The Consumer Credit Act - How To Complain

To complain to a credit provider about a faulty product:


Write to the provider:


If you have a problem with something you've bought on credit card, you may want to take the matter up with the credit provider rather than the retailer/service provider. This could be because the retailer hasn't answered your letters, or they may have gone bust.


Write to the credit provider with the date and details of the transaction, what your problem is and what you want done about it. For example, if you've just received faulty goods, state that the seller is in breach of contract and that the credit provider is 'jointly and severally liable' under Section 75. State that you are claiming a refund of the money you paid. Give the credit provider a reasonable time to respond, say, 14 days.


Follow up:


If the credit provider does not respond, or if it refuses to act, threaten court action, normally under section 75 of the Consumer Credit Act.


Take matters further:


If you are not happy with the credit provider's response, you will need to go through its complaints procedure. If you get to the end of that process and your complaint is still unresolved, ask the credit provider for a final letter of deadlock - a final response letter - so you can refer the dispute to the Financial Ombudsman Service.


If the credit provider does not respond to your initial complaint and more than eight weeks have passed, you get an automatic right to refer the dispute to the Financial Ombudsman Service for resolution and won't have to show that you got to the end of the credit provider's complaints process without a satisfactory resolution of your dispute.


If you are not happy with the Ombudsman's decision you don't have to accept it and could consider taking court action. If the amount of money involved is less than a certain amount, £5,000 in England and Wales, £3,000 in Northern Ireland and Scotland, you can take the matter to the small claims court. If considering starting court action in England and Wales - even in small claims - you now have to follow the Practice Direction on Pre-Action Conduct.


To settle a credit agreement early without paying all the interest:


First check whether your agreement is regulated by the Consumer Credit Act 1974, which means you can settle it early. Most agreements are and the contract you have should state this.


The credit provider should write to you with your settlement information (how much you must pay) within 12 working days. This should include the amount you still have to pay, and the deduction you will receive on the interest payments for paying off the loan early.


If the credit provider does not send you the information within a month, it is committing an offence, and you should report the company to the Office of Fair Trading (OFT). If you think the company is trying to charge you too much, ask it to explain its calculations. If you still think you are being overcharged, complain to the OFT.