What to do if you think a creditor is asking for the wrong amount
Does the balance look higher than you expected?
1. Ask the creditor for a breakdown of all added charges
Debts regulated by the Consumer Credit Act are required to give you:
- A full statement of the account
- A list of all added charges and interest
This might show you why the balance is different.
2. Check the terms and conditions of your agreement
Do some of the charges seem too high? Ask the people you owe to explain them.
In most cases, charges added to a debt should only be the actual costs incurred by the creditor.
For example:
- You miss a payment
- The creditor sends you a letter
- The fee should only be what it cost to write to you
3. Make a complaint if they will not change the balance and you do not agree with their reasons
Contact the Financial Ombudsman Service if:
- You are not happy with the creditor’s final response to your complaint, or
- They do not reply within eight weeks
They cannot decide if you owe the debt. But they can say if the creditor is acting fairly.