Complaints about payday loan middlemen in the UK - so-called credit broking websites - have more than doubled in the last year, according to new figures.
The credit broking sites are designed to help people find the best value loan for their needs. But they can also charge hefty fees. However, according to the FOS, many consumers are unaware that they are using a broker, rather than a loan company itself. As a result, they readily enter their bank account details. But instead of receiving a payday loan, they are charged broking, or membership fees, of up to £100. Banking details are often passed on to other websites, meaning that some people have been charged multiple times. One woman was charged £70 by ten different sites, losing £700 in the process.