Is it possible to get a payday loan refund?
Payday loans offer quick financial solutions to people who do not want to go through long processes to obtain loans. They are processed quickly and are therefore useful even in situations that seem urgent. However, if you’re not careful about where you get these loans, you could end up paying very high interest rates that can eventually put you deeper into debt.
In recent times there has been an increase in the number of people who complain about loans. A good number of people realizing irregularities are taking steps to obtain compensation. It may seem impossible, but there are several ways you can qualify to file a claim and enjoy payday loan repayments.
1. Fraudulent loans – They are some of the most common among claimants seeking refunds. Payday loans may be fraudulently taken out in your name. It is the responsibility of the lender to verify the identity of the client before approving the loans, but most are not so careful, so there are many cases related to this problem. If you start being harassed about a loan, you have no idea, you have every right to investigate the matter. He can try to work things out with the lender or he can deal directly with the financial ombudsman service to get the assistance he needs.
2. Unclear refund – Failure to pay can become serious because your debt keeps piling up in terms of interest and any other charges attracted by non-payment. As an applicant, you should get very clear terms on how to repay the loan, including the fees and term. Before accepting the loans, you must know the exact amount that you must pay and in what time. When such important information is withheld from you, you can file a complaint to have additional charges refunded or unreasonable debts discharged from your payday loan.
3. Recurring payments – Payday loan providers collect your payment through bank requests. Most use continuing payment authority and you need to make sure you know what this is and you can cancel it. A good lender should also give you notice before taking the money out of your bank. There are lenders trying to get access to funds around the clock and this results in huge bank charges for you at the end of the day. You can claim such for the lender to offset some of the charges.
4. Financial position – You may need the loan, but it’s really up to the lender to determine how qualified you are in terms of repaying the loan on time. Your income, employment, mental health, age, credit history, and identity are some of the serious checks the lender must check before approving payday loans. In the event that you are unable to pay and the lender has overlooked all the details regarding your financial situation, you may qualify for a refund.
5. High interest rates – Most people rarely pay attention to interest rates when applying for payday loans. A dire financial situation can cause you to ignore them and therefore be charged unfairly high interest rates, making it difficult for you to repay the loan. Lenders are limited to a cost cap of around 0.8% of total loans. This should include interest and any other charges applicable to the payday loan. If you’re an avid borrower, you’ll be able to tell when the interest is too high, as well as the fees, so you can claim a refund from your lender.