather than the retailer.
- Argos
- Burton
- Debenhams
- Dorothy Perkins
- John Lewis
- Marks & Spencer (M&S Bank)
- Mothercare
- Amazon Pulse
- Sainsbury’s
- Tesco
- Topshop
Don’t see your card here? Most UK-issued credit cards are eligible for review. Start your eligibility check and we’ll let you know.
What might make a credit card claim stronger
Some patterns come up repeatedly in successful Financial Ombudsman decisions on credit card affordability. None are required, but the more that apply, the stronger the case:
- Persistent minimum payments. Years of paying only the minimum, with the balance barely moving — and the lender taking no action to help you. The FCA’s persistent debt rules (explained here) put a clear duty on lenders.
- Multiple credit limit increases. Especially where your circumstances were getting worse, not better, and increases happened without you asking for them.
- Card used for cash advances or to pay other debts. A clear sign the lending wasn’t sustainable.
- Late payments, returned direct debits, or over-limit fees. Patterns the lender should have spotted and acted on.
- Other credit on your file at the time. Especially payday loans, defaults, or arrears — if these were visible to the lender, they should have been factored in.
If you recognise any of these on a card you held, your case is worth a closer look.
How far back can you claim?
There is no fixed cut-off, but two time limits matter:
- The Limitation Act 1980 — generally six years from when the issue arose, though courts and the FOS take a flexible view depending on when you reasonably became aware
- The FOS time-limit rules — usually six years from the event, or three years from when you knew (or should have known) there was a problem
In practice, claims on cards opened or increased in the last 10–15 years are often still viable. Older claims can sometimes still succeed, particularly where you only recently understood that the lending was unaffordable. For a fuller breakdown, see how far back can I claim for unaffordable lending?
What you might get back
Credit card redress, where a claim succeeds, typically includes:
- A refund of all interest, fees and charges applied to the card from the point at which it became unaffordable
- 8% statutory interest added on top of the refunded amount, calculated from the date each charge was paid
- Removal of adverse credit-file entries linked to the unaffordable lending
- Adjustment or write-off of any outstanding balance — if you still owe money on the card, the refund is usually applied against the balance first, with any surplus paid out to you
How redress is calculated is explained in detail in our guide on how unaffordable lending redress is calculated.
Frequently asked questions
Can I claim if I’ve already closed the credit card?
Yes. You can make an unaffordable lending complaint about a credit card account that has been closed, paid off, or written off. The lender is still obliged to investigate the affordability of the original lending decision and any subsequent limit increases.
Can I claim if I’m still using the card?
Yes. You can complain about any credit card you hold or have held. If the claim succeeds and you still owe money, the refund is normally used to reduce the balance first.
Will making a claim damage my credit file?
Making a complaint about unaffordable lending should not damage your credit file. If your claim is successful, adverse markers linked to the unaffordable lending may be removed, which can improve your file.
Do I have to use a claims company?
No. You can complain directly to the card issuer free of charge. If you’re not happy with their response, you can refer the complaint to the Financial Ombudsman Service free of charge. If you’d prefer a regulated claim partner to handle the work, we can refer your case to one. The pros and cons are weighed up in our guide on whether you need a claims company.
Are there any fees if I use Claims Bible?
Claims Bible is an FCA-authorised introducer. We do not charge consumers a fee. If your case is referred to a claim partner and the claim succeeds, the claim partner charges a success fee — a percentage of the redress recovered, in line with the FCA’s fee cap rules. There is no fee if the claim is unsuccessful, and no upfront cost. Full fee details are provided before you sign anything. Read our fees page.
How long does a credit card claim take?
The lender has up to eight weeks to issue a final response. If the case goes to the Financial Ombudsman, decisions can take several months depending on complexity and the FOS workload at the time. Our guide on how long an unaffordable lending claim takes has more detail.
Related guides
- What is unaffordable lending?
- What is “persistent debt” and how it relates to credit card claims
- Were your credit card limit increases unaffordable?
- Do I have an unaffordable lending claim?
- How the Financial Ombudsman handles unaffordable lending complaints
Check If You Could Be Owed Compensation
You may be eligible to complain if a lender gave you credit you couldn’t afford. Start a free check in minutes — no paperwork needed. No win, no fee if you choose to proceed.
