Get back your money through payday loan refund

Payday Loans have been around for many years making it possible for people to get fast cash without submitting their creditworthiness certificate. There are now approval times for payday loan. Payday loans are processed quickly and come in very handy in urgent situations. But while taking a payday loan, you need to be very careful otherwise you can face serious issues like very high-interest rates which will lead you to more debt.

Since sometimes, people are complaining more about the payday loans. The lenders are also trying to impose a high rate of interest on borrowers. But it’s up to you to detect the irregularities and take necessary action to get required compensation. In such cases, you have the right to claim for Payday Loan Refunds.

Situations where you can make a complaint about payday loan refund

1. Fallacious Loans: 

This is the most among complainants who are seeking for refunds.  In this field, one can take payday loan using your name fraudulently. It is the responsibility of money providers to verify the identity of the borrowers before approving the loan amount. If you start getting harassed for a loan you have every right to take legal steps for this.

2. Unclear repayment: 

If you fail to repay the amount in time, it can lead to serious condition and the debt will keep going in terms of interests and other charges. It is your responsibility to know about the process of repaying the loan including its fees and time limit. Before taking the amount, clear out about the exact total you need to pay back. If the lender has hidden all those information for you, you can file a complaint about Payday Loan Refunds.

3. Repeating payment: 

Generally, lenders in the payday loan collect the payment through bank requests. Most of the lenders use continuous payment system. Before the loan, make sure that you are aware of what this is and you can cancel it. You will find some lenders who keep trying to get access to the funds throughout the day which will lead you to pay huge bank charges.

4. The financial situation: 

Everyone needs money, but the fact is it is the lender who will determine whether you are qualified for the loan or not. To check this the lender will evaluate your income level, employment, mental health, age, credit history, and identity. In case you are not able to pay the loan amount and the lender evaluated all details with regard to your current financial situation, you are legally qualified for Payday Loan Refunds.

5. High-pitched interest rates: 

It is fact that while taking a loan, people pay less attention to the loan interest. If the interest is high, you may unable to repay the loan. Generally, lenders are limited to cost cap of around 0.8%. This rate includes interest charges and other fees. If you detect any changes in the interest rate and fees you can claim for a refund.

Payday loans are very helpful. All you need is to understand all the terms and condition related to a payday loan to avoid any unwanted situation in future.

How to claim payday loan compensation?

Payday Loan Compensation or in other words, a refund on a payday loan is the most often requested refund by the customers. Some companies which will deal with payday loan have already refunded to those clients whose loans seemed to be unaffordable but then what is an unaffordable loan and when can you file for a claim?

Are you able to repay your loan without any ‘undue difficulty’?

The central point is whether you are capable to repay the loan taken without causing any undue difficulty or in simpler terms, whether you can repay the loan without taking another loan to repay the previous one. Now you can evaluate yourself. Will you be able to do that? Will it affect your family? If the answer is no, then you can file for Payday Loan Compensation.

Are you facing unfair treatment?

Just because you are the borrower it does not mean that you can treat unfairly by the lender and by unfairly I mean is not informing you of free debt services like Citizen Advice or the Money Advice to help you manage your finances better and repay the loan. Also, the payday loan lenders are not allowed to provide you with more loans to cover off the previous one. There is a limit to one’s greed.

Are you confused regarding how much you should ask for compensation?

According to the rule, you should get a refund on the interest you paid and the extra-statutory interest of 8%. Also, you should request for the waiving off the ‘unaffordable’ loans from your credit record and request them to cancel any of your remaining balance in your credit records.

In case you have paid off the loan, then do not lose hope because you can still file for a refund provided you file the case within the period of six years of taking out the loan.

How will you get your dues?

Keep a record of the exact amount you took the lender and the repayments you have done so far. This step is necessary to smoothen out the process. Next, you will have to write to the lender and if the lender denies you your rightful compensation then you can file the case with Financial Ombudsman Service after the period of eight weeks after you filed for compensation with your lender.

Payday loans are some of the most controversial loans because of the high expense and interest rates involved but during the festive season when people would like to gift something special for their dear and near ones, they fall in the trap of such lenders and this trap becomes a vicious cycle.

But since January 2015, several rules were implemented on this payday loan industry and because of these several restrictions, the loans now seem cheaper and that has made them more alluring. Financial Conduct Authority is the head supervisor or all financial services and it is an independent body that is paid by its members.