What to do if you think a creditor is asking for the wrong amount
Sometimes the balance shown on statements or letters from your creditors might be higher than you were expecting.
First you should ask the creditor for a breakdown of all the charges they’ve added. If your debt is regulated by the Consumer Credit Act you have a right to be supplied with a full statement of the account showing all the charges and interest added. This might explain why the balance is different.
If there are any charges shown which you think are unusually high, check the terms and conditions of your credit agreement, or ask the creditor to explain them. In most cases, charges added to a debt should only be the actual costs incurred by the creditor. For example, if you miss a payment and the creditor sends you a letter, it wouldn’t be fair for them to add a fee that’s a lot more than the amount it cost them to write to you.
If the creditor won’t correct the balance of your debt and you don’t agree with their explanation, the next step is to make a complaint. If you’re not happy with the creditor’s final response to your complaint, or if they don’t reply within eight weeks, you can contact the Financial Ombudsman Service. They can investigate the issue and decide if you’ve been treated fairly.
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