A Good Samaritan helping people in North Wales claim money on payday loans has given advice for people in debt.
Rhyl’s Richard Kendrick has helped dozens of people claim money for badly sold payday loans and thinks many more may be eligible for a refund.
Through his work with the Royal British Legion, Richard noticed that many veterans in North Wales were struggling with payday loan debt and decided to investigate.
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He has since worked with over thirty people in Denbighshire to claim thousands of pounds from payday lenders.
Richard said: “Payday loans are a huge problem affecting millions of people in the UK.
“A person I helped from Prestatyn has just received £7577.74 into their account.
“They’re sold to vulnerable people like veterans or people with other issues and most of the time people don’t even know they could claim a refund.”
Since sharing tips on social media, Richard says he’s been inundated with requests from people asking how to claim.
“It started when I was talking to veterans in Rhyl and since then I haven’t met a veteran who didn’t have a loan or some sort of debt.
“Unfortunately, if you have been wrongly sold a loan, loan companies will not contact you, it is up to you to contact them.
“I hope to spread the word and get people to claim the money they are owed.”
Who is eligible?
Payday lenders must follow the rules set out by the Financial Conduct Authority (FCA), to ensure that the loans are not mis-sold.
This means that before lending to you, a lending company must:
- clearly state how much it would cost you to repay the loan in total
- check your finances and personal situation (including any other payday loans) to make sure you are able to repay the loan
- tell you that payday loans should not be used for long-term borrowing or if you are in financial difficulty
- tell you what to do if you have a complaint
If a payday lender gives you a loan but doesn’t follow these rules, you may be eligible for compensation.
Richard said many of the people he helped had received more than one payday loan and the lender had not checked their financial situation, which goes against the rules set out by the FCA.
He said: “I’ve helped over thirty people get their money back so far and I know there will be hundreds more locally.
“If you’ve had two or more payday loans in a year, you could get your money back.
“I know you might be ashamed that you had to take out a loan, but don’t let that stop you from educating yourself, give it a try.”
A number of payday lenders in the UK have recently closed, meaning time is running out for some to file a claim.
Customers of Provident Financial, Greenwood, Flo and Satsuma have just one month to file their claim before the February 28 deadline.
How to request a refund
There are two main ways to request a payday loan repayment.
First, you can hire a company to request a refund on your behalf, but it’s important to note that they will take a percentage of the money you get back if your request is successful.
The second option is to contact the loan company yourself, usually online.
Richard said: “The process of contacting the loan company is actually quite simple, it’s just an email to their complaints department.
“You don’t need any reference numbers or account numbers to get started, just email the loan company explaining why you think the loan was mis-sold to you.
“They may ask for basic information like your name, address and date of birth and then they will investigate.”
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The payday loan company then has eight weeks to respond to you and if you have not received anything from them after this time, you can then submit the complaint to the Financial mediator.
It is important to note that you can still request a refund once a business has gone into administration, but you generally cannot complain to the ombudsman once it has closed.
You can find more information about payday loans and request a refund on the Citizen advice site.
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