Guarantor & Payday Loan Compensation

If you have had a payday or guarantor loan, you may have been mis-sold and be due compensation.

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Make A Claim

You do not need to use a claims management company 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.

OVERVIEW

The first thing to consider when reviewing the eligibility for a guarantor loan complaint is whether a loan was affordable before given to you.

In short, the appropriate definition of affordable is whether or not after repaying it in installments, on time, you have money left over to pay your bills to avoid further lending.

To summarise, if you had to borrow more money or became behind with bills as a result of your guarantor loan repayments, you have grounds to make an affordability complaint. This route is available regardless of whether you are still paying the loan, have stopped paying the loan and are relying on your guarantor or even if the loan has been repaid.

If your affordability complaint is successful there are three potential outcomes. Should you still owe money, your interest is removed and you simply repay back what you borrowed. If your loan has now been repaid you will receive a refund of the interest in addition to 8% of the amount of your statutory interest.

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HOW IT WORKS

In recent months, Amigo and other guarantor loan companies have come under scrutiny for their high interest rates, potentially lax lending criteria and affordability checks.

Following on from the recent surge in compensation claims which saw the likes of Wonga and Quickquid fall into administration, the need for more responsible lending has been highlighted and further opportunities to pursue claims have arisen.

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Complete Online Form

Initial online assessment of potential claim

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Review Lenders Response

Advice on offer, lender rejection or potential referral to Financial Ombudsman

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Compensation paid

Offer accepted and compensation paid or referral to Financial Ombudsman Service

Why Could I Be Given a Refund?

Application process

During your application process, you may not have mentioned all of your debts and If this didn’t match with your credit record, the lender should have ensured to reaffirm this.

Regular income

At the time of your application did you have a regular income? If you were self-employed during this period or even had overtime that fluctuated, the lender should have looked at this.

Unaffordable

Whenever you topped up an existing loan, your lender should have ensured to run another set of checks concerning whether this was affordable. Had you missed any previous loan repayments? Had your finances deteriorated since your first loan? If so, the lender should have addressed the fact that their current loan could be unaffordable and as a result, capped any more lending.

Underestimated

It is possible that you underestimated your monthly expenditure due to guesswork or eagerness to be eligible for your loan, and in such circumstances, if your figures appeared too low, your lender should have explored their reliability further.

Recent applications

Did you have evidence of recent applications for credit or previous problems on your credit record? Guarantor loans are specifically targeted at those with bad credit scores, however, the lender should have been conscious of whether your situation appeared to be worsening.

Brief affordability

The firm may only have carried out a brief affordability check on you because of your guarantors circumstance. Regardless of your guarantor’s financial status, the loan needed to reflect your personal repayment potential.

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THE COST

We work on a no win no fee basis. And we charge a fee on any successful claims. The total charge is based on the total refund received from your lender and will be calculated by reference to the table below. The amount you pay will either be a sum equivalent to the ‘Maximum % Rate of Charge’ or a sum equivalent to the ‘Maximum Total Fee’, whichever is the lesser.

 

Band Cash Refund Received Maximum % rate of charge (Inc VAT) Maximum total fee (Inc VAT)
1 £1 – £1,499 36% £504.00
2 £1,500 – £9,999 33.6% £3,000.00
3 £10,000 – £24,999 30% £6,000.00
4 £25,000 – £49,999 24% £9,000.00
5 £50,000 or above 18% £12,000.00

 

 

If you cancel our service without our agreement after 14 days and after we submit your claim you will be liable to pay our full fee should your claim be successful.

GET IN TOUCH

  •   Unit 115-119 Timber Wharf

    42-50 Worsley Street, Manchester M15 4LD

  •   office@guarantor-claim.co.uk

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