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Complaints against payday lenders soar by over 200%

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Complaints against payday lenders referred to the Financial Ombudsman Service have risen by more than 200 per cent over the last year.

In its annual review for 2016/17, published today, the FOS says new complaints against payday lenders increased 227 per cent, from 3,216 the previous year to 10,529.

The FOS upheld payday loan disputes 59 per cent of the time.

The FOS says it had 10,428 new mortgage complaints in 2016/17, down 8 per cent from 11,288 in 2015/16.

Mortgage complaints made up 2.5 per cent of total enquiries, down slightly from 3 per cent the year before.

The ombudsman ruled in favour of consumers in mortgage disputes 31 per cent of the time, down from 38 per cent.

Around 2.5 per cent of the total complaints logged by the FOS  were against mortgage intermediaries, down from 2 per cent in the previous year.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Ironic that the government has a watchdog to address complaints about loan-sharks it continues to legalise. Whatever happened to the old interest rate caps?

  2. I thought the FCA is now responsible for regulating PayDay Loan Companies? Doesn’t seem to be doing much good so far.

  3. I’d like to see how many of these complaints are being driven by CMCs challenging the enforceability of the loans due to lack of affordability checks. I understand this is a growing area.

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