The Financial Ombudsmen Service recently published its annual review on the financial climate prevalent in UK during the 2015-2016 term. Let’s just say that the number of complaints made last year have tripled as compared to the previous term. Most of these complaints were directed towards the inefficiency of the Payment Protection insurance (PPI), with customers referring it to as the most complained-about financial product. If we were to look in-depth and present an analysis, the sane thing would be to look into areas that are becoming the prime rationale for unhappy customers and clients. According to the same report, 76% of all complaints registered with the Citizens’ Advice Bureau were about payday loan firms in which people filed for compensation or a refund.
Conditions that Make You Eligible for a Compensation or Refund Claim
There are a number of reasons customers may wish to make a compensation or refund claim. Statistics have shown that about 30% of all these complaints concern lenders who withdraw money via a recurring payment method. Complaints against fraudulent loans were also registered by 205 customers who claimed that fraudulent loans were taken out in their names. It is true that one can always file a complaint for a refund, but only if you have been duped under any one or two of the following circumstances presented below.
There are times when borrowers find it difficult to pay back the loaned amount. It is fairly common that the already financially-struggling person finds himself/herself left with no money to meet both ends. In such a situation, it is the duty of the lender to work out an arrangement rather than use more threatening means to get back his/her money. Both the borrower and lender can work in unison to come up with a repayment plan suitable for both parties without changing additional interest rates and charges.
However, it the lender refuses to take your current financial stance into consideration and still demands you to return the loaned amount, the borrower can take up the case with The Financial Ombudsmen Service. Once the case has been submitted and reviewed, the authority will have the final say; whether the borrower has any right to make a claim for a refund or compensation or not.
Before any payday loans are issued, it is the job of the lender to verify who they are lending to. Customer identification is a must but sadly, with so many loan sharks in the industry today, the process of verification isn’t standardised as it should be. Small payday loan issuing companies rarely have any idea who they are issuing a loan to or for what purpose it will be utilised. As a result, many customers are shocked when they see that loans have been filed in their names when they are not the receiving party. Unluckily, if you are that shocked person, you can file for a claim for refund or compensation by contacting the lender right away. It is his/her duty to help you out and if they don’t, you can take up your case with the Financial Ombudsman Service.
Case of Harassment
What can and can’t be classified as harassment becomes a bit of a tricky matter when money is involved. According to the set rules, a lender isn’t supposed to call the borrower regarding money concerns after 8:00 p.m. However, if the calls and text messages still continue, the borrower can again consult the Financial Ombudsmen Service and sue the lender if he/she is found guilty.
Obscure Payment Amount
Many a times, online lenders don’t mention the exact or total cost of the loans you plan to take out. When this happens, the possibility of a fraud increases. Therefore, you can claim for a refund if you aren’t sure that the repayment amount is unclear.
Poor Record Check
All reputed lending firms and online businesses ask the borrowers to fill out all their personal details and current financial condition. All this information is then processed and reviewed before a loan is issued. You may find the practice a little finicky but it is good as it diminishes the chances of fraud. If you find that the lender hasn’t considered factors such as your age, mental health, employment status, income and credit history and you believe that you won’t be able to make the repayment, you can make a refund claim.
The collection of all payday loan repayments is conducted through CPA. It gives the lender the authority to legally request for money to your bank. However, it is also their job to spell it out and explain the ways of how you can go cancelling the loan if needed. Whenever they plan to take out the money, it is their job to make you aware of it. If they don’t and continue to keep trying all day long to get their money back from the bank, you, the borrower, will be charged with additional costs in the end. If such is the case, you can put in a claim for refund or compensation.
You won’t have to deal with such issues if you apply for payday loans with reputable firms. However, if you now wish to make a claim, there are financial firms that specialise in providing payday loan refunds. They help you easily deal with the whole process of refunds from start till end. The process usually involves filling out an application form, attaching supporting documents and submitting the case to the Financial Ombudsmen Service for review.
Always remember that the ultimate goal to getting a payday loan was to save you from financial crises and not get you into one. If you think that your financial crises has only spiralled to a much worse state after taking a payday loan, a refund claim is your best bet.