A payday lender has been forced to write off £527,863 after failing to send statements as required to 15,218 customers over a 12-month period.
These borrowing statements need to be provided by lenders under the Competition and Markets Authority’s Payday Lending Order. The statements give information such as the amounts of interest and fees borrowers are expected to pay on their loans and when their next payment is due. The information is also designed to help customers shop around after concerns were revealed about the lack of competition in the payday loan sector.
In this case, the CMA said that it was especially concerned that the lender’s failure to provide the statements had adversely impacted a large number of vulnerable customers. By failing to provide the information as required, customers were unable to make informed decisions regarding their loans and some may have suffered detriment as a result.
The late statements have now been made available to the affected customers, both by email and online.
The CMA also says that the lender has put in place measures to ensure it complies with the requirement to send the statements in future.
Alistair Thompson, CMA director of remedies, business and financial analysis, said:
“The summaries we require payday lenders to send to customers are crucial in helping borrowers make informed decisions about their loans.
“While it is disappointing to see so many customers not being properly informed, [name of firm]’s commitment to writing off £500,000 in loans will help put this right.”
“We will continue to monitor the situation and will take further action if needed.”
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.