| Claiming PPI Compensation, PPI, PPI Refund

payday loan

There have been a lot of instances in the past where policies have been mis-sold along with loans, mortgage and credit cards. This is one fact that people in this country are quite familiar with.

However, during a recent research another reality came to light. According to the research, ‘there have been an increasing number of complaints from payday lenders.’ This number seems to have tripled in the last few years.


How are you eligible for a refund?

When it comes to refund, the first and foremost question that strikes your mind is whether you are eligible to apply for a refund.

This clearly indicates that you have paid the entire sum liable to you for your payday loan. It also signifies that you did not borrow any further money to repay your loan.

If you have taken roll over loans and have taken money from one lender to pay another lender then you are eligible for a refund. If you have taken multiple loans you are still eligible to claim your compensation.


Unfair Treatment

Irrespective of your financial situation and your inability to repay the loan you deserve to be treated fairly. Your struggle to pay back the loan cannot be a reason for mistreatment or cause trouble in the process of your refund.

Instead you should seek advice from firms which can help you to follow the correct claims procedure and help you to obtain your refund. They can guide you through the process and make sure that you have the best possible chance of getting your compensation amount.

Lenders should not mis-use your state of mind to mis-sell other policies to you. There are financial institutions that are known to have mis-sold loans along with other policies.


How much refund do you deserve?

Refund amount differs from claimant to claimant. It mainly differs according to the payments made by the victims.

As a victim you should keep in mind that all the interest payments you made during the tenure of the loan must be calculated during the refund process. Further, all charges that you paid during the term should be refunded back to you and an additional statutory interest rate of 8% should be added to your refund amount.

If the bank eliminates any payment records of yours, you can file a complaint and claim a refund based on your payments. Your next step should be to request them to cancel the balance (if there is any remaining.)

If you have already paid for the loan you still can claim for a refund. However, you have to make sure that you apply for the claim within six years from the date of your loan.

How to get your dues

Firstly, you should list down the amount you borrowed. The next step is to calculate how much the repayment actually costs you. Once you are done with all the calculations the next move is to write to your lender.

If the lender does not offer you compensation you can contact a trustworthy claim management company or the Financial Ombudsman Service. You can contact the FOS eight weeks after you first raised your query with the payday loan company.

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