Payday/Short Term Loans are small, short-term loans typically intended to cover unexpected expenses or emergencies. They often come with high-interest rates and are designed to be repaid within a short period, usually on the borrower’s next payday.

A Payday/Short Term Loan claim is a legal action taken by a borrower against a payday or short-term loan provider for alleged mis-selling, irresponsible lending, or other breaches of regulatory requirements.

Common reasons include allegations of mis-selling, where the loan was not suitable for the borrower’s needs, irresponsible lending practices, such as lending to individuals who cannot afford to repay the loan, and failure to provide adequate information about the loan terms and costs.

You may have been mis-sold a loan if you were not provided with clear information about the loan terms and costs, if the loan was unaffordable for you, or if you were encouraged to borrow more than you could reasonably repay.

Signs include lending to individuals with poor credit histories without assessing their ability to repay, repeatedly refinancing loans without considering the borrower’s financial situation, and failing to provide adequate information about the risks and costs of the loan.

Yes, struggling to repay a loan may be a sign of irresponsible lending, and you may be eligible to make a claim.

You’ll need any documents related to the loan, such as loan agreements, statements, and correspondence with the lender.

Generally, you can claim for loans taken out within the last six years, although this may vary depending on the circumstances.

Compensation may include a refund of interest, fees, and charges paid, as well as additional compensation for any financial losses or distress caused by the loan.

There is no specific deadline, but it’s advisable to make a claim as soon as possible once you become aware of the mis-selling.

Making a claim should not affect your credit score, as it is a separate issue from your credit history.

Yes, you can still make a claim even if the lender has gone out of business.

You can make a claim yourself, but some people choose to seek legal assistance, especially if the case is complex or if the lender rejects the claim initially.

The duration varies depending on the complexity of the case and the responsiveness of the lender. It can take several weeks to several months.

If your claim is rejected by the lender, you can escalate your complaint to the Financial Ombudsman Service for an independent review.