Close Brothers was founded in 1988. They say their mission is to make it easy for someone to buy their next vehicle.
Close Brothers is supposed to carry out sufficient checks, to ensure that the finance is sustainably affordable for the customer. But the checks it carries out are not always good enough. In pholding
a complaint, an ombudsman said:
‘I found that the checks were not proportionate for the reasons that our investigator already highlighted. But also, because the information provided by Miss F about her financial situation was, on the face of it, so unlikely that by itself, this information should have caused Close Brothers to dig deeper. For example, it appears that Miss F indicated that her sole monthly outgoing was for rent, as if she had no food bills or travel costs or other priority bills. This is clearly unlikely and should reasonably have caused Close Brothers to ask more questions about Miss F’s finances.
It is correct, as Close Brothers suggested that it is entitled to rely on information that is provided by a consumer, but that does not mean it does not have to apply critical analysis where the information provided is so unusual or unlikely in the circumstances that it would be prudent and proportionate to look further at it.’ https://www.financial-ombudsman.org.uk/decision/DRN4177241.pdf
Not all customers will have enough money to pay back Close Brothers on a monthly basis. And this could be because Close Brothers made an irresponsible lending decision. For example, it could be that the customer did not have the disposable income for the repayments on the finance agreement, together with maintaining usual living costs:
‘Deducting Mrs B’s expenditure from her income leaves about £600 and from that payment she would need to afford food and the £330 monthly instalments on this new agreement. That leaves £270 for food and other emergency expenses. I think that means Mrs B couldn’t afford to sustainably repay the new agreement as well as her existing commitments. I think Close Brothers would likely have found this out too if it had completed proportionate checks, it therefore didn’t act fairly by approving the finance.’ https://www.financial-ombudsman.org.uk/decision/DRN-3381017.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.
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