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Payday Loans

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Payday Loans

Did you get a payday loan that you couldn't afford to repay as the lender didn't check your finances properly or kept trying to sell you further loans again and again? If so, you may be able to reclaim £100s or even £1,000s.

What is a Payday Loan and how are they flawed?

Payday loans are meant to be short-term loans of £100 to £1,000 that tide you over to the next payday, at which point you have to pay it back, plus the interest accrued. A Payday loan may initially seem like a good solution to a problem when you find yourself short one month but can soon spiral out of control if payments are not made.

They're often far too easy to get and many borrowers have been stung by tricks used by payday loan firms, as well as their lending decisions, and have ended up struggling to pay it off, running up excessive amounts of interest.

The idea that you borrow a sum of sum of money to tide you over until your next payday is a flawed concept, especially when you are paying an excessive amount of interest, some payday lenders were charging 5000% APR. Unless you are expecting extra income, such as a bonus or overtime you will have found yourself in exactly the same position as the month before, meaning the temptation to borrow more money to cover your loan re-payment is unavoidable. This can quickly spiral out of control leaving you with debt you cannot afford to pay back and with the huge interest rates, the debt only increases at an astonishing rate.

How do you know if you were Mis-Sold?

The Financial Conduct Authority set rules as part of the good practice charter outlining that Payday loan firms should check your finances to make sure you can afford the loan and also give you all the key information. If they have not followed these rules then you will have grounds for a complaint.

For example is you were sold a payday loan you could not afford and then subsequently had to borrow further funds to cover the debt without the correct checks being done, then you will have grounds for a complaint.

You can claim a refund from existing loans and loans you've already paid off, as long as you raise the claim within six years of taking out the loan (if it's longer than six years, you may still be able to claim through the Financial Ombudsman Service). The main mis-selling flaws are set out below and if you fit one or more of these, you’re likely to have a valid claim:

• If the lender did not make clear to you how much it would cost you in total to repay the loan. You should have been given an example of the price for each £100 borrowed, including fees and charges.

• You weren't given full or accurate information about how and when to pay back your loan.

• The lender did not sufficiently check your finances or personal situation to make sure you'd be in a position to pay back the loan. Here you can take such factors into account as your age, mental health, employment status, income, expenditure, proof of identity or financial history.

• The lender didn't tell you that a payday loan should not be used for long-term borrowing or if you are in financial difficulty.

• You weren't told by the lender what to do if you have a complaint.

• The lender didn't make clear to you how continuous payment authority (CPA) works – where you agree to pay off the loan by making a series of deductions from your credit or debit card – and your right to cancel it.

• The CPA didn't tell you in advance that it was going to take money from your account.

• The lender didn't include a risk warning about late repayment in its online advert, or in an advert that was sent to you by email or text message.

If you experienced problems repaying the loan, you can complain if your payday loan lender:

• Didn't deal with you "sympathetically and positively".

• Didn't offer to freeze interest and charges if you were unable to make payments under a reasonable repayment plan.

• Didn't tell you about free and independent debt-counselling organisations.

• Pressurised you to extend the loan.

• Didn't tell you about the risks of extending the loan.

• Didn't make clear exactly how much it would cost to extend the loan.

• Didn't check your personal finances and general situation to see if you were able to pay back an extended loan.

If you want to know more, or think you have been mis-sold, call us today on 01708 854200

If you are experiencing debt issues either through payday loans or any other credit you have, you can speak with our sister company Enjay Debt Management for expert advice on your options to deal with your debts.

 

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Well, you can take up the claim yourself directly with the Payday Loan Company and ultimately the Financial Ombudsman Service or use one of the many other claims management firms out there. Although we can’t guarantee to win your claim you will know that by appointing us you will be using an experienced claims firm that will be working hard for you to get you the compensation you may be entitled to. Remember, though, you don’t pay anything unless we win so you’ve got nothing to lose and potentially lots to gain!

You are not required to use the services of Enjay Claims to pursue your claim as it is possible for you to present the claim yourself for free, firstly to the person/company against whom you wish to complain and if your complaint is not successful you can refer it to the Financial Ombudsman Service for free. If you are a member of, or subject to, an alternative dispute resolution scheme (other than the Financial Ombudsman Service or the Financial Services Compensation Scheme), it is possible for you to present the claim yourself to your alternative dispute resolution scheme.

If your Payday Loan was Mis-Sold you can claim for all of the interest, fees and charges back, which will usually dwarf the original loan. You’re also due 8% interest on the interest, fees and charges each year, dating back to when you first started paying them. For example, if your refund was £1,000 from one loan exactly four years ago, you’d also have 8% of £1,000 (£80) added for each of the four years, so 4 x £80 = £320.

However, you will only be able to claim with us in the following
circumstances:

  1. You only became aware within the last 3 years that you might be a victim of Payday Loan mis-selling;
  2. You haven’t already tried to reclaim for mis-sold Payday Loan; and
  3. No-one else is dealing with your Payday Loan claim for you.

Please note if you don’t have any paperwork we may only be able to help if your account is current or has been paid off in the last 6 years. If your account was paid off longer than 6 years ago, we may require proof.

Just take a look at our Terms of Business and if you’re happy with everything all you need to do is complete our simple Claim Application and return it to us with your signed Letter of Authority. If you have any documents relating to your Payday Loan, then it would be helpful if you can let us have copies. We’ll then write to the firm and submit your claim.

Firms are required to resolve complaints within 8 weeks so we will be pressing to get your case dealt with within this period. However, due to the volumes of complaints the usual timescale is around 2-6 months. We may also have to refer your case to the Financial Ombudsman Service. This may mean that your claim will take longer. Please note claims that proceed to the Financial Ombudsman Service can take up to 2 years.

If you are in an IVA or are declared bankrupt, you may need to consult your insolvency practitioner before you make a claim. Also, be aware that your compensation payment will likely be used to clear your debts so you may not actually see a penny of your compensation however you will reduce your outstanding debt sooner. Please let us know if you are in a debt management plan as it may not be in your best interests to pursue a claim through us.

You may cancel your contract with Enjay Claims within 14 days of signing the Letter of Authority and you will have nothing to pay. If you wish to cancel please contact us using one of the contact methods below.

If you cancel your contract after the 14 day cancellation period we reserve the right to charge a fee of £10 per hour to cover our reasonable costs for the work undertaken in processing your claim up to the date of cancellation subject to an overall maximum of £150. However, if we have received either confirmation that the Claim is to be upheld or an offer of Compensation, we reserve the right to charge the full fee less fees already taken for reasonable costs where applicable.

You can also complete our Cancellation Form and post or email it to us:

Cancellation Form

Enjay Claims does not refer mis-sold payday loan claims to another party: all claims are processed in-house. Enjay Claims may pay up to 50% of the final fee (not including any administration fee, late payment charge, or interest) to a registered agent.

Well firstly you can be reassured that you won’t be paying us anything* unless we win your claim! If we are successful then you will pay us 25% of the total gross redress (+VAT).

When we submit your claim to the adviser or firm, we may need to ask them to provide copies of any application forms, telephone recordings, sales scripts, policy documentation, etc., to help us with your claim.

*fee may be payable if claim withdrawn at client’s request.

Redress can be paid in a variety of ways. However your redress is paid, our fee is based on the total gross amount of redress that is applied, which includes cash payments and amounts offset against any amounts owing to the firm.

Firstly, you may receive a cheque back for the amount of redress or it may be paid directly to your bank account. This is usually the way if your account has been repaid in full or there’s a refund due when you cancel the Payday Loan. If your total redress was £1,000 then you would pay our fee (25%) plus VAT which is £300 and you would receive £700 back in cash.

See the 3 Fee illustration examples below:

Total Redress £1,000 £3,000 £10,000
Our Fee 25% Plus VAT which is based on the total gross redress £300 £900 £3000
Net amount of redress received by you as cash £700 £2100 £7000

The fee illustration is not to be taken as an estimate of the amount likely to be recovered.

We will help you with your claim right up to and including the Financial Ombudsman Service. We will not represent you in taking legal action. If you wish to take legal action you will have to arrange this separately and pay the costs yourself.

Yes, we will communicate with you via email, phone call or postal mail. We will keep you updated with your case at a minimum of every six months or at all relevant stages. If at any time you would like an update on your case, please contact us.

We make every effort to provide a professional and effective service at all times. However, in the event of a complaint, please contact us using the details below. If you are not satisfied with our response or we haven’t completed our investigation within 8 weeks then you may refer the complaint to the Financial Ombudsman Service, whose contact details are:

Financial Ombudsman Service, Exchange Tower, Harbour Exchange, London, E14 9SR or visit www.financial-ombudsman.org.uk where you can complete their complaint form. You can also call them on: Freephone 0800 0234567 or 0300 1239123.

Enjay Claims Hall Farm Nursery Church Lane Upminster Essex RM14 3QH.

Please also refer to our Complaints Procedure:

Enjay Claims Complaints Procedure