Catalogue accounts are revolving credit facilities that function similarly to credit cards: the customer has a credit limit and will need to make monthly repayments towards an outstanding balance.
Catalogue shopping can be appealing for some customers who impulse buy fashionable goods but would struggle to afford to pay for the goods in one lump sum. Lenders are aware of this and play to this with wording on their websites. We’ve seen examples which say, “Whether it’s fashion, home or gifts, simply shop and pay later, with no interest if you pay in full” and “With no card details necessary, it’s never been quicker or easier to buy.”
The credit limit on the catalogue shopping account might start quite low, but lenders will gradually increase the credit limit on the account. Lenders need to make sure that they carry our enough checks before increasing the credit limit. This includes lenders considering what it knows about the way the customer has ran their account up to that point, before agreeing an increase to the credit limit. Of course, this does not necessarily mean these lenders carried out the checks they ought to have done. One Ombudsman explained an example of this:
“Ms P’s outstanding balance increased significantly. And she continued to make only the minimum payment that was required. So I think that might have suggested to JDW that she was finding it difficult to manage her credit in a sustainable manner. I think it might have been reasonable at that time for JDW to probe deeper into Ms P’s finances to establish her true financial position.”
We know that when lenders are expected to probe deeper into the customer’s true financial situation, the lender may find that any further credit is simply unsustainable. We’ve seen examples where the lender did not realise how low the customer’s income truly was, or that the customer was in a debt spiral of using payday loans – whilst also trying to maintain the minimum repayments to their catalogue account.
If your claim is successful, you can get the interest charges back on any balances over and above a responsibly given credit limit.Apply Now
We realise that claiming against a high cost loan lender can seem daunting. We aim to make the claiming process as simple as possible. We specialise in affordability claims. Our experienced team will communicate with the lender (and where required, the Ombudsman service) on your behalf. We use bespoke technology to ensure efficient claims handling. Throughout the process, we inform you of claim progress using a “stage process”, so you can track your progress easily. Please remember though, that you do not need to use a claims management company to make your complaint to your lender, and if your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Pre complaint investigation and analysis
Formal mis-selling complaint made
Lender responds with a Final Response Letter
If appropriate resolution cannot be reached with the lender, referral to Financial Ombudsman Service.
Our success fee is due only if your lender makes a compensation payout, and is calculated on the amount of the compensation payout. We do not charge you for any part of a settlement that results in the lender reducing your outstanding balance – that is on the house!
The success fee amount is calculated using a band charging system. There are five charging bands. Each band has a maximum amount that we will charge.
Success Fee Charging Table
|Band||Compensation Payout||Percentage rate the Success Fee is calculated on (including VAT)||Maximum Success Fee in band (including VAT)|
|1||£1 to £1,499||36%||£504|
|2||£1,500 to £9,999||33.60%||£3,000|
|3||£10,000 to £24,999||30%||£6,000|
|4||£25,000 to £49,999||24%||£,9000|
|5||£50,000 or more||18%||£12,000|
Below are examples of how this would work in practice.
|Lower example||Higher example|
|Band||Compensation Payout||Success Fee||Compensation Payout||Success Fee|
If you want to see how much we would charge for a specific amount, please visit our online fee calculator at https://allegiant.co.uk/unaffordable-lending-claim-fees.
Please note that the examples in the tables are for illustration purposes only. They are not an estimate of the likely outcome or success fee.
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: firstname.lastname@example.org; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
Allegiant Finance Services is widely regarded as a pioneer in the high cost loan claims management market.
Contactable by email, phone, or post, whichever you prefer
We will only correspond with you and keep your details secure. We’ll never sell your data.
Much more than a contact form. With our full online application process you will receive an instant automated decision on whether we can take on your claim
We are proud to have recovered over £67m for unaffordable lending claims since 2013
We’ve been claiming high cost loan refunds since 2013