There are many reasons why you choose to get a payday loan. Often, this option becomes tempting when you have a sudden bill to pay or an expense that you cannot afford. The idea of a payday loan is to help you until you receive your monthly salary. You can deal with the sudden bill and simply pay it back when you are paid.
However, this is not the reality for a lot of people that get a payday loan. Often, they are left in difficult situations where they cannot afford to pay back the money they owe. This ends up being a downward spiral that can be scary and expensive.
The good news is, it is possible to get a payday loan refund if you have been given an unaffordable loan. Let’s take a closer look at this topic in detail.
What is an Unaffordable Loan?
First of all, it is important to understand what an unaffordable loan is. This is not simply a loan that you cannot pay back. It is a payday loan you have been given that is unaffordable and it has made you have to borrow again to be able to pay it. So, if you find yourself in a position where you have to borrow again to get up with payments, this is going to be classed as an unaffordable loan.
When you have been given an unaffordable loan, this is when you are going to be able to make a claim. In other words, you may be able to receive a refund on the interest you had to pay on the unaffordable loan. So, how do you start this process? Well, there are two ways you can move forward. You can choose to start a claim by yourself if you feel you have the skills and time to do so. Alternatively, you can contact a reputable payday loan refund firm in the UK. You can find out the top firms you can ask for help from Business Cobra. An experienced team is going to be able to handle your claim for you, which can give you peace of mind and allow you to get on with your work and busy routine.
Therefore, if you were in a position where you could not pay your mortgage, food or any other bills, this might have been an unaffordable loan. In addition, payday loans should be one-off solutions or used infrequently. This is something that a provider should have taken into account when they gave you the payday loan.
How Do I Start a Claim by Myself?
If you decide that you want to go it alone and start making a claim by yourself, we have some tips on how to get started. Namely, this is going to include contacting the payday loan lender. In other words, you will have to send them an email. This is going to include making a case for unaffordability and that you have been treated unfairly. You will have to include all of the details about your loans, as well as personal details, such as your salary and any bills and expenses you could not pay. This is something that is going to take time to get right. So, spend a considerable amount of time perfecting your email.
Note that it can take some time to hear back from a payday lender. They have around eight weeks to reply to your email and the claim you are making for a refund. They may send a response that offers very little compensation. Alternatively, they might choose to reject your claims altogether. The mistake a lot of people make is accepting this refund because it is better than nothing. But, this can be a mistake if it is a very low amount. They are hoping that you accept it. This is where a payday loan refund company is going to be able to push for a better deal.
If you want to continue to act on your own, you can refer your claim to the FOS. This stands for the Financial Ombudsman. This is going to be free to do and it can be the push necessary to receive the refund you deserve. You should submit your case for review and a professional will look at all of the evidence. This includes hearing from the payday loan lender too. The FOS will make a decision and decide if there should be an award given to you.