The payday loan provider said the growing demand for the loans was paving the way for rogue operators.
Ian Porter, sales and marketing manager with Ferratum, said: “We have heard horror stories from customers about bad experiences they have had with other operators.
“One customer called in the police after falling victim to a scam in which the payday loan company demanded £100 up front before they would process his loan. The loan never came but the company used his bank details to take further money from his account.
“It was only after the customer noticed the shortfall in his account that he called in the police who then launched an investigation into the company.
“Rather than focussing on the bogus issue of high rates of interest, which are not relevant to short-term lenders such as ourselves, campaigners against the payday loan industry would be better served trying to root out the small number of unscrupulous operators trying to cash in on one of the fastest growing financial sectors.”
Ferratum has predicted that as many as two million people in the UK have taken out payday loans during the past year.
