Whether you took out a loan from your bank or from a lender specialising in lending to people with a history of poor credit, loans can be irresponsibly provided. Some loans involve borrowing thousands of pounds – repayable (plus interest) over a term that could be as long as 3, 4, or even 5 years – or longer. Your lender should have conducted enough checks to ensure that you could sustainably repay the loan over the entire term. However, we’ve seen cases where not all lenders conduct sufficient checks, leaving the customer with a debt they struggle to repay.
Unaffordable loans may sound self-explanatory, but it’s essential to fully grasp their implications. It isn’t always the size of the loan that makes it unaffordable. Rather, it’s about how challenging it is to keep up with the repayments without slipping into financial distress. For instance, if servicing your loan means sacrificing basic necessities, or if it throws your other financial responsibilities into chaos, you’re probably dealing with an unaffordable loan. It’s a precarious position that could potentially trigger a domino effect of financial problems. Therefore, a keen understanding of unaffordable loans is crucial in maintaining a healthy and manageable financial landscape.
Identifying the signs of unaffordable loans can be a complex task, especially as they may not be immediately noticeable until you find yourself sinking into a quagmire of repayment issues. However, there are a few tell-tale signs that can tip you off to a potential problem. High monthly repayments relative to your income, incessant reliance on short term credit, and constantly juggling or defaulting on other bills to service your loan are often glaring indicators of an unaffordable loan. If you find yourself having to sacrifice basic needs or if loan repayments are causing significant upheavals in your other financial responsibilities, you might be dealing with an unaffordable loan. It’s also worth noting that borrowing more money to cover existing loan repayments is a serious warning sign. Remember, the key is to maintain an eagle-eyed vigilance on your financial state. Always take note of these signs and act swiftly to prevent an escalation of your financial woes.
Are you a victim of irresponsible lending? Claim with us now and find out.
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
|Percentage rate the Success Fee is calculated on (including VAT)
|Maximum Success Fee in band (including VAT)
|£1 to £1,499
|£1,500 to £9,999
|£10,000 to £24,999
|£25,000 to £49,999
|£50,000 or more
Below are examples of how this would work in practice.
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