Fighting Payday Loan Lenders

Payday loans are often taken out in moments of desperation, and it’s easy to feel helpless when you feel that a loan company has mistreated you. Many people feel that they should have known better than to get the loan in the first place, so any harassment or malpractice they encounter is to be expected. This simply isn’t the case and there are laws in place to protect you as the consumer, so know your rights and stand up for yourself if you feel you’ve been treated unfairly. According to the charity Citizens Advice, millions of people in the UK could be entitled to compensation, both monetary and otherwise, but many are accepting mistreatment instead. If you feel you may be one of these millions, take action now.

One of the most irritating consequences of taking out a payday loan can come in the form of everyday harassment from the lender. Be it incessant text messages, phone calls to your place of work or late night ringing, this can be extremely irritating, not to mention intimidating. Despite what you may think, this sort of behaviour from the lender isn’t acceptable or just to be expected, so seriously consider making an official complaint if you’re being bothered constantly. Even more frustratingly, some people get harassed for loans they never actually took out. Payday loan companies are vulnerable to fraudulent loan application practices as they don’t always carry out sufficient checks on their applications, so you may be the victim of fraud. Explain clearly and firmly to the company that is harassing you that you’re not the person they’re looking for and that you definitely have not taken out a loan with them, and they should stop calling. If it still persists after that then report the incident with a formal complaint and considering contacting Action Fraud, the police service’s fraud crime reporting centre online or by phone.

Another unfair and illegal activity conducted by some payday loan companies is the practice of taking money from your bank account without giving you prior warning, thereby collecting loan repayments without your permission. This can come as an unpleasant shock if you’re already in a difficult financial position and on the edge of your overdraft, pushing you unexpectedly into fines and interest. The companies are actually required to give you three days notice before taking money from your account, so if you’ve been a victim of this nasty surprise then be sure to complain. The lender is most likely using a system called Continuous Payment Authority. If this is taking place, contact your bank immediately to cancel the CPA and organise repayment of the loan through alternative means. A direct debit you set up yourself can be a good alternative, as can standing orders or manual payment. Take the control back from the company so that the repayment is in your hands.

The difficult and unfortunate truth is that for many of us, economic difficulties lead to loans being taken out that we then struggle to repay. If you took out a payday loan and are having a difficult time saving up enough to pay it back, you’re fully entitled respectful and sympathetic treatment from the lender. Don’t accept rudeness or bullying. Be honest with the lender and request an immediate freeze on the interest so that the debt doesn’t spiral further. If you encounter difficulties or disrespect then complain directly to the company so that the matter can be investigated further, and expect a satisfactory response within 8 weeks. If your complaint is ignored or not dealt with properly then you have the right to take your case to the Financial Ombudsmen service; they should be able to act as an objective mediator and help you demand compensation where it’s due.

Finally, be sure to ask for help when you need it; there are many charities and advice services out there specially aimed at those struggling with debts. They can help you come up with a solid plan of action so that you can turn things around and get back on your feet.

Leave a Reply

Your email address will not be published. Required fields are marked *