CONSUMER CREDIT DISPUTE AND FORMAL COMPLAINT
Important legal-advice, jurisdiction and formality warning
This fictional letter is an educational worked example, not legal advice, a determination that a credit agreement is unenforceable, or a promise that charges will be refunded. It assumes a regulated personal loan supplied in the United Kingdom. The Consumer Credit Act 1974, FCA rules, the agreement wording, responsible-lending standards, complaint time limits, limitation rules and Financial Ombudsman Service jurisdiction must be checked against the actual account and date. A request for documents is not automatically a defence to payment, and a consumer should obtain independent advice before stopping payments, admitting a balance, or issuing court proceedings.
Date: 10 November 2026
To: Complaints Department, Crestline Consumer Finance Limited, 14 Harbour Exchange, Birmingham B1 2JP
From: Hannah Louise Mercer, 62 Wrenford Avenue, Coventry CV3 5TR Telephone: 024 555 2816 Email: hannah.mercer@example.test
Agreement: Regulated personal loan ending 6638 Crestline account reference: CCF-2024-6638 FCA complaint reference: CL-260915-72 Subject: Dispute of fees, affordability assessment and account balance
1. Account and disputed amount
I entered into a fixed-sum credit agreement with Crestline on 8 February 2024 to borrow £9,600 for home repairs. The pre-contract information stated an annual percentage rate of 19.9%, a 48-month term and a monthly instalment of £292.40. The agreement records total payments of £14,035.20, comprising 48 instalments of £292.40. I made each instalment from February 2024 through June 2026, 29 payments in total, before a temporary reduction in my income caused difficulty.
On 7 July 2026 Crestline added a “collection administration fee” of £125.00 and a “field visit fee” of £85.00. A further £70.00 arrears fee was added on 2 August. I dispute all three fees, totalling £280.00, because I cannot find a contractual or disclosed statutory basis for them, and because the account was not visited by an agent. I also dispute the decision to record a default dated 5 September 2026 when I was actively engaging with Crestline and had offered an affordable arrangement.
The statement dated 30 September 2026 shows an alleged balance of £6,714.80. Removing the £280.00 disputed fees gives £6,434.80, before any recalculation of interest, credits or compensation. I do not accept either figure as the correct legal balance. The arithmetic is given to identify the dispute, not as an admission of principal or a promise to pay the adjusted figure.
2. Affordability and sales history
At the time of application I told Crestline’s online application that my net monthly income was £1,845.00, rent was £825.00, council tax and utilities were £310.00, existing credit commitments were £360.00, and ordinary living expenses were approximately £420.00. Those figures total £1,915.00 before the proposed £292.40 instalment, leaving no positive monthly disposable income. My bank statements also showed three returned direct debits in the previous six months and an existing catalogue balance of £1,980.
The application nevertheless approved the loan automatically within approximately six minutes. No one asked about dependants, variable energy costs, disability-related expenditure or the purpose and urgency of the home repairs. The credit agreement was then emailed to me. I signed electronically because I believed approval meant Crestline had decided the loan was affordable and because the roof leak was causing immediate damage. I now ask Crestline to explain the creditworthiness and affordability checks completed, the data relied upon, the outcome, and any affordability policy applied at the time.
From February 2024 to June 2026 I paid £292.40 on 29 dates, a total of £8,479.60. My bank records show that the payments were made from my current account ending 2106. In July 2026 I reduced my hours after my employer, Bramble & Hart Catering Limited, lost a contract; my net income fell to £1,390.00. I notified Crestline on 11 July and offered £170.00 monthly from 1 August. Crestline rejected that offer on 19 July, demanded the full instalment and referred the account to Pinegate Collections Limited on 27 July.
Pinegate sent a letter on 5 August threatening a home visit. No person attended my address, and the doorbell camera shows no visit on 6 or 7 August. Crestline nevertheless charged the £85.00 field visit fee. I complained on 15 August, provided payslips and bank statements through the secure portal, and requested a breathing space while the complaint was investigated. The complaint acknowledgement dated 18 August did not address affordability and said the fees were “standard”.
3. Legal and regulatory issues raised
I ask Crestline to investigate whether the relationship is unfair within the meaning of the Consumer Credit Act 1974, including the terms and administration of the account, the fees applied, the information provided before contracting, the circumstances in which the loan was approved and the way the account was handled after I disclosed financial difficulty. I also ask it to consider the FCA requirements applicable to responsible lending, arrears communications, fair treatment and the Consumer Duty outcome of fair value. I do not assert that any single reference automatically decides the complaint.
Please provide a complete copy of the executed agreement and any document incorporated into it, the pre-contract information, the statement of account, payment allocation history, default notice, notices of sums in arrears, call recordings or notes, affordability assessment, credit-search information, income and expenditure records, fee tariff, field-agent instruction and the policy relied upon when refusing my proposed arrangement. Please redact unrelated customers’ data and explain any document withheld.
If the agreement is alleged to have been improperly executed or the default notice defective, please explain the consequences relied upon and identify the remedy sought. I am not presently refusing to pay an amount that is properly due. While this complaint is investigated, please suspend enforcement and collection contact other than reasonable written updates, do not instruct a field agent, and do not sell or further report the disputed default without reviewing the evidence. This request is not an admission that the existing adverse entry is accurate.
4. Resolution requested
I ask Crestline to:
1. refund or credit the disputed fees of £280.00, with an explanation of the contractual and regulatory basis if any fee is retained; 2. recalculate the account from 7 July 2026 using the correct payments, interest and charges, and provide a transaction-level statement; 3. remove or correct the 5 September 2026 default and notify every credit reference agency to which it was supplied if the investigation finds it inaccurate or premature; 4. reconsider the affordability of the loan and propose an appropriate remedy if the original assessment did not meet applicable requirements; 5. accept an affordable interim payment of £170.00 per month from 1 December 2026 while the complaint remains unresolved, without treating that proposal as a full and final settlement; and 6. pay £350.00 for the avoidable distress and time spent dealing with unsupported fees and the threatened visit, or explain why another proportionate remedy is offered.
The requested financial resolution, excluding any recalculated principal, is therefore £630.00: £280.00 disputed fees plus £350.00 compensation. I understand that the lender may make a different calculation after reviewing the agreement and payment history. I will consider a written alternative supported by reasons.
5. Complaint timetable and escalation
This is a formal complaint under the FCA complaints rules. Please acknowledge it within five business days and issue a final response within eight weeks, stating the reasons, evidence and any right to refer the complaint to the Financial Ombudsman Service. If I receive no satisfactory final response, I may refer the complaint to the Ombudsman within the applicable time limit. I may also seek advice about a court declaration, statutory remedies or a data-protection complaint, but this letter is intended first to give Crestline a fair opportunity to investigate.
Please communicate by email and post, and contact me only through the details above. I will keep making payments that I can reasonably afford while seeking advice, but no payment is a waiver of this dispute and no collection call should be treated as agreement. I reserve all rights concerning interest, credit reporting, fees, limitation and any loss caused by the matters described.
Yours faithfully,
Hannah Louise Mercer
Signed electronically by Hannah Louise Mercer on 10 November 2026