Payday loan company to pay £35m in compensation

Payday loaners pay £35m in comp

The Financial Conduct Authority have said that payday loan company, CFO Lending, are going to compensate over 97,000 customers, with nearly £35 million in funds.

CFO Lending also traded as Payday First, Flexible First, Money Resolve, Paycfo, Payday Advance and Payday Credit, so if you've been a customer for any of those, someone will be in touch soon.

The FCA said that the affected customers were treated unfairly, and used systems that had shown incorrect balances for customers, which saw them overpaying.

CFO also misused customers' banking information and took payments without permission, as well as overusing continuous payment authorities, added the FCA.

The company was also chided for sending threatening communications which were misleading to customers, and gave inaccurate info regarding credit agencies.

There were also criticisms about the way the payday loan company treated customers who were financially struggling.

The FCA's Jonathan Davidson said: "We discovered that CFO Lending was treating its customers unfairly and we made sure that they immediately stopped their unfair practices."

"Since then we have worked closely with CFO Lending, and are now satisfied with their progress and the way that they have addressed their previous mistakes."

"Part of addressing these mistakes is making sure they put things right for their customers with a redress programme."

Affected customers will be contacted by March 2017.

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