Martin Lewis fan explains how she collected nearly £ 10,000 from payday loan companies
A Martin Lewis fan was able to collect £ 9,300 from 72 payday loan companies after taking advice from the money saving expert.
The reader, known only as Emma, says she has been in persistent debt for ten years but has managed to transform her finances.
She was able to recover £ 9,300 from payday loan companies after she questioned the affordability and suitability of her loan.
In total, Emma received money from 61 of the 72 payday loan companies she borrowed from either directly or through the Financial Ombudsman Service.
Separately, the MoneySavingExpert reader was also able to claim £ 800 in compensation and reimbursement for credit card charges and overdraft charges.
Emma says Martin’s advice also led her to contact all the catalogs and credit card companies she owed money to, and agreed to interest-free payments and reduced payment plans to reduce her debt.
The transformation of money means it went from debt over £ 20,000 to debt without debt and savings in less than a year.
Write in MSE, Emma said: “Following your payday loan recovery advice, we challenged the affordability and suitability of my loans and won most complaints (61 out of 72 total payday loans) either directly through companies or through the financial mediator.
“In total I have received interest refunds and compensation totaling over £ 9,300. I have also received separate compensation and refunds for credit card charges and overdraft fees for a total of around £ 800. ”
How To Get Money Back From Payday Loan Companies
If you’ve borrowed a payday loan that you can’t afford to repay because the lender hasn’t properly checked your finances, you may be eligible for a repayment.
Another way a payday loan could have been sold poorly is if the costs or repayment schedule, as well as the associated fees, were not clear.
Not being warned about the risk of late repayment and how much you’ll end up repaying in total is also an unfair sale.
When it comes to being treated fairly, lenders are supposed to offer help if you tell them you’re having trouble, and they should offer you free debt advice.
If you believe you have been mis-sold, you will likely be reimbursed interest as well as fees and charges from the time you were treated unfairly.
To initiate a claim, talk to the payday lender or check their website for the address of their complaints department.
It’s best to do this in writing, as you can follow up on a letter to make sure it arrived and that they received your complaint.
If you have any difficulties, you can contact the Resolver Complaints website for free to help you with your complaint.
Resolver will also help escalate your case, in case you don’t get an answer.
If you do not have a response from the lender after eight weeks or if your complaint is dismissed or if you are not satisfied with the response, you can contact the Financial Ombudsman Service.
This is a free service to use. You must complete the Ombudsman complaint form to start the procedure.
If you think you’ve been mis-sold, it’s best to file your complaint as soon as possible, as dozens of payday lenders have gone bankrupt in recent years.
When a business goes bankrupt, it means customers risk receiving drastically reduced payments – or even finding that it’s too late to file a complaint.