Complain About Unaffordable Lending: Sample Letter

If you believe a lender provided unaffordable credit or treated you unfairly, explain what happened and the outcome you want. This template can help you make a clear complaint.

In this guide, we’ll explain:

•  How to write a letter of complaint to your lender.
•  When and why you might want to complain about a lender.
•  What irresponsible lending is.
•  How you can claim for irresponsible lending.
•  What to do if you get no reply.

We know that writing a formal letter can be tough, especially if you’re concerned about a debt problem.

But don’t worry, we’re here to help. We’ve included a sample letter template to make things easier for you. 

Complaint Letter Template

Dear complaints team,

Account reference: [reference]

Please treat this as a formal complaint about [lending decision or conduct and date]. My reasons are [explain the facts and why the borrowing was not sustainably affordable, or describe the conduct complained of].

At the time, my relevant circumstances were [income, essential costs and existing commitments]. I enclose [relevant evidence only]. Please explain the checks and information you relied on and consider the following remedy: [requested outcome].

Please acknowledge my complaint and send your written decision and reasons within the applicable response period, together with any Financial Ombudsman referral rights and deadline. If you need further information, please explain what is required.

Yours faithfully, [name]

Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save it in any document format you like.

Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

Why might you complain about a lender?

You might want to complain about a lender for an array of reasons, but some of the most common complaints are about:

1. Harassing calls and texts
2. Irresponsible lending 

If you want to complain about a lender for another reason, you should read on and download the applicable creditor complaint letter template above. 

What is classed as irresponsible lending?

An affordability complaint concerns whether the lending decision was responsible in light of the circumstances and rules applying at the time. Difficulty paying later does not, by itself, prove the original decision was wrong.

For regulated lending, firms must make a reasonable assessment of creditworthiness, including affordability where required. Repayment should be sustainable without causing undue financial difficulty.

Checks must be proportionate to factors such as the product, amount, duration and known circumstances. Not every application requires the same extensive evidence.

Can you claim for irresponsible lending?

A complaint is assessed on the facts of the particular lending decision and the applicable rules.

A successful complaint does not automatically cancel the whole agreement or principal borrowed. Redress may include removing or refunding interest and charges, correcting credit records or another appropriate remedy.

Using a template does not guarantee a refund. Describe your own circumstances accurately and provide relevant evidence.

How do you file a complaint?

You should always complain about a lender directly with the lender first.

You should do this in writing and keep a copy of the letter. It’s also recommended to use a recorded or tracked delivery service for proof of your complaint in case it needs to escalate. 

Complain to the firm first and keep copies and call logs. For an eligible regulated financial complaint, you can normally approach the Financial Ombudsman Service after a final response or after eight weeks without one, usually within six months of the final response. The Ombudsman can require a remedy or compensation; it does not impose regulatory fines. Tax, council and other non-credit debts may have different complaint routes.

You should not go straight to the Ombudsman. 

Our free letter template for complaining about irresponsible lending is step one!

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How long should you wait for a reply?

For most eligible lending complaints, the firm normally has eight weeks to send a final response. Some complaint types have different or temporary deadlines; check the firm’s procedure and current Ombudsman guidance.

You can normally refer an eligible complaint after an unsatisfactory final response or expiry of the applicable response period. The usual referral deadline is six months from the final response, and separate time limits apply to the age of the complaint.

Provide the final response, complaint correspondence and relevant financial evidence. The Ombudsman will decide whether it can investigate and what outcome is fair.

Keep making any affordable agreed payments and respond to court notices unless a hold or other protection applies. A complaint alone is not a blanket cancellation of the debt.