Credit Strategy – Top Credit News by Credit Strategy
The Competition and Markets Authority (CMA) requires that loan statements be provided under the CMA’s payday loan order. After being contacted by the CMA for the breach, Shelby Finance pledged to write off Â£ 527,863 for affected clients.
In addition to writing off the loans, the payday lender also had to email late loan summaries and retrospectively make loan summaries available online.
In a letter to Shelby Finance, the CMA said it found the breach of particular concern because of the impact on potentially vulnerable clients. The letter read: “Shelby Finance’s failure to provide loan summaries at the time may have harmed clients and impacted consumer decision making.”
Alistair Thompson, Director of Recourse, Business and Financial Analysis at CMA, said: âWhile it is disappointing to see so many clients not being properly informed, Shelby Finance’s pledge to set aside Â£ 500,000 of loans will help remedy this.
Thompson added: “We will continue to monitor the situation and take further action if necessary.”
Last year, Shelby Finance acquired a competitor, Curo, after Curo entered administration.