You are here: Home - Credit Cards & Loans - News -

Payday loan and credit complaints soar

Written by: Paloma Kubiak
Complaints about consumer credit products and services increased by 40% in 2017/18, according to the Financial Ombudsman Service.

Gripes about payday lenders alone jumped 64% to 17,200 from 10,500 a year earlier. The ombusdman upheld 61% of the complaints about payday loans.

In total, FOS received 1.45 million enquiries from disgruntled consumers, and dealt with nearly 340,000 new complaints.

The bulk of its workload continued to be around PPI – it received 186,400 new complaints, up 10% from the previous year.

FOS reported a sharp drop in the number of new complaints it received relating to mortgages, though it noted worries over interest-only deals.

In its annual report, the Ombudsman said it received 8,917 new mortgage complaints, down 14% from the 10,428 from 2016/17.

The number of mortgage complaints upheld has also fallen over the same period, from 31% last year to 23%.

Caroline Wayman, chief ombudsman and chief executive of the FOS, said: “While continuing to manage the fall out of mis-sold PPI – with complaints still reaching us in their hundreds of thousands, accounting for over half of all those we receive – we’ve been ensuring that we’re able to respond to the problems people are having today, and that we’re ready for the future too.”

The ombudsman, added: “Over recent years we’ve highlighted the rising volumes of people telling us they’ve had trouble after borrowing money.

“On one hand, this reflects shifting preferences in how people choose to pay for things. However, we’re concerned that some lenders just aren’t doing enough to ensure people’s borrowing is sustainable – or aren’t responding constructively to their customers’ concerns.

“It’s also remained clear that, as high profile cybercrime hits the headlines, risks to people’s money may lie closer to home. Over the last few months we’ve helped people who’ve found themselves out of pocket after buying “self-funding” solar panels – and those who’ve faced selling their home because they can’t pay off their interest-only mortgage.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week