Loan company pays back $122K
A short-term loan lender has returned more than $120,000 to customers after it potentially breached consumer credit laws by failing to disclose key information.
Cash in a Flash were alerted by the Commerce Commission that its consumer credit contracts were unlikely to comply with legislation amended last year, meaning it should not have enforced interest or credit fees.
The company voluntarily returned $122,365 back to borrowers.
It was discovered that Cash in a Flash did not provide their financial service provider registration number, details of their dispute resolution scheme or customer rights to apply for relief on the grounds of unforeseen hardship.
Commerce Commissioner Anna Rawlings warned the lender about its conduct and said clear information was vital for customers to understand what they're agreeing to before they sign financial contracts.
"It has been nine months since the amended consumer credit law came into force and we are regularly taking enforcement action to protect consumers from lenders who break the law," she said on Thursday.
"As this case demonstrates, the magnitude of refunds can quickly add up for lenders."