Payday Loan Complaint
A payday loan is intended to help you out when you need a small amount of money to tide to over. Most payday lending companies have to follow good practice guides and rules set out by the FCA (Financial Conduct Authority).
These rules and regulations include making sure they receive certain information from you and check certain things before allowing you to take out a loan. This is to make sure that you don’t end up taking out a loan that you can’t afford to repay.
However, many payday lenders haven’t followed these rules and ended up giving loans to people who shouldn’t have been given them, and those people ended up having to borrow more to pay off their loans.
If a payday lender that you have used hasn’t followed these rules properly then you may be entitled to make a formal complaint.  There are different reasons that you can complain and these include –
 If the lender didn’t make it clear how much it would
cost you to repay the loan. Before borrowing any money, the lender should have given you an example of the charges and fees that it would cost you to borrow a certain amount.
If you weren’t given a detailed description of how and
when to pay back your loan – including dates to repay, what instalments it should be paid back in etc.
 If the lender that you went to didn’t check your
personal circumstances or your financial history. They should do this so that they can get a clear picture of whether you can pay back the loan or not.
If the lender didn’t tell you what to do if you would like
to make a complaint or if they didn’t tell you that you shouldn’t use a payday loan if you are in real financial difficulty.
If you had difficulty repaying the loan and then the
company should have dealt with your situation sympathetically and positively. If they didn’t then you can make a complaint.
If they didn’t offer to freeze interest charges if this will
help you make your repayment with more ease.
If they pressurised you into extending the loan,
especially if they charged you more for each time that you had to extend it. Or if they didn’t make it clear how much it would cost to extend the loan.
You should also make a note of what things in your life have suffered as a result of taking out this loan. For example, these could be things like what you can’t afford as a result of your loan, whether the loan has affected your family life or personal life in any way. You should also make note of how your mental health has been affected and how you feel that your debts have spiralled out of control.
It is important to also make a note of any contact with the lending company, including any letters of correspondence, make notes of any phone calls that you make to the company. Most companies record a lot of their calls for training purposes,
so if you’ve dealt with poor customer service then you may be able to find out if they’ve recorded any of your conversations. This might not always be the case but it’s worth checking because anything like that will only go towards helping your case.
You may feel that taking on a big loan company is scary and not worth the hassle, but if you have been negatively affected by one then you deserve to make a complaint. If you think you have gone through any of the things on the list above then you are well within your right to make a complaint.
You can make a complaint directly to the payday lender, although another option is to go to your Financial Ombudsman. This is a long process so it is always worth going to the lender first, before getting the Ombudsman involved.
For more information, visit us
https://www.redbridgefinance.co.uk/