Do you qualify to reclaim a mis-sold payday loan? If you think lenders may have mis-sold the short-term loan, you can file a complaint against them, asking for a refund. Before you can take any action against the lenders, you need to find out if you qualify for a payday loan refund first. To find out if you are eligible for a payday loan refund, refer to the following reasons to find out what your reason is to file one:
· Recurring Payments
You may repayments via a continuous payment authority (CPA). CPA gives the lender permission to take out money from your bank account. The lender needs to explain the process of repayments and how they will be made to the borrower at the time of taking out a loan.
Additionally, before taking out money from your bank account, they need to inform you in advance. What some lenders end up doing is that they attempt to take out money from your bank account throughout the day, if it is not available. This results in large incur charges.
· Current Financial Situation
Payday lenders have a responsibility not to hand out loans to people who do not have the financial means to repay them. However, payday lenders tend to ignore investigating the borrower’s history prior to giving them a loan.
Some of the factors they should consider, but don’t include credit history, age, income, employment status, mental health, identity, and outgoings. You can ask for a refund if they did not tell you in detail about the repayment process and on how this is not a long-term answer to their problems.
· Fraudulent Loans
Lenders need to confirm the identity of customers before approving their loan application. However, some lenders forgo this step, leading them to harass people who have not even taken out a loan. If you have been receiving calls from lenders, regarding a loan you never took out, you can call them up to explain the confusion. If they persist to harass you, you can complain to the Financial Ombudsman Service.
· Repayment Difficulties
If you are having difficulty paying back your payday loan, the lender should suggest other ways you can repay it. You can also suggest another repayment plan. If you come up with a plan, they need to stop increasing your interest charges and payments. The lender should also direct you to a source where you can obtain debt advice instead of forcing you to extend your loan repayment plan without telling you about the related risks if you are unable to repay.
Did you find your reason to ask for a payday loan refund? If you found one or more reasons to ask for a refund, you need to file a complaint against your lender. If they do not get back to you within eight weeks, contact the Financial Ombudsman. You can contact them via phone or submit an application, detailing your reason for asking for a payday loan repayment.