Nature of the Service

We pursue claims on behalf of individuals for Irresponsible Lending. Most loans were arranged online in minutes. The lenders were and continue to be under a duty to carry out reasonable and proportionate affordability checks before approving the loans. Often, the checks carried out were either not sufficient or further lending meant that additional checks should have been carried out.

If you wish to instruct us, we will gather information from you and/or your Lender to establish whether they indeed carried out the appropriate affordability checks. If they did not, we will then establish whether, had they done so, they would have still agreed to lend to you.

If, once our investigations are complete, we determine that the lender shouldn't have lent to you then we will seek redress either directly with the lender or if necessary via the Financial Ombudsman.

Where we do not believe your claim has merit, we will advise you of this and the reasons why.

Illustration of fees

We will act on a “no win no fee” basis which means that you only pay our fees in the event you are successful and awarded a cash refund.

Where you have an outstanding balance with your lender, they might seek to offset any compensation against your outstanding liabilities. This means that you may not receive the actual cash in your hand. In the event that some, or all, of your compensation is a reduction in your outstanding balance, we will not charge you a fee on that part of the compensation; we only charge our fee on the cash refund element.

The amount you will pay us is dependent on the amount of cash refund you receive. The below table details what we charge.

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

The standardised figures used above are for cost illustrations only and are not to be taken as an estimate of the amount likely to be recovered for you. The fee you will have to pay will be based on your compensation award which will vary based on the amount you borrowed, length of time and overall cost of the lending. This means what you pay might be more or less than the illustrations shown above.

If you fail to cooperate or provide false or misleading information to Clear Legal Marketing Limited, you may be liable to pay any costs incurred.

Worked Fee Examples

Band Example Cash Refund Received Maximum % rate of charge (Inc VAT) Maximum Fee You Will Pay Amount you will receive after our fee
1 £749.50 36% £269.82 £479.68
2 £4,999.50 33.60% £1,679.83 £3,319.67
3 £12,499.50 30% £3,749.85 £8,749.65
4 £24,999.50 24% £5,999.88 £18,999.62
5 £50,000.00 18% £9,000.00 £41,000.00
6 £5000.00 And a reduction in your balance of £1000.00 33.60% £1,680.00 £3,320.00 Plus a reduction of £1000.00 from your outstanding balance

Please note: 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.

For example, a customer who is awarded redress of £1,000 must not be charged more than £300 (plus VAT). This is the lower figure out of: (a) the maximum % rate 36% of £1,000 and (b) the maximum total fee of £504.00.

However, a customer who is awarded redress of £1,450 must not be charged more than £504. This is the lower figure out of: (a) the maximum % rate of 36% of £1,450 awarded (which is £522); and (b) the Max Total Fee of £504.

Alternative Ways to Claim

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 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.

Overview of key stages of a claim

Stage 1 Initial online assessment of potential claim
Stage 2 Request for information from Lender or Claim Submission
Stage 3 Lender response
Stage 4 Advice on Lender Response
Stage 5 Complaint Upheld - Recommend acceptance
Complaint Rejected - No Further Action
Complaint Rejected - Referral to Financial Ombudsman Service (FOS)
Stage 6 Redress Received
Case Rejected by FOS

Keeping you updated

We will keep you updated at each key stage of the process, usually via email and SMS. We may also call you to discuss your claim.

What you have to do

You will need to provide sufficient detail about your loans or credit facilities, that enables your Lender to locate your account. When we have located your loans and/or credit facilities, we may ask you for further information about the loans/credit facilities and your circumstances at the time they were given to you.

Cancellation

If you wish to cancel this contract you can do so within 14 days at no cost. Just let us know.

If you cancel our service after 14 days and after we submit your claim you will be liable to pay our full fee (calculated as shown above) should your claim be successful.

IVA's, Debt Relief Orders, Bankruptcy and more

If you:-

  • have every been subject to an IVA or
  • are awaiting the approval of an IVA proposal or
  • have ever been declared bankrupt or
  • are subject to a bankruptcy petition or
  • have ever been subject to a Debt Relief Order or
  • have even been subject to a similar process
you must inform us immediately. If we proceed with a claim for you then you must provide us with the IVA Supervisor / Trustee in Bankruptcy's written consent to pursue the claim for you prior to instructing us. You also authorise us to pay settlement monies to your IVA Supervisor / Trustee in Bankruptcy after our fees have been deducted.

Payments Made by Your Guarantor

We need to make you aware that if your claim is successful, and your guarantor has made payments towards your loan, some lenders which will contact your Guarantor and offer to return the payments they made. If they accept the offer, they will be released from their obligation to pay and the amount they are refunded could be added back to your loan account meaning you would be responsible for repaying it. All interest and charges are still likely to be waived and as a result it is only the capital amount you will be required to pay back.

Complaints

Should you have a complaint in regards to the service we have provided, we have a complaints procedure which you should follow. The full process can be found on our website or can be provided on request.