The row over payday lending intensified this week, as the Citizens Advice called for customers to stand up to lenders who are found to act unfairly.
Coinciding with the launch of its campaign throughout the month of August, designed to help consumers take action and complain about unscrupulous payday loan companies, the results of an investigation conducted by the bureau revealed scandalous practices towards their customers.
At least 76% of 665 payday loan cases reported between 1 January and 30 June this year were found to warrant an official complaint being made to the Financial Ombudsman Service (FOS), while a suspected one in five cases were earmarked as possible instances of fraud, with customers chased for payments, despite them not actually taking out a loan.
A further 12% of cases involved lenders contacting people via phone calls or text messages, constituting harassment.
Overall, one in ten reported cases were linked to a payday lender's unfair conduct and treatment of customers experiencing financial problems.
Recent figures released by the Office of Fair Trading and the FOS have revealed the level of complaints regarding the practices of payday lenders has grown significantly over the past couple of years, as more people turn to such loans amid the current economic climate.
To directly submit a complaint about a payday loan, contact the Financial Ombudsman Service consumer helpline on 0300 123 9 123 or 0800 023 4567, or email firstname.lastname@example.org.
Guide to Payday Loans Loan terminology – glossary and jargon buster How do I get out of credit card debt?
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.