On the Lloyds Banking Group website, Black Horse is described as, ‘the UK market leader for point of sale motor finance, with a network of 5,000 motor dealers to sell finance to 1 million customers’.
In an ombudsman’s decision concerning a hire purchase agreement we’ve seen, the ombudsman was baffled and puzzled as to what Black Horse considered to be responsible lending:
How Black Horse came to the conclusion that Ms D’s financial situation indicated a further long-term credit agreement was sustainable and affordable is baffling.
Overall, I don’t think Black Horse took appropriate consideration of the information they had gathered – or could have gathered – about Ms D’s financial circumstances. (https://www.financial-ombudsman.org.uk/decision/DRN5003607.pdf)
In this same ombudsman’s decision, Black Horse’s flawed understanding of responsible lending is revealed by the ombudsman. Black Horse is quoted as saying that it is for the customer to decide if the loan repayments were affordable or not. However, the ombudsman here is quick to point out that this ignores the rules about responsible lending, which Black Horse is expected to follow by its regulator:
In correspondence with Black Horse prior to completing my final decision, I highlighted their statement “Ultimately it was for the customer to decide if the repayments were affordable based on her proposed expenditure patterns which she has the ability to control and influence through discretionary, non-essential household expenditure”. I don’t agree nor do I believe this reflects the requirements placed on lenders by the regulator. In fact the decision and burden for that decision is placed mostly on the lender as they have the ability to make the proper and measured assessment of someone’s financial position. (https://www.financial-ombudsman.org.uk/decision/DRN5003607.pdf)
In two separate decisions – concerning customers referred to as ‘Mr B’ – the ombudsmen set out that Black Horse’s affordability checks were not detailed enough to accurately reveal if the customer could afford to pay back the money borrowed, with interest:
I’ve seen that Black Horse says it verified Mr B’s income by undertaking a credit check and looking at his current account’s turnover and previous borrowing. But I don’t think these checks were enough, they didn’t verify Mr B’s earning. (https://www.financial-ombudsman.org.uk/decision/DRN-2802289.pdf)
Altogether, in these circumstances, I remain of the view that it would have been reasonable and proportionate for Black Horse to have looked into Mr B’s finances in more depth before agreeing credit for him. (https://www.financial-ombudsman.org.uk/decision/DRN-2911603.pdf)
So, if you have borrowed from Black Horse, it may be the case that Black Horse did not carry out enough affordability checks. And this could mean you were provided with finance you couldn’t afford.
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.
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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