Official complaints against payday lenders have more than tripled as the UK’s consumer debt levels explode
Gripes included high loan costs, extortionate interest rates and lenders taking money without permission
OFFICIAL complaints against payday lenders have more than tripled — as the UK’s consumer debt levels exploded.
The FINANCIAL OMBUDSMAN SERVICE received 10,529 gripes against payday lenders in the 12 months to April — up from 3,216 a year before.
They included high loan costs, including extortionate interest rates, as well as lenders taking money from customers’ accounts without permission.
The ombudsman upheld 59 per cent of complaints against payday lenders.
The sharp rise in complaints about payday lenders could in part be down to greater awareness about their activities.
Firms such as WONGA have kept a low profile in recent years after facing flak as they grew rapidly in the wake of the 2008 financial crash.
And it is not known how many, if any, of the complaints were specifically against Wonga.
But as Brits increasingly took on debt after last June’s Brexit vote, it seems the mood against such lenders is turning again.
The free ombudsman service received a total of 321,283 complaints of all types over the period.
Gripes over payment protection insurance made up 53 per cent of these.
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Caroline Wayman, chief executive of the service, said: “It’s clear that financial difficulties and financial exclusion remain significant challenges for many people.
“But the important thing is to speak up if you’re struggling.
“Money is complicated and our job is to unravel what’s happened and find a fair way to put things right by looking at individual complaints.”