Complaints about consumer credit almost doubled over the last financial year to April 2017.
According to the latest figures published by the Financial Ombudsman Service (FOS), consumer credit complaints were up by 89 per cent when compared to the previous financial year.
The data, which excluded PPI, found that consumer credit complaints accounted for 17.5 percent of all complaints in the financial year of 2016/2017? compared with just nine percent in 2015/2016.
The news comes after it was revealed back in June that the number of official complaints against payday loan companies more than trebled over the same period, when compared to the previous year.
The figures were released along with data for the first quarter between April and June of 2017, where it was also revealed that the FOS received 80,000 new cases and 135,000 enquiries. It also upheld 35 percent of all complaints it resolved.
New cases received between April and June 2017 included:
42,401 related to PPI (for which 40 percent of cases were upheld)
5,229 related to current accounts (27 percent upheld)
3,137 related to car and motorcycle insurance (29 percent upheld)
3,126 related to payday loans (68 percent upheld)
3,097 related to packaged bank accounts (13 percent upheld)
2,640 related to credit card accounts (30 percent upheld)
Many of the complaints were from people who have struggled to pay back loans that could argue they should not have been lent in the first place.
A large number of consumers were unhappy with the quality of the goods or services they?ve got on credit. Others were frustrated by administrative issues and many found themselves paying charges they hadn?t expected when taking out the credit.
Chief ombudsman, Caroline Wayman, said: ‘Although not every credit complaint is about trouble with debt, we?ve continued to hear from people who are struggling.
‘As preferences change – for example, from payday loans to instalment loans – we?ve seen that lenders still aren?t always making the right call in checking people will be able to repay what they owe.’