The CMA have written to Shelby Finance Limited regarding breaches of Part 4 of the Payday Lending Market Investigation Order 2015 (the “Order”). Shelby Finance breached the Order by failing to send out summary of borrowing statements in accordance with the Order.
These statements help customers to make timely and informed decisions by telling them, among other things, how much interest or fees they are expected to pay on their loans and when their next payment is due. The information can also help customers shop around for a loan that best suits their needs.
A total of 15,218 customers were affected at points between August 2018 and July 2019.
As a result of being contacted by the CMA, Shelby Finance has written off loans of approximately £500,000 for some of the customers affected. It has also apologised, sent late summaries of borrowing by email and retrospectively made summaries of borrowing available online for customers.
The CMA will continue to monitor its progress and may take formal enforcement action if further breaches take place.