CMA gets payday lender loan written off
The French Competition and Markets Authority (CMA) found that Shelby Finance failed to provide loan statement summaries to more than 15,000 customers between August 2018 and July 2019, despite being required to do so. under the CMA payday loan order.
These statements help customers make timely and informed decisions by telling them, among other things, how much interest or fees they owe on their loans and when their next payment is due. The information can also help customers find a loan that best suits their needs. Research indicates that payday loans are often used by the most vulnerable consumers, and the CMA is particularly concerned about the impact this violation could have on them.
After being contacted by the CMA, Shelby Finance canceled loans of around £500,000 for some of the customers affected. He also apologized, emailed late borrowing summaries, and retrospectively made borrowing summaries available online for customers. Additionally, Shelby Finance has measures in place to ensure future compliance. CMA will continue to monitor its progress and may take formal enforcement action if further violations occur.
Alistair Thompson, Director of Recourse, Business and Financial Analysis at CMA, said:
The summaries we ask payday lenders to send to customers are essential to helping borrowers make informed decisions about their loans.
While it is disappointing to see so many misinformed customers, Shelby Finance’s commitment to write off £500,000 of loans will help to remedy this situation. We will continue to monitor the situation and take further action as necessary.
More information is available on the CMA website.