Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
The yearly rate charged for borrowing or earned through an investment, expressed as a percentage.
A type of fraud where a victim is tricked into sending money to a fraudster’s account.
The capital balance, also known as the principal, is the original sum of money borrowed in a loan, excluding any interest or fees.
A chargeback is when a consumer requests their bank to reverse a transaction due to fraud, non-receipt of goods/services, or other disputes.
A claim can be a claim for compensation due to mistreatment by a financial services provider (such as a bank or a lender), for example, a mis-sale claim. A claim like this is also called a complaint.
A claim can also be when you need your insurance cover to pay out—for example, claiming on your car insurance because your car has been damaged.
This is the money you get if your claim/complaint about a financial service provider is successful. The aim of compensation is usually to put you back in the position you would have been in had the mis-selling or mistreatment not occurred.
Compensatory interest is usually paid at a rate of 8% simple. It is paid when you have been deprived of some of your money as a result of mis-selling or mistreatment—for instance, because you could have earned interest on your money had the right thing happened in the first place.
Another word for a claim for compensation. Complaints can be made against financial service providers for mis-selling or mistreatment.
Financial services related to lending money to consumers, including personal loans, credit cards, and other forms of credit.
A type of recurring payment arrangement where a company is authorised to take payments from a consumer’s debit or credit card.
An informal arrangement with creditors to repay debts at a more affordable rate, often set up through a debt management company.
When a borrower fails to meet the agreed repayment terms of a loan, leading to potential legal or financial consequences.
A type of commission where car dealers had discretion to set the interest rate on a finance agreement within a range. Dealers earned more commission by setting higher interest rates, often leading to customers paying more than necessary. The FCA banned this practice in January 2021.
This is the research and investigations carried out to make sure a person or company is good and trustworthy before doing dealings with them.
An example of this is that customers are expected to carry out due diligence before making an investment or buying a product to make sure the company is legitimate and not a fraudster or scammer.
The process of paying off a loan before the agreed term ends, sometimes resulting in early repayment charges.
This relates to car insurance and is the amount you agree to pay towards your insurance claim. It means you may pay lower premiums but will have an excess deducted from the insurance settlement you receive.
A letter from a financial institution that formally addresses a customer’s complaint, typically a prerequisite for escalating to the Financial Ombudsman Service.
The FCA is the regulator of the financial services industry, which includes regulating banks, insurers, consumer credit, etc. They also regulate claims management companies like Allegiant.
FOS was set up by an Act of Parliament as an independent and impartial organisation to resolve complaints consumers made about financial services providers.
The FSCS is there to protect consumers when financial services providers go out of business and no longer have enough money. It means that consumers should still get their savings back or some compensation they’re owed. However, payday lenders are not covered by the FSCS.
Any company, such as a bank, insurer, or lender, which provides financial products and services (loans, insurance cover, savings, investments, etc.).
A type of loan where another person (the guarantor) agrees to repay the debt if the borrower cannot.
Often called payday loans, these loans typically have an APR of over 100% and are repayable in less than a year.
Irresponsible lending occurs when lenders fail to adequately assess a borrower’s ability to repay a loan, potentially leading to financial distress for the borrower.
This is what complaints are within remit to be investigated. For instance, the Financial Ombudsman Service’s jurisdiction only covers complaints about certain financial services, in the UK, within certain time periods.
A micro-enterprise is a type of small business with an annual turnover of less than €2 million and fewer than 10 employees. Both individual customers and micro-enterprises are eligible to use the Financial Ombudsman Service to make a complaint about a financial services provider.
A financial product is usually mis-sold if it was sold without your knowledge and consent, or if its key features and limitations were not explained to you properly, and it is unsuitable for your needs.
A situation where a borrower has been paying more in interest and charges than repaying the principal amount over an extended period, often in relation to credit cards.
The original sum of money borrowed in a loan or invested, excluding any interest, dividends, or additional earnings.
The process of requesting a refund or compensation for mis-sold financial products, unfair charges, or unaffordable lending.
Another word for compensation for a successful claim/complaint.
A UK consumer protection law under the Consumer Credit Act 1974, which allows consumers to claim a refund from their credit card provider for purchases between £100 and £30,000 if something goes wrong.
Unaffordable lending refers to the practice of providing loans or credit to borrowers without ensuring they have the means to repay,
Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
