Complaints About Payday Loan Companies ‘Up by 178% Last Year’

May 26, 2016

The number of complaints being made by consumers around the UK about the practices of payday loan companies increased by as much as 178 per cent in the year to March of this year.

That’s according to the Financial Ombudsman, which has revealed that it received 3,216 complaints about short-term and high-interest lenders during 2015-16, as compared with just 1,157 in the previous 12-month period.

The increase in how commonly UK consumers complain about payday loan companies has come despite the practices of these lenders having been the focus of a concerted Financial Conduct Authority (FCA) clampdown over the past few years.

It has been suggested that the rise in the number of complaints to the Financial Ombudsman about short-term lenders is a reflection of a growing awareness of consumer rights in these particular contexts.

According to the ombudsman’s figures, while payday lenders are a common source of frustration for UK consumers, they are far from being the most prominent cause of irritation and anger around the country.

Indeed, the Financial Ombudsman has indicated that Payment Protection Insurance (PPI) is by far the most common source of consternation among Brits of all ages.

As many as 188,712 complaints about PPI were lodged with the organisation in the year to the end of March 2016, with 8 per cent more people having complained on that same subject in the previous 12 months.

There were also 44,244 complaints registered about issues relating to packaged bank accounts over the course of the most recent 12-month period.

In the context of payday lending, companies in the UK have been obliged to carry out more thorough affordability checks and to reign in some of their debt-chasing tactics as a result of FCA action and regulatory changes over the course of the past two years.

It is also now the case that payday lenders operating in Britain can charge their customers no more than 0.8 per cent per day of the amounts initially borrowed.

Another aspect of the FCA’s clampdown has been focussed on limiting the ability for payday lenders to take money out directly from their customers’ bank accounts.

If you are struggling with personal debts of any kind and you live in Scotland then Scotland Debt Solutions may be able to help. Contact us today to arrange a free consultation.

How can I build my personal credit score?

6th March 2019

Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]

Read more

Could a Credit Union help with my cash flow problems?

5th March 2019

Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]

Read more

Help – my monthly outgoings exceed my income

4th March 2019

It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]

Read more

Benefits and tax credits when you’ve lost your job

1st March 2019

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]

Read more

How has the Mond ruling changed PPI claims after a Trust Deed?

26th February 2019

If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]

Read more

Which debts can be included in a Debt Arrangement Scheme (DAS)?

21st February 2019

A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]

Read more