Claiming for Unaffordable Polar Credit Loans

If you struggled to afford repayments on Polar Credit loans, you may be able to claim compensation for unaffordable lending. Polar Credit should have carried out proper affordability checks before approving your loans, and if they failed to do so, you could be entitled to a refund of interest and charges plus compensation.

Check your agreements on Recoup, our claim partner’s site

About Polar Credit

Polar Credit is a Line of credit provider operating in the UK. They provide line of credit and revolving credit. Revolving credit facility. All lending must comply with FCA affordability rules under CONC 5.2A.

Common Polar Credit unaffordable lending scenarios

• Multiple loans approved without considering cumulative impact
• Loans approved when you were already struggling with other debts
• Insufficient income verification or affordability assessment
• Lending continued despite payment difficulties or defaults
• High-cost loans that made your financial situation worse
• Rollovers or extensions that created debt spirals

What Polar Credit should have checked

Under CONC 5.2A, Polar Credit must carry out reasonable and proportionate affordability assessments. This includes:

• Your income and regular expenditure
• Existing credit commitments and repayment history
• Whether you could afford repayments without borrowing further
• The sustainability of the lending over the loan term
• Your credit file information and bureau data

Evidence for Polar Credit claims

To support your unaffordable lending claim against Polar Credit, gather:

• All loan agreements and statements from Polar Credit
• Bank statements covering the loan period
• Payslips, benefit statements, or other income evidence
• Evidence of other debts and financial commitments
• Records of any payment difficulties or defaults

How to claim against Polar Credit

1. Gather all evidence of your Polar Credit loans and financial circumstances
2. Submit a formal complaint outlining why the lending was unaffordable
3. Wait up to 8 weeks for Polar Credit’s response
4. If rejected or no response, escalate to the Financial Ombudsman Service
5. Negotiate any settlement offers or await the final decision

Potential compensation from Polar Credit

Successful unaffordable lending claims against Polar Credit typically result in:

• Refund of all interest and charges paid
• 8% statutory interest on refunded amounts
• Reduction or write-off of outstanding balances
• Removal of adverse information from your credit file
• Compensation for distress caused

Time limits for Polar Credit claims

You generally have six years from when the unaffordable lending occurred, or three years from when you first became aware you had grounds to complain. Don’t delay in making your claim, as evidence becomes harder to obtain over time.

Getting help with your Polar Credit claim

You can make an unaffordable lending claim against Polar Credit yourself, or seek help from a claims management company. Consider the costs and benefits of each approach carefully.

For more detailed guidance, see our comprehensive guides on

For more detailed guidance, see our comprehensive guides on how to claim for unaffordable lending, what evidence you need, and how compensation is calculated.

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.

Check your agreements on Recoup, our claim partner’s site