GoCompare comments on rise in complaints about consumer credit products
The latest annual review from The Financial Ombudsman Service reveals that while the number of overall complaints received has gone up by just 6% in the last year, complaints about consumer credit products and services have risen by 40%, including pay day loan related complaints up 64%, and those relating to hiring, leasing and renting up 73%.
Georgie Frost, consumer advocate at GoCompare commented, “A high level of complaints is often a sign that consumers are not being treated fairly. But by the time someone’s issue has reached the Ombudsman, it is likely to have been going on too long, with the individuals concerned subjected to considerable stress. It is clear from the report that problems around Pay Day Loans aren’t going away, while the figures also point to growing issues related to hiring, leasing and renting, as PCP car finance deals have become more widespread.
“There is a bigger issue for the whole industry to take on board here. We know from the FCA’s report last year that many people are already struggling. Half the population are said to be financially vulnerable with one in six unable to cope with a £50 increase in monthly bills, with many using credit just to keep their heads above water. Long-term customers with expensive debt are very profitable for firms who have little to no incentive to tackle the problem of over-indebtedness.
“The industry needs to face up to its responsibilities by doing more to control unsustainable borrowing at source, as well as improving the way it manages the impact of debt problems once they occur.”
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Anders Nilsson or Martyn John at GoCompare on 01633 654 054 / 01633 654 725
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Notes to editors:
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