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. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Aqua cards are promoted as a way to build your credit score, making them targeted towards individuals with a history of poor credit. They are currently advertised with an APR of 37.9% representative (variable) – indicating that Aqua cards are expensive to use.
Aqua is one of the trading names of NewDay Ltd, which is authorized by the Financial Conduct Authority to lend money.
In November 2021, there was media coverage of Aqua’s irresponsible lending practices, including the headline ‘Credit giant Aqua ‘hiked credit limit’ and lent to struggling mum with 13 payday loans’ (https://www.mirror.co.uk/money/credit-giant-aqua-hiked-credit-25426829).
The term ‘hiking’ refers to credit limit increases, which can make the credit unaffordable for customers. Initially, Aqua may offer a small credit limit, perhaps £250, when the account is opened. However, as shown in the case below, any subsequent increases in this limit may be unaffordable for customers:
‘If Aqua had carried out more comprehensive checks I think it would’ve found Miss G was increasingly reliant on credit and unable to sustainably repay an increased credit card balance. I agree with the investigator that Aqua lent irresponsibly when it increased Miss G’s credit limit to £1,000.’ (https://www.financial-ombudsman.org.uk/decision/DRN-3167217.pdf)
There are several signs that indicate credit is becoming unaffordable. This can include customers who become overindebted by relying on high-cost short-term credit as an ill-advised method of escaping financial difficulty. Unfortunately, Aqua does not always recognise these signs, as demonstrated in the example below:
‘The use of payday loans can be an indicator that a person is experiencing financial difficulties. And in this instance, when considered alongside other potential indicators of financial difficulty, including recent arrears on several other accounts as well as Mr T’s overall level of external debt markedly increasing, I feel that there was compelling evidence available to Aqua such that they should have questioned whether the second credit limit increase was affordable for Mr T at that time.’ (https://www.financial-ombudsman.org.uk/decision/DRN-2840492.pdf)
We realise that claiming against your 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 unaffordable lending 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 |
1 | £100 | £36 | £1,499 | £504 |
2 | £1,600 | £537.60 | £9,999 | £3,000 |
3 | £12,000 | £3,600 | £24,999 | £6,000 |
4 | £30,350 | £7,284 | £49,999 | £9,000 |
5 | £55,000 | £9,900 | £100,000 | £12,000 |
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: helpdesk@allegiant-finance.co.uk; (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
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. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.