Payday loans have certainly become very popular, especially since they are easy and quick 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 loans, you could end up with debt spiraling out of control. A good number of people find themselves in more financial difficulties when they get hooked on payday loans.

Fortunately, if you feel like your payday loan isn’t delivering the kind of results you hoped for due to one problem or another, it’s possible to request a refund. Refunds are usually based on mis-selling by the lender or payday loan providers and can work to save you from a dying financial situation. You can claim a refund if:

  • You feel that the costs of payday loans are increasing more and more and you are in more debt, which makes living a struggle for you. If you can barely keep up with your household bills and daily expenses due to reimbursements, you can apply for a reimbursement.
  • Your lender automatically deducts refunds from your credit card or bank account, leaving you with insufficient funds to survive.
  • You qualified for the payday loan even though you had 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 directed.
  • The payday loan turned out to be unaffordable and you really can’t pay without being subjected to undue hardship. While the loans come with high interest rates, some lenders charge high rates and add other fees to the loans, making them quite unaffordable in some circumstances.
  • The lender encouraged him to renew the loan, which resulted in more charges from him. The terms of the loan should be clear to you and no lender should offer solutions only for them to reap him in the end when he thought they were actually helping him.
  • You have to borrow more funds to pay important 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 according to the best practice letter and the rules established for such loans and tell them how you want to solve the problem. 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 take the complaint to the financial ombudsman service. The office will investigate the complaint and offer advice to resolve it, and the 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 many 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.

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