Pay Day Loan Claims Process

The first step is the most simple. Either click the Start Claim button or call us on 0800 849 5078 and one of our expert advisors can discuss your potential claim with you.

Our advisors will need to take details of the different lenders you had, the approximate dates between which you dealt with any Pay Day Lender, the approximate amounts borrowed and details of your circumstances at the time.

In addition, we will need you to let us know any information you can recall about the sale of the loan (was it over the phone, online, in store) and details of any affordability checks the Pay Day Lender undertook.

At the end of the call, a pack will be sent to you in the post to review, sign and return which will enable us to draft a complaint to your Pay Day Lender(s) for the mis-selling of 1 or more loans taken from them.

From here, the Pay Day Lender has up to 8 weeks to provide a final response which could be that the complaint is upheld (and an offer of redress is made) or it is rejected in which case the option to refer the case to the Financial Ombudsman Service ("FOS") could be pursued by DRSP to ensure you receive the redress you deserve.

Where a lender makes an offer (either directly or after the intervention of the FOS), DRSP will recommend whether or not the offer should be accepted. If an offer is accepted, payment should be received by you within 28 days.

On successful completion of a claim, DRSP charge a fee of 30% + VAT (currently at 20%) of the total claim value.  The 20% VAT is payable on the fee only, meaning that total fees inclusive of compulsory VAT are 36% of the total claim value.

Part of the compensation for mis-sold Pay Day Loans will include statutory interest from which the lender will often deduct Income Tax at a rate of 20% although if you do not pay tax (or if you have not used your tax free saving allowance) part or all of this amount may be able to be reclaimed from HM Revenue & Customs.

Compensation for a Pay Day Loan claim may come in the form of a direct financial payment or, where an individual is in arrears or in breach of their contractual payments, as an indirect financial benefit. This could mean a reduction of the outstanding balance of the loan, reduction in arrears, or a combination of the aforementioned.

Should a lender reject a claim, or simply fail to respond then we can refer the case to the Financial Ombudsman Service ("FOS") to make an objective assessment of the case. If this is necessary then the length of time to receiving your compensation could be extended.

Through every step of the process, DRSP are fully committed to providing the best service possible and to ensure you are kept up to date with the progress of your claims. Our dedicated team will deal with all complaint on your behalf and will be able to help you every step of the way.


To start your claim, either click the Start Claim button or contact us on 0800 849 5078.