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."
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