Payday lenders have faced criticism, although a code of conduct is in place
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.
'Pestered with texts'Citizens Advice analysed a series of payday loan cases, which were reported to its customer helpline in the first half of the year.
It found potential cases of fraud, such as being chased for non-existent loans. Others were "pestered" with phone calls and text messages, despite offers of repayments plans from customers.
Some in financial difficulty were treated unfairly, according to the charity, and so could have taken a complaint to the ombudsman.
The Financial Ombudsman Service could investigate cases and make a ruling.
If wrongdoing is discovered, the ombudsman would outline how the customers should be put back into the situation they would have been in, assuming the wrongdoing had not taken place.
"The level of debt and hardship caused by some payday loans is absolutely scandalous and people often feel completely powerless to do anything about it," said Gillian Guy, chief executive of Citizens Advice.
The industry's trade bodies have put codes of conduct in place to ensure that customers are treated fairly, and regulators have the power to withdraw credit licences from the worst offenders.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23547884#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
