Capital One explain on their website, ‘We issued our very first credit card way back in 1996, and have since grown to become one of the UK’s top ten card providers.’
Like any other lender, Capital One need to carry out enough checks to ensure that the customer can afford to repay the credit card. However, experience suggests that Capital One does not always make responsible lending decisions:
I currently think that Capital One failed to properly consider Mr E’s income and outgoings given the information it held and further checks would have revealed that Mr E was not currently working and in receipt of benefits. In these circumstances I don’t think Capital One would have agreed to lend. (https://www.financial-ombudsman.org.uk/decision/DRN-3751230.pdf)
We have seen examples of customers having more than one credit card with Capital One. This means that Capital One would need to consider how their customer was able to repay them in the past, before proceeding to provide new credit:
I don’t think Capital One made a fair lending decision with the information they already had available to them. This includes both the information received on the credit search and the information they held internally about Mr P and his previous account. (https://www.financial-ombudsman.org.uk/decision/DRN-3589852.pdf)
The more credit accounts a customer has open, the greater risk there is of a customer entering a debt spiral. This is also something Capital One may fail to take account of when making its lending decisions:
So at the time of the second credit card application, Ms J’s credit file showed very recent difficulties that Ms J was having meeting her monthly commitments.
In addition, it does seem to me that Ms J was, by this time, clearly in a cycle of short-term or payday lending. And she was making use of this short-term lending although she had only recently had access to £1,500 of additional credit through the first card account that Capital One opened for her.
I think that, taken together, these were clear signs that Ms J wasn’t managing her finances at this time. So I think that the second card account that Capital One opened for Ms J was not responsible lending.
I think this is also then demonstrated by the fact that Ms J was over the limit on her first card by the end of February, although she also began to use the second card during that month.
Because I think that this second card wasn’t responsible lending, I think it’s appropriate to ask Capital One to refund any interest or fees charged on this lending. (https://www.financial-ombudsman.org.uk/decision/DRN-2946140.pdf)
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: email@example.com; (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.
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We are proud to have recovered over £67m for unaffordable lending claims since 2013
We’ve been claiming high cost loan refunds since 2013