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FOS gets tough on payday lenders

The Financial Ombudsman Service upheld a massive 69 per cent of complaints against payday lenders in the last three months of 2014.

Complaints data published by the FOS today shows there were 245 complaints about payday loans, of which a massive 69 per cent were upheld. The number of payday loan complaints is up 12 per cent compared to the previous year.

Overall, the number of complaints made to the FOS fell by almost a third in the last three months of 2014. The service received 74,357 new complaints between October and December, compared to 107,627 complaints in the same period in 2013.

Missold payment protection complaints continued to make up the bulk of new complaints, but these fell 39 per cent from 79,578 to 48,516.

Complaints about mortgages were down 27 per cent year-on-year from 3,223 to 2,529, with 33 per cent upheld.

On personal pensions, there were 248 complaints with 33 per cent upheld, and 157 Sipp complaints with 59 per cent upheld in the three months to December.

There were 150 annuities complaints, with 25 per cent upheld. The FOS also received 101 complaints about occupational pension transfers and opt-outs, and upheld 53 per cent of complaints.

There were 266 portfolio management complaints, and the FOS upheld 51 per cent were upheld between October and December.

The FOS received 39 complaints about film partnerships, which have received negative publicity over their use in tax avoidance. Despite this, the FOS only upheld 3 per cent of these complaints.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. “The FOS received 39 complaints about film partnerships, which have received negative publicity over their use in tax avoidance. Despite this, the FOS only upheld 3 per cent of these complaints.”

    So that would be 1.17 complaints upheld, then – or are you just rounding up to 3 per cent because a single complaint was upheld and that is 2.564 per cent?

  2. The FOS gets tough on Payday Lenders… These products should simply not exist, they only offer a very short-term solution, but with severe consequences and further financial problems!

  3. Richard Griffiths 27th January 2015 at 1:12 pm

    Of course one complaint is one too many, but as always it is important to put things in context. 245 complaints to FOS equates to less than 0.02% of payday loans during the period in question. Hardly seems worthy of the headline?

  4. Richard I would suggest that it is very early days with PayDay Loans and that this will gather momentum.

    And surely you are not endorsing such loans that had to start with an annual interest rates of around 1000% and even now have been capped after further regulatory investigation at 300%.

    There is rest assured a storm brewing here!

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