Mis-sold Payday loans

Payday Loans

Payday loans are a type of short-term borrowing that is intended to tide you over until the next pay day. Payday loans can also offer a quick and convenient way to get a bit of extra cash when you need it on a short-term basis. When you take out a payday loan your payday lender should make the costs, and repayments clear about the loan and provide you with accurate information about any implications attached to taking out the loan.
The Financial Conduct Authority (FCA) are responsible for the regulation of payday loan companies and lenders in the UK and new rules on how payday lenders are allowed to lend have been introduced as a result of an investigation that was carried out in to how these lenders treat their clients.
As part of an investigation in 2013 it was found that many payday loan lenders were not complying with the complaints handling rules that had been set out for them and many customers felt that the payday lender was not treating them fairly.
If you have taken out payday loans at any time and think you have been affected by a mis-sold payday loan or the actions of a payday lender then we would be happy to discuss this with you to help you to establish any grounds for a complaint and assist you with the whole complaint process.

What Is A Payday Loan?

Payday loans are a type of short-term borrowing that is intended to tide you over until the next pay day. Payday loans can also offer a quick and convenient way to get a bit of extra cash when you need it on a short-term basis. When you take out a payday loan your payday lender should make the costs, and repayments clear about the loan and provide you with accurate information about any implications attached to taking out the loan.

Do I Qualify For A Payday Loan Refund?

It is possible that you may qualify for a payday loan refund if you can answer yes to any of the following:

Did you take out a payday loan in the last 6 years?
Did you roll over that loan from month to month? (roll over means that you did not repay the payday loan back at your next payday as initially agreed and instead you only paid a small amount back to the lender).

Did you have multiple payday loans one after another with the same lender?
- The lender didn’t check your personal financial situation.
-If your lender did not make it clear that it is a short term loan, you might be eligible for a payday loan refund.
-The lender did not make It clear how much repaying the loan would cost.
-A Payday Loan Company Has Taken Money From Your Account Without Warning.
-The Payday Loan Lender Has Pestered You With Phone Calls.
-If you’re having trouble repaying a payday loan or are unhappy with the way you’re being treated.
-You have been charged hidden fees on a payday loan.

How To Get A Payday Loan Refund

To receive a payday loan refund you will first need to know the name of the lender who you took out the payday loan with. You will then need to establish why you are unhappy with the payday loan or the services/actions of the payday loan lender, and complain to the lender.

Upon receipt of your complaint the payday loan lender will normally write to you to officially acknowledge your complaint. At this point the lender will have 8 weeks in which to provide you with their final response that will either uphold or reject your complaint.

On occasion the lender may write to you to advise that they are still looking in to your complaint but that they will need more time that exceeds the 8 weeks in order to provide you with their final complaint response.

If the lender exceeds the 8 weeks in which they are required to provide you with a final complaint response in or they reject your complaint and you are not happy with the lenders complaint rejection, you will then have 6 months in order to contact the Financial Ombudsman Service (FOS) and have your complaint assessed by them.
If you have a payday loan complaint upheld the lender will normally pay any monies due directly to you and you would then pay our service fees of 25% + VAT of the full amount received from the lender.

Who Do I Complain To About A Mis-sold Payday Loan?

You would need to complain directly to the payday loan company that borrowed you the money. There are some instances where you may not be able to recall who the payday lender was; in these circumstances we suggest that you check your old records and documentation such as bank statements, direct debits, loan agreements, your credit report, emails etc. We can assist you to identify the names of your payday lenders where necessary.

How Much Will I Get Back For A Payday Loan Refund?

As part of a payday loan refund you should normally expect to receive some and possibly all of the interest charged, any hidden charges, and any statutory interest due. It is not possible for us to make any assumptions or estimates on what you may receive until we have spoken with you and established the approximate costs and charges that you have paid towards your payday loan/s.

A payday loan refund is not a simple calculation as there can be many factors built in to determining what refund or compensation may be due, and therefore payaday loan refunds will be worked out on an individual basis. For this reason we cannot provide any generic information on what a payday loan refund may be worth.

How Long Does It Take To Get A Payday Loan Refund?

Upon receipt of your complaint the payday loan lender will normally write to you to officially acknowledge your complaint. At this point the lender will have 8 weeks in which to provide you with their final response that will either uphold or reject your complaint.
On occasion the lender may write to you to advise that they are still looking in to your complaint but that they will need more time that exceeds the 8 weeks in order to provide you with their final complaint response.

If the lender exceeds the 8 weeks in which they are required to provide you with a final complaint response in or they reject your complaint and you are not happy with the lenders complaint rejection, you will then have 6 months in order to contact the Financial Ombudsman Service (FOS) and have your complaint assessed by them.
If you have a payday loan complaint upheld the lender will normally pay any monies due directly to you and you would then pay our service fees of 25% + VAT of the full amount received from the lender.

How Might A Payday Loan Have Been Mis-sold?

A payday loan may have been mis-sold for many reasons. The most common reasons that a payday loan may have been mis-sold are; if the lender allowed you to roll over a payday loan or take out multiple loans with them and they didn’t check your personal financial situation to see how this might have affected you, and you were affected by this.

All payday lenders have the responsibility to ensure that they check whether their customers can repay and also to ensure that they treat their customers fairly.
Other reasons that a payday loan may have been mis-sold are:

Did you roll over that loan from month to month? (roll over means that you did not repay the payday loan back at your next payday as initially agreed and instead you only paid a small amount back to the lender).
Did you have multiple payday loans one after another with the same lender?
- The lender didn’t check your personal financial situation.
-If your lender did not make it clear that it is a short term loan, you might be eligible for a payday loan refund.
-The lender did not make It clear how much repaying the loan would cost.
-A Payday Loan Company Has Taken Money From Your Account Without Warning.
-The Payday Loan Lender Has Pestered You With Phone Calls.
-If you’re having trouble repaying a payday loan or are unhappy with the way you’re being treated.
-You have been charged hidden fees on a payday loan.
Another area of concern that has been identified by the regulators of payday loan lenders is harassment to customers such as calling and contacting the customers excessively and using aggressive and sometimes unfair practices of debt collection.

Reasons That A Payday Loan Might Have Been Mis-sold

- The lender didn’t check your personal financial situation.
-If your lender did not make it clear that it is a short term loan, you might be eligible for a payday loan refund.
- The lender did not make It clear how much repaying the loan would cost.
- A Payday Loan Company Has Taken Money From Your Account Without Warning.
- The Payday Loan Lender Has Pestered You With Phone Calls.
- If you’re having trouble repaying a payday loan or are unhappy with the way you’re being treated.
- You have been charged hidden fees on a payday loan.

The Most Popular Payday Loan Lenders

QuickQuid
Sunny
Wonga
Payday UK
Payday Express
Money Shop

Which Charges Can Be Reclaimed For A Payday Loan Claim?

Interest Charged
Late Fees
Roll Over Fees
Payment Fees

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