Letter to complain about a loan

If you have a problem with a loan you can use this letter to complain - you can use it for most types of loans.

Don’t use this letter to complain about a mortgage or hire purchase agreement. You can talk to an adviser instead.

You can use this letter to complain about different kinds of problems with a loan - you should explain your situation. For example, if:

• you think your lender shouldn’t have given you the loan

• your lender didn’t explain the terms and conditions

• you’ve had problems paying it back because your lender won’t accept your offer or freeze interest 

Making a complaint will show your lender what they have done wrong and help make sure they follow the rules in the future.

You can also ask your lender to put things right - for example, by agreeing a more reasonable repayment plan and freezing interest and charges. If they don’t put things right, you can find out how to complain to the Financial Ombudsman Service on the Financial Ombudsman Service website.

This template is to be used for guidance and may not suit your specific situation. If you need more detailed advice and guidance, you can talk to an adviser.

Check if your creditor can still take action against you

Your creditors have a limited time to take you to court to repay a debt. For most debts, the time limit is 5 years. The time limit might restart if you write to your creditor or make a payment. If it’s a joint debt, this includes if the other person makes a payment. 

If you haven’t got court papers after 5 years, your debt becomes ‘extinguished’. This means your creditor can’t usually take court action to get their money back - but some creditors might try to argue against this.  

Don’t use this template letter if:

• it’s been over 5 years, because your creditor might not be able to force you to pay

• it will soon be 5 years, because contacting your creditor might restart the time limit.

Check if the time limit has passed or will pass soon. If you’re not sure, talk to an adviser.