Lender owes you money
If a lender owes you money, you should first try to resolve the issue directly with the firm, and if that fails, escalate your complaint to the Financial Ombudsman Service (FOS) or consider legal action.
If a lender owes you money, you should first try to resolve the issue directly with the firm, and if that fails, escalate your complaint to the Financial Ombudsman Service (FOS) or consider legal action in the small claims court.
Initial Steps
Gather evidence: Collect all relevant documentation, including loan agreements, bank statements, and all correspondence (emails, letters, text messages) that proves the debt is owed to you.
Contact the lender directly: Write a formal complaint letter to the lender, explaining the situation clearly, stating how much is owed, and specifying what action you want them to take (e.g., repay the money in full within 14 days). Keep a copy of the letter and proof it was delivered.
Escalation and Formal Action
If the lender does not respond satisfactorily within eight weeks, or if you are unhappy with their final response, you can escalate the matter:
Complain to the Financial Ombudsman Service (FOS): The FOS is a free, independent service that settles disputes between consumers and financial businesses. They can investigate your complaint and order the company to pay you compensation if they find you have been treated unfairly. You must contact the FOS within six months of receiving the lender's final response.
Seek legal advice and consider court action: You can consult a solicitor for legal advice. If mediation (which is often free for claims under £10,000) is unsuccessful, you can make a court claim for the money owed through the County Court, potentially using the Money Claims Online portal for simpler cases. This is generally a last resort as it can be time-consuming and costly.
Report the lender to the regulator: The Financial Conduct Authority (FCA) is the regulator for financial firms. While they cannot resolve individual complaints, they gather information on poor behaviour and can take action against the company, such as imposing fines or withdrawing their authorisation.
Get Support
For free, independent advice at any stage, contact:
Citizens Advice
National Debtline
MoneyHelper
or our debt adviser.
Get help
If you need advice about your situation, we can help for free.
- Email: info@youthlegal.org.uk
- Phone: 020 3195 1906 (Mon to Fri, 10am to 6pm)
- Contact form: youthlegal.org.uk/contact-us
All our advice is free and confidential.