How Can Affordability Claims Help You
How to build your personal credit
Before we can answer how affordability claims can help a certain individual, we must need to know first-hand what an affordability claim is. An affordability claim is a complaint against a lender or creditor for irresponsible lending and for failing to do a proper affordability check.
So, what is Irresponsible lending?
Irresponsible lending occurs when a lender or creditor has not done proper affordability checks to an individual borrower or lendee, provided a loan that is larger or higher than what they needed and could not afford to pay back. In lending responsibly, the lender or creditor must assure that the borrower:
- can repay the debt in full and on time without undue difficulty causing financial hardship
- can follow the terms and conditions of the agreement without falling behind on existing commitments like bills, taxes or other debts
- without having to borrow for more, again and again
An affordability check is when you are asked questions regarding your income, expenses and disposable income. This is supplied with your credit file, bank statements to assess whether the loan agreement is manageable and affordable for you.
If you have experienced difficulties in repaying the loans and fall behind on paying your bills, skipped a payment on the loan or kept rolling the loan after repaying one and getting a loan right after. This means you’re already experiencing the domino effect of irresponsible lending.
If the creditor failed to do an affordability check on your financial incomings and outgoings or did not check your credit history, provided you with a hefty loan amount that is not manageable for you to repay, then you are in for an affordability claim for irresponsible lending.
An affordability claim can help you get a compensation refund of the interests and charges you paid to the lender which in many cases will be more than the amount of capital that you borrowed and could run into many hundreds if not thousands of pounds. It will also help you improve your credit score and rebuild your finances. It is far better than debt management, why continue making small payments back to your lender when you are already in financial difficulty due to irresponsible lending? An affordability claim is the answer to your financial difficulty and will keep you from drowning in further debt.
If you believed that you were lent irresponsibly and the lender didn’t do the proper affordability check and evaluation of your finances, we can help you with that. Our professional claims analysts can help you build a solid case for a successful compensation claim for unaffordable lending. We provide a 5-star professional service from start to finish. 100% online consultation, No win No Fee.
