Complaints about payday loaners double
In the last year, complaints against payday loan companies have doubled, but it is likely to be much worse than that after the Financial Ombudsman Service said that the figures they've got are only the "tip of the iceberg".
This is largely to do with the fact that the FoS think that most customers have been kept in the dark about their rights, and when they find out what they are, they'll complain in droves too.
And it is a problem area. Only last month, Wonga were ordered to cough up in advance of £2.6m in compensation after it chased debts with letters that threatened customers with action from a fictional law firms.
As if an APR of over 5,000% wasn't enough of a deterrent.
In a report, the FoS said they believe most consumers are unaware that they could refer problems to its office and in around half of their cases, lenders had not sufficiently told theur customers about the options they have if they wanted to dispute something. This was the major lenders, not just the small time ones too.
"We often hear from people who took out a payday loan as a desperate last resort and blame themselves when the debt starts to spiral out of control," said principal ombudsman Caroline Wayman. "It's important that people don't feel trapped with nowhere to turn because of the stigma associated with short-term lending."
The ombudsman said that, in the case of Wonga, 62% of complaints resolved in favour of consumers. The average for the sector is 51% in favour of the customer.
If you need to get in touch with the Financial Ombudsman Service, then call 0800 023 4567 or 0300 123 9 123 (if you're worried about the cost of the call, the FoS will be happy to ring you back), Monday to Friday 8am to 8pm, Saturday 9am to 1pm. If you're calling from outside the UK, then call +44 20 7964 0500.
For all other info, visit their website at financial-ombudsman.org.uk