Claim your Barclays Bank Loans Refund
If you were a recipient of loans, credit cards, or overdrafts from Barclays Bank that potentially led to financial trouble, you might be qualified for a compensation claim on the basis of irresponsible lending. This article talks about what counts as irresponsible lending, Barclays’ previous customer complaints, and step-by-step information on making a complaint — either yourself for free, or through our claim partner.
About Barclays Bank
Barclays Bank is a multinational financial institution based in the United Kingdom that provides personal loans, overdraft services, mortgages, and credit cards to its wide customer base.
Barclays operates under the Financial Conduct Authority (FCA) to follow regulations for responsible financial management through strict rules on affordability assessments. The Barclays platform includes a help centre where customers can file complaints about credit cards, loans, and mortgages.
How Barclays Bank May Have Engaged in Irresponsible Lending
Irresponsible lending occurs when a financial institution, such as Barclays, gives credit without adequately assessing potential borrowers’ repayment ability. According to the Financial Ombudsman Service (FOS), irresponsible lending involves a failure by the lender to properly assess borrowers, exposing them to financial risks.
There are several ways that Barclays Bank could have irresponsibly lent, including failing to properly check their borrowers’ financial capabilities before giving out loans. This can be seen from an example of an upheld complaint from the FOS where a customer complained that Barclays Bank irresponsibly gave him a credit card that he couldn’t afford. This customer’s initial credit limit of £400 was increased to £800, and he complained to Barclaycard to say that the account shouldn’t have been opened for him because it wasn’t affordable. The complaint was upheld, proving that it was irresponsible lending.
Other kinds of possible irresponsible lending at Barclays Bank include changing details of their lending agreement without prior agreement. A complaint on the FOS platform showed a customer complaint saying Barclays reduced the amount it was willing to lend to them after they informed the bank that the price of the property they were purchasing had been reduced. The decision was ultimately upheld for the confusion and inconvenience their decision caused.
Another instance of irresponsible lending from Barclays was when a customer’s credit limit was increased because he was using the card to gamble. This customer had a gambling addiction and was spending his extra credit, leading to his limit being automatically raised from £7,800 to £10,800. Barclays responded to the complaint, saying it didn’t fall within their jurisdiction due to the customer complaint being too late. However, the complaint was eventually upheld.
Do You Have a Claim Against Barclays Bank?
If Barclays Bank lent you money without properly assessing your financial ability, leading to a difficult financial situation, you may be eligible for an irresponsible lending claim. To ensure that you have a valid case, here are some things to consider:
Affordability Checks: Customers might have grounds for a claim if Barclays did not conduct adequate affordability checks before letting them take a loan. Affordability checks entail thoroughly evaluating your income, expenses, and current debts to ascertain your financial health.
Multiple Loans: If lenders such as Barclays Bank offer you multiple loans in quick succession without first assessing your ability to repay, you may file an irresponsible lending claim.
Financial Struggles: Instead of providing additional credit, Barclays Bank is obligated to assist borrowers who are struggling with existing repayments. Otherwise, you may have grounds to file an irresponsible lending claim.
Full Disclosure: Barclays Bank is required to provide full disclosure to customers, ensuring they understand the terms of their loans, including any risks or third-party fees that may be involved. You may be able to file a claim if Barclays Bank miscommunicated with you.
If your claims are similar to the noted criteria above, it shows that Barclays Bank likely practised irresponsible lending in your case.
Why Choose Us?
Filing a claim against a corporation like Barclays Bank can seem daunting. Our claim partner exists to make the process easier: they specialise in obtaining compensation for people harmed by poor lending decisions, and their team is well-versed in identifying breaches of the Financial Conduct Authority’s Consumer Credit Sourcebook (CONC) and other industry regulations.
Our claim partner works on a no win, no fee basis — if you win, the fee is capped by law at 18%–36% of your compensation including VAT, with the rate falling as the award rises. If you lose, you pay nothing, and you can cancel free of charge within 14 days; after that, the firm may charge for work already done. The full schedule is on our fees page.
Their assessment covers all aspects of the lending — the affordability checks Barclays carried out, the cycle of debt the loan created, and the impact it had on your finances.
How to Start Your Claim for Compensation
If you believe you have been affected by Barclays Bank’s irresponsible lending, take the following steps to begin the compensation process:
Check your agreements: Start a free claim check on Recoup, our claim partner's site. Recoup is run by our legal partner Clear Legal Limited under their own licence and regulation — they handle your application, your claim and your data from there, and will contact Barclays on your behalf.
Await Barclays Bank’s Response: Barclays Bank is required to respond to your complaint within 8 weeks, in which they either accept your claim and compensate you or reject the claim.
Escalate to the Financial Ombudsman Service (FOS): If Barclays rejects your complaint or they fail to respond within 8 weeks, you can reach out to the Financial Ombudsman Service (FOS). You can contact FOS through their phone number, 0800 023 4567, or check their website for complete information.
You should report irresponsible lending activities from Barclays Bank as soon as you notice them, as time limits may apply. You typically have six years from the date of the lending decision or three years from the time you first realised the lending was unaffordable to file a claim.
Don’t Delay. Check Now.
Don’t miss out on £100’s or even £1,000’s in compensation you could be entitled to. Checking only takes 5 minutes, so why not do it now?
