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Payday loan complaints reach five year high

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Complaints against payday lenders have soared to a five year high, the industry watchdog has said.
There were nearly 40,000 new complaints brought last year, up a "startling" 130% on the 17,000 the previous year, the Financial Ombudsman Service said.
In too many cases people have been left to struggle with debt, it said.
Short-term lender industry body the Consumer Finance Association (CFA) said most of the complaints dated back a number of years.

Complaint flood

Most of the complaints were made about affordability. Some customers took out 20 to 30 loans in a short space of time, either to pay off other outstanding loans or for household bills.
Many of the complaints came through claims management companies, the CFA said.

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