Letter to get a loan fee refunded when the loan hasn't been received by Citizens Advice
The Citizens Advice template letter to get a loan fee refunded when the loan hasn't been received helps consumers reclaim fees if a loan isn’t arranged within six months. It is part of Citizens Advice’s widely trusted library of open, lawyer-vetted letter templates.
Letter to get a loan fee refunded when the loan hasn't been received
[sender name]
[sender address line 1]
[sender address line 2]
[sender email]
[sender phone]
[recipient name]
[recipient address line 1]
[recipient address line 2]
[letter date]
To whom it may concern,
Consumer Credit Act 1974 (as amended)
On [application date] I applied for a loan of [requested loan amount] to be arranged by your company for a fee of [arrangement fee]. To date, no loan has been arranged.
Under s155 of the Consumer Credit Act 1974, if no loan has been entered into within 6 months, I am entitled to a refund of the fee I have paid, less £5 which you are entitled to keep for your administrative costs.
I therefore require that you refund the amount of [arrangement fee] less £5 within [number of days] days.
Yours faithfully,
[sender name]
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About this template
What is this template?
This is a statutory demand letter for the recovery of fees from a credit broker. It is not a general complaint letter and specifically cites section 155 of the Consumer Credit Act 1974 to cap the broker's administrative charge at £5.
When should you use it?
Use this letter when 6 months have passed since a loan application without a loan being arranged. Use a Formal Complaint to the Financial Ombudsman if the broker fails to respond to this demand within the stated deadline.
What's inside
| Clause | Name | What it does |
|---|---|---|
| Paragraph 1 | Reference to Loan Application | Identifies the requested loan amount and the specific arrangement fee paid by the applicant on a specific date. |
| Paragraph 2 | Statutory Right to Refund | Cites s155 of the Consumer Credit Act 1974 to assert entitlement to a refund if no loan is entered within 6 months. |
| Paragraph 3 | Refund Demand | Demands the return of the arrangement fee minus a £5 administrative deduction within a specified number of days. |
Who it's for
- a UK consumer who paid an upfront fee to a loan broker but did not receive the loan
- individuals seeking a refund of brokerage fees where no credit agreement was reached within 6 months
How long it runs and how it's signed
Law it's drafted under
England & Wales note
This version is drafted for England & Wales. Scotland and Northern Ireland differ on some points — for example notice periods and tribunal procedure. Tell GitLaw where you hire and it adjusts the draft.
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