Unaffordable Credit Claims
What are unaffordable credit claims?
"Unaffordable credit claims" typically refer to complaints made by consumers who have been granted credit that they believe they cannot afford to repay. These claims often arise in cases where lenders have not conducted proper affordability checks or have provided loans or credit without fully assessing the borrower's financial situation.
For example, a borrower may have been granted a loan despite having a low income, a high level of debt, or a poor credit history. In such cases, the borrower may struggle to make repayments, leading to financial difficulties and potential default on the loan.
When consumers make unaffordable credit claims, they may seek to have their debt written off or reduced, or they may ask for compensation for the financial difficulties they have experienced. Lenders may be required to investigate the claims and, if they are found to be valid, provide redress to the affected consumers.
What happens if my credit supplier hasn't correctly checked my affordability?
If your credit supplier has not correctly checked your affordability before providing you with credit, you may be able to make an unaffordable credit claim. This means you would be challenging the lender's decision to grant you credit in the first place, on the basis that they did not properly assess your ability to afford the repayments.
If your claim is successful, the lender may be required to provide redress, which could include:
- Writing off some or all of the debt owed: If the lender is found to have provided you with credit that you could not afford, they may be required to write off some or all of the debt you owe.
- Refunding interest and charges: If the lender is found to have charged you excessive interest or fees as a result of the unaffordable credit, they may be required to refund these to you.
- Offering compensation: If you have suffered financial hardship as a result of the unaffordable credit, the lender may be required to offer you compensation.
- To make an unaffordable credit claim, you will need to provide evidence to support your case. This may include bank statements, pay slips, and other financial records that show your income, expenses, and other debts.
What is the next step?
- Fill in the contact us form on our website or give us a call.
- Our unaffordable lending team will assess your case free of charge
- If you decide to proceed, based on the information we have given you, we will send you the claims forms to sign
- Your claim will then be processed, and you only pay us if we win.
