Easily Get a Refund On Your Loan With This Letter Template
Sometimes life makes it necessary to take out a loan to make ends meet or pay off other debts. However, lenders should make sure they are not partaking in irresponsible lending and giving you a loan that you are financially capable of repaying. If you have taken out a loan and have suffered financial hardship, are unable to make the payments, or have had to take out another loan just to make payments or try to get by, it is possible to receive a refund. DoNotPay will help you understand .
Who Should Write an Irresponsible Lending Letter?
If your loan may be classified by the Financial Conduct Authority (FCA) as "unaffordable," you may be entitled to a refund.
Indicators That Your Loan is Unaffordable
- you cannot make the required repayments without undue difficulty, or you are missing payments
- you cannot repay the loan and meet other debt obligations and regular expenses (rent, bills, food, etc.)
- you have rolled over the loan
- you have had to borrow more money even after paying off your loan/loans keep getting bigger
- the loan is a large portion of your outgoings
These are strong indicators that the loan was not affordable and that you may need an irresponsible lending template letter.
|Do You Still Qualify?|
|You made payments on time||Yes|
|Made late payments||Yes|
|Still owe money to the lender||Yes|
|You paid off your debt up to 6 years ago||Yes|
How Much Should You Ask to Have Refunded?
It would be best if you asked for a refund on all interest and charges. This is because a lender will often try to offer you only a small refund or deny your request. However, you can escalate your situation to the Financial Ombudsman Service, and they will determine what a fair refund is. Also, suppose the lender has refused to negotiate with you, discuss your account with your financial or non-profit representative, or take illegal or harassing actions in order to collect the debt. In that case, you may consider asking for additional compensation for mishandling you and your account.
Irresponsible Lending Template Letter
Here is a simple template that you can adjust to your situation.
I have/had a loan(s) with you between the dates of DD/MM/YYYY and DD/MM/YYYY. Unfortunately, the monthly repayment plan I was charged was more than I could afford.
At the time, my average net income was £X per month.
My monthly expenses, however, total around £X per month. (You may then list out rent/mortgage, council tax, food, child expenses, and other necessary expenses.)
It is evident by looking at my income and expenses that you did not do your due diligence in determining that I could not afford to make the repayments on your loan. Therefore, since taking out the loan, I have (had to take out more loans, missed payments, etc... Personalise to your situation) to meet living expenses.
(If you have taken out multiple loans with this lender, include that taking out multiple loans/increasing amounts is a strong indicator of increased debt.)
It was irresponsible to lend the money to me (and to continue to lend more money, if applicable), and if you had thoroughly examined my credit file, you would have recognized this.
Provided the above information, it is clear that you should not have approved me for this loan, as they were unaffordable. Accordingly, please refund the interest and all charges that I have paid, as well as statutory interest. Furthermore, please delete any negative information from my credit file.
Find Debt Help With DoNotPay
DoNotPay understands that finances are complicated, and sometimes debt becomes difficult to manage. We also know that debt collectors may harass you or even try to collect a debt that does not legally belong to you. If you find yourself in a problematic situation regarding debt, DoNotPay can help. DoNotPay can investigate your case and help you determine what decision to make next.
Just follow these three steps to get the help you need
- Search “debt collection” on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
That is all! Once you choose the course of action that is most appropriate for your situation, DoNotPay will handle the rest! We will then deliver your request to the debt collector via first-class mail or file a complaint on your behalf with the appropriate trade association or ombudsman.
In addition to learning , DoNotPay can help you with other debt concerns, such as:
- Amigo Loans Refund
- Provident Loans Refund
- Moorcroft Debt Recovery
- Lowell Financial
- DWP Debt Management
- Advantis Debt Collection
- Marston Group Holdings
- and more!
How Else Can DoNotPay Help?
We are here to help you with a variety of other concerns:
- Negotiating Your Bills
- Filing Complaints
- Risk-Free Trials
- Finding Missing Money
- Canceling A Subscription or Service
- Paying Your Bills Online
No matter what you need, DoNotPay has simple and quick solutions!