SOLUTION: When you’ve lost your virginity you can ask your financial institution for a refund, a financial adviser told ABC News.
The solution is to ask for a full refund.
If your bank refuses, you could sue them and try to get the money back, said Richard P. Boesler, president and CEO of Boeslers Financial Services, a San Francisco financial services firm.
A typical payday loan is a five-year contract that can be terminated if your debt is delinquent or if you default on the loan.
“It’s really a matter of finding a financial institution that has not made a mistake,” said P.J. Biesler, a managing partner at Boesers.
“They should get the refund.
You’re entitled to it.”
Some lenders, including payday loan companies, say they only offer refunds if the consumer files a lawsuit and gets the money.
In a 2014 survey by the National Consumer Law Center, the industry’s trade group, more than 60 percent of payday loan borrowers reported that they received a refund within six months.
But, as ABC News reported, some lenders have been slow to respond to a lawsuit seeking refunds.
“The problem is that we have been under a tremendous amount of pressure to make the payday loan industry a good place for consumers to get their money back,” Bieslinger said.
“We’re not doing our jobs.”
Consumer advocates say that’s unfair.
“This is not a legal issue.
This is a consumer issue,” said Jennifer Tinsley, executive director of the consumer rights group Public Citizen.
“There is a lot of misinformation out there.
There is no consumer protection.”
Boeslinger said that the payday lending industry’s inability to provide refunds is causing a financial crisis for borrowers who want to pay off their debts.
“When a borrower defaults, they lose their money,” he said.
The Consumer Financial Protection Bureau, which enforces federal consumer law, has also taken steps to prevent the payday industry from exploiting consumers.
In 2015, the bureau launched a consumer alert system that allows consumers to alert lenders about possible problems.
In February, the agency also launched a website to help consumers find out how to make a complaint about a payday lender.
And in January, the Consumer Financial Oversight Council, an independent watchdog agency, issued a report recommending that the Department of Labor inspect the payday and other payday lenders.
“While it is too early to say that a nationwide investigation will lead to an immediate, definitive solution to this problem, we are confident that a number of steps can be taken to improve the financial health of payday borrowers,” the CFPOC report said.
Consumer advocates have also called on the CFO to require that payday lenders provide borrowers with financial counseling and to stop charging high interest rates to people who are unable to pay their debts on time.
“What’s going on is a systemic problem,” said Tinsleys.
“If you can’t pay your debt, then you can lose your life savings.”
Follow Elizabeth Palermo on Twitter: @ElisePalermoABC