STRUGGLING to pay off a payday loan? You’re certainly not alone.
Despite tough new regulations limiting interest charges, The Financial Ombudsman Service (FOS) received over 10,000 complaints about the high-cost credit companies last year, up a whopping 227 per cent from the previous 12 months.
While the quick-to-get loans maybe tempting, many users are lured into a debt cycle that is almost impossible to break.
So we’ve teamed up with free complains service Resolver to help.
Founder James Walker explains: “If you thought the payday loan industry was finished after the scandalous way they treated their customers, think again. Though there are stricter new rules for lenders, thousands of people are still payday loan prisoners.”
LATEST IN SUN SAVERS
Here’s how to escape:
1) Don’t roll over your debt. You might think carrying over the loan for another few months will buy you some time, but the charges and interest will cost you much more.
2) Explain the situation. Contact the lender and tell them you are in financial difficulties. Ask them to suspend the loan and interest. If they refuse to help or come up with a solution, you can make a complaint.
3) If you’re dealing with a debt collection agency, tell them there’s a dispute over the debt and to hold off action while it’s resolved.
Get them to confirm in writing too,
4) Don’t ever pay a debt management company to sort out your finances. Free debt charity StepChange will do the same thing for you without charge.
5) If you’ve asked for help in the past but the firm ignored you and charged interest or fees, you may be entitled to compensation. The Financial Ombudsman will look at your complaint for free.
Download the free Sun Savers app or sign up on our website here to start earning cash!
We pay for your stories and videos! Do you have a story or video for The Scottish Sun Online? Email us at scottishsundigital@news.co.uk or call 0141 420 5266