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Complaints towards the Financial Ombudsman provider about payday loan providers have actually rocketed

02Dec

Complaints towards the Financial Ombudsman provider about payday loan providers have actually rocketed

However they are simply the “tip of this iceberg”.

The Financial Ombudsman provider (FOS) has revealed that complaints about pay day loans have significantly more than doubled within the last few 2 yrs.

When you look at the 2013/14 economic 12 months the FOS took in 794 new complaints regarding payday advances; in 2011/12 that figure endured at 296, which means that there’s been a 268per cent boost in complaints within two economic years.

In addition to this, the Ombudsman advised so it has likely only seen the “tip of the iceberg” that it should actually have received even more complaints, arguing.

Resolving dilemmas

Worryingly, the most frequent cause of problem had been individuals stating that that they hadn’t applied for the mortgage into the first place. Payday loan providers have now been dogged by reports of fraudsters taking out fully pay day loans various other individuals names, with much critique associated with lax identification checks numerous employ. That the Ombudsman has received countless complaints about that recommends it’s still a huge issue.

Other complaints included bad service and management, loan providers being reluctant to assist those struggling to settle and aggressive business collection agencies techniques. Wonga week that is last the news headlines after it absolutely was forced to shell out settlement to borrowers targeted by its dubious commercial collection agency antics, which included posing as law offices to place stress on borrowers to cover up.

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