You can complain about unaffordable lending even if you’re still paying it off, or the account has defaulted.
What happens to the refund
If your complaint is upheld, the lender usually works out what the balance should be once the unfair interest and charges are removed. The refund is used to reduce or clear that balance first, and any money left over is paid to you.
Sometimes the Ombudsman decides you should only repay the amount you actually borrowed, with no interest, and sets up an affordable plan for any balance left.
If the debt was sold
If the lender sold your debt to a debt purchaser, the complaint about the lending still goes to the original lender. They’ll usually arrange with the new owner to correct the balance.
Should I keep paying?
Yes. Keep paying what you can while the complaint is looked at, and tell the lender if you’re struggling: they must treat you fairly and can pause interest or agree a plan. Free help is available from StepChange and National Debtline.