Affordability complaint query

Scarlet_to_Black

My four NatWest accounts are with the Financial Ombudsman, and I’m just wondering ‘IF’ they upheld it, what would potentially happen with the interest, etc. 

I had two credit cards, one was a 12% that did have the limit increased on a few times and was my oldest and I’d regularly balance transfer off it to other cards, including the second NW one, which was probably in the 20% interest region and I used that to balance transfer £4k off the 1st on one occasion and never used that card again (0% came to an end just before I saw the light 💡 and realised I was in a mess).  The first credit card was regularly around £4k balance before I’d BT to 0% with Lloyds or MBNA.  The Lloyds was the most recent card and balance around £7k. MBNA was zero, but only because I couldn’t log into my account 🫣. I only EVER paid minimum payments unless I’d balance transferred and had no correspondence from NW re persistent debt. 

Then I had two NW loans, the first taken out in 2022 for £12k and the balance was around £9k when I entered DMP. The second one was for £13k and was for debt consolidation and they approved this during the time that I was mid way into taking advantage of the mortgage cost of living support and paying just interest on my mortgage with them! (I also had debt with PayPal £3k and Sainsburys bank loan £2.5k balance on my credit report). First loan was around 3% ish and second would have been circa 6% - I’ll get accurate figures when I do my SOA.  I earn £35k including my income, child maintenance and UC and my total unsecured debt was £42k.

I know that it’s very individual on FO decisions but I’m just interested in potential outcomes. Also, whether I should be submitting further affordability complaint to Lloyds possibly 🧐

sourcrates

It can be difficult with credit cards as they are a revolving form of credit, and not a fixed sum agreement, as a loan generally would be.

Normally you would receive a refund of interest paid, and possible credit file information removal, but as to the extent of what you will get, that will be decided on a case by case basis.

You should complain about any financial agreement that you may feel was unaffordable to you.

Rob5342

Mine were generally for the interest charged since the credit limit increase to be refunded plus any resulting bad credit file information due to the interest to be removed. Most of then were for all interest to be refunded but with one they said that it should only be the interest on the balance over the increased limit. With my Aqua one there was still a balance remaining after the interest refund, in that case the FOS said Aqua should agree a repayment plan with me and then remove the adverse information once id repaid everything.

It does all hinge on what the lender should have reasonably known or checked at the time of the lending decision, and the FOS aren't as strict when assessing that as you might think they would be. Most of my complaint successes were when I had repeated borrowing from the same lender as the FOS said they could see mu full account history. 

ManyWays

On going loans are usualy simple, take the amount you borrowed ignoring interest (so 12k say) and subtract the amount you have paid in total, in monthly payments or in payment arrangements. So if you borrowed 10k and have repaid 6900, your balance if you win will be changed to 3100.