Are NewDay Ltd’s Persistent Debt Policies Unfair to Borrowers?
Managing debt responsibly requires careful planning—strategic payments, credit score optimization, and balancing multiple financial obligations. However, NewDay Ltd is imposing forced repayment plans on borrowers, disrupting their financial strategies and prioritizing their own interests over consumer autonomy.
I recently received a letter stating that NewDay Ltd will transition my account into a repayment plan next month—against my will. They claim this is necessary under persistent debt rules, yet their actions fail to acknowledge that I have met every contractual obligation, consistently reduced my outstanding balance, and structured a repayment strategy that works across all my credit facilities. Despite this, they are demanding that I adopt a rigid repayment structure that disrupts my financial management and unfairly prioritizes their repayment over my other creditors.
NewDay Ltd & Persistent Debt Rules – Are They Being Misused?
The Financial Conduct Authority (FCA) introduced persistent debt regulations to protect borrowers from excessive interest accumulation and encourage responsible repayment habits. However, these rules were never intended to force repayment plans on customers who are actively managing their debt responsibly. The rules exist to intervene when borrowers are caught in cycles where interest and fees exceed principal reduction over an extended period, but this does not apply to me.
In fact, my account has remained active with purchases, meaning that while my lender may classify it as persistent debt based on surface-level numbers, this fails to account for the real progress I’ve made in reducing my balance. Rather than stagnating, my debt has been meaningfully reduced—even when factoring in new purchases—showing that my repayment strategy is working as intended.
So why is NewDay Ltd imposing a repayment plan that contradicts my financial strategy and potentially harms my credit rating?
The Unfair Practices at Play – How NewDay Ltd Is Forcing Borrowers Into Repayment Plans
1. Prioritizing Their Interests Over My Financial Obligations
NewDay Ltd is effectively forcing me to favor their repayment above my other credit commitments. As someone managing multiple accounts, I follow a structured plan—advised by financial expert Martin Lewis—where I pay my minimum contractual amount and then make a supplementary payment a few days later to enhance my credit score and accelerate debt reduction. By imposing this repayment plan, NewDay Ltd is disrupting my ability to manage all debts evenly and forcing an unfair prioritization that contradicts fair lending principles and equitable debtor treatment.
2. Ignoring Meaningful Debt Reduction & Misrepresenting Account Activity
A major flaw in NewDay Ltd’s classification of my account as persistently indebted is their failure to recognize ongoing financial activity. The account has not been stale—I have continued making purchases, which means the debt figures from a surface level might look static, but in reality, my repayments have meaningfully reduced my overall debt. NewDay Ltd’s methodology does not fully account for this, instead painting a misleading picture that disregards real debt reduction progress.
3. Violating the Spirit of Fair Lending Practices
Fair lending should empower borrowers, not restrict financial freedom. Persistent debt rules were designed to protect consumers, but when applied rigidly without considering individual repayment behaviors, they become punitive rather than supportive. Such forced reallocation of payments may run counter to the principles of equitable treatment for all debtors and can be argued as inconsistent with the FCA’s broader guidance on treating customers fairly. Lenders should ensure that interventions genuinely serve the consumer’s best interests, yet NewDay Ltd’s actions suggest otherwise.
How to Challenge NewDay Ltd’s Forced Repayment Plan
If you are facing similar issues with NewDay Ltd, here’s what you can do:
✅ Request a full breakdown of how they calculated your persistent debt status.
✅ Challenge the repayment plan if you are actively reducing your balance.
✅ Demand written confirmation that rejecting the plan will not impact your credit rating.
✅ Escalate your complaint to the Financial Ombudsman Service (FOS) if necessary.
✅ Report unfair practices to the Financial Conduct Authority (FCA).
Final Thoughts – Is NewDay Ltd Violating Consumer Rights?
Fair lending practices are designed to protect borrowers, not trap them in rigid repayment structures that favor the lender’s interests over consumer autonomy. If you find yourself in a similar situation with NewDay Ltd, challenge the decision, request full transparency, and escalate your case if necessary.
