Things you need to know about PAYDAY LOANS
Payday loans, often called payday loans or cash advance loans, are short-term, relatively small-amount loans that are guaranteed to be repaid as soon as the borrower receives their paycheck or payday. Payday loans are usually for a period of one or two weeks, as they are taken out for an immediate need for money and must be paid back after the next paycheck arrives. Borrowers must provide a follow-up verification of the amount to be repaid to the lenders. If on the particular day the cash amount is not received by the borrower, the lenders have the right to deposit the check in their respective accounts, which in case of bounce may lead to an increase in the amount paid due to check bounce penalties along with expired notice period. Borrowers can also use electronic media to receive and pay the amount.
Who is Eligible for Payday Loans?
Borrowers must have a bank account and a steady source of income with their ID numbers to get a payday loan, which ensures that the person is trustworthy enough to pay back the loan amount as they are employed and earning.
Payday loans are provided either by a payday loan store or by stores providing other financial services. In order to prevent lenders from charging unreasonable and excessive interest on these loans, some jurisdictions limit the APR, i.e. the annual percentage rate each lender can charge.
Compensation up to salary and reimbursement
In some cases, a payday loan turns out to be a lifetime burden as it can reach a point where it becomes impossible for you to repay the entire amount that you have borrowed as the amount becomes unaffordable. This case usually occurs when the interest rates are getting higher and you cannot pay the final amount every time. The amount usually becomes unaffordable when the only way to pay it is to take out another loan. Sometimes the company is responsible for the situation because it provides a loan to a person who is already trapped in other loans or is not in a suitable financial condition, in which case the person can ask for a refund or compensation after proving that the company did not treat correct with it. Treating unfairly means inculcating wrong ideas, plans or schemes that have led the borrower to a stage where he is surrounded by financial crises.
The borrower can prove that the company is responsible for making the amount unaffordable to him because it granted the loan, even after seeing the records of returned checks and the borrower’s financial condition, the amount is now so large that it consumes more of half his income, making it impossible for him to repay. Therefore, the borrower can request compensation or a refund.
Now the question arises as to what amount should be claimed for compensation, it depends entirely on the current situation. Was it completely clear to the lender that the amount was becoming unaffordable to the customer and if so why was the lender still lending money. The amount after which the loans granted became too high to be paid back by the consumer must be reimbursed or compensated.
Although the customer is unlikely to get the full amount refunded, but he can claim as much as he can and let the justice decide further. The customer can first simply ask for the bad loans to be removed from their credit account and a refund of any interest they have paid.