Claim Back Interest on Your Payday Loans!
Has your payday Loan lender Acted Irresponsibly? Are you in a position to Claim Back Interest on Your Payday Loans. A high percentage of people who took out one or more payday loans before the 2014 FCA regulations were put in place, may be eligible for a payday loan refund, even now there are some payday and short term loan lenders who are still acting irresponsibly and you may be able to some of your interest back? Learn how and when you can make a claim.
The best way to get your payday loan refund is to contact your lender directly.
Before Regulations were introduced
Before late 2014, payday loan companies operated without any real regulation. They were allowed to lend to whoever they wanted at whatever rates they wanted, leading millions of people to experience financial hardship and misery. But now, they have to pay the price, giving back millions in interest in a huge payday loan refund campaign.
In the summer of 2014, the Financial Conduct Authority (FCA) introduced new rules on how payday lenders. Since then, there have been some high-profile cases where payday loan companies have been forced to pay compensation for their lending practices before 2014.
When you may be eligible for a payday loan refund
The Citizen’s Advice Bureau estimates a high percent of people who took out payday loans prior to Summer 2014, may be eligible to make a claim. The Bureau urges customers to take advantage of the new regulations and “fight back” against unscrupulous practices still used by some direct lenders in the payday loan industry.
However, not all payday loan or short term loan lenders carry out these unscrupulous practices and now carry out the lending practices within the rules stated by the FCA, companies like LoanPig.co.uk
What payday lenders are not allowed to do, and when you should make a claim.
1. The Lender Didn’t Tell You Payday Loans Are Only Short Term
Payday loans are supposed to be short term loans They are there to help you cover unexpected expenses that you can’t meet out of your regular income. The lender should clearly state that this is the purpose of the loan. They should advise you not to use payday loans as a long-term borrowing. If your agreement did not clearly state this, you could be owed a refund. Loanpig.co.uk clearly states that any loan should be carefully considered and that this type of loan is not suitable for anything other than a quick fix to get you through an unexpected situation.
2. The Lender Didn’t Check Your Personal Financial Situation
Under the new regulations from the Financial Conduct Authority, before issuing a loan, payday and short term loan companies have to check whether their customers can repay. If you can’t meet your basic needs after you pay off your loan, lenders should not approve your loan. Loanpig.co.uk always assess your ability to pay based on the information you provide and a variety of checks, if they feel that the loan is manageable they will offer you a loan, if the checks show that the loan will be of more detriment to you, they will refuse the loan and guide you to money advice sites to help you hopefully manage your debts.
On top of this, payday lenders also need to check other aspects of your personal circumstances that indicate your ability to repay. These include things like your age, mental health, and financial history. Again, if your lender did not check your affordability, you may have grounds to ask for a refund.
3. The Lender Didn’t Make It Clear How Much Repaying The Loan Would Cost
Lenders should make it clear how much it will cost to repay a loan, how much each payment will be and when those payments will be due. In practice, this means providing you with a quote for how much it will cost you in interest for each £100 you borrow. The FCA is quite clear on this: lenders must not hide interest rates and repayment amounts in the small print. Instead, lenders must clearly display this on their website and contracts.
All the information provided with the loan should be full and accurate. This includes the total repayment amount over the lifetime of the loan. Loanpig.co.uk takes great care in detailing to you, all of the information above before you are asked to sign any loan terms and conditions.
4. The Payday Loan Lender Has Pestered You With Unnecessary Phone Calls
What exactly constitutes “harassment” isn’t entirely clear. In most cases, it needs to be considered on an individual case basis. In some cases, a couple of daily calls reminding you that you owe money might be deemed acceptable by the Ombudsman. Loanpig.co.uk will only ever contact you by text or email once a payment has failed.
Payday loan companies should not call you after 8 pm. They should, if possible, avoid contacting you while you are at work. If a payday loan company does this, the Financial Ombudsman is more likely to take a dim view.
5. A Payday Loan Company Has Taken Money From Your Account Without Warning
For a long time, payday loan companies have been taking money directly from people’s bank accounts. They use something called a continuous payment authority or CPA. CPAs are the best way of making sure that they get money directly from their customers’ bank accounts. In 2014, the regulator introduced new rules about the CPA.
Regulators also require loan companies to inform customers in advance when they are planning to take money from their accounts through a CPA. Before the FCA regulations, companies would make multiple attempts to withdraw funds from a customer’s bank account in a single day. Around a third of payday loan complaints to authorities involve misuse of the CPA. Now the FCA limits the amount of attempts to two. If a payday loan company is still making multiple attempts using a CPA, this is illegal, and you should complain immediately.
How To Claim A Payday Loan Refund, If Any Of The Above Applies
Step 1: Ask The Payday Loan Company For A Refund
The first thing to do if you think you’re eligible for a refund after considering all of the above is to approach the payday loan company itself. Send them a letter containing all the facts regarding your loan. Include the start date, the date it was due to end, and the amount of money borrowed.
Then include details in your letter about your income, your family expenses and why you are unable to repay the loan. Suppose you took out your loan, it’s a good idea to talk about how your employer had just reduced your work hours. Explain how you were struggling with your regular expenses. If you had to borrow to pay for other necessities so that you could repay your loan, (for instance, if you had to borrow to pay for fuel or rent) mention that too. Don’t worry, you don’t have to include evidence of your outgoings in your letter.
Step 2: Go To The Financial Ombudsman
Sometimes, payday lenders will refuse to provide you with a refund. Either, they will not respond, or the compensation they offer is too low. Under these circumstances, you can file a complaint with the Financial Ombudsman. Don’t worry if the payday lender says that you don’t have a valid claim. You can often still get the compensation you deserve if the payday company has acted irresponsibly.
Complaining to the Ombudsman is easy. All you need to do is fill out their online complaint procedure: a step-by-step service that allows you to detail your complaint and provide additional materials, like your correspondence with the lender. Once you’ve done this, the Ombudsman will tell you whether you have grounds for a claim and will help you get a refund.
Payday loan companies have really pulled up their socks in recent years, but there are some that are being dragged into the new ways of working. Some of the good and bad companies include Wonga, Cashfloat, MyJar, Peachy, Piggy Bank, Pounds to Pocket, Sunny, etc. Still, you can do your part to ensure that these companies do not exploit vulnerable people. If a payday loan company doesn’t act according to the regulations, report it and get the payday loan refund you may be entitled to. Don’t let them get away with it!
Reasons To Choose LoanPig.co.uk, The Responsible Lender
Here at LoanPig.co.uk we aim to provide you with a short term loan to cover any unexpected needs, we do not want to see you in hardship and will advise you, where we see vulnerabilities, not to pursue this type of loan. We are completely transparent in our terms and loan calculations. We’ll show you exactly what you need to pay back, when the payments are due and won’t contact you unnecessarily.
We will be fair with the information and service we provide to you and expect the same in return from you. Providing false information to us may affect how we assess your affordability.
Rather than ignoring us, we want you to talk to us if you are experiencing problems or if you have a change in circumstances, as we know that we can help you.
Above all we want to be able to offer you a fair short term lending service because the service we offer is still a valuable service required by many people in the UK.