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Cash advance complaints see sharp rise despite brand new rules

Cash advance complaints see sharp rise despite brand new rules

Complaints about pay day loans have actually increased sharply for the 2nd year that is consecutive strict brand new laws restricting interest costs.

The Financial Ombudsman provider (FOS) received 10,529 new complaints about these short-term credit services and products within the 2016-17 monetary year.

This is an increase from 3,216 complaints through the past year.

The rise ended up being element of wider customer concern about credit items – a place regulators that are also worrying present.

The town regulator – the Financial Conduct Authority (FCA) – therefore the Bank of England have actually warned of a acceleration in customer borrowing, such as for instance loans, overdrafts, bank card financial obligation and automobile finance.

The FCA is conducting is own inquiry into overdrafts, d r-to-d r financing along with other kinds of loans. Customer groups have consistently argued there ought to be an overdraft cap in spot.

A Lords committee additionally recently required more powerful settings such as for example a cap on “rent to own” products.

Monetary exclusion ‘challenge’

The FOS figures, posted in its yearly reviews review, show that the sum total number of pay day loan complaints had been nine times more than 2 yrs ago.