Skip to main content
Youth Legal
Debt and Money Advice, Debt , Dealing with Debt· 2 min read

Lender owes you money

If a lender owes you money, you have the right to get it back. Start by raising the issue directly with the firm. If that does not work, you can escalate to the Financial Ombudsman Service (FOS) or consider legal action.

Think a lender owes you money?

It can be frustrating when a company owes you money and will not pay up. The good news is that there are clear steps you can follow, and free support available to help you through the process.

Initial steps

1. Gather your evidence

Collect all relevant documentation, including loan agreements, bank statements, and all correspondence (emails, letters, text messages) that proves the debt is owed to you.

2. Contact the lender directly

Write a formal complaint letter to the lender, explaining the situation clearly, stating how much is owed, and specifying what action you want them to take (for example, repay the money in full within 14 days). Keep a copy of the letter and proof it was delivered.

If the lender does not resolve it

If the lender does not respond satisfactorily within eight weeks, or if you are unhappy with their final response, you can escalate the matter.

Complain to the Financial Ombudsman Service (FOS)

The Financial Ombudsman Service (FOS) is a free, independent service that settles disputes between consumers and financial businesses. They can investigate your complaint and order the company to pay you compensation if they find you have been treated unfairly. You must contact the FOS within six months of receiving the lender's final response.

Seek legal advice and consider court action

You can consult a solicitor for legal advice. If mediation (which is often free for claims under £10,000) is unsuccessful, you can make a court claim for the money owed through the County Court, potentially using the Money Claims Online portal for simpler cases. This is generally a last resort as it can be time-consuming and costly.

Report the lender to the regulator

The Financial Conduct Authority (FCA) is the regulator for financial firms. While they cannot resolve individual complaints, they gather information on poor behaviour and can take action against the company, such as imposing fines or withdrawing their authorisation.

Free support

For free, independent advice at any stage, you can also contact:

Get help

Youth Legal can help you work out your next steps and support you through the complaint or court process.

All our advice is free and confidential.

Get Help