The Banking Ombudsman has upheld a complaint from a bank’s customer after she was allowed to spend over her credit limit without her agreement to an increased credit limit.  After an investigation by the Banking Ombudsman the bank agreed to reverse all interest and fees charged on the excess borrowing and to enter into an interest free repayment arrangement on that excess borrowing.

If a customer complains to the Ombudsman about unaffordable lending the Ombudsman’s usual approach is to require the customer to repay the amounts over the limit, but to require the bank to write off interest and charges associated with the excess lending.  The Ombudsman also requires the bank to enter into a suitable repayment arrangement for the excess lending.   That repayment arrangement should be affordable to the bank’s customer.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley