How to Ask for a Payday Loan Refund
Payday loans are short-term loans, which people take out when they require immediate cash to pay for something. However, payday loans can lead to financial difficulties due to the high interest rates lenders charge people for taking out a short-term loan.
If you are unable to repay the loan in the given duration, it becomes a costly expenditure and the start of a vicious cycle where people take out a payday loan to repay the existing one. Lately, people have come forward to file a complaint against lenders, reporting they were mis-sold payday loans.
If their complaint carries forward, they will receive compensation. If the lender rejects your complaint, you can take it up with the Financial Ombudsman. First, you need to ask the lender for a payday loan refund. Here are three steps you need to follow to ask for a payday loan refund:
1. Gather All the Evidence
You need to compile a list of lenders you went to take out a payday loan. Often times, the lender’s website should have a detailed history of the various loans you took out. You should also print out any emails you received, your bank account statements, and your credit card history.
Beware that in some cases, online history from the lender’s site can disappear. If you see it, you need to print it out and make a copy of it. If your history has disappeared, you need to tell the lender you need it, as you are considering filing a complaint against them. They may charge you for it.
2. Request for Payday Loan Refund
In your complaint, let the lender know the reason for your complaint. Inform them the loans you took were not affordable. If the lender mishandled your situation, approving your loan without considering your current financial situation, make this the basis of your complaint.
3. Visit the Financial Ombudsman
The Financial Ombudsman is your last resort. If the lender rejects your complaint for compensation, you can take up your complaint with them. Even though you can request the lender to revisit your complaint again, it will not do you any good. It will just take longer and result in the same answer as before.
Do not waste your time with the lender after the first rejection instead go straight to the Financial Ombudsman. You can fill out an application and if you wish, you can make your case via phone by talking to one of their representatives.
They will ask you to provide them with your credit card report and bank account statements. If you are unable to obtain your old bank account statements, inform them and they will obtain them at no cost to you.
The process for asking for a payday loan refund may take up to eight weeks, as that is how long most lenders may take to reply to your complaint. In the event they do not reply, you can inform the Financial Ombudsman of their negligence.