Payday loan refunds
If you have previously taken out a payday loan, you could be one of the thousands of people in the UK who are eligible to receive a loan refund for one of several reasons. Millions of pounds have already been refunded with plenty more owed.
Are you able to repay your payday loan in full earlier than you had expected?
Or have you struggled to meet the minimum repayments on previous loans that you have taken out?
If you answered 'yes' to either of the above, you could be owed a payday loan refund depending on your financial situation before and during the loan period. Find out more details about whether you are eligible for a refund or not below. We've pulled together some easy to understand information and answers.
Why might I be eligible for a payday loan refund?
There are two ways you might be eligible for a refund on your payday loan.
Payday refunds because you can afford to repay your creditor
If you have taken out a short term loan and are currently paying it back, you may be eligible to receive a refund on the interest if you pay back sooner than planned. By paying back your loan days, weeks or even months earlier than you had expected, your creditor could be prepared to offer you not to pay for the interest you didn't use, i.e. making your full repayment much less than initially agreed.
Payday refunds because you had difficulty repaying your loan
If you have previously taken out a payday or short term loan but you had difficult repaying it, i.e. you had to roll over loans or borrow from one creditor in order to pay off another loan, you could be owed for the interest you were charged. Ultimately, if you are struggling to repay a debt, a lender should not take advantage of this in order to get you into more debt. If you think you fall into this category, you could be owed the (up to) 8% in interest that most payday lenders charge you during the term of your loan.
How to I claim my refund?
If you think you are owed a payday loan refund, it's easy to claim. Simply work out how much you borrowed, the dates of repayment and the interest you paid. Then write to your lender explaining the situation that you think you are owed a refund. If you feel you are owed the refund but the lender does not, you can take this up with the Financial Ombudsman Service.
Which payday lenders owe refunds?
Most payday lenders fall into the category of potentially owing refunds to its customers for not helping them in times of difficulty or assessing a customers financial situation wrongly. As a result, payday lenders such as Wonga, QuickQuid, Sunny, Mr Lender and many more are liable to refund its customers in this way. Some payday creditors have already started refunding customers.