Borrowers who use payday loans are urged by Citizens Advice to fight back and file a complaint as it kicks off its Payday Loan Awareness Month today.
Citizens Advice calls on payday loan customers to formally complain to the Financial Ombudsman Service (FOS) if they have been abused by a lender.
He found that about three-quarters of payday loan complaints could be referred to the FOS and issued a video to help customers file a complaint.
Are You Affected by Payday Debt?
About 1 million households take out payday loans each month, with 40% of consumers worried about their level of debt, which one? public inquiry revealed in July 2013.
A precedent who? A survey of more than 4,000 people found that four in ten payday loan clients used quick credit to meet basic daily needs such as food and fuel.
Who? calls for a ban on excessive fees and hidden charges, and strict limits should be placed on the number of times payday loans can be renewed.
Who? found that half of payday loan users take on credit that they are unable to repay. We want payday lenders to end this by performing proper affordability checks.
If you’ve taken out a payday loan and are having trouble paying it off, find out what to do with our step-by-step guide.
Complain about a payday lender
It was announced last week that fifteen payday lenders have left the market due to scrutiny from the Office of Fair Trading (OFT).
Lenders were kicked out of the market after failing to prove their lending practices were up to par.
If you think your payday lender is acting irresponsibly, follow our guide to complaining about unfair treatment from a payday lender.