Payday loans have certainly become very popular, especially since they are quick and easy to obtain. Although they are short-term loans that are supposed to save people from difficult financial situations that cannot wait, they attract very high interest rates. With so many lenders now offering loans, if you’re not careful with your loans, you could end up with debt that spirals out of control. A good number of people find themselves in more financial difficulty when they get hooked on payday loans.
Fortunately, if you feel like your payday loan isn’t delivering the kind of results you’d hoped for due to one problem or another, it’s possible to request a refund. Refunds are usually based on deceptive sales by the lender or payday loan providers and can work to save you from a dying financial situation. You can claim a refund if:
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You feel the costs of payday loans are getting higher and higher, putting you deeper in debt, making living a struggle for you. If you can barely keep up with your household bills and daily expenses due to rebates, you can apply for a rebate.
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Your lender automatically deducts refunds from your credit card or bank account, leaving you with insufficient funds to survive.
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You qualified for the payday loan despite having health problems or while you had low income and benefits. All lenders must go through a smart screening process to make sure you can actually repay the loan as stated.
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The payday loan has become unaffordable and you are truly unable to repay without being subject to undue hardship. While the loans come with high interest, some lenders charge high rates and add other fees to the loans, making them quite unaffordable in some circumstances.
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The lender encouraged him to renew the loan, which resulted in more charges on his part. The terms of the loan should be clear to you and no lender should offer solutions just so they can reap him in the end when he thought they were actually helping him.
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You have to borrow more funds to pay major bills like utility bills, rent, and council taxes just because you’re paying off a payday loan.
Making the complaint
First, you would need to write a letter to the lender as a way of trying to resolve the issues at hand. Let the lender know where you have failed based on the best practices letter and the rules for such loans, and how you want to resolve the issue. You can review payment plans so you can pay what you can afford at convenient times.
If the lender does not respond or fix the problem as requested, you can complain to the financial ombudsman service. The office will investigate the complaint and offer advice to resolve it, and final decisions made are binding on the lender.
In case you are still not satisfied with the decision of the ombudsman service, you can take the lender to court. However, it should be your last resort when filing a claim because court cases can be long and tedious and also carry fees. It is helpful to seek professional advice first before filing a court case.
There are very good claims management companies that can help you get the compensation you want without any legal proceedings. If you decide to settle with such a provider, make sure that they have impressive success rates and that their services are affordable and reasonable enough for you.
