Money Saving Expert Martin Lewis Reveals How To Recover Thousands Of Mis-Sold Payday Loans
Martin Lewis has revealed how to recover thousands of poorly sold payday loans.
The money saving expert has appeared on This Morning to urge viewers not to wait when it comes to checking to see if you’ve been mis-sold for a payday loan as it could save you thousands of dollars. dollars.
Speaking to Phillip Schofield and Holly Willoughby on ITV’s morning show, the finance guru explained that Wonga clients who had been mis-sold were told last week that they would receive 4.3% of what was owed to them – and that there is nothing they can do about it. this.
“Spit, swear, be angry and get on with your life. That’s it, ”said Martin.
Payday loan company Wonga has been under administration since August 2018, but it’s not all bad news.
Martin then urged people who think they’ve been mis-sold by other companies to act now as it could save you a lot of money.
“Wonga clients who got payments after mis-selling their loans only get 4.3 pence for every £ 100 owed. So someone who owes £ 2,000 will only get £ 86, ”Martin told viewers.
“A lot of these companies go bankrupt because of a combination of regulation reducing profits and paying the price for mis-selling so many loans.
“If you’ve been mis-sold for a payday loan by a still-credit-worthy company, you get the full amount back. But if he goes bankrupt, you are only one of the creditors, and you will be lucky enough to get pennies a pound like Wonga’s clients.
“So put on your skates.”
So what counts as a poorly sold payday loan? Martin also explained this to viewers. He said: “First of all they had to check if it was affordable to use. So if they gave you £ 1000 to pay off in a month and you made £ 500 per month, that n is not affordable and it was quite common.
“It was despicable. They were vultures paying for vulnerable people.”
Martin then went into detail about what would be considered a mis-sold payday loan case. For example, if the lender didn’t specify how much it would cost you to repay the loan or if you weren’t told how to complain and how and when to repay the loan, that matters.
“You can claim existing loans and loans that you have already paid off, usually as long as you raise the case within six years of taking out the loan,” Martin said.
If you think you’ve been mis-sold for a payday loan and want to get it back, the process is straightforward.
Martin said, “You can write a formal letter. You don’t get the loan back, but you get the interest back, but on payday loans it’s huge.
“Or there are free online tools that will do it for you. You don’t need to pay anyone to do it.”
For more money saving tips and payday loan advice, visit the Money Saving Expert website.