Over a third of complaints against crowdfunding platforms upheld
Around a third (36 per cent) of complaints against crowdfunding loan platforms were upheld in the nine months to 31 December 2019, data from the financial ombudsman service (FOS) has found.
Out of 109 enquiries, 18 were new and 13 went to the ombudsman.
The data was not broken down by company.
“My first reaction would be that it is no great surprise to see an increase given the well-documented challenges facing various P2P players in recent times,” said John Cronin, financials analyst, investment banking at brokerage Goodbody.
“However, I remain of the view that the failures of certain institutions as well as the changes effected by the FCA put the overall sector – and most of the remaining players – on a much more stable footing.”
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Overall, from the start of October until the end of December, the FOS received 195,851 new enquiries and 83,754 new complaints, with 9,160 passed to an ombudsman for final decision.
On average the service upheld 34 per cent of the complaints it received.
PPI continued to be the most complained about product, with its 41,510 new complaints making up around half of all complaints the ombudsman received.
Meanwhile, the number of new complaints relating to guarantor loans is on the rise. The FOS received 172 new guarantor complaints in the second quarter of last year and 303 new complaints in the third quarter of 2019, with an upheld rate of 95 per cent and 90 per cent respectively in the periods.
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This compares to 141 new guarantor cases received in the first quarter of 2019 with an upheld rate of 83 per cent.
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According to Goodbody, the vast majority of the guarantor complaints relate to beleaguered guarantor loans provider Amigo Loans.
The subprime lender put itself up for sale in January, noting increased pressure on the business due to a regulatory crackdown and a rise in customer complaints.
