However they are simply the “tip regarding the iceberg”.
The Financial Ombudsman Service (FOS) has revealed that complaints about payday advances do have more than doubled within the last few couple of years.
When you look at the 2013/14 monetary 12 months the FOS took on 794 brand new complaints regarding payday advances; in 2011/12 that figure endured at 296, and therefore there is a 268per cent increase in complaints within two economic years.
In addition to this, the Ombudsman recommended so it has likely only seen the “tip of the iceberg” that it should actually have received even more complaints, arguing.
Worryingly, the most frequent cause of problem ended up being individuals stating that that they hadn’t applied for the mortgage within the place that is first. Payday loan providers have now been dogged by reports of fraudsters taking right out payday advances various other individuals names, with much critique associated with the lax identification checks employ that is many. (more…)