COMPLAINTS by people who have fallen foul of payday loan firms have shot up, with poor service and aggressive debt collection at their core, the Financial Ombudsman Service (FOS) revealed yesterday.

In the last two years the complaints lodged with the ombudsman by disgruntled users of companies such as Wonga and QuickQuid have soared from 296 to almost 800. 

Shadow minister for competition and consumer affairs Stella Creasy — who has campaigned relentlessly against loan sharks — labelled the data as a “confirmation of our status as a nation of silent sufferers.”

The figures barely compare with the 66,500 people who reached out to charity StepChange after finding themselves unable to repay their debt.

The FOS argued that many are still reluctant to place a complaint “because of the stigma associated with short-term lending.”

Citizens Advice stated in a briefing to Parliament earlier this year that more than 75 per cent of those struggling with repayment could have a case in their favour. 

But trade unions argued the problem has deeper roots and better solutions are needed.

“Unscrupulous payday lenders are raking it in aided and abetted by this government’s austerity agenda,” said Unison general secretary Dave Prentis.

Unison has been keen to support safer ways of borrowing money, particularly through credit unions. 

“The public needs to be made more aware of alternatives,” added Mr Prentis. 

The ombudsman findings come a week after new rules and regulations have been imposed on the £2.8 million industry by the Financial Conduct Authority.

Payday lenders are now barred from the rolling-over of successive loans and banned from raiding a customer’s bank account more than twice for repayments.