Claiming Compensation from Payday Loans
Are you burdened with a payday loan or has payday loan made your finances difficult and miserable. For many of you, these loans might have been unaffordable. If that’s the case then you need not pay any more or should not have paid those loans. The payday loan companies have operated without any regulations for a long time. Good news for you that the situation has changed as the Financial Conduct Authority (FCA) introduced new rules on how payday lenders would be allowed to lend in the summer of 2014.
Since then there have been cases where some high profile companies have paid millions as restitution to their customers for the advantages they have taken. So how do you claim your payday loan refund and how much can you get? In order to claim a refund, you have to be eligible to claim compensation for your payday loan and proceed to step by step. How much you will get depends on your case. Read on to know how you should move forward to claim compensation from a payday loan.
- First of all get all the facts. Calculate the amount of money you have borrowed and the amount you have paid. The more precise you are the better it is to move along with your claim. You may be able to find your dealings on the lender's website if you can sign in. Make a copy of your profile if you can find it, in case it is not available later.
- Next thing you need to do is to contact your lender and write a letter to them stating your claim. Notify them of all the facts regarding your loan. Mention the amount you have borrowed, the date you were due and how much you have paid in total. You also need to include your family income & expenses and why it was hard for you to repay them or you are unable to pay.
- You might get a refund after that. However, it’s not unusual that your lender will refuse to pay you compensation or they might offer a very poor amount. In most cases, they don’t respond. Also, don't worry if they reply and say your claim is not valid. They do this so you that you stop moving forward.
- Eight weeks after you have first contacted you lender if the lender rejects your complaint or don't give you a reasonable response or offers you a small amount, you need to take a step further. Don’t get depressed and file in a full complaint with the Financial Ombudsman.
As of June 2017, in every month more than a thousand new cases were sent to the Financial Ombudsman and among them, 68% of these cases are being upheld. This means that most of the cases are legitimate and there is a higher rate of success than any other type of complaint!