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.”
- 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
YOU DO NOT NEED TO USE A CLAIMS MANAGEMENT COMPANY TO MAKE A CLAIM.