If you’ve taken out a payday loan in the UK and believe you were treated unfairly, charged excessive fees, or lent money you couldn’t afford to repay, you have the right to file a complaint. Payday lenders in the UK are strictly regulated by the Financial Conduct Authority (FCA), and best payday loans uk are protected under clear consumer credit rules.
This guide explains how to recognise unfair treatment, when you can complain, and how to file a payday loan complaint effectively to get the redress you deserve.
Understanding Your Right to Complain
Every payday lender authorised by the FCA must follow the standards outlined in the Consumer Credit Sourcebook (CONC)—a section of the FCA Handbook that governs fair lending practices.
If a lender has breached these rules or failed to treat you fairly, you can submit a complaint directly to the lender, and if necessary, escalate it to the Financial Ombudsman Service (FOS).
Common reasons for complaints include:
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Being lent money you couldn’t reasonably afford to repay.
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The lender failing to carry out proper affordability checks.
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Excessive interest rates, hidden fees, or unclear terms.
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Aggressive or misleading advertising.
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Harassment or unfair treatment during debt collection.
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Problems with Continuous Payment Authorities (automatic bank withdrawals).
If any of these situations apply to you, you have grounds to raise a formal complaint.
Step 1: Gather Your Evidence
Before you contact your lender, collect as much information as possible to support your claim. Key documents include:
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Loan agreements and repayment schedules.
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Emails or letters from the lender.
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Bank statements showing payments and charges.
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Any correspondence relating to missed payments or rollovers.
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Notes about phone calls or contact attempts.
Having evidence ready makes your complaint stronger and helps the lender (and, if necessary, the Ombudsman) review your case efficiently.
Step 2: Contact the Lender Directly
Your first step is to submit the complaint to the payday lender itself. Every FCA-regulated firm must have an internal complaints procedure.
Write or email the lender, explaining clearly:
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What went wrong (e.g., irresponsible lending or unfair treatment).
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How the issue has affected you financially.
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What outcome you’re seeking (such as a refund, interest removal, or apology).
Be concise but specific. Include dates, amounts, and relevant details about the loans in question.
Example:
“I am writing to complain about a payday loan I took from your company on [date]. I believe the loan was unaffordable, and your company did not properly assess my financial situation. I request a full refund of all interest and charges, plus removal of any negative credit entries.”
The lender has eight weeks to respond under FCA rules. They must either issue a final response or explain when you can expect one.
Step 3: Escalate to the Financial Ombudsman Service (FOS)
If you’re unhappy with the lender’s response—or if they don’t respond within eight weeks—you can escalate the complaint to the Financial Ombudsman Service.
The Ombudsman is an independent body that resolves disputes between consumers and financial firms free of charge. It has the authority to order lenders to refund interest, remove default markers, or pay compensation for distress and inconvenience.
You can contact the FOS via:
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Online form: financial-ombudsman.org.uk
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Phone: 0800 023 4567
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Post: Financial Ombudsman Service, Exchange Tower, London, E14 9SR
When filing your complaint, include:
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Copies of all correspondence with the lender.
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Loan documents and payment records.
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The lender’s final response (if received).
The FOS will review your case and issue a decision, which the lender must comply with if you accept the outcome.
