First Direct to refund borrowers after personal loan blunder
Bank has to pay money back to customers after small print omission.
Online bank First Direct has been ordered to repay money to loan customers after not including information about overpaying in the small print in loan statement.
Under the Consumer Credit Act, lenders have to tell borrowers they can pay their loans off early.
The error affects borrowers who took out a loan after 20th November 2010 and received their first annual statement on or before 3rd July 2014. The issue was brought to light by parent bank HSBC back in August last year.
First Direct is contacting everyone who is eligible for a refund, so they needn’t take any further action. Refunds will be paid from the time that the error occurred.
The bank has argued that most borrowers did not suffer any detriment as a result of the mistake as they were aware that they could overpay anyway.
Comments
Do you want to comment on this article? You need to be signed in for this feature