Guarantor loan complaints hit new top. Guarantor loans

Quarterly issue numbers posted by the Financial Ombudsman provider (FOS) reveal guarantor loans are now actually probably the most complained about item.

The FOS received 10,321 brand new complaints about guarantor loans between October and December 2020, a rise of 146% from the previous quarter.

There have been also high amounts of complaints about home lending and high-cost short-term credit like pay day loans and instalment loans.

Numerous complainants told the FOS they might no longer pay for borrowing they had applied for, with a few saying they did not think the borrowing ended up being affordable for them within the beginning.

The amount of complaints about guarantor loans skyrocketed by 146per cent between Q2 and Q3 2020/21, aided by the FOS starting 10,321 brand new instances between October and December 2020.

Regarding the instances shut in those times, 81% of guarantor loan instances had been upheld, somewhat significantly less than the 88% reported in Q2.

Nevertheless, the amount of situations while the quantity being upheld are alarming, particularly considering complaints because of this variety of credit had currently jumped by 298per cent from Q1 to Q2 2020/21.

Overall, this means how many guarantor loan complaints has grown by over 900percent in a nine-month duration.

It had been revealed in December that guarantor loan expert Amigo is searching to cap the quantity of payment they spend to borrowers who think their loans were mis-sold.

Other credit complaints

More complaints were upheld about house credit (also called home financing or credit that is home-collected than just about any other style of item, with 84% of shut situations upheld in preference of the complainant. […]