Payday loans - Solutions
When applying for a payday loan it is the lender's duty to make
the customer fully aware of what they are purchasing.
As Payday loans are almost exclusively sold online the lender is
obliged to clearly display their APR on their website and the
customer should be made fully aware of interest rates BEFORE making
an application.
During or after the application the lender must disclose full
terms and conditions including APR, finance charges (e.g. setup
fees), loan amount and payment schedule.
If you feel that the lender failed to carry out their duty in
disclosing all this information to you, causing you to purchase a
loan that you would not have purchased had you been given all this
information, then you may have a strong case that the loan was
mis-sold to you and you may be able to get that
loan rescinded.
1.The first thing to do if you feel you have a
case is to contact the Payday loan company directly for an internal
review (some companies may have a complaints procedure outlined on
their website for you to follow.)
2. Write to them clearly explaining
what you want and why. In this case you want the
loan rescinded as the terms and conditions were not fully explained
to you causing you to purchase something you would otherwise not
have purchased and you have suffered great financial distress as a
result.
3. If the company rejects your complaint then
write to them again arguing your case, this time directing the
complaint to a manager. Remember to include all the previous
correspondence.
4. If your complaint is still not resolved to
your satisfaction then you should be eligible to forward your case
to the Financial Ombudsman Service (FOS).
The FOS is an independent adjudicator set up to resolve disputes
between financial companies and customers. Their service is
free and if they rule in your favour the company will be obliged to
settle the complaint as per your wishes.
Still need help?
If your financial situation is particularly dire then consider
contacting the Consumer Credit Counselling Service (CCCS). The CCCS
offers free, confidential advice and support to anyone who is
worried about debt. They may be able help you arrange a payment
plan to pay off your payday loan in manageable installments.
You can also find debt help at nationaldebtrelief.co.uk.
Citizen's Advice also offers free information and assistance to
those suffering from debt problems.
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