We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Payday loan complaints reach five year high

Options
Willing2Learn
Willing2Learn Posts: 6,294 Forumite
Part of the Furniture 1,000 Posts Name Dropper Photogenic
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.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

I love my job

:smiley:
«1345

Comments

  • System
    System Posts: 178,348 Community Admin
    10,000 Posts Photogenic Name Dropper
    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.com
  • boo_star
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    Tarambor wrote: »
    I think it has more to do with the chancers hoping they can make a claim for compensation.

    Pretty much.

    People are being told they can get free money again so they're off filling forms en masse as a result.

    Not surprising at all.
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    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.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 15 May 2019 at 5:47AM
    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 job

    :smiley:
  • boo_star
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    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.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    True - The compensation culture sucks big time...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Turtle87
    Turtle87 Posts: 38 Forumite
    If only they were responsible lenders in the first place
  • boo_star
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    Turtle87 wrote: »
    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.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    boo_star wrote: »
    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 think tough affordability and income checks should be required by PDL companies, given their target market. How can they justify giving repeated loans to folks who are not employed for example?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Turtle87
    Turtle87 Posts: 38 Forumite
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.