A payday loan is intended to help you out when you need a small amount of money to tide to over. Most payday lending companies have to follow good practice guides and rules set out by the FCA (Financial Conduct Authority). These rules and regulations include making sure they receive certain information from you and check certain things before allowing you to take out a loan. This is to make sure that you don’t end up taking out a loan that you can’t afford to repay.
However, many payday lenders haven’t followed these rules and ended up giving loans to people who shouldn’t have been given them, and those people ended up having to borrow more to pay off their loans. If a payday lender that you have used hasn’t followed these rules properly then you may be entitled to make a formal complaint.
There are different reasons that you can complain and these include –
You should also make a note of what things in your life have suffered as a result of taking out this loan. For example, these could be things like what you can’t afford as a result of your loan, whether the loan has affected your family life or personal life in any way. You should also make note of how your mental health has been affected and how you feel that your debts have spiralled out of control.
It is important to also make a note of any contact with the lending company, including any letters of correspondence, make notes of any phone calls that you make to the company. Most companies record a lot of their calls for training purposes, so if you’ve dealt with poor customer service then you may be able to find out if they’ve recorded any of your conversations. This might not always be the case but it’s worth checking because anything like that will only go towards helping your case.
You may feel that taking on a big loan company is scary and not worth the hassle, but if you have been negatively affected by one then you deserve to make a complaint. If you think you have gone through any of the things on the list above then you are well within your right to make a complaint. You can make a complaint directly to the payday lender, although another option is to go to your Financial Ombudsman. This is a long process so it is always worth going to the lender first, before getting the Ombudsman involved.