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Home Business News Payday lender writes off £500,000 of loans

Payday lender writes off £500,000 of loans

by LLB staff reporter

The Competition and Markets Authority (CMA) found that Shelby Finance failed to provide a “summary of borrowing” statements to over 15,000 customers.

The CMA said this happened between August 2018 and July 2019, and the statements help customers to make timely and informed decisions, which tell them how much the interest or fees they can be expected to pay.

The CMA said that after Shelby Finance were contacted, the wrote off around £500,000 of loans to customers who were affected.

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, Shelby Finance’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.”

Shelby Finance apologised and have put measure in place to ensure they comply in the future.

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