How To Claim Compensation For a Payday Loan

If you have ever taken out 5 payday loans or more with the same lender, you could be eligible for a payday loans compensation claim, with the average person claiming around £500 and some people being able to claim as much as £20,000.

Step 1: Submit a Claim in Just Two Minutes

Step 2: A Professional Claims Lawyer Will Process Your Claim

Step 3: Wait To Hear Back and Receive Maximum Compensation

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Am I entitled to a payday loan compensation payout?

You may be entitled to compensation on a payday loan if:

  • You have had more than 5 payday loans with one lender
  • You are not in debt management
  • You are not bankrupt or under IVA
  • You previously struggled to repay your payday loans
  • Your loan was rolled over or extended
  • You were unemployed, on benefits or under financial strain when you were approved

No win, no fee – If you do not win your claim and receive any compensation, you will not be charged. However, if successful, it could reimburse you for hundreds or thousands of pounds that you may paid to a payday lender over the years. You can simply check your eligibility below:

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How much money could I receive from a payday loan compensation claim?

The average payday loans compensation claim has given around £500 back to the original borrower. However, there have been cases where people have been reimbursed and received as much as £10,000 and even £20,000.

The compensation claim takes all your payday loans into consideration any unfair fees or charges that you may have paid, with 8% compound interest.

Which lenders can I get a payday loan reclaim from?

  • Quickquid
  • Payday UK
  • Sunny
  • Payday Express
  • WageDay Advance
  • The Money Shop
  • Wonga

How to make a compensation claim for the payday loan

Follow our step-by-step guide provided by Payday Loan Fight Back:

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Step 1: Check if you had any payday loans

Check your emails for any previous payday loans transactions – the lender would usually have sent a loan agreement, so try download this from your emails.

You can also check any previous bank statements for loan amounts and repayments.

Confirm:

  • The lender (s)
  • Start date
  • Loan amount

Step 2: Make a claim against a payday lender

Fill in a payday loans compensation form here and fill in your details in just two minutes. Your application will be sent to a lawyer and processed.

Step 3: Wait for a response and earn your reclaimed amount

An FCA-regulated lawyer will be in touch to confirm the details of your mis-sold payday loans.

The lawyer will submit your claim and ask for a refund directly from the lender if question.

If successful, you will receive the compensation you deserve (full or partial amount).

If not successful, the lawyer will suggest how you can submit a claim again but through the Financial Ombudsman Service.

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Why are people claiming compensation against payday loans companies?

Five years ago, the payday loans industry was worth over £2 billion and over 3 million loans were lent out each year. However, the main regulators in the UK consisting of the Financial Conduct Authority and Financial Ombudsman Service have determined that many individuals were offered loans which they could not afford.

Whilst not the case of every payday lender, many lenders however, failed to carry out sufficient checks prior to approval and they continued to offer high cost loans, despite the financial difficulties of their customers.

The customers that suffered the most included:

  • Those that needed other loans to pay off their existing payday loans
  • Those using rollovers and continued to borrow for long periods of time
  • Those that defaulted on loans due to lack of affordability
  • Those that were unemployed, bankrupt or on benefits

Today, the Financial Ombudsman Service is giving ex-payday loans customers the opportunity to claim back any payday loans and interest that was paid.

So if you borrowed £200 and repaid £327 (typical for a 3 month loan) – you would be able to reclaim the full £327.

The main eligibility criteria is that you must have demonstrated difficulty repaying or had at least 5 payday loans with the same lender (potentially showing that your financial situation was not improving).

Is there a deadline for making payday loans compensation?

Some lenders such as Wonga and WageDay Advance have given deadlines (the Wonga deadline has passed) – since they have received so many claims, they had to create a deadline to organise the reimbursements effectively. In fact, it transpired that Wonga had 4 times more claims than previously expected.

However, it appears that the average person will only get around 10% of the value of their claim, since Wonga does not have the capital to service all of them.

So whilst there is no general deadline like there was for PPI claims, other lenders may follow suit, so to maximise your chances of getting a full 100% of your owned claim, it is best to apply for a payday loans compensation sooner rather than later.

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