Payday lenders being ‘bombarded’ by spurious claims

Industry News | 10/06/19

Payday lenders have been under fire from politicians and debt campaigners, yet their industry body says it has seen ‘worrying tactics’ in claims.Compensation claims management firms looking for the next big earner after the PPI scandal have been accused of bombarding the much-criticised payday lending sector with complaints that are often spurious and sometimes without the knowledge of borrowers.

In some cases the claims could breach strict data protection laws, while success fees charged by the claims companies threaten to add to the financial pressure on people who used payday loans.The payday loan industry has come under heavy fire from politicians, debt campaigners and regulators for charging extortionate interest on short-term loans.

Source: The Guardian