Payday loans have become a common form of borrowing throughout the UK in recent years and they are now widely used by many thousands of people nationwide.
These loans though tend to involve very high levels of interest and charges and the companies offering them are not always as scrupulous as they could be.
In fact, the practices of payday lenders have become a source of significant controversy and the subject of intense scrutiny by relevant regulators like the Financial Conduct Authority (FCA).
As well as facing very high interest rates and fees, payday loan users have also in some cases seen money being taken from their bank accounts without proper warning and been the subject of what amounts to harassment about debt amounts owed.
Lenders in the industry have also been accused of failing to help customers whose debt problems have become severe and of offering loans to people who are in no position to service their debts.
And while the FCA has been clamping down on some of the worst practices among payday loan companies, scenarios in which borrowers are treated badly are still far from uncommon.
If you’ve been subject to poor treatment or harassment by payday lenders or you feel that you were given a loan without proper affordability checks being carried out then there are steps you can take to register a complaint about a particular lender.
First of all, you should make your complaint in writing to the company involved and outline exactly what your issues are and why you feel they have acted improperly, been misleading or actively contributed to worsening your debt management problems.
If you do not receive a satisfactory response from your lender then it’s important to inform the Financial Ombudsman Service and register your complaint with them.
The Ombudsman has the legal power to settle disputes between consumers and service providers.
It could be that the Ombudsman will order your lender to pay you some compensation or it could be that you will be given extra time to repay whatever amounts you owe.
If you live in Scotland and you’re struggling to cope with your debt management problems then Scotland Debt Solutions can help. Contact us today to arrange a free and confidential consultation.
The breathing space debt moratorium in Scotland enables people in debt to trigger a six-month period that’s free of creditor action, so they can take stock of their situation and formulate a plan.
The Debt Arrangement Scheme in Scotland, or DAS, enables people in serious debt to repay their creditors in full over a longer period of time.
Our Scottish based team can help advise you on your debt problems.