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YOU MAY HAVE A CLAIM FOR COMPENSATION

Claim a Payday Loan Refund

If you’ve ever had a payday loan that you couldn’t afford to repay, you may be entitled to £100’s or even £1,000’s in compensation. Some payday lenders are now going into administration which means you get back less compensation than what you could be owed.

Home E Payday Loans

Why are payday loans flawed?

Originally payday loans were created for short-term ‘emergency’ borrowing of £100 to £1,000 until next payday. Unfortunately many borrowers were given loans they couldn’t afford to pay back and then given subsequent ‘top-up’ loans far too easy due to improper checks by the lenders. This meant many payday loan borrowers easily accrued huge amounts of interest which they were unable to pay back.

How to check you had a payday loan

You can quickly check to see if you had a payday loan by following these simple steps.

Check your email

Search for the names of payday loan companies you think you may have used in the past. If you find any emails, search for keywords like ‘credit’, ‘loan’ and‘ statement’. If the company is emailing you statements of your account it’s proof you have a credit account with them.

Search your credit record

Use this free credit check tool to check your credit history for the last 6 years. See if any credit was ‘repaid’. Remember you can still get compensation from loans older than 6 years and even if the loan hasn’t been repaid in full, although it’s likely to be much less.

Check your bank statements

Looking through your old statements is often an easy way to find out if you had a loan. Don’t worry if you no longer have them, due to GDPR regulations you can request a copy by submitting a Subject Access Request (SAR) to the bank. Once you have them look for money going in and then money going out each month (a typical pattern for loan or credit facility).

The payday lenders we can claim against

These are the current lenders we are accepting claims for. When you apply you can also select multiple lenders if you had credit or loan from more than one company.

Lending Stream

Payday loans up to £1500 charged at 1333% APR or a 12 month loan with a representative APR of 325%.

Visit lender page ›

Satsuma

Ceased offering new loans in May 2021 but you can still apply yourself see Satsuma’s website .

Visit lender page ›

MyJar

Ceased offering new loans in December 2020 but you can still apply yourself see MyJar’s website .

Visit lender page ›

QuickQuid

Ceased offering new loans in 2019 and the deadline has now passed to submit a claim.

Visit lender page ›

Wonga

Ceased offering new loans in 2018 and the deadline has now passed to submit a claim.

Visit lender page ›

Uncle Buck

Ceased offering new loans in March 2020 and the deadline has now passed to submit a claim.

Visit lender page ›

WageDay Advance

Ceased offering new loans in Feb 2019 and the deadline has now passed to submit a claim.

Visit lender page ›

Peachy

Ceased offering new loans in May 2021 and have set a deadline of Feb 2022 for compensation claims.

Visit lender page ›

SafetyNet

Unique service that connects to your bank and offers up to £500 credit over 40 days with a max APR of 68.70%

Visit lender page ›

Drafty

This unorthodox lender offers ongoing credit solutions much like a credit card. If you’ve had an unaffordable loan from them, you may be able to claim.

Visit lender page ›

Unfortunately you can’t claim against these lenders

The deadline has passed for these lenders or they have either gone into administration.

The deadline has expired

Wonga, Wageday Advance (and Speedy Cash), Money Shop, Payday UK, Payday Express.

These lenders have stopped trading or gone into administration

MyJar, Microlend, Toothfairy, Capfin, Trusted Quid, Fancy a Payday, Response Lending

These lenders have just disappeared

Access Fast Money, Cash Genie, Cheque Centre, CFO a.k.a. Payday First, Flexible First, Money Resolve, Payday Advance, 1st Stop, 321 Cash, Bonga Loans, Cash Choice, Cash Store, Cash 365, Dosh Loans, Different Money, Easy Finance Club, Forces Loans a.k.a. V Gates, Handycash, Lifeboat Loans, Money In Advance, Mini Credit, Open Door Loans, Payday First, Payday Overdraft, Perfect Payday, Pick A Payday, Pixie, Pogo Loans, Prime Payday, Purple Payday, Quid 24, Speed Credit, Speed-e-Loans, Speedy Dosh, Txt Me Cash, Umbrella Loans, Vivus.

Checking you have a valid claim

If you can relate to any of the below you may have claim:

N

Fees or charges not clear?

When you took out your payday loan were the charges and associated fees made absolutely clear to you?

N

Unable to pay bills?

Your payments for the payday loan were so large that you struggled to pay for your monthly essentials like bills or mortgage payments.

N

Rolling over credit?

You had to take out a further payday loan to pay the initial one back, supporting unaffordability.

N

Lenders taking automatic payments?

Did the payday loan company take automatic payments from your account without telling you that put you in financial difficulty to pay other essentials.

N

Encouraged to borrow further?

Did the payday loan company advertise ‘good customer’ offers that promoted regular use and the ability to get better deals the more you borrow?

N

Unfair lending

Despite clearly not being able to pay the first loan back, did your payday loan lender continue to offer more through debt consolidation?

If you can relate to any of these points you may have claim and should complete our 5 minute form now:

The Legal View

“Rules imposed by the Financial Conduct Authority mean any firm offering credit has an obligation to check your financial situation to make sure you could afford the credit they were providing, before giving it to you.”

Key Fact

The Financial Ombudsman Service (FOS) reviews complaints made about firms by checking if their terms and conditions were applied fairly – and whether any charges were clearly explained.

The evidence you need

All you have to do is show that your payday loan company acted ‘irresponsibly’ in providing you with a loan that could not be repaid without ‘undue difficulty’. Get a list of all your payday lenders that you think qualify and then write down how much you earned each week or month. After that, detail all your expenses like rent and utility bills (electricity, gas and water) as well as council tax, broadband, mobile phone, car and home insurance, grocery, clothing, childcare, other debts and outgoings. Finally, write a letter to each lender including this information explaining that your loan was unaffordable and ask for a refund.

But don’t worry if this sounds daunting, we do all this for you. Claim online by filling out our form and let our experienced claims team handle the headache and hassle for you.

Did you know?

On average, the uphold rate for payday loan redress claims is 51%.

Common questions

How successful are payday loan claims?

On average the success rate for claiming against payday loan lenders currently sits around 51%. That means 5 out of 10 people whose claim is reviewed by the FOS are successful. Many claims don’t get referred and get settled by the lender directly.

How much can I get?

The law says how much you get is dependent on what your financial situation would be now if you had been treated ‘fairly’ and ‘responsibly’ in the first place by the lender. Claims range from £100’s to £1000’s and are calculated by working out all the interest, fees and charges you paid and then adding a statutory 8% interest rate for each year you had the loan. An example payout could be “If you had a £1,000 refund in fee, charges and interest you would also get £1,000 x 8% = £80 x 4 years = £320. That means in total including compensation you would get £1,320”

What does the Financial Ombudsman Service (FOS) say?

The official line is that payday loans are intended for short term borrowing only. If a lender continued to give you loans then this wasn’t ‘short-term’ borrowing. If the claim is not settled directly with the lender then the FOS is likely to ask the lender to refund you all the interest you paid after the third, fourth or fifth loan. However, if your first loan was substantial or if your first loan was ‘rolled over’ you could get a refund from just that one.

Can I claim if they have gone bust?

Yes, although it’s likely you will get back substantially less than what you were owed. This is because when a lender goes into administration you’re defined as an ‘unsecured creditor’ and at the mercy of the administrator. The size of the refund is dependent on how much money the administrators can get from the business and how many creditors it has to be shared between. If you think you may have a claim, it’s important not to hang around, so check now.

Read more FAQs >

Typical claim payout

The law says how much you get is dependent on what your financial situation would be now if you had been treated ‘fairly’ and ‘responsibly’ in the first place by the payday loan company. Claims range from £100’s to £1000’s and are calculated by working out all the interest, fees and charges you paid and then adding a statutory 8% interest rate for each year you had the loan.

Example Calculation

“If you had a £1,000 refund in fee, charges and interest you would also get £1,000 x 8% = £80 x 4 years = £320. That means in total including compensation you would get £1,320”

Don’t Delay. Check Now.

Don’t miss out on £100’s or even £1,000’s in compensation you could be entitled to. Checking only takes 5 minutes, so why not do it now?

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 for free. Claims Bible does not charge you for our service, we may be paid a fee by the final supplier for any introductions. This will not impact on any costs incurred by you.

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