Payday loan providers rarely cough up despite flurry of complaints to regulator

Payday loan providers rarely cough up despite flurry of complaints to regulator

Simply 5 per cent of complainants get financial relief, half the rate of other individuals who lodge grievances because of the CFPB

Scarcely 1 in 10 clients that have reported about being cheated or defectively addressed by way of a payday loan provider has seen any style of relief, in accordance with an analysis by Al Jazeera of information held by the regulatory authority tasked with protecting against loan sharks.

November figures from the Р’ Consumer Financial Protection Boards (CFPB) database show that the regulator followed up on 1,579 complaints since payday loan customers were first allowed to file grievances with the board last.

Of this 1,490 complaints which have been effectively closed, simply 11 per cent led to relief for the complainant. About 5 per cent triggered monetary recompense, and 6 % concluded aided by the customer getting some type of non financial relief, such as for instance modifications towards the people credit history.

Customer action teams praised the CFPB for finally supplying a portal to lodge complaints about predatory strategies by payday loan providers but stated that the true quantity of victims being handed right straight back cash had been little. Continue reading Payday loan providers rarely cough up despite flurry of complaints to regulator