New Free Tool to Help Millions Claim Payday Lenders for Unaffordable Loans

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A NEW free tool to help payday loan clients claim compensation has been launched.

The city watchdog last week warned that millions of dollars could be repaid by payday loan companies – which charge up to 6,000 percent – after receiving unaffordable loans.

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Millions Could Be Repaid By Payday Loan Companies

The free DebtHacker.co.uk website allows anyone who has ever taken out a payday loan or is still paying off debts to a lender to file a complaint directly with their lenders.

The service was set up by consumer activist Alan Campbell – a multi-millionaire businessman and consumer activist.

He says a complaint is likely to be successful if applicants are offered loans without writing checks or if you are allowed to take out multiple loans.

Customers may also be able to make a claim if they have had trouble paying other bills, such as council tax or rent, or if they have gone without food to pay off their loans, as well. than those who ended up paying late fees.

The website helps customers file a complaint, and if this is initially unsuccessful, it offers advice on how to file a complaint with the Financial Ombudsman Service (FOS).

If successful, clients can get back the interest and fees paid on the loans, which can run into hundreds or even thousands of pounds, depending on the amount borrowed.

Unlike other claims handling companies, DebtHacker does not take a share of the money refunded to customers.

It is similar to the advice given to people using the Debt Camel website where you can access free letter templates for submitting complaints.

Complaints about credit, including payday loans, soared 80% in the first six months of this year, according to the FOS.

Are you owed a payday loan repayment?

MILLIONS of payday loan customers can be repaid. Here’s all you need to know.

Customers who have paid off their payday loan debts can still claim

Even if you have paid off your debts, you may still be able to get a refund if you struggled to repay the money at the time.

If you’re still paying off payday loan debt

You can complain if you had trouble paying back. If your complaint is successful, it could reduce the amount you owe.

You can always pretend the business no longer exists

Big companies like Wonga and QuidQuick don’t work anymore, but that doesn’t mean you can’t get the money back. Customers can still file complaints against businesses that are no longer functioning, although they are less likely to receive a refund as they will have to go directly to the administration companies.

However, if their complaint is successful and they still have debts, it could mean that you will have to pay less back, so it’s still worth complaining.

Affordability is different from bad selling

Many companies claim to help customers with payday loans that have been poorly sold. Affordability has the potential to be a much bigger issue, as tighter affordability controls were introduced in 2015 by the city’s watchdog, the Financial Conduct Authority. This means that many loans were offered to clients who could not afford to repay them.

About 70 percent of payday loan complaints are successful.

Mr Campbell – who has already spent hundreds of thousands of pounds on energy company Scottish Power – wants to educate people about the responsibility of lenders to offer affordable loans.

He told The Sun: “Most people think that if they are able to pay off a loan, if they have a hard time paying off a loan, then it’s affordable – but it’s not.

“You can file a complaint about loans that you are having trouble repaying – and you will get the interest and charges back.”

The website is not for profit as Mr Campbell has amassed hundreds of thousands of pounds to run the service.

In August, we revealed how payday loan clients could receive millions of dollars in compensation.


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