The Financial Ombudsman Service (FOS) has advised that complaints relating to borrowing have risen by as much as 40% in just one year.
More and more concerns are being taken to the Ombudsman with relation to how lenders are treating their customers who have taken out high-cost loans and over one third of the complaints made have been upheld in favour of the customer.
Aside from Payment Protection Insurance (PPI) claims, as many as one in four complaints brought to the Ombudsman is in relation to consumer credit, including store cards and Payday Loans. Regarding Payday Loans, 61% of the complaints raised were upheld, which highlights that customers who take these out are not being treated fairly by lenders.
Chief Ombudsman, Caroline Wayman said, “People buy a whole range of things on credit – from everyday household appliances to a car – and in many cases it is manageable and affordable. For some people, borrowing may be a necessity rather than a choice. There can be a very fine line between getting by and going under. Even people who seem to be on top of their finances can quickly become vulnerable.”
Payday Loans and Lenders have been in the spotlight a lot recently, as it has been shown that unfair lending has been given to customers who were not in a position to meet repayments. The Financial Conduct Authority (FCA) took over the regulating of the industry in 2014, and, since then, many Payday Lenders have found themselves issued with large fines or fee caps.
The FCA has strongly clamped down on irresponsible lending and many customers may be entitled to compensation. If you have ever had a Payday Loan and believe you may be due compensation, then we can help you. You can visit our website today where out Specialist Payday Loan Team are waiting to help you- https://www.fasttrackreclaim.com/payday-loans