Citizens Advice Scotland has responded to the news that the Financial Ombudsman Service has been received increasing numbers of complaints about lenders.
CAS Financial Health spokesman Mike Holmyard says,
“Some of the biggest issues with payday loans were stopped via the Financial Conduct Authority’s 2014 regulation and price cap, but today’s figures show that there are still major problems clearing up from previous excesses in the industry.
“The 130% increase in guarantor lending complaints also confirms the experience of CAB advisers that this market is not operating fairly, and that perhaps tighter regulation is needed.
“Bank complaints have also grown and it is clear from these figures that the credit market as a whole is not working for consumers. There is still an absence of affordable credit options, and too many people just don’t have enough income to live on.
“Our advice to anyone who is in financial difficulty today is that they should not automatically turn to high-cost lenders like payday loans, as this will only make this situation worse in the long term. It is far better to take control of your debts. You can get free, impartial and confidential advice from your local Citizens Advice Bureau.”