Payday loan complaints increase - Loans - News - Moneyfacts


Payday loan complaints increase

Payday loan complaints increase

Category: Loans

Updated: 01/05/2013
First Published: 01/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Figures released by the Financial Ombudsman Service (FOS) have revealed a 75% rise in complaints about payday lenders since last year.

Despite accounting for a small percentage of overall complaints, the Ombudsman's report claimed around thirty to forty payday loan complaints were received on a daily basis, with three quarters of cases resulting in favour of the consumer.

Debt recovery methods used by lenders were the most common reason for customers complaining to the Ombudsman.

Regular complaints have been logged with the FOS including instances when lenders have attempted to take payments early or unexpectedly without permission, even using consumer's card details to do so.

A number of disputes had also been logged from distraught customers who had been chased for payments by payday lenders, even though they had never taken out a loan with the company.

In its report the FOS said: "We see a number of payday loan complaints from consumers who say they never even took out the loan in question. We also come across situations where fraudsters took out loans in other people's names."

What next?

Read our guide to Payday Loans
Find the best loan for you - Loans Calculator

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…