Payday insurances offer quick financial solutions to individuals who do not want to go through lengthy insurance processes. It is processed quickly and thus comes in handy even in seemingly urgent situations. However, if you are not careful about where you get these insurances, you may end up being charged with very high interest rates which can end up putting you in more debt.
Recently, there has been an increase in the number of people complaining about payday insurances. A large number of people who become aware of wrongdoing are taking action to obtain compensation. It may seem impossible, but there are a number of ways you can qualify to file a complaint and actually enjoy your payday insurance refund.
1. Fraudulent insurances It is one of the most common cases among complainants seeking a refund. Payday insurances can be borrowed in your name fraudulently. It is the responsibility of the lender to verify the identity of the customer before approving insurances, but most of them are not that careful hence many issues around this issue. If you start being harassed for a insurance, you have no idea, you have every right to look into it. You can try to work things out with the lender or you can deal directly with the Financial Ombudsman to get the help you need.
2. Payment unclear – A default can become serious because your debt continues to accumulate in terms of interest and any other fees that a default attracts. As an applicant, you should get very clear terms on how to repay the insurance including fees and time frame. Before you take insurances, you should know the exact total amount that you have to repay and at what time. When such important information is hidden from you, you can file a complaint to recover additional fees or withdraw unreasonable debt from your payday insurance.
3. Recurring payments Payday insurance providers collect their payments through bank requests. Most of them use persistent payment authority and you should make sure you are aware of what this is and can cancel it. A good lender should also advise you before withdrawing money from your bank. There are lenders that try to access the funds throughout the day and this translates to huge bank charges on you at the end of the day. You can claim like this to get some fees from the lender.
4. Financial status You may be in need of the insurance, but it is up to the lender to determine your eligibility in terms of paying the insurance on time. Your income, employment, mental health, age, credit history, and identity are some of the serious checks a lender should check before accepting payday insurances. In the event that you are unable to repay and the lender ignores all details of your financial situation, you may already be eligible for a refund.
5. High interest rates Most people rarely pay attention to interest rates when getting payday insurances. A desperate financial situation can make you ignore such a matter and thus end up charging unfairly high interest rates which makes it difficult for you to repay the insurance. Lenders are limited to a maximum cost of about 0.8% of the total amount borrowed. This should include interest and any other fees applicable to a payday insurance. If you are an avid borrower, you will be able to know when the interest is excessive as well as the fees, this way you can claim a refund from your lender.