The number of complaints regarding payday loans has more than doubled since 2012, according to new figures from the Financial Ombudsman Service (FOS).
The ombudsman received 5,395 inquiries about payday loans in the last financial year, finding in favour of the consumer in two-thirds of cases.
In the report, the ombudsman expressed concern that high numbers of people were unaware they could speak to them if they felt they were not being treated fairly.
If you don’t think your lender is dealing with your case sympathetically or fairly, you can take the complaint to FOS if necessary. Find out how to complain about your payday loan company.
Payday lender complaints
The report announced that the most common cause for complaint was people saying they hadn’t taken out the loan.
People also raised concerns about poor service and administration, lenders not being willing to help those struggling to repay and aggressive debt collecting practices.
If you’re having trouble paying back your payday loan, do not despair. Contact your lender as soon as possible.
If you’re struggling it’s also worth speaking to a free debt advice organisation, such as Stepchange or National Debtline.
For more advice, see our guide on paying back your payday loan.
Payday lender rules
The City regulator has introduced new rules for payday lenders, including a ban on rolling over loans more than twice, and a limit of two set on how often a lender can use continuous payment authorities.
Continuous payment authorities are where a payday loan company keeps trying to take money from your account. If this is the case with your lender, take a look at our guide on continuous payment authorities to know what to do next.