Guarantor loan compensation, what’s it all about?
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.
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.
Why Could I Be Given a Guarantor Loan Refund?
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.
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 http://www.financial-ombudsman.org.uk. If you aren’t sure how to make the claim, you can get free, impartial advice from consumer organisations.
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 https://register.fca.org.uk. 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