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Putting Things Right With Irresponsible Lending Claims

If you think your lender for an unsecured/payday loan, bank overdraft or car finance practices irresponsible lending, leaving you as a borrower unable to repay the outstanding balance, you’re not alone. The Financial Ombudsman Service gets complaints about lenders approving credit and loans for borrowers who can’t afford to repay their debt. A common problem with car finance and guarantor loans is a lender who fails to conduct proper affordability checks, resulting in undue financial hardship for the borrower or a reduced credit rating.

Accusing a loan company of irresponsible lending can help people struggling with wrongly approved loans. Sandstone Legal can assist with borrower complaints, seek compensation such as refunds, and try to prevent you from facing unmanageable loan repayments.

 

What To Do If You’re a Victim of Unaffordable Lending

When you agree to a credit agreement for a card, guarantor loan, or personal contract purchase from a car dealership, you expect the lender to engage in responsible lending. A good industry practice by responsible lenders is conducting proper affordability checks on every borrower.

An affordability check or affordability assessment ensures you can make timely repayments for a loan. Affordability checks compare your monthly wage slips, bank statements, utility bills, car finance, and other expenses and debt to determine if you can afford the loan’s monthly payments.

Irresponsible lending isn’t your fault, and there are ways to proceed and protect yourself from financial difficulty. Read on to discover more.

Are you facing financial difficulties? Reach out today to request help with your whatever you may need.

Common Types of Irresponsible Lending

Excessive Fees

A common complaint about irresponsible lenders involves excessive fees. High interest rates can result in small loans with expensive regular payments.

Most lender interest rates are between 0% and 5%. Borrowing funds with interest rates above 5% can make repayments challenging, especially if the lender is unaware of or indifferent to the income a borrower has.

While some companies lend responsibly without a predatory interest rate, other lenders may take advantage of those with low income. Consumer credit does impact interest and charges for everyone, but irresponsible lenders often charge more.

Unnecessary or Hidden Fees

Interest and charges for guarantor loans and credit card borrowing could be excessive or unnecessary. Unfortunately, it’s common for an irresponsible lender to push additional services on a borrower regardless of their income or circumstances. They could also downplay the hidden costs inside the credit agreement and expect to be paid monthly on time.

No Credit Check Details

Irresponsible lending claims often stem from a lender failing to conduct proper checks on a borrower’s creditworthiness. A creditworthiness assessment or affordability check is necessary before a lender can give a borrower credit or money from a loan. The lender must know that you have the income to make timely repayments each month after borrowing money.

Lenders expect to be repaid for everything they’re owed. Still, the company may be practising unaffordable lending if they award you money or credit despite knowing your current income and what you can afford. You should expect to supply a lender with your wage slips, bank statements, and details about any debt you owe so they can perform a proper affordability check.

If you have a complaint against your lender for irresponsible lending due to an improper affordability check, you can request a copy of your assessment results. If the company completes the affordability check correctly and the lender knows about your low income or compromised financial status, you may be eligible to file a claim.

Balloon Payments

After borrowing money, examine your loan or credit agreement and review the term’s repayment schedule. If your payments each month are relatively low, it could be because the lender expects you to make a large payment at the end of the term despite knowing you can’t afford to pay such a hefty amount at once.

Responsible lenders will ensure each borrower can make all payments on time and in full without further borrowing or experiencing financial hardship.

Getting the Compensation You Deserve for Your Mis-Sold Loan

At Sandstone Legal, we understand how difficult it can be as a borrower to fall into debt due to predatory lending practices. Thankfully, with the Consumer Credit Act 2006, it’s possible to file a claim against a lender who mis-sold their credit, payday, or guarantor loan agreements or exploited their customers’ financial circumstances.

Sometimes lenders will let borrowers repay a portion of the total debt owed instead of a total refund if you file a complaint directly with them. By making a complaint against your lender through an irresponsible lending claim, our experienced solicitors can help you pursue fair compensation for your troubles.

Sandstone Legal has ample experience helping people with incorrect or improper approvals for payday loans, guarantor loans, credit cards, and other finance options with payments they couldn’t afford. We’ll conduct a free consumer credit breach health check. Our team can investigate lenders who didn’t perform an affordability check for a loan, lenders who ignored a change to a customer’s finances, and companies who expected a low-income borrower to repay loans they can’t afford.

With your irresponsible lending complaint, we can seek a refund for all the interest paid to the loan company. In addition to a refund, our lawyers can petition for the removal of adverse information on your credit file, a write-off of the entire debt, and additional money to compensate for stress and inconvenience.

The timeline for this claim can take several months, depending on the complexity of the case. We’ll stay with you throughout the process, assisting from beginning to end.

Sandstone Legal has a no win, no pay fee policy. We won’t accept money from you unless we win your case. Reach out to us today to request more information.

We Want To Help You Get Your Irresponsible Lending Compensation

If you find yourself struggling to afford to repay a loan after borrowing money you received due to unaffordable lending practices, Sandstone Legal can help. As a forward-thinking law firm, we believe in streamlining legal processes to pursue damages on our clients’ behalf with a no win, no fee payment policy.

We know that struggling with loan payments due to mis-sold loans can be stressful. However, our solicitors have years of experience helping clients address irresponsible lending complaints. We can assist if a lender acts unfairly, discuss expectations about how the account should be repaid, and more.

Our team works on irresponsible lending claims nationwide and operate from our offices in:

Read more about mis-sold loans, and contact our Sandstone Legal team today to begin your claims process.

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