Financial Ombudsman review reveals near 50% rise in payday loan complaints
The Financial Ombudsman Service (FOS) has released its annual review for 2014/15. This details complaints and new cases on financial products and services from people in the UK.
Complaints about payday loans rose by nearly half, while complaints about PPI fell by a half.
With the number of PPI cases, which historically makes up the bulk of the Ombudsman workload, falling to 204,943 cases about payday loans rose by 46% to 1,157 compared to 2013/14. New cases regarding debt collecting also rose by 51% to 843.
In terms of resolution around 20% of payday lending complaints were dealt with just through the FOS webchat service. This would have saved customers time and money in comparison to using a mobile phone and being on hold for prolonged periods whilst waiting to talk to someone.
Other financial products which saw increased case numbers included catalogue shopping (11%), hire purchase (18%) and point of sale loans (12%).
The report also touched on the work that the Ombudsman have done with the Financial Conduct Authority (FCA) in regulating the payday loan sector:
“our insight into payday lending helped to shape its response to that market – including measures to stop the worrying and unfair credit-broking practices that we found.”
Caroline Wayman, Chief Ombudsman, Financial Ombudsman Service
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