Do You Qualify For A Payday Loan Refund?

If we look at the complaints registered with the Citizens’ Advice Bureau about payday loan firms, around 76% of complainants filed cases for a refund or compensation. You could also need to seek a refund. If you have taken a payday loan against your name and you want to seek compensation, you may want to find out if you quality to file a complaint.

Here are instances where you qualify for a payday loan refund.

Reasons You Can Seek A Refund Or Compensation

Customers may seek compensation or a refund for a number of reasons. According to research studies, about 30% complaints are about lenders who take out money via a recurring payment. About 20% customers filed complaints that fraudulent loans were taken out in their names. Below are some of the common reasons you may file a complaint about a payday loan lender.

Fraudulent loans

Lenders have to verify a customer’s identity before issuing loans. Unfortunately, the verification is not done very carefully. As a result, many customers end up filing cases that loans were taken out in their names. If this has happened to you, contact the lender right away. If they don’t seem to help you, go to the Financial Ombudsman Service.

Harassment

As far as calls or text messages goes, it is difficult to decide what is considered harassment. Lenders are not supposed to make a call or send you a message after 8pm; however, if they do, you can sue them.

Recurring payments

Typically, the collection of payday loan repayments is done through CPA. It authorizes the lender to make a request for money to your bank. But they are meant to spell it out as well as explain the way you can go about canceling payday loans. Besides, they let you know prior to taking money out. Here it is important to note that some lenders keep trying all day long if the money is not deposited in their account in the morning, which means you, the customer, may be charged a good amount of money.

Unclear Repayment amount

Make sure the repayment amount is clearly mentioned on the lender’s website. On some lenders’ sites, you can find sliding scales that you can use to know the total cost of your loan. You can go for a refund if the repayment amount is not clear.

Your financial situation

Lenders consider a lot of factors, such as your age, employment, mental health, income, credit history and income before giving money out. If they have not done the checks and you can’t afford the repayments, you ask for a refund.

Repayment problems

If you are finding it hard to repay your loan, the lender is supposed to work with you to come up with an arrangement. For instance, if you have a good repayment plan in mind, they shouldn’t charge further interest and other charges.

In short, if you have faced any of these problems with your payday loan, you may want to let the lender know. If you don’t get a reasonable response, you should take your case to the Financial Ombudsman. This authority will decide if you deserve a payday loan refund or compensation after carefully reviewing your case.

It is best to use the services of a financial firm specializing in claiming payday loan refunds. They make the entire claims process a hassle-free one helping from the start to the end. This include filling out the application form right up to referring your case to the financial Ombudsman. However, you need to hire a company that knows what you are doing as well as one that won’t mount your debts further by way of processing fees.

Payday Loans Online – Why Not?

The economy is getting more complicated every single day and we all need money. But how urgent do you need money to pay for your immediate spending needs? The next payday are still weeks away and you needing the money right at this very moment is making it hard on you. The answer is simple: payday loans online. Just fill up the short application form online and there goes your cash advance before you even know it.

Payday loans online offer short-term unsecured cash loans to assist you with your immediate cash needs while waiting for your next payday. Simply apply online, provide the necessary details, have it approved and then the cash you borrowed will be electronically sent to your account. Normally you are allowed to borrow between $100 and $1,000. To finalize the transaction, it will still have to undergo a screening process by the lender. You will be able to repay your loan through the bank account that you have stated and automatically withdrawn along with the agreed fees to be paid. The repayment terms could vary from one lender to another, therefore you have to review the terms and conditions very carefully. No collaterals necessary. Once your application is approved, you will be provided with a wide-range of reputable lenders for you to choose from. Each lender has different terms and conditions that you may need to read thoroughly before selecting. They are trustworthy and there will be no hidden charges. Every single fee shall be transparently showed to you before completing the transaction. No processing fee will be charged during application.

If you have a bad credit, the company will look for lenders who are willing to lend you money provided that you have a stable income and you pass their necessary requirements. Unlike other lending options where in you have to fill-up tons of complicated application forms and wait for two to three weeks without assurance of approval, you only need twenty-four hours or less with online payday loans for the processing. If you are worried about the protection and privacy of your personal information, fear not because they are very much secured. Sometimes they give refunds of fees when you pay back earlier than the due date agreed upon. This will make transactions smoother in the future because you will have a better credit history. If you fail to pay back, the penalties will depend on your agreement with your chosen lender. However, it could be as huge as facing criminal charges or as small as paying extra fees. You are also not allowed to apply for new payday loan without settling first the previous loan, but you may renew your payday loan for the next payday.

To pass the initial application process, you must have the following requirements:

Currently employed or having a regular income (sometimes indicating a minimum number of days employed)
Monthly income of at least $1,000/month after-tax
You must be at least eighteen years old
A US Citizen or a permanent resident of the US
A valid checking or savings account under your name
Contact details – a valid e-mail address, home and work numbers, mobile numbers, home address

Although it is easier to apply for a short-term cash loan with payday loans online, you must be responsible enough with your finances. If you have budgeting issues, it is best to seek the help of a financial advisor for better financial management. Your monthly income should be able to cover up for your debts and other expenses. You can also notify your creditors on your willingness to pay but have budgeting problems. They can help you out and offer budgeting plans. Online payday loans only solve your short-term and urgent financial needs while you wait for the next payday. You also have to be responsible for the repayment of your loans or you could be facing a bigger trouble. If you cannot pay your loan in full on the agreed due date, you may apply for a loan extension. There will be a customer service representative to answer every question so make use of this before you make a decision. An e-mail will be sent to you once your application is approved.

Paying Back Payday Loans: Timing Is Everything

When it comes to money lending, payday loans are becoming one of the most popular alternative solutions to high-street bank loans. However, like all loans, they do have to be paid back at some point and in the case of payday loans, paying them back on time is imperative. In order to help with the repayment process, it is always prudent to understand just how payday loans are made and more importantly what you, as a consumer needs to know about the whole process.

The first thing that a consumer will need to understand is that a payday loan is designed to be paid back in one lump sum and over a period of no longer than one month. This means that there are no installments for the borrower to worry about, thus allowing them to better focus on paying off their loan right away and staying on top of their finances. Additionally, one swift payment means that the loan won’t incur any more interest.

Let’s review some of the main elements to consider when taking out a payday loan.

When is taking out a payday loan right for me?

It cannot be stressed enough that taking out a payday loan is not for everybody in need of some last minute funds. Why? Well, in short, a payday loan is a temporary solution to a short-term problem. If you are considering taking out one of these loans, but constantly find yourself unable to make ends meet at the end of the month, then a payday loan is probably not the answer for you.

If you usually have a pretty good grip on your finances and just happened to overspend this month or found yourself in an unexpected emergency with a temporary cash flow problem, then a payday loan could be an excellent tool in easing your financial stresses.

How is the repayment made?

In essence, the pay back process is made as simple and as easy as possible – all thanks to the internet. When an applicant applies for a loan, he (or she) must pass through a series of filters to make sure that they qualify. One of the criteria for a payday loan is that they have a current bank account, which they must provide to their lender. These details are then used by the lender to automatically take the one and only payment on the specified date that was agreed upon by both parties. In doing so, things are made a whole lot more convenient for the borrower especially because the only thing that needs done is to make sure that the amount is in their account on that day.

The amount paid is the loan amount plus the agreed interest.

What happens if the applicant cannot make a single repayment in full?

If you inform the payday loan provider that you cannot meet the agreed payment in full, then the majority of lenders will allow you the option of ‘rolling over’ the payment. Now, this is where things can get sticky because however tempting it may be to have more time to pay back your loan, it is important to note that this will incur larger interest charges. However, you will have had to agree to these costs in the very beginning when you took out your payday loan.

*Ask your payday lender about the costs of rolling over, should you be unable to meet the agreed upon repayment date*

Generally speaking, the interest charges on rolled over loan are split into two categories; additional fees and extra interest. The extra interest will typically be the loan plus the extra month’s interest charges at the specified rate.

The additional fees will typically be that of an application or processing charge. This is usually a small administration fee which is charged out once every time a client ‘rolls over’ a payment.

If you, the borrower, should decide that rolling over the payment will give you more time to get you finances in order, it is imperative that you speak to the lender before your first payment comes out. Failure to notify your lender in advance will most likely result in hefty late payment charges and may hurt your chances of borrowing any future money.