Sunday, 07 July 2019 08:59

Payday lenders going out of business

Payday lenders are going out of business as a direct result of compensation firms targeting them now that the PPI claims industry has dried up.

For years, companies operating in the compensation industry had easy pickings when it came to PPI, and we can’t think of one person who could honestly say that they have never been questioned or contacted about whether or not they should claim against being falsely sold PPI.

PPI claims have all but dried up now, however, meaning for compensation companies they have had to find another industry to attack and bombard as a way to carry on making money, and this has come in the form of the payday loan industry.

People should be aware of these ‘companies’, however, as many experts say that they make complaints on behalf of customers without the customer/borrower even knowing, and sometimes this will be through illegal practices. They are also known to make a complaint when there is no substance behind the claim. Numerous compensation claim firms have also been in trouble for not adhering to data protection rules currently in place – they have basically been getting hold of people’s details and making claims on their behalf.

But politicians and the like are not going to stand up and tell these compensation claims firms to get back in their box, as politicians and debt charities cannot abide payday lenders, so the payday industry will have to stand up to the fight on their own. Which is why it is prudent and essential that borrowers and other unwitting customers are made aware of just what these firms are doing.

Similarly to how they played it with PPI, these firms use a bombardment strategy to get as many claims in as possible, and as many results as possible. But what people don’t realise is that these companies are not the holier than thou set up that they wish people to believe. They want people to think that they will fight big companies on behalf of the ‘little guy customer’, but they only have eyes on profit. They take a cut from claims that are successful and charge extortionate rates. They do not give one jot about the customer that they are ‘representing’.

Please be wary of them, they’re not helping you, they’re using you to give them their next big pay cheque.