Financial Ombudsman Service (FOS) Chief Executive Caroline Wayman said it is possible one-click loans taken out through smartphone applications and websites is possibly the source of mass-scale mis-selling. It is also possible that consumer data trust breaches can potentially increase through these new services.
Ms Wayman, speaking in the Parliament’s Treasury Select Committee, said it is “an area to watch.”
On PPI, she said that the FOS is reinforcing all its lines as they anticipate a “finishing rush” among last-minute consumers who wish to make a claim before the PPI claims deadline passes. However, she anticipates that payday loans and one-click financing might succeed PPI complaints given the rising complaints coming from consumers.
With limited options and troublesome jargon in most one-click loan websites, most consumers find the immediate approval of their financing convenient. However, it also deprives some information about consumers, namely about the annual percent rate’s initial value and increase over months.
The payment protection insurance scandal will end on August 29, 2019. However, claim company surveys reveal majority of consumers do not know a deadline exists, which increases the likelihood of a bottleneck by the last few months before the PPI claims deadline.