Complaints about payday loans are still rising, despite the recent crackdown on the loan companies by the Financial Conduct Authority (FCA). The Financial Ombudsman Service is receiving around 200 complaints per week, and not just from people on low incomes who are usually associated with this type of loan.
The Guardian reports –
“During the second half of 2016 the Financial Ombudsman Service received 5,095 new payday lending complaints, up 22% on the first six months of the year. This increase came despite tougher regulation of the controversial sector… The figures mean complaints about the loans are now running at around 850 per month. In early 2013 the ombudsman was receiving around 30-40 cases each month. Most of the complaints relate to affordability – for example, a borrower claiming that the checks the firm should have carried out were not done properly… The ombudsman also revealed that those complaining about payday lenders included teachers, nurses, students and “even a handful of vets”, showing that this was an issue that affected people from “all walks of life”.