Payday loan complaints reach five year high

Willing2Learn

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.

System

I think it has more to do with the chancers hoping they can make a claim for compensation.

boo_star

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

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.

Willing2Learn

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'.

boo_star

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.

Willing2Learn

True - The compensation culture sucks big time...

Turtle87

If only they were responsible lenders in the first place

boo_star

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

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?

Turtle87

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.