Is It Possible To Get A Payday Loan Refund?

Payday loans offer quick financial solutions to individuals who do not want to go through the lengthy process of obtaining loans. It is quickly processed and therefore comes in handy even in seemingly urgent situations. However, if you are not careful about where you get these loans, you may end up charging you very high interest rates which can end up putting you into more debt.

Recently, there has been an increase in the number of people complaining about payday loans. A significant number of people who become aware of wrongdoing are taking action to obtain compensation. It may seem impossible, but there are a number of ways you can qualify to file a complaint and actually enjoy your payday loan back.

1. Fraudulent loans – It is one of the most common cases among complainants seeking refunds. It is possible that payday loans are being borrowed in your name fraudulently. It is the lender’s responsibility to verify the identity of the customer before approving loans, but most of them are not that careful hence many issues about this matter. If you start being harassed for a loan you have no idea about, you have every right to consider it. You can try to sort things out with the lender or you can approach the financial ombudsman service directly to get the help you need.

2. Repayment is not clear – Default can become serious because your debt continues to accumulate in terms of interest and any other fees that non-payment attracts. As an applicant, you should be given very clear terms on how you will repay the loan including fees and a time frame. Before you take loans, you should know the exact total amount that you have to repay and at what time. When this important information is hidden from you, you can file a complaint to recover the extra charges or take the unreasonable debt out of your payday loan.

3. Recurring payments – Payday loan providers collect their payments through bank requests. Most of them use continuous payment authority and you should make sure you are aware of what this is and can cancel it. A good lender should also notify you before withdrawing money from your bank. There are lenders trying to access the funds throughout the day and this translates into huge bank charges for you at the end of the day. You can claim such for some fee by the lender.

4. Financial situation You may be in need of the loan, but it is up to the lender to determine your eligibility in terms of repaying the loan on time. Your income, employment, mental health, age, credit history, and identity are some of the serious checks a lender must check before approving payday loans. In the event that you are unable to repay and the lender ignores all details of your financial situation, you may already be eligible for a refund.

5. High interest rates Most people rarely pay attention to interest rates when taking out payday loans. A desperate financial situation can make you ignore such a matter and thus end up being charged unfairly high interest rates which will make it difficult for you to repay the loan. Lenders are restricted to a maximum cost of around 0.8% of the total around borrowers. This should include interest and any other fees applicable to the payday loan. If you are an avid borrower then you will be able to tell when the interest is excessive as well as the charges and this way you can claim the money back from your lender.

Source by Satvik Mittal

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