This is a great guide from the wonderful Debt Camel on how to reclaim your payday loan.

The article looks at how to complain about “unaffordable” payday loan, with sample letters.

You can use these if your loan is still outstanding or if it was repaid. It’s not guaranteed to work but it won’t cost you anything.

Claiming a refund for “unaffordable” loans

The first reason to claim a refund from the payday lender is if you were given loans which were “not affordable”. Here is a definition of “affordable”:

“To qualify for a given amount of credit, the borrower should be able to make the required repayments without undue difficulty, whilst continuing to meet other debt repayment obligations and reasonable regular outgoings.”

Payday Loan Debt Camel GuideIf any of the following points apply, it suggests that a loan wasn’t affordable for you:

  • your credit record showed missed payments or a lot of debt compared to your income;
  • you had to repeatedly rollover a loan;
  • you borrowed from one payday lender to repay a loan to another lender;
  • you took out several loans from the same lender which increased in size;
  • the loan was a significant part of your income and you couldn’t have repaid it on time because of your other expenses such as rent/mortgage, utilities, council tax, transport, food, other loan repayments etc.

Read the comments at the bottom for examples of people who have followed Debt Camel’s guide

jamie says SUCCESS LENDING STREAM I have just accepted a settlement from lending stream, they have cleared the balances of 6 outstanding loans ( £650) and given me a refund of £355, in total I had paid £850, in interest, but feel that the fact I am clear of depts from them and a refund of £355, is acceptable, they have been very nice to deal with to be fair to them, in total I probably could of argued for another £500 but felt happy with what I accepted, I started on the 19th of feb, so the time scale has been good as well, so, so far £163 from pday express, £260, piggy bank, and now £355, + balance clearing from Lending stream, im still waiting for P2P, Wonga, Quick Quid, and Sunny, although these ones together amount to over £7000, so im expecting to have to go to the FO with them, but fingers crossed with a settlement first. many many many thanks for Sara and this site 🙂
Jamie - March 14, 2016 at 3:08 pm


VISIT: Payday loan refunds – how to ask for one · Debt Camel