19 August 2014
The ombudsman today spoke out about websites that take hundreds of pounds from unwitting consumers on the promise of finding cheap credit, only for the loans never to materialise.
Since the start of the year thousands of people, many struggling financially, have contacted the ombudsman complaining that payday loan middlemen had drained money from their accounts, without providing them with the loan they were looking for.
In some of the worst cases the ombudsman has seen, consumers’ bank accounts were debited multiple times without warning – as their banking details were passed onto other credit broking websites.
The ombudsman said that so far this year (2014):
The ombudsman also highlighted that many people who had used these websites thought they were applying for a loan directly and didn’t realise that they were paying a middleman.
These figures were released by the ombudsman today as it issued a detailed report on the handling of consumer complaints by payday lenders, highlighting the need for the sector to improve its business practices.
It’s disappointing that people who are already struggling to make ends meet are being misled into thinking that these websites will get them a loan.
In too many of the cases we sort out, no loan is provided and people’s bank accounts have been charged a high fee, often multiple times.
If money has been taken from your account unfairly or without warning, the good news is the ombudsman is here to help. Give us a call and we can put things right quickly.