The number of complaints from desperate clients of payday lenders has risen dramatically lately.
The Financial Ombudsman Service reports the largest increase of complaints in the loans sector from the beginning of the year to March. The complaints on different payday loan firms increased to over 3,200, which is a 178% growth.
The insurance protection of payments is one of the most important topics for discussing nowadays. However, the disputes don’t solve the troubles, as the complaints on credit reference firms, payday loan companies, etc. keep increasing.
According to the ombudsman, people terrified that they would lose everything due to payday loans knew they had to be treated better, or at least fair.
Complaints centred on lenders failing to carry out affordability checks, refusing to accept suitable repayment plans and aggressively chasing debts. There were cases of lenders using continuous payment authorities that left the client with no money to pay basic bills, as well as complaints about damage to customers’ credit records.