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Gen Z’s seeking Financial Ombudsman support for loans and credit cards rises by 200% in five years

The number of 16-24-year-olds contacting the Financial Ombudsman Service (FOS) for help with loans, credit cards and debt services has increased by more than 200% over the last five years, new figures show. 2,858 enquiries were made to the FOS last year about loans from Gen Z’s, up from only 947 in 2016/17 - a 213% increase.

The figures were obtained by London-based financial app W1TTY via a Freedom of Information request.

Complaints about credit services including credit cards rose by 210% during the same period, increasing 42% year-on-year on average.

Meanwhile the number of young people seeking help for debt services, including current accounts, increased a further 205%.

The figures highlight a worrying trend in the number of young people struggling with loans and credit services.

A survey from MoneySuperMarket found that more than half (59%) of 18-24-year-olds now have a credit card.

Ammar Kutait, CEO and Founder of W1TTY, a smart finance app aimed at Gen Z’s, said: “This upward trend in young people seeking FOS support is worrying and reflects the rise in young people turning to loans, credit cards and other credit facilities to support their finances.

“It is important young people have access to the tools and advice to make the right choices when it comes to managing their finances. Providing financial education on how to spend and invest sensibly is key if we’re to avoid Gen Z’s becoming a generation of debt.”

W1TTY secured its EMI license from the FCA last year and will be launching in the UK in the coming months. The London-based fintech aims to fill a gap in the finance market by providing young people with specific services for their financial needs, including an educational platform, 24/7 customer service support and industry-leading rewards programs. The app is already operational in Portugal, Poland and Lithuania.

This was posted in Bdaily's Members' News section by Company .