UK customers have the same problems as the US customers…
New figures from the Financial Ombudsman reveal that disputes over payday loans increased by 178% in the year to March despite the fact that new controls and caps have been introduced in an attempt to regulate the system.
Rules introduced in January 2015 mean that interest rates on payday loads are capped at 0.8% per day, and the Financial Conduct Authority also ordered that stricter affordability checks be carried out before loans are agreed.
The statistics, which are released on an annual basis, show that in total more than a million people have made complaints about financial services during the past year, with issues ranging from the supply of pet insurance to problems with PPI refunds.
The Ombudsman dealt with 1.6 million enquiries of all kinds during the 12-month period – amounting to around 5,000 per day – with one in five resulting in a formal investigation.