Payday loans are a form of short-term lending generally used to ease the financial position of an individual between the time of the loan and payday; hence, the name Payday Loans.
“It is not fair or responsible to lend to an individual where the lending will only make their financial situation worse.”
The difficulty with payday loans historically was that it was relatively easy for one to fall into a cycle of dependency on them due to the ease in which they were obtained and the high rates of interest.
As a result of the dependency that ensued in many cases and the high rate of interest people found themselves in a position where they were borrowing from one lender to pay off another lender at increasing rates in what's was on many occasions a downward spiral. This scenario continued for a number of years in a number of cases up until 2015 when the rules were changed. At that point in time a lot of people who were historically granted payday loans would have found that their new applications were suddenly rejected.
“As a result of the dependency that ensued in many cases and the high rate of interest people found themselves in a position where they were borrowing from one lender to pay off another
.... ”
Part of the spirit of the changes that came into play but meant to prevent people from getting to payday loan spirals and also highlighting the fact that lenders needed to ensure that they were treating customers fairly.
It is not fair or responsible to lend to an individual where it is clear that the lending will only make the situation worse.
Given the rules that exist, it is possible to seek redress from your lender where they failed to spot a cycle of dependency or having spotted the same failed to act accordingly.
If your ability to repay your Loan was not properly assessed you might have been treated unfairly by the lender. In such circumstances, you may be entitled to compensation and may even have the loan written off or reduced. See our Frequently asked questions section below and complete
our form.
You could file your complaint yourself, or you could use the services of a professional firm such as ours.
For more information, feel free to contact us.
By filling the form below, you can set the ball rolling and leave us to deal with your claim for you. Our Case-workers are able to provide you with an exceptional level of service.