Martin Lewis: Claim Payday Loans Now If You Have Been Mis-sold – Martin Lewis
If you think you have been mis-sold, you can claim your repayment, provided you raise the case within six years of taking out the loan.
There is a hidden clock for anyone who has had a payday loan.
If, like many, you’ve been mis-sold on one of those often 1000% + APR debts, act quickly or you risk missing out on getting back £ 100 or £ 1,000.
Payday loan, as the name suggests, is supposed to mean borrowing £ 100 to £ 1,000 to get people up to the next payday.
Yet it has often been a dreadful industry leading to misery; emphatically marketed as a quick fix, not only as crucial money for, say, a broken refrigerator in an emergency, but money was loaned out without due care for unnecessary expenses or even to fund gambling.
For many, payday loans are a flawed concept.
How many desperate people today would see such a financial improvement in a month that they could pay off last month’s loan plus interest without needing to borrow more?
Irresponsible companies have often pushed people to refinance their debts, to keep borrowing, seeing more and more interest piling up – causing more pain.
Along with many others, I have campaigned for years to have these loans regulated.
This finally happened in 2014, and a 100% total price cap (not the same as an APR cap) followed the following year, for example on a payday loan of £ 300, the maximum you can charge. is the original £ 300, plus a maximum of £ 300 interest and charges.
Although still extremely expensive, this was an improvement.
Why I believe if you’ve been sold poorly, you should act quickly
Relatively recently, the major payday loan companies Wonga, Wage Day Advance and Juo Loans have all gone bankrupt – often collapsing under the combined weight of claims against them and price caps.
Although I am far from mourning them, my main concern is, if as is likely more payday dominoes keep falling, the payback will become “first come, first served” …
- Recover from a solvent company: You get back full interest, fees, charges, and statutory interest of eight percent per annum for each year since you took it out (you usually won’t get back the original loan, but interest and charges were generally higher anyway).
- Recover from a business that has gone bankrupt: You are just one of many creditors (to whom he owes money) and you will be lucky to get pennies per pound of what you are owed. This is what happened with Wonga customers (there is a complaints portal at claims.wonga.com if you still want to recover).
So get your claim as soon as possible while your lender is still solvent.
Payments can be large, as Paydayloanalice wrote on my forum: “I took Martin’s advice after getting 16 payday loans in 2 years.
“I have received the reimbursement from Lending Stream of over £ 1,600. It allowed me to pay off a credit card so I look forward to less stress.
No need to pay to recover – you can do it yourself for free.
If you think you have been mis-sold – whether on outstanding loans or on long-repaid loans – you can claim your claim as long as you raise the case within six years of taking out the loan (in a rare few circumstances even longer).
Here are some examples of abusive sales:
- The company didn’t assess your finances to make sure you could afford the loan and the fees. For example, you shouldn’t have received a loan of £ 1000 if you only earn £ 500 / month.
- He did not tell you how much it would cost you in total to repay the loan.
- He did not give you complete and accurate information on how and when to repay the loan.
- It didn’t warn you not to use a payday loan for a long term loan or if you were in financial difficulty.
- He didn’t tell you what to do if you had a complaint.
While complaint handling companies present themselves as the avenue of recourse, they take a good chunk of the money you get back. You can do it yourself for free.
I have full help and a free tool at mse.me/paydayreclaim, or even just write to the lender explaining why you think you’ve been mis-sold.
If the lender denies your request, don’t think it’s over.
You then have the right to bring your case to the free and independent tribunal. ombudsman-financier.org.uk . Over 60% of the people who do this win.
Are you considering a payday loan?
They are rarely the best route.
Even credit cards are cheaper (but be careful there too) and check if you have a local non-profit credit union that can help you via find-yourcreditunion.co.uk.
These charities are there to help, not to judge, and can take a huge toll.