If you have ever taken out a payday loan then you may be due compensation. In 2017, the number of complaints made about payday loan companies soared by a whopping 178%. If you have ever had a payday loan then you may be thinking about trying to get compensation for it. If this sounds like you then you probably have a million different questions running through your head. Luckily we have come up with the answers to a lot of these questions and are happy to help you. Read on for some helpful advice on your payday loan compensation.
First of all, you need to check whether you can make a claim. Many payday loan companies have provided people with loans without doing proper credit checks first. This could have caused lots of people to end up with loans that they cannot afford to pay off reasonably. The regulations set out by the Financial Conduct Authority state that the customer should be able to make repayments on time without having to borrow money and be able to make these payments on top of their existing debts and bills that they need to pay. However, a lot of companies didn’t do these thorough checks and as a result, many people were left with loans that they shouldn’t have been allowed. If this sounds like the situation you were in then you may be able to claim a refund.
Make sure that you get a list of all your loans together in one place. These can usually be found online from bank statements, or online accounts with the lenders themselves. Making sure you have plenty of evidence that proves you were unable to make these payments at the time will also help you. You can go to the lender themselves, once you feel like you have built a strong enough case, and sometimes the company will be prepared to give you a partial refund or a refund on the interest you paid.
If going to the lender directly doesn’t work, you should think about going to the Financial Ombudsman. The Financial Ombudsman Service was set up by the government to help out in matters like this. They are there to give an honest and unbiased judgement about what has happened and can make sure that the business in question pays any compensation that they owe. Calling in the Financial Ombudsman is a process that may take a long time but if the lender isn’t willing to accept that they were in the wrong then it is a process that you may have to go through.
If your claim is upheld then you may be entitled to a full refund of any interest that you paid as well as any charges and statutory interest rates at 8%. It may not sounds like an awful lot but many people have been able to claim up to £6000 by doing this. Hopefully, you won’t have to resort to going to the Financial Ombudsman and the lender in question will happily settle any debts and pay you any money that you’re owed. Quite often they prefer to do this without getting the Financial Ombudsman involved, for the same reason you do – it’s time-consuming. Many payday lending companies are happy to settle this personally and will often offer you an amount that they feel is fair. Remember that even if you do go straight to the lender firstly and they offer you a sum that you feel isn’t acceptable you can still go and consult a professional.
As always, there are plenty of great businesses out there who can help you through this process. Many people feel intimidated or scared when going up against a payday loan company, and very often this puts them off. But you are entitled to this money and you deserve to receive a refund and compensation if you received a loan that you shouldn’t have been given. If you are feeling anxious about going through this process then contact us and we can offer you advice and guidance on how best to proceed. We can also take you through the process step by step so you are confident that you are doing the right thing. Get in touch today to see how we can help.