When And How To Make Payday Claims
Payday loans have without doubt become very popular especially because they are easy and quick to get. while they are short term loans that are supposed to save individuals from difficult financial situations that can’t wait, they do attract a very high interest rates. With so many lenders now offering the loans, if you are not careful with the loans you could end up with debts that spiral out of control. A good number of people find themselves in more financial difficulties when they get hooked to the payday loans.
Luckily, if you feel your payday loan is not yielding the kind of results you expected because of one issue of another, it is possible to apply for a refund. The refunds are usually based on mis-selling by the lender or the payday loan providers and they can work on saving you from an agonizing financial situation. You can claim a refund if:
- You feel the payday loan costs are ever increasing and sending you into more debt, consequently making living a struggle for you. If you can hardly continue your household bills and daily expenses because of repayments then you can claim for refund.
- Repayments are automatically deducted from your credit card or bank account by your lender leaving you with insufficient funds to survive on.
- You qualified for the payday loan already though you were experiencing ill health or while you were on low incomes and benefits. All lenders are required to go by an evaluation course of action wisely to ensure that you can truly repay the loan as indicated.
- The payday loan proved unaffordable and you really cannot repay without being placed under undue difficulties. while the loans come with high interests, some lenders charge hefty rates and attach other fees to the loans making them quite unaffordable in some circumstances.
- The lender promoted you rolling over the loan, consequently resulting in more fees on your side. The lending terms should be clear for you and no lender should offer solutions just so they can reap you off in the end when you thought they were truly helping you out.
- You have to borrow more funds to pay important bills like utility bills, rent and council tax just because you are servicing a payday loan.
Making the complaint
First, you would need to write a letter to the lender as a way of trying to sort out the issues at hand. Let the lender know where they have failed as per best practice charter and the set rules for such loans and express how you wish to resolve the problem. You can review repayments plans so you are able to pay what you can provide at functional times.
If the lender fails to respond or sort out the problem as requested, you can take the complaint further to the financial ombudsman service. The office will look into the complaint and offer advice to sort it out and final decisions made binds the lender.
In case you nevertheless are not satisfied with the decision by the ombudsman service, you can take lender to court. It however should be your very last resort when making a claim because court situations can be long and monotonous and they also come with charges. It helps to seek specialized advice first before making it a court case.
There are very good claims management companies that can help you get the compensation you want without any court proceedings. If you decide to settle for such a provider, ensure that they have impressive success rates and their sets are affordable and reasonable enough for you.