Mis-Sold Payday Loans
Introduction
Many UK consumers have fallen victim to mis-sold payday loans, often taken out under misleading terms or without proper affordability checks. These loans can lead to long-term financial difficulties due to high interest rates and unfair lending practices.
The Financial Conduct Authority (FCA) has taken action against payday lenders for irresponsible lending practices, highlighting cases where consumers were not properly assessed for affordability before being approved for loans.
Do I Have a Claim?
You may have been mis-sold a payday loan if:
- The lender did not check if you could afford the repayments.
- You were pressured into taking out the loan.
- Your loan was rolled over multiple times, leading to increasing debt.
- Interest rates and fees were not clearly explained to you.
- You had to borrow money from other lenders to repay your payday loan.
How Do I Claim?
If you believe you were mis-sold a payday loan, follow these steps:
Contact the Lender
Write to the payday lender explaining why you believe the loan was mis-sold. Provide details such as loan amounts, dates, and how it affected your finances.
Escalate to the Financial Ombudsman
If the lender does not respond within 8 weeks or rejects your complaint, escalate the matter to the Financial Ombudsman Service.
Claim Compensation
If your claim is upheld, you may be entitled to a refund of interest and fees, plus compensation for any financial hardship caused.
