By Daniel Hunter
Citizens Advice has warned that up to 90% of payday loan customers may have grounds for complaints centring around unfair treatment.
Some borrowers of payday loans are having their accounts drained of funds because of automatic withdrawals by lenders.
This is down to the fact that some lenders use continuous payment authorities (CPAs) - recurring payments from accounts - to make sure repayments are made.
Citizens Advice analysed 665 cases of borrowers who approached the charity for help.
CPAs are commonly used by gyms and magazines to take renewed subscription payments automatically.
They are also used by payday lenders to collect repayments directly from someone's bank account.
Citizens Advice chief executive, Gillian Guy, urged people to ensure they fight for their rights.
"People can feel powerless when unscrupulous payday lenders use CPAs to run amok in their bank accounts. Now, we're reminding consumers that they can fight back," she said.
"Misuse of CPAs can leave people without money to eat, pay rent or get to work, and can force people further into debt to stay afloat. If you've been badly treated, and the lender hasn't put right their mistake, then you can complain to the Financial Ombudsman."
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