UKCredit was established in 2009 and provides guarantor loans. Guarantor loans are where someone else, like a friend or relative, agrees to become responsible for the debt if the borrower fails to pay off the loan. UK Credit’s tag line is, ‘Homeowner Guarantor Loans’ – referring to the fact that the guarantor (not the borrower) must be a homeowner.
This business is authorised by the Financial Conduct Authority to lend money under the name UK Credit Limited. It has also used various trading names.
To check that a loan is going to be affordable before lending it, businesses like UK Credit should be carrying out proportionate background checks about the customer’s financial circumstances – to ensure the loan is going to be affordable.
Experience shows that UK Credit often does not carry out the checks that it should do. This can be seen from these sample cases:
“I don’t agree that these checks were proportionate. Mr T was applying to borrow a significant amount of money from UK Credit. He was entering into a long-term commitment and would need to make monthly repayments for five years. So I would expect that UK Credit would want to gather, and independently check, more detailed information about Mr T’s financial circumstances before it agreed to lend to him” (https://www.financial-ombudsman.org.uk/decision/DRN-2675362.pdf)
“UK Credit has now acknowledged that it didn’t do a proportionate check before agreeing to lend.” (https://www.financial-ombudsman.org.uk/decision/DRN-3198339.pdf)
“Its checks should have gone further in order to be proportionate” (https://www.financial-ombudsman.org.uk/decision/DRN-3130369.pdf)
It is important to say though that just because checks are not proportionate, this does not necessarily lead to an upheld claim. The key question is: if more detailed checks had been carried out, would affordability issues have been discovered?
The affordability issues we see with UK Credit are typical of the issues with other lenders. Typically, this means customers who are already struggling with existing debts and credit commitments before the UK Credit loan even starts. In these circumstances, UK Credit should not approve the lending, as it would cause too much additional stress on the customer’s income and circumstances.
Allegiant has extensive experience in making claims against this lender and can provide you with claims assistance.Apply Now
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