Irresponsible lending claims
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What is irresponsible lending?
Irresponsible lending happens when a lender gives you credit without properly checking whether you can afford the repayments. These include:
- Personal loans
- Overdrafts
- Credit cards
- Store cards
- Car finance
- Buy-now-pay-later (BNPL) credit
According to the Financial Conduct Authority (FCA), lenders must make sure:
- You can repay without falling behind on bills or borrowing more.
- You’re not relying on other loans or credit to repay the new one.
- The loan won’t cause a financial struggle or long-term debt.
If you were given multiple loans in a short space of time, were already in debt, or were simply not even asked about your finances, you could have an irresponsible lending claim.
How should lenders assess affordability?
Lenders should check whether you can afford to repay a loan without falling into financial difficulty. This is called an affordability check, and it’s a legal requirement. The assessment should include looking at:
- Income: Salary, benefits, regular income
- Essential outgoings: Rent, bills, food, transport, childcare
- Existing credit: Loans, cards, other repayments
- Credit history: Any defaults, missed payments, or high usage.
Even if you passed a credit check, you could still have been irresponsibly lent to if the lender didn’t check your actual financial situation or ask the right questions; you could be owed compensation from an irresponsible lending claim.
What are the signs of an irresponsible loan?
Here are some of the most common signs of an irresponsible loan:
- You were already in debt but still approved for more borrowing.
- Your income couldn’t cover the loan and basic living costs.
- You were approved for multiple loans in a short space of time.
- The lender didn’t ask for details of your income, outgoings, or other credit.
- You had missed payments or defaults on your credit file.
If any of these sound familiar, you may be able to make an irresponsible lending claim, even if the loan has already been repaid.
What are your rights when it comes to unaffordable lending?
The FCA lays out certain consumer rights when it comes to unaffordable lending. This essentially comes down to the lender acting responsibly, giving loans only to people who can afford to repay them without trouble. If they failed in this duty, you have the right to:
- Make an unaffordable lending claim
- Have the loan written off if it’s still active
- Have your credit file corrected to remove any negative markers
- Receive compensation for any distress caused by the lender.
These rights apply to all regulated lending, including payday loans, credit cards, and car finance.
How to make an irresponsible lending claim
Without proper help, irresponsible lending claims can be tricky and long-winded, but we’ve made it simple and stress-free. Here’s how the Spencer Churchill Claims Advice team can help you make a no-win, no-fee irresponsible lending claim:
How much could you claim for a mis-sold loan?
The amount you can claim for a mis-sold loan depends on the size of the loan, how long it ran for, and how much you paid in fees and interest. Clients can recover hundreds or even thousands of pounds in successful claims. Some have even had their entire balance written off and their credit file cleaned up.
What types of loans can be claimed for?
There are several loans that can be claimed for, even if you’ve already paid them off, including:
Payday loans
Short-term, high-cost loans from lenders like Wonga, QuickQuid, or Lending Stream. Often given without proper affordability checks, especially if taken out repeatedly.
Credit cards and retail cards
Includes credit card debt like Capital One and Aqua, and high-interest retail cards like the Argos Card and the New Look Store Card.
Personal loans and car finance
Larger credit agreements where lenders failed to assess long-term affordability. This covers unsecured personal loans and car finance plans like HP or PCP agreements.
Catalogue credit and doorstep loans
BNPL (Buy-Now-Pay-Later) accounts like Very Pay or Frasers Plus, and doorstep loans like Cockle Finance and Drafty.
Pay monthly contracts (e.g. mobile phones)
High-cost phone contracts or upgrades that you couldn’t afford and caused debt problems later down the line.
Why choose Spencer Churchill for your irresponsible lending claim?
Because we fight harder, faster, and smarter to get your money back from an irresponsible loan. Even if your case has been rejected or your lender is known for being difficult, we’ll take it on. You’ll have a full-time team in your corner, ready to get results. Here’s what we’ll do to support your claim:
- Investigate your full credit history
- Challenge poor affordability checks
- Build a case that gets results
You’ll work with real experts who’ll update you at every step, chasing lenders and keeping things moving. And we don’t shy away from complex cases, either – no matter if it’s high-interest repeat borrowing or an ongoing loan cycle. If you’re looking for a no-win, no-fee lending claim, we’re the experts to trust.
Irresponsible lending claim FAQs
Got questions about making an irresponsible lending claim? Here are some of the most common we get:
What is an unaffordable lending claim?
An unaffordable lending claim is made when a lender gives you credit without properly checking if you can afford the repayments. If repaying the loan caused financial difficulty (e.g. missing bills, falling behind on essentials), you may be eligible to claim.
How much compensation can you receive on an irresponsible lending claim?
Compensation for irresponsible lending claims varies, though most successful claims include a full refund of all interest and fees paid on the loan. You may also receive extra compensation for distress or negative impacts on your finances.
How long do you have to make an irresponsible lending claim?
You usually have up to six years from the date of the loan or from when you first realised the lending was unaffordable. However, we can still review older cases in some situations, so it’s worth checking even if the loan was taken out years ago.
Will making a mis-sold loan claim affect your credit score?
No, making a mis-sold loan claim will not negatively affect your credit score. In fact, if your claim is successful, you may have negative marks removed altogether.
What are the most common cases of irresponsible lending?
Common examples of irresponsible lending include:
- Payday loans issued repeatedly
- Credit cards or catalogues approved despite existing debt
- Care finance given without checking income
- Loans with no affordability check done prior
Are there any time limits for making an irresponsible lending claim?
There are time limits for making an irresponsible lending claim, and you should act now because waiting could mean missing out. The sooner we start on your mis-sold loan claim, the stronger your case may be. It’s free to check, free to claim, and if we don’t win, you don’t pay. There’s nothing to lose and potentially a lot to win.
Spencer Churchill Claims Advice will:
- Speak to you in plain English
- Set you up with a dedicated claims specialist
- Pay attention to the small details of your case
- Keep you up-to-date with the status of your claim
- Make sure you understand all of our charges
- Do absolutely everything we can to win your claim
Ready to start your claim?
If you’ve lost money as a result of irresponsible lending, you could still claim it back with Spencer Churchill. There’s no pressure and nothing to pay upfront – just get in touch. We’ll review your case, explain your options, and let you decide if you want to move forward.
Start your claim today – it’s free to begin
Getting started is easy. Just send us a few details about what happened. We’ll review your case within 24 hours and let you know if you’re eligible to claim. No pressure, no obligation, no upfront costs.
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