Steep rise in payday loan claims – but 1,000s are being stung by unnecessary fees - MSE News 17 May 2019 at 11:15AM edited 17 May 2019 at 12:25PM in Loans 2 replies 925 views

MSE_Chris_D

The number of complaints against payday loan firms soared by 130% in the past year, new figures from the financial watchdog show. But the majority of claimants are using claims management firms, meaning they won't get the full compensation payout if successful. If you've been mis-sold, here's how to claim for free...

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'Steep rise in payday loan claims – but 1,000s are being stung by unnecessary fees'

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Takmon

So not only did they make a poor financial decision by taking out a Payday loan they couldn't afford. They are now making poor decisions by using claim management companies which isn't really surprising.

Willing2Learn

I don't think anyone comes out of this looking good. PDL companies making bad business decisions to target and lend to vulnerable people. If there had been stringent affordability and income checks, it would have clearly shown that a significant proportion of their target borrowers would not be able to afford the repayments. No responsible financial company, in their right mind, should allow a borrower to roll-over more than 100 loans...

To recap, PDL companies lent money irresponsibly to their target market of the most vulnerable in society. Likewise, borrowers took out loans they clearly could not afford.