Did you apply for a payday loan? Are you having a tough time settling the loan?
Payday loans are short-term loans that offer quick financial fixes. They appeal to a lot of people because they do not involve long application processes. In fact, according to the Pew trust around 12 million Americans take out payday loans annually/
The downside, however, is that they offer no security and have an average interest rate of 400 percent, according to a study by the Consumer Federation of America. Sometimes, you may end up in more debt because of the soaring interest rates. In other cases, different kinds of irregularities come up.
These leave borrowers in the losing end of the stick.
Thankfully, there are payday loan refunds to the rescue. But do these refunds really exist? If so, how do you apply for one?
Continue reading below to find out how.
Getting Your Shot at Payday Loan Refunds
It is a fact that not everyone is aware of Payday loan refunds. We cannot really blame them because securing one is quite tough.
But if you take the right steps, you can earn yourself a shot at refunding your problematic payday loans in part or in full. Here’s how you do it:
Gather All the Details
The first order of business is to gather all the facts about your same day payday loan. You can find these details from your credit report, bank statements, emails, and the lender’s website that contains your history.
If you don’t want to go through all of these resources, you can email your lender to request the details. Your letter must express your intent to secure a list of all your existing loans with the lender.
You should indicate that you want to know when you took out these no credit check payday loans. You should also request for the charges and interest rates.
Thereafter, tell them that they should not have given you these unaffordable loans. Thus, you are requesting a refund the interest and charges that you paid. You should also request them to delete negative information from your credit record.
File a Formal Complaint
As soon as the bad credit loan lender sends all of the details pertaining to your payday loans, you can start working with your formal complaint. The goal of your letter is to tell your whole story.
You can say something along the lines of “I want to send additional information concerning the initial complaint I sent earlier. I have existing loans since 2017, and the payments are leaving me with very little money.”
You should also provide a breakdown of your take-home salary. You should also send a computation of your living expenses in relation to your salary.
Explain to them that you cannot afford to pay their guaranteed loans. Stress that they should stop lending you because of your struggles in making ends meet.
If your credit report clearly shows your financial problems and late payments, include this in your letter. Your goal is to make them realize that granting you the payday loan made more harm than good.
There is no need to send your payslips. What you can give them are your bank statements.
Run to the FTC
There are times when the lender rejects the borrower’s complaint. There are also cases where they will only offer a measly amount. If you still want to continue the fight, you may consider running to the Federal Trade Commission (FTC).
Simply head on to the FTC’s official website and file a formal complaint. Much like in the complaint that you emailed the lender, you need to tell the FTC everything.
Explain your situation in detail. Start with the time you decided to apply for payday loans. Go through the details chronologically up to the time of your complaint.
Highlight the irregularities of the loans. Tell them how you lost your money. Explain why you can no longer continue with the payments.
Ways to Qualify
Not every case of payday loan refund is the same. Let’s take a look at some scenarios that will likely qualify you for a refund:
More refund complaints involve fraudulent types of loans. These are instant approval payday loans that borrowers take out under your name without your knowledge. Generally, criminals use other people’s identities to take out loans.
There will come a time when the lender will charge the person who supposedly borrowed the money. To the latter’s surprise, they will find out that someone used their name to apply for the payday loan.
Lenders have the power to collect your payments through bank requests. They do this through a continuous payment authority much like with an installment loan. You grant this authority to them.
Before charging you for the payments, the lender must notify you first. Some lenders, however, who will attempt to get access to your funds throughout the day.
This, in turn, results in bank charges on your end. Thus, you can claim for a refund for these charges.
Sometimes, borrowers opt for repayment of the quick loan. The problem with this is the interest and other charges that will continue to pile up. Right from the start, the lender should clearly explain the repayment terms.
They should explain to you how you can pay them back. They should also lay down all the fees and a timetable for the payments.
If the hide these important details from you, you have a strong case to file a complaint.
Your Financial Situation
Lastly, you can file a complaint if the lender failed to conduct a serious check on your current financial situation. Before granting your application, the lender must scrutinize your employment and income.
They should also look into your age, mental health, and credit history. If you start missing your payments and the lender overlooked any of these details, you can file for a payday loan claim.
We Can Guide You with Your Loans
Filing for payday loan refunds is not a sure thing. But if you do it correctly, the chances of securing a payday loan refund increases.
But if you’re looking to apply for other kinds of personal loans, research and due diligence are a must. We invite you to check our blogs and articles on best personal loans, payday, and student loans. We provide helpful tips that will guide you in your decisions.
If you need more information, feel free to get in touch with us. We will gladly assist you in your financial choices today!