Letter to complain to your payday lender about hidden charges

You shouldn't be charged unexpected fees that weren't made clear to you before taking out your loan. If you were, use our template letter to challenge them.

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[Your address]

[Payday loan provider details]

Loan account number: [add details]

Dear Sirs,

I write in connection with the above loan agreement which I entered into on [date].  

On [date] I discovered that you have applied a charge for [give details] to my loan account.

I have checked the paperwork you provided before I entered into the loan agreement and the charge[s] were not disclosed to me, nor was there any disclosure during any of my conversations with your representatives.  

The Office of Fair Trading (OFT) guidance for creditors on irresponsible lending cites ‘disclosure of key contract terms and conditions (including rates and charges),’ as one of its General Principles of Fair Business Practice.

By failing to provide me with details of the charge[s] above, you are in breach of the OFT’s General Principles of Fair Business Practice.

Accordingly, I would request that you confirm within the next seven days that you have credited my account with the sum that has been taken, along with any interest that has been applied to my account as a result of the charge.

Should you not be prepared to comply with my request, please provide your written confirmation that this is your final position in order for this matter to be referred to the Financial Ombudsman Service for resolution.

I look forward to hearing from you.

Yours faithfully

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