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Payday loan complaints reach five year high
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Willing2Learn
Posts: 6,294 Forumite


in Loans
Source: https://www.bbc.co.uk/news/business-48268474
Complaints against payday lenders have soared to a five year high, the industry watchdog has said.
There were nearly 40,000 new complaints brought last year, up a "startling" 130% on the 17,000 the previous year, the Financial Ombudsman Service said.
In too many cases people have been left to struggle with debt, it said.
Short-term lender industry body the Consumer Finance Association (CFA) said most of the complaints dated back a number of years.
Complaints against payday lenders have soared to a five year high, the industry watchdog has said.
There were nearly 40,000 new complaints brought last year, up a "startling" 130% on the 17,000 the previous year, the Financial Ombudsman Service said.
In too many cases people have been left to struggle with debt, it said.
Short-term lender industry body the Consumer Finance Association (CFA) said most of the complaints dated back a number of years.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job

I love my job

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Comments
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I think it has more to do with the chancers hoping they can make a claim for compensation.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Willing2Learn wrote: »Source: https://www.bbc.co.uk/news/business-48268474
Complaints against payday lenders have soared to a five year high, the industry watchdog has said.
There were nearly 40,000 new complaints brought last year, up a "startling" 130% on the 17,000 the previous year, the Financial Ombudsman Service said.
I thought most payday loan companies had shut up shop or gone bust.0 -
It was/is a poor business model. The PayDay Loan companies have reaped what they sowed (in my humble opinion). I definitely don't feel they have been 'hard done by'.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Willing2Learn wrote: »It was/is a poor business model. The PayDay Loan companies have reaped what they sowed (in my humble opinion). I definitely don't feel they have been 'hard done by'.
Perhaps not, but it's no reason to applaud the compensation culture rearing it's ugly head again either.0 -
True - The compensation culture sucks big time...I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
If only they were responsible lenders in the first place0
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If only they were responsible lenders in the first place
They're arguably no less responsible than mainstream "prime" lenders.
None of the credit cards from high street banks that I've taken out over the years required me to prove my income, something which is apparently unacceptable only if you're a PDL company.0 -
None of the credit cards from high street banks that I've taken out over the years required me to prove my income, something which is apparently unacceptable only if you're a PDL company.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Having dealt with them myself, I know first hand they don’t have the standards of the traditional lenders I.e. the banks. They are sharks.
Yes people will chance it with affordability claims when they had 1 or 2 loans but for people with genuine claims who were lent multiple loans one after the other (often with an increasing loan amount), it was irresposible of the lenders not to check why this was happening.0
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