Millions of people in the UK have an overdraft facility, but many people don’t stop to think about whether an overdraft is right for them, or consider whether the lender was acting responsibly in providing the overdraft in the first place. The Financial Conduct Authority outlined the following in its consultation paper on overdrafts:
“Overdrafts are primarily intended to provide short-term credit. But our research shows that many consumers use arranged overdrafts regularly over long periods, and so incur charges for prolonged periods. For these customers, an overdraft may not be the best way of borrowing.”  https://www.fca.org.uk/
publication/consultation/cp18- 42.pdf (2.5)
The lender needs to ensure that you are able to repay your overdraft within a reasonable period of time. It is not fair and responsible for a lender to continue to charge for the overdraft facility, or extend the limit, where it is clear that the overdraft is not being used as it should – and is instead being used over a prolonged period of time.
Yes. We have seen examples of claims being upheld where customers have been constantly using their overdraft, whilst experiencing financial difficulties with other credit. This might include customers who took out payday loans at the same time as being in an overdraft, or customers whose income is mostly made up of state benefits.
In one Decision about a TSB overdraft, an Ombudsman said:
“A cursory look at Mrs R’s statements in the period leading up to her overdraft being provided shows that she was already struggling to manage her money. She was regularly and repeatedly overdrawn. And the credits going into the account indicated Mrs R would struggle to sustainably repay an overdraft and certainly not for an amount anywhere near the limit of £3,000.00 she was eventually provided with.”  https://www.financial-
If your claim is upheld, you can expect to get your interest, fees and charges back from the point at which it was no longer affordable for the overdraft facility to be in place.
Please note that we are currently in the process of setting up overdraft claims and look forward to assisting with this soon.
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