Good to know: You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.

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What is a payday loan claim or a short term loan claim?

Payday loans and more recently high cost, short term “flexible” loans have increased in popularity over recent years. A payday loan is usually lent for a month at a time, with a promise by the borrower to repay the lender on their next payday. Short term loans are very similar. However, these loans are usually repayable over a longer period such as 3 or 6 months.

Both payday and short term loans are typically offered online and advertised as quick and easy to apply for. Some UK retailers also sell these products on the high street.

It is a sad reality that many hardworking people struggle to find ways to meet their day to day living expenditure and have difficulty obtaining more conventional forms of credit. Many turn to payday loan or short term loans to bridge the gap.

However, when the time to pay the loan repayment comes around (and the additional interest), many borrowers find themselves needing to extend their loan, re-borrow or increase borrowing. This creates a vicious repeat borrowing trap. Before the borrower knows it, the payday or short term loan cycle becomes a long term way of surviving. Where this happens, there is a good chance the loans have become unaffordable, and the lender should be aware.

Fight back – like thousands of customers already have.

If this all sounds too familiar, we can help claim for compensation. We’ve reclaimed millions of pounds for UK consumers mis-sold payday / short term loans.

Disclaimer:

Good to know: You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.