View more on these topics

FOS warns on payday loan brokers

Almost 11,000 consumers have made complaints to the Financial Ombudsman Service about payday loan brokers, data from the FOS reveals.

The FOS says so far this year, 10,895 consumers complained about payday loan brokers to the FOS, more than double the 4,726 that complained during the whole of last year. 

Complaints were upheld in 63 per cent of cases.

The FOS says in some of the worst cases, consumers saw their bank accounts debited multiple times without warning, with their details passed to other credit broking sites.

Many complainants thought they were applying for a loan directly and did not realise they were paying a middleman.

Common complaints were that consumers did not understand the payday loan broker would take a fee; that they did not agree to money being taken; and that they misunderstood that payments were towards loans rather than going to the broker.

Senior ombudsman Juliana Francis says: “It’s disappointing that people who are already struggling to make ends meet are being misled into thinking these websites will get them a loan.

“In too many of the cases we sort out, no loan is provided and people’s bank accounts have been charged a high fee, often multiple times.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com