A host of payday loan customers have grounds for complaint against lenders over the way repayments were collected, a charity has said.

Citizens Advice said it saw 665 cases, of which 76% could have been forwarded to the Financial Ombudsman Service.

These included cases of individuals being chased for a loan they had not taken out, it said.

A string of payday lenders have signed up to a code of conduct aimed at improving standards.

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I'd be interested to know how many people as a whole use Payday lenders. 665 cases sounds like a lot, but it pales into insignificance if it turns out to be hundreds of thousands of users.

The BBC reported last week that only 2 out of 10 fail to pay back the money in time, either because they didn't understand how the scheme worked, or other factors prevented the money being repaid.

whats a payday lender?

Wonga
QuickQuid

LOADS of others, they are the ones that offer very short term loans with minimal checks and fast deposit into accounts.

If used for a loan for emergencies until PayDay, they sort of work, but people use them as a long term loan or debt solution and the interest rates are astronomical.

My foolish daughter took one out, about 12 months ago. The company needed a land line telephone number, so she gave mine. They needed a guarantor, so bless her, she put my name forward. Unfortuantely, as they gave her the loan, virtually the same day, I had no chance to reply to them , to agree to being guarantor.I most difinitely would not have done so either.
She failed on one of her payments as it fell on Christmas Day. No second chance,and I got the bill, even tho' I had not agreed to be guarantor. Horrendous interest rates!
They are very nasty aggressive people to deal with.I paid the whole lot off in one go, it was the better option.
Please don't go there, it can be a very big hole to get out of..if at all.

My thoughts on debt, are that I'm sure we have all had money worries or problems at some time, and the feeling is awful, depression and axiety are paramount.These companies are there to feed off your unfortunate predicament, and they will charge what they like, because they know you are so desperate at the time.If there is any other possible way, then avoid them like the plague.

Thanks, i have never heard of such.

i think companies like that should be banned, disgusts me playing on people in a time of need, they should be there to help people not rip them off.

I understand they need to make a profit but do it at a reasonable level.

Lend us a tenner Ste

Your the rich one

£100 from Wonga for seven days costs £112.

If I lent someone £100 for a week I'd expect to get a tenner to say thanks.

Their site is clear enough on how to use the service, but no doubt its used by people who don't care and want something NOW.

Like the woman on the news last week who borrowed £250 for a new cooker when hers broke, and had no real way to pay the money back in a timely fashion.

If that's the case then why didn't she look for a cheap second hand one?

Its not the place of Wonga to give out common sense.

There was a TV programme on C4 last week about a car dealership. A very camp fellow wanted to PX his one year old Nissan Qasqui for a 2005 BMW 4x4 because it looked good.

He was all ready to sign for the car, even after finding his finance payments had barely made a scratch into paying for the Nissan and he owned £18,000 (car was worth £15K), but he didn't care, he WANTED that BMW.

Right until the salesman advised him to check the insurance before he bought it.

Insurance was £3000 a year.