Miscalculation sees lender now owes borrowers.
People who took out loans with internet-based lender Rapid Loans are getting a refund of the unreasonable fees they were charged – plus an extra 5%.
A budget adviser tipped off the Commerce Commission to the fees being charged by Rapid Loans. Following an investigation, the Gold Coast-based lender agreed to refund about $1.4 million. The commission found the lender had charged unreasonable establishment, monthly administration and default fees on more than 6000 loans between 1 July 2013 and 30 June 2015.
Those due refunds will also get back an extra 5% to reflect the lost opportunity to use the money.
Commissioner Anna Rawlings said “This case reflects how much we appreciate the information that we get from consumer organisations. The complaint we received related to only one loan contract but in fact Rapid Loans’ conduct affected a large number of borrowers who would not have been in a position to take their own action.”
Rapid Loans now has to try to contact every affected borrower that is owed more than $20. Anyone who thinks they are due a refund from Rapid Loans can contact the lender.