Financial Ombudsman provider claims conduct by some companies in sector was unsatisfactory

The FOs has handled clients whom held a lot more than 100 pay day loans at onetime. Photograph: Andy Hall/for the Observer

The finance industry’s adjudicator has criticised the “unacceptable” behavior of some payday loan providers following a 130per cent increase in complaints, which it stated goes beyond the techniques of recently collapsed industry frontrunner Wonga.

The Financial Ombudsman provider (FOS) stated the rise contributed up to a 14per cent boost in complaints throughout the sector that is financial which reached a five-year most of 388,392 throughout the one year to March.

The increase in payday lending complaints a lot more than offset a drop in PPI complaints, which accounted for fewer than 50 % of brand new disputes for the time that is first a ten years, whilst the August due date for claims looms.

Payday advances accounted for 39,715 for the disputes that are new marking a 130% increase from per year earlier in the day. The FOS report that is annual it a “startling” rise and stated the conduct in this sector “has been unacceptable”.

Caroline Wayman, the FOS’ chief ombudsman and executive that is chief stated: “Too usually we come across that the passions of individuals are maybe maybe maybe perhaps not hardwired into monetary solutions. Read More “Payday loan providers face razor- razor- sharp critique as complaints increase 130%”