A payday loan company needs nearly $ 35 million
CFO Lending, which traded under a number of names including Payday First and Money Resolve, had a number of “serious flaws” in its practices dating back to when it started doing business in April 2009, according to the Financial Conduct Authority (FCA). . As a result, the regulator is forcing the company to repay £ 34.8 million to more than 97,000 people in compensation.
In August 2014, after an investigation by the watchdog, CFO Lending ceased contact with its customers due to outstanding debts. The FCA then banned the company from issuing new loans in February of that year and limited its activity to collecting existing debts with “limited permission.” If you want to know more click here for info.
A crackdown on the industry follows, imposing stricter rules on lenders. Large and small companies are affected by the tightened regulation including huge lender Wonga who is now losing money.
CFO lending has been identified by the FCA as an unfair practice towards customers.
She sent misleading and threatening texts, letters and e-mails; Customers repaying more than they owed because their systems contained the wrong information; and gave false information about customers to credit bureaus. The FCA also found that the company had withdrawn money from customers’ bank accounts without their permission.