Overdraft claims with irresponsible lending opportunities layered on top.
Clear Law
Lead specification. Minimum six consecutive months' overdraft usage within a 24-month period, with quantum calculated across the full 24 months. Every client arrives with a credit report and a signed DBA and LOA, so the lead-to-signed rate is fixed at 100%.
Product and pricing
Pick a single tier, or blend the two and weight the split. Everything below this section is filled in once and applies to whichever mix you choose.
%
Overdraft claim
£
£
Irresponsible lending opportunities
£
£
Tier mix
%
The remainder is bought at the £1,000+ tier.
Pricing and redress by tier
£500+ leg
£1,000+ leg
OD lead, no OB
£
£
OD lead, with OB
£
£
IL opportunities per lead
IL opportunity, no OB
£
£
IL opportunity, with OB
£
£
Average OD redress
£
£
Average IL redress
£
£
£500+ leads—
£1,000+ leads—
£500+ income—
£1,000+ income—
%
%
Total lead spend—
All-in cost per lead—
Spent on overdraft—
Spent on IL—
Revenue share payable—
Conversion
The retainer is already signed at source and the lender is identified before signing, so the only leakage is duplicates and clients who withdraw.
100% — fixed, DBA and LOA signed at source
0% — fixed, lender identified before the LOA is signed
%
%
%
Live clients—
Survival rate—
Cost per live client—
OB-backed at decision—
Claims and outcomes
One overdraft claim per client, plus the IL opportunities purchased. These rates apply across whichever tier mix you have chosen.
Overdraft claims
%
%
Irresponsible lending claims
%
%
Ombudsman
%
%
%
£
£
Total claims raised—
Overdraft claims—
IL claims—
Referrals—
Blended uphold rate—
Redress quantum
The tier is a floor, not an average, so the overdraft book is split across bands. In blended mode this table is replaced by the average redress figures in the tier table above.
Overdraft band
Average redress
Share of upheld OD claims
At the floor
£
%
Mid
£
%
Large
£
%
Very large
£
%
Weights total 100%.
£
Fees and cost to serve
Fee income is the fee rate applied to average redress. Note the FCA fee cap restricts charges to 28% between £1,500 and £9,999 of redress and 25% above £10,000.
%
%
£
£
£
£
Weighted OD redress—
Net fee per upheld OD claim—
Cost to serve—
Ombudsman fees—
Annualised return—
Sensitivity
Profit per lead bought, in every grid. Anything not named in a grid holds at the assumption above, including the tier mix.
Uphold rate against lead price
Rows move all lender uphold rates together; columns scale every lead and opportunity price.
Redress quantum against fee rate
Rows scale every redress figure up or down together; columns vary the fee charged on redress.
Tier mix against IL opportunities purchased
Rows vary how much of the tranche is bought at the £500+ tier; columns vary how many of the IL opportunities you buy. This grid always runs in blended mode, whichever tab is selected, so you can see the whole mix from either side.
Ombudsman referral rate against uphold rate
Rows vary the share of overdraft rejections referred; columns vary the Ombudsman uphold rate. IL referrals hold at their own setting.