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Loan gripes soar as families struggle to afford repayments in pandemic

Loan gripes soar during the pandemic as families struggle to afford repayments

Complaints about loans soared last year as families struggled to afford repayments in the pandemic.

Guarantor loans, which are typically taken out with the backing of a family member, were the most complained about finance product between October and December.

The Financial Ombudsman Service, which handles loan disputes between individuals and financial firms, dealt with 10,321 cases compared to roughly 300 in the same period the year before. 

Guarantor loans, which are typically taken out with the backing of a family member, were the most complained about finance product between October and December last year 

More than 6,000 complaints were also made about home credit loans that are agreed on the doorstep.

Martyn James, from complaints website Resolver, says: ‘What we saw was people use loans to get through lockdown. 

‘At first, complaints didn’t increase much as there were more immediate problems. 

‘Then as furlough schemes withdrew, and businesses went under, more people sought help.’

a.murray@dailymail.co.uk

Read more at DailyMail.co.uk