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Pay Day Loans

Act Now and Claim an Average of £2,400

Eligible for a Pay Day Loan refund?

It is estimated that upwards of 76 percent of people who took out payday loans may be eligible to make a claim.

We are committed to providing expert legal advice to our clients to ensure that consumers take advantage of the Consumer Credit Act 1974 and fight back against unscrupulous lending practices by the Pay Day Loan industry especially when Pay Day Loans had representative APR of 1000% or more!

Well-known payday loan providers are Sunny, Lending Stream, Wonga, QuickQuid and Peachy.

Lenders have a duty of care to provide responsible lending to consumers but often fall foul. If an assessment of creditworthiness and affordability has not been conducted or lending has been offered to you creating or continuing a cycle of dependency then your Pay Day Loan could have been mis-sold to you for a wide range of reasons:

1. The Lender Didn’t Tell You Pay Day Loans Only Short Term

Pay Day Loans are supposed to be short-term. Their use is meant to help you cover sudden, unexpected expenses that you can’t meet out of your regular income. The lender should clearly state that this is the purpose of the Pay Day Loan. The lender should advise you not to use Pay Day Loans as long-term borrowing. If your Pay Day Loan did not clearly state this, you could be owed a refund.

2. The Lender Didn’t Check Your Personal Financial Situation

Regulations from the Financial Conduct Authority (FCA) require that before issuing a loan, Pay Day Loan lenders have to check whether their customers can repay. If you can’t meet your basic needs after you pay off your Pay Day Loan, lenders should not approve your loan. The lenders also need to check other aspects of your personal circumstances that indicate your ability to repay. These include things like your age, mental health, and financial history.

If your lender did not check your affordability, you may have grounds to ask for a refund.

3. The Lender Didn’t Make It Clear How Much Repaying The Pay Day Loan Would Cost

Lenders should make it clear how much it will cost to repay a Pay Day Loan. What this means is that the lenders need to quote for how much it will cost you in interest for each £100 you borrow. The FCA has reinforced this understanding – lenders cannot hide interest rates and repayment amounts in the small print in terms and conditions of the Pay Day Loan. Instead, lenders must clearly display this on their website and contracts.  Pay Day Loan companies cannot call you after 8 pm as an interference in your private life and should avoid contacting you while you are at work.

If a Pay Day Loans lender has harassed you, then you stand a good chance of winning your claim.

4. A Pay Day Loan Company Has Taken Money From Your Account Without Warning

Lenders have been taking money directly from people’s bank accounts in some instances. Lenders use something called a “continuous payment authority” or CPA. CPAs are the easiest way for lenders to make sure that they get money directly from your bank accounts.

However, in 2014, the FCA introduced new rules about CPAs. One of the things that lenders must now do is explain exactly how CPAs work. Lenders also need to tell you how to cancel them. Regulators also require lenders to inform you in advance when they are planning to take money from their accounts through a CPA. Before the Regulations, lenders would make multiple attempts to withdraw funds from a customer’s bank account in a single day. Around a third of payday loan claims to authorities involve misuse of the CPA.

Lenders are limited to two attempts. If lender is still making multiple attempts using a CPA, this is illegal, and you should claim immediately.

How do I claim?

Barings Solicitors can provide you with specialist advice and will deal with the claims process from start to finish, relieving you from the stress of making a claim on your own.

We work on a no win, no fee basis, so we only charge if we are successful in recovering your compensation.

To get started with your claim, get in touch today by calling our team on 0161 200 9960.

 

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