Cheap credit websites slammed by Financial Ombudsman

20 August 2014

payday loans The Financial Ombudsman is spitting feathers over sites that take money from unwitting people on the promise of finding them cheap credit, only for their loans to vanish into the ether.

Complaints have rocketed to the ombudsman, saying that middlemen for payday loans are leeching all their money from them, without giving them the loan they initially asked for. Some instances saw consumers being debited multiple times without being warned thanks to their bank details being passed onto other credit broking websites.

And it is a big problem - the ombudsman says that, so far this year, over 10,000 people have complained about credit broking websites. That's twice the number of complaints from 2013.

One of the main problems is that people are using these sites thinking that they were direct applications for loans, rather than a middleman.

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

If you have problems regarding this, it is definitely worth telling the ombudsman because the majority of cases they've taken on have resulted in a refund.

In two-thirds of the investigated complaints, the ombudsman agreed that the consumer had been on the end of unfair treatment. So don't be shy and get in touch with them.

TOPICS:   Complaints   Debt

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