Guarantor Loan Compensation

Clear Legal Marketing Ltd was founded in 2012 and has gone from strength to strength. From our state of the art offices in Manchester, we deliver a range of claims management services to clients all over the UK. Thanks to significant investment in our IT infrastructure and the development of new advanced working methods and systems, our specialists are able to add value where it matters most – our clients. Please note our claims services are available to the general public and you do not need to be in the armed forces to apply.

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Guarantor loan compensation, what’s it all about?

In recent months, 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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“According to FOS statistics published recently, the Ombudsman have been upholding a huge 88% of guarantor loan complaints.”

If you have taken out a guarantor loan and one or several of the following statements applies to your circumstances you may be entitled to compensation.

Clear legal marketing work on a ‘no-win, no-fee’ basis. We charge 36% (30% + VAT) on any successful claims of the total refund received from your lender. 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 success fee should your claim be successful.

Forces Compare receive a commission share from the law firm in respect of any recommendations that result in a successful claim, the amount we will receive being 40% of the law firms total commission minus £40 handling fee per case. This is fee is paid to us directly from the law firms fees and will not cost the client any additional fees.
Why Could I Be Given a Guarantor Loan Refund?

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.

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.
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.

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.

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

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Guarantor affordability complaints: an overview.

The first thing to consider when reviewing the eligibility for a guarantor loan complaint is whether a loan was affordable before it was 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. If you still owe money but the compensation is more than the amount owed, your balance will be reduced to zero and you will receive the surplus as a cash payment.

We work on a ‘no-win, no-fee’ basis. We charge 36% (30% + VAT) on any successful claims of the total refund received from your lender. 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 success fee should your claim be successful. You do not need to use our services to make a claim against your lender(s). It’s free to claim compensation from financial companies if you have lost money from a mis-sold financial product. You can do this yourself directly with the lender(s) and even if they reject your claim you can still take this to the Financial Ombudsman Service at If you aren’t sure how to make the claim, you can get free, impartial advice from consumer organisations.

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Forces Compare has partnered with Clear Legal Marketing Limited to offer its clients the opportunity to reclaim compensation for mis-sold guarantor loans.

Clear Legal Marketing Limited is a Claims Management Company, (registered number 07933243) Ltd whose registered address is Unit 115-119 Timber Wharf, 42-50 Worsley Street, Manchester M15 4LD and who are regulated by the Financial Conduct Authority.

Its registration is recorded on the website Reg No: 833090, Registered with the Information Commissioners Office. Reg No: Z3370717 All calls to Clear Legal Marketing Ltd are recorded in line with the FCA requirements