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Understanding Short Term Loan Claims: Your Path to Compensation
As the world becomes more and more of a global village, financial crises are bound to happen at any one time. Payday loans are one of the most common types of short-term loans because they do not take a lot of time to approve and provide the borrower with money. However, these loans are usually associated with some hidden vices that put borrowers in a cycle of debt. Fortunately, the payday loans consumers may be given a chance to recover their money. This article explores the process of seeking compensation for short term loans, with emphasis on payday loans and the steps that are required to successfully go through this process.
The Appeal of Payday Loans
Payday loans are promoted as a quick fix for any small and urgent financial emergency. They offer small amounts of money to people who need it urgently for something like a doctor’s bill, a broken car, or even unpaid rent. Due to the low criteria and the fact that approval is almost instant, many people run to payday lenders when they need money.
However, while payday loans might sound like a good idea, they can turn into a nightmare very soon. High interest rates, concealed charges and inadequate credit controls usually worsen borrowers’ conditions. It is common to hear people who have to borrow more money to pay the initial loan, resulting in a cycle of debts.
Why Can You Claim Compensation on Payday Loans?
The basis for the appearance of claims against payday lenders is the fact that many of them have neglected their clients’ best interest. They have not done a good job in determining whether borrowers are able to repay the loans they are taking. In many cases, this lack of proper checks has seen borrowers take huge debts, which put them under a lot of stress and strain.
Legal Duty of Care
Payday lenders have legal requirements to carry out proper appraisal before issuing out the loans. This involves assessing the ability of a borrower to repay the loan so as to ensure that the loan is repayable. If a lender does not meet this obligation and a borrower is harmed, that borrower may have a cause of action.
Common Grounds for Claims
Unclear Charges: If the charges related to the loan were not explained properly, then the borrowers could demand compensation.
Multiple Loans: Subsequent borrowing to fund initial borrowing is evidence that the loan was unreasonably expensive and gives grounds for a claim.
Borrowing from Other Lenders: If a borrower had to borrow from another lender to cater for repayments, this may be an indication of negligence on the part of the payday lender.
Inadequate Financial Checks: This may be a basis for a claim if it becomes apparent that the payday lender did not conduct proper appraisal of the borrower’s financial status.
Unaffordable Loans: There is a strong case for compensation if it can be proved that the loan was above the borrower’s head.
The Claim Process
It is not easy to go through the claims process, but it is not impossible to understand it step by step. Fast Track Reclaim makes this process easier for borrowers to get the compensation they are entitled to.
Step 1: Select Your Lenders
The first step is to make a list of all the payday lenders you have used in the past. This step is important because it sets the foundation for your argument.
Step 2: Complete the Form
Secondly, complete the online claim form. This form needs information regarding your loans and your financial status. It is crucial to give correct information to make your claim successful.
Step 3: Submit the Form
After filling the form, you should submit it and let Fast Track Reclaim take care of the rest. Their hardworking team will ensure that they follow up on your claim to the end thus freeing you the stress.
Knowing the Cost Factor
Before making a claim, one needs to know the charges that come with the services of a claims management company. Fast Track Reclaim works on a contingency fee basis and this implies that in the event that your claim is successful, a fee of no more than 30% plus VAT (36% in total) will be charged from any amount of compensation that you are awarded on your behalf. This model enables people to seek claims without paying for them first, which makes it possible for many people.
Important Note
However, it is important to note that people do not have to engage the services of a claims management company to make a complaint to their lender. It can be made directly to the lenders or through compensation bodies such as the Financial Services Compensation Scheme (FSCS). In case a complaint is not resolved, the person has a right to take the complaint to the Financial Ombudsman Service (FOS) for free.
Success Stories: Real Customers, Real Results
Fast Track Reclaim has received thousands of positive reviews from customers who have been served by the company. Some people are grateful for the warm and professional attitude of the staff and the effectiveness of the work done. Here are a few testimonials:
In my opinion, I would like to refer Fast Track to the other people. The customer service was good and responsive. Extremely satisfied with every aspect of dealing with them.”
I would like to say something good about Fast Track staff. They were very kind and took their time to explain everything to me – thank you!
I am grateful to Fast Track for the great outcome! The advisers are lovely and they did a lot for me.”
These are real-life success stories of how Fast Track Reclaim helps people get the compensation they deserve.
Pros
- Potential for Significant Refunds: It is possible that many borrowers can claim hundreds or even thousands of pounds.
- Professional Assistance: Companies such as Fast Track Reclaim are involved in the management of claims and offer
- assistance throughout the process.
- No Upfront Costs: The contingency fee model enables people to seek claims without any concern about the costs involved.
Take Action for Your Financial Recovery
Navigating the aftermath of payday loans can be overwhelming, but individuals should know they have options. If they have taken out a payday loan and believe they may have grounds for a claim, it is vital to act quickly. By choosing to work with Fast Track Reclaim, individuals can take the first step towards recovering funds that may be rightfully theirs.
With a streamlined process, dedicated support, and a commitment to customer satisfaction, Fast Track Reclaim empowers borrowers to reclaim their financial freedom. Whether the claim involves unclear charges, unaffordable loans, or insufficient checks, Fast Track Reclaim is here to help.