If a payday lender treated you unfairly, you can complain for free. Knowing the steps and deadlines makes it simpler.
Need to know
- Complain to the lender first, explaining what went wrong and what you’d like it to do.
- The lender generally has eight weeks to send a final response.
- If you’re unhappy with the response, you can take your complaint to the Financial Ombudsman Service for free.
- Complaints usually need to be made within six years of the problem, or three years from when you became aware of it.
Payday lenders must follow the Financial Conduct Authority’s rules. If yours didn’t, you have a straightforward route to complain, and it doesn’t cost anything.
Common reasons to complain
- the loan was unaffordable and the lender didn’t check properly
- you were charged more than the price cap allows
- payments were taken in ways you didn’t agree to
- the lender didn’t treat you fairly when you were struggling
Step 1: Complain to the lender
Write to the lender, by email or letter, explaining:
- which loan or loans you’re complaining about
- what went wrong
- what you’d like the lender to do, such as refund interest and charges
Keep copies of everything you send and receive.
Step 2: The lender’s response
The lender generally has eight weeks to send a final response. It may uphold your complaint, partly uphold it or reject it.
Step 3: The Financial Ombudsman
If you’re unhappy with the response, or you haven’t had one after eight weeks, you can refer your complaint to the Financial Ombudsman Service. It’s free and independent, and its decisions can be binding on the lender if you accept them.
| Deadline | What it means |
|---|---|
| Eight weeks | The time the lender usually has to respond |
| Six months | The time you usually have to refer to the Ombudsman after the final response |
| Six years / three years | The usual time limit from the problem, or from when you became aware of it |
Helpful step
If the lender agrees to refund charges on an unaffordable loan, ask it to correct your credit file too, for example by removing negative information about that loan.
Important
Be wary of firms cold-calling about payday loan “refunds”. You can complain directly yourself, for free.
After a complaint
Whatever the outcome, keep watching your credit file and spending. If you’re still struggling with repayments, our guide to struggling to repay explains where to find free help, and affordability checks explains what lenders should look at in future.
Your questions answered
Do I need a claims management company?
No. You can complain to the lender and the Financial Ombudsman yourself at no cost. Claims companies take a share of any compensation.
What can I complain about?
Common reasons include loans that were unaffordable, charges above the price cap, unfair collection practices and payments taken without agreement.
What if the lender has gone out of business?
If a lender is in administration, contact the administrator about how to make a claim. The Financial Ombudsman can’t usually handle complaints about firms that no longer exist.
This guide is general information, not financial advice. Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk. We don’t arrange loans or work with lenders. Before borrowing, check the lender is authorised on the FCA register, and consider free debt advice from MoneyHelper, StepChange, National Debtline or Citizens Advice.