Payday loans are sold to customers as a short-term fix to common financial problems. From vehicle maintenance to unexpectedly high utility bills, these unique financial instruments offer to solve a customer’s woes in the short term. They’ll be able to pay off the entirety of the loan when they receive their next paycheck, often for a high fee, and the loan then simply goes away with all of the borrower’s obligations having been met.
Many times, though, payday loans can serve as a gateway to even deeper financial problems. In many cases, they are mis-sold by UK companies looking to take advantage of customers who have no way to pay off their loan in a short amount of time. They charge high APR and engage in other practises that just aren’t fair.
For those who have recently taken out a payday loan to meet short-term financial shortfalls, it’s worth determining whether or not the financial product was mis-sold. If so, many customers will find themselves able to file a claim and recoup much of the loss they experienced after taking out this potentially dangerous loan.
Was the Payday Loan Mis-Sold?
Maple Leaf Financial will review your Claim and will be happy to discuss your individual concerns and requirements : 0800 7747624
Evaluating the Merit of a Claim: Think About the Original Sales Pitch
Unlike loans offered by major banks, payday loans are often sold by small companies that “sell” their services with outlandish advertising claims and promises that the loan is small, affordable, short, and won’t make a lasting negative impact on consumer finances. This claim is often false, as these companies charge fees and interest rates that are incalculably high. Many customers quickly find themselves trapped for months or even years in a cycle that virtually forces them to take out new payday loans time and time again.
If this cycle of loan after loan, fee after fee, has become all too common and even a bit dangerous, then it’s time to start putting a claim together against the company that originally sold the loan. These companies have been repeatedly found guilty of misleading and overcharging their customers and holding them accountable is actually quite easy in today’s legal and financial climate.
How to Begin: Contact the Company for an Internal Review
Many customers who have been taken advantage of by payday loan companies are often so frustrated and disenfranchised that thy want to immediately launch legal action against the company that sold them their loan. While tempting, this is not the best course of action. Instead, the process should begin by writing the company and asking them for an internal review of the loan amount, its terms, and other aspects that concern the product.
This letter should be in writing, of course, and it should be sent to the company that offered the original loan to the customer. The customer needs to explain very clearly why they’re writing, what their concerns are, and what the eventual outcome is that they wish to achieve. IN many cases, the outcome desired is to have the loan rescinded without any additional fees, interest rate payments, or other charges. Customers often ask for an investigation of the terms, the impact of the loan’s fees on the customer’s finances, and the original sales pitch paired with the loan.
Await Acceptance or Rejection of the Internal Review
With the internal review submitted to the loan origination company, it’s time to sit back and wait. The company will review the request and either accept it, resulting in the loan being rescinded, or reject it with a letter sent to the customer’s address. If the claim is accepted, then the process is over. If the company does reject the request, customers are advised that they should re-submit the request in writing while modifying it slightly to meet any objects offered by the payday loan company in its rejection letter.
If a further request for review is still denied by the lender, then it’s time to take the dispute to the Financial Ombudsman Service. The FOS acts as an independent negotiator on behalf of the customers who took out the payday loan originally. Their services are free, and they’ll negotiate a more favourable outcome with the lender in many cases. In the event that the Financial Ombudsman Service rules in favour of the customer who originally took out the payday loan, the company who gave them that loan will be legally required to follow any settlement offer or rescinding of the loan as recommended by the agency.
Remember to Have All Documentation Put Together
One of the things that can really trip up payday loan customers who file a complaint is a simple lack of documentation and evidence. Often, this documentation is delivered electronically and that makes it easy to lose or delete after the initial loan has been received. Make sure that any supporting documents that came with the loan, like its repayment terms, fees, and annual percentage rate charges, is copied and sent along with the complaint to the original lender. This information may also be needed by the Financial Ombudsman Service if the agency is required to negotiate on behalf of a consumer.
With Careful Planning and Documentation, Claims are Easy
The mis-selling of payday loans is all too common, and many customers deserve to have their loans rescinded. By following the claims process in an orderly, step-by-step manner, those customers who feel they have been wronged by a lender can escape from the burden of high fees, even higher interest rates, and the self-perpetuating cycle of indebtedness that these companies encourage.
Payday Loan: Resource
Mis-Sold Financial Products – Midlands, UK
Maple Leaf Financial has been dealing with mis-sold financial products for consumers for the past 10yrs. Maple Leaf Financial is based in the Midlands making it ideal to serve clients in the Midlands and the UK. Most of our clients had no idea there was a problem with their policies or investments before they spoke with us. You have nothing to lose by calling us to find out about your own financial arrangements.
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Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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