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A BORROWING binge has fuelled a dramatic rise in complaints The Financial Ombudsman Service (FOS) received almost 26,000 gripes about consumer credit products and services in the year to April - a huge increase of 89 per cent.
The biggest problem was payday loan firms, where complaints rocketed 230 per cent to more than 10,500.
The FOS said "people from all walks of life" had problems with them.
New rules on payday providers came into force in January 2015.
The shake-up, overseen by the Financial Conduct Authority, included a cap on the sky-high interest rates firms were charging.
There was also a 318 per cent leap in complaints involving instalment loans, another form of short-term lending.
Big increases were also seen in moans about hire purchase, point of sale loans and catalogue shopping - which jumped 74 per cent.
FOS chief Caroline Wayman called the increase "striking".
It comes amid a sharp rise in consumer credit, boosted by rock bottom interest rates.
Borrowing on credit cards is rising at the fastest rate for 11 years, with PS68billion owed on credit.
Lenders insist the number of borrowers falling behind with repayments remains low.
But data from the FOS, who referee in disputes between customers and lenders, showed complaints about debt collecting jumped from 707 to 1027 last year.
In total they received more than 321,000 complaints last year.
Just over half of those - nearly 168,800 - were about the misselling of payment protection insurance.
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|Publication:||Daily Record (Glasgow, Scotland)|
|Date:||Jun 13, 2017|
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