30 May 2018, 14:41

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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For further information please contact:

Anders Nilsson or Martyn John at GoCompare on 01633 654 054 / 01633 654 725

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Keep up-to-date with GoCompare on Twitter: @GoCompare

Notes to editors:

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. Gocompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

GoCompare does not sell its customers’ data.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocomparegroup.com

 

 

Contact Information

Gordon Maw

gordon@mawcomms.co.uk