Treatment of payday borrowers could be grounds for formal complaint

An analysis by Citizens Advice of client cases involving payday lenders suggests that three quarters of them could have been sent to the Financial Ombudsman Service as formal complaints.

The cases included people being chased for repayments on loans they had not taken out, potential fraud cases and people being harassed with threatening messages despite offering payments.


Many experiences were in contravention of codes of practice put in place by payday lender trade associations, which state that customers should be treated fairly.

Citizens Advice analysed 665 cases from the first six months of this year, and suggested that 76% could have been forwarded to the Ombudsman.

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