The lender did not check your financial situation properly and you get a payday loan that you could not afford? Or the lender continuously try to sell it again and again? If yes, they can be able to reclaim 100 pounds. Sometimes, you can even claim for 1000 pounds. But, you have hurry as some customers claimed that if the payday lender fails, you will not be able to get your money back.
Why Payday Loan is Flawed?
As the name suggests, payday loans are known as short-term loans. The amount range varies from 100 to 1000 pounds. A payday loan which is also known as the predatory loans, as it has a bad reputation of charging high-interest rate for the short-term immediate credit. A payday loan is totally based on the earning of the borrower.
Whenever a borrower has applied for this loan, he/ she has to provide a paystub where they have to mention their current income. Also, to regulate the high-interest rate, lots of laws have been put in place over the years.
According to Martin Lewis, founder of the MSE, a payday loan is a scammed concept. Many peoples claimed that these lenders give instant cash at 5000% APR loan to drunk people. Also, they signed an agreement that the cash can be directly taken from the person’s bank account without informing them.
How you can Check Whether you were Mis-Sold or Not?
Before taking this loan, you must check your financial condition and ensure that you can afford the loan. Besides that, ensure that your lender provides you with all the necessary information. In case, a payday lender does not follow these rules, you have a chance to complain.
Let’s take an example, if your monthly income is 400 pounds and you are applying for a payday loan, then the pay lender must know that you will not be able to easily pay back the loan. In fact, there can be a situation created where you have to borrow more money to repay the loan.
According to the Financial Ombudsman Services, there are complaints that the pay lender increased 130% in 2018/2019 as compared to 2017/2018. However, to reclaim the money, first, you should try to reach to the payday lender. Contact the Financial Ombudsman Services, if you are unable to reach them.
While approving the loan the payday lender must make it clear to you about the repayment procedure. Like, how much amount you have to pay back for the loan. If not, then you can lodge a case against your payday lender.
Most of the time the lender did not check your financial situation to ensure that you are in a position to repay the loan. Thus, you can prepare a case against the lender.
If the payday lender does not make it clear to you about how the Continuous Payment Authority (CPA) works, then you have the right to cancel the loan.
What to do if you can not repay the loan?
- If your payday lender didn’t deal with you sympathetically and positively.
- Your payday lender did not offer you to freeze charges and interest rates.
- In case, your lender did not make you aware of the risks and conditions of extending the payday loan.
- If it isn’t clear to you that how much amount you have to repay after taking the loan.
If all these above mentions conditions are not cleared to you, you can lodge a case against your payday lender.
Get back Money if the Lender is a Fraud
The amount of money you will get back totally depends on the leftover. In case, you think that you were mis-sold by an organization or a payday lender that is still active, then do not waste a single moment and immediately make a complaint against the lender.
Some borrowers loaded complains again their lender, just before the bust of the company, but they did not get any money. Time really plays a vital role in this situation. Payday lenders or fraud organizations will not be covered by the Financial Services Compensation Scheme.
You can only contact the Financial Services Compensation Scheme, if you have not made any contact with your lender, through call or email. Also, if the lender organization fails, you need to continue the payment procedure until you get any further instruction from the administrator.