Payday loans are short-term loans that customers can borrow from lenders. However, it is unfortunate to see lenders taking advantage of the customers with higher interest rates that leads to further borrowing procedures. Ideally, the lender must help the clients know that the loan amount must be strictly used for sudden and unexpected circumstances. But due to original intentions of the lenders, customers fall prey to long-term borrowing that pinches their daily financial affair.
As per Financial Conduct Authority (FCA), a lender must make creditworthiness assessment of the customer. This assessment must comprise of the lender taking sufficient steps to check the customer’s ability towards repayment of the loan in a comfortable manner.
It is here that the rules set by FCA that any customer who has been a victim of the unethical way of borrowing can apply for the Payday Loan Refunds. He is eligible for the entire refund of the interest, charges plus legal interest up to 8%. The procedure is simple. You can use either approach a company that is regulated by Claims Management Regulator or do it yourself by taking help of the Financial Ombudsman. In either case, one must follow the following procedure.
State All The Details About The Payday Loan In The Letter
State all the details regarding the payday loan that comprises of the start date of the loan, end date of the loan, amount of the investment, personal financial expenses, income and difficulty in running the household expenditure, etc. One can go through online accounts with the lenders, bank statements, credit reports as it aids in drafting the unaffordable scenario towards oneself.
In case you are seeking help from Claims Management Company, you got to fill in a short inquiry form that may be required for the company to study your case.
Visiting The Financial Ombudsman
Many a time the letter sent to the Payday loan lender is taken as a pinch of salt. It is given no importance. In fact, the lenders get good eight weeks to answer the letter. Often the messages are declined and dismissed owing to insufficient proof of evidence. This leads to an appeal to the Financial Ombudsman. All that one is expected to do is fill out an online complaint. The authority may ask you to provide further details and correspondence with the lender. It might take time and run around procedure too for a customer.
Alternatively, it is a great idea to approach Claims Management Company who can help a client to combat the problematic situation and aid in getting Payday Loan Refunds. Such companies use internal systems to provide the necessary details required to make the case secure. When approached to professional services the waiting period from 40 days comes down directly to a day. Many of the claims get settled within 24 hours too.
How Does Claims Management Company Help Clients For The Payday Loan Refunds?
After entering the details on the online form of the website of the Claims Management Company, an email is received by the client from the company on instructions to start the investigation the claim. After being in contact, a discussion takes place, and every single detail about the payday loan provider to the personal financial scenario is discussed. The team then provides the findings, and all that a client has to do is sign in the agreement form for a fee. The Claims Management Company forgoes with the claiming process and obtains the payday loan refund.
In a nutshell,
A payday loan must be affordable. A customer should find it easy to repay it along with other household expenses failing to which he is eligible for Payday Loan Refunds.