News & Resources

British consumers like short term loans

Nov 15, 2013 Simon Williams

When consumers don't like something, from service at a restaurant to a particular product, it's customary to lodge a complaint. This way, other patrons won't be subject to the same problems and the company in question can get to work improving conditions.

This is true for short term lenders as well. If borrowers are unhappy, they should voice their opinions and sentiments so that change can be implemented. This is a good course of action, as this way, company leaders can be made aware of the scenario and try to amend the situation for everyone involved.

However, one prominent British group found that there simply aren't that many individuals upset with the sector. The International Business Times reported that so far in 2013, the Consumer Credit Trade Association (CCTA) has only received 36 complaints against the industry.

Moreover, CCTA Chief Executive Greg Stevens told a House of Commons Business, Innovation and Skills Committee that 19 of these filings came from one person, and that 2012 only saw 15 complaints in total.

But as for the complaints that were lobbied, what should lenders do? This is easy enough to answer, as thanks to legislation, the company leaders can see exactly what the issues were - perhaps the borrowers weren't clear about the terms of the loan, or maybe a representative falsely attempted to collect funds. Administrators might consider taking note of the most common complaints and reworking their brand's strategy to amend the issues at hand. This could require more employee training or a company-wide review of best practices. Whatever the new tactic is, lenders have to be willing to put forth any amount of effort to improve the reputation of the sector.