Banks have been warned that many personal loans offered to its clientele may not be all together above board.

Unfair Made Fair have concluded that at least 79% of UK loans are unfair, opening the doors for possible compensation claims. The company have confirmed that personal loans totalling between £5000 and £25000 fall into the suspect bracket and are open to conjecture.

If after investigation, the agreement is found to be in any way suspect the loan could be rendered meaningless.

Unfair Made Fair director Alan Kneale commented, "the consumer could also challenge any adverse credit associated with an unfair loan, apply to repair their credit file and even sue the lender for unfair damage to their credit file and seek compensation."

He said: “We have anecdotal evidence some high street banks have more than 30 different loan agreements in force and these have been added to, altered, plagiarised, cannibalised and amended instead of being rewritten from scratch, the result being many are unfair.

“We believe the end result for the UK’s high street banks will be a return to cautious, thorough and methodical bank managers, lending only to those good for the money,” he concluded.