More than thousands of Payday customers have complained against the lender to get refund.
Customer complaints about payday lenders have rocketed by 355% since an industry clampdown.
The Financial Ombudsman Service received 4,186 gripes about payday loans in the first six months of this year, figures out today reveal.
That is up from 1,213 in the second half of last year and 920 between January and June 2015.
The total is still small relative to the size of the payday industry, but it marks a dramatic rise since new rules on payday providers came into force in January last year.
The shake-up, overseen by the Financial Conduct Authority, includes a cap on the sky high interest rates firms were charging.
A recent report from Citizens Advice showed lenders were failing to carry out basic checks on borrowers. Insiders suggested the rise could be down to increased public awareness of the rules.
The ombudsman, which settles disputes between customers and lenders, took on a total of 169,132 new cases in the first half of 2016, up 3% on the previous six months.
Payment protection insurance continued to dominate, making up 54% of new complaints, while disputes about packaged current accounts fell.
Chief ombudsman Caroline Wayman said: “Although it’s a few years now since PPI complaints peaked, we have been receiving over 3,000 a week for six years running – despite wider expectations that numbers will fall.”
The FCA wants to set a deadline of June 2019 for PPI claims.
Today’s reports shows Lloyds is the most complained about bank, with 22,241 in the first half of this year, up 7% on the previous six months. Next was Bank of Scotland, up 9%, although the number of disputes involving third place Barclays fell 11%.
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