Shelby Finance is writing off loans of more than £500,000 after failing to provide a summary of borrowing statements to more than 15,000 customers, between August 2018 and July 2019.
The Competition and Markets Authority (CMA) requires borrowing statements to be provided under the CMA’s Payday Lending Order. After being contacted by the CMA for the breach, Shelby Finance committed to write off £527,863 for the customers affected.
In addition to writing off loans, the payday lender has also had to send late summaries of borrowing by email and retrospectively make summaries of borrowing available online.
In a letter to Shelby Finance, the CMA said it found the breach particularly concerning due to the impact on potentially vulnerable customers. The letter said: “Shelby Finance’s failure to provide summaries of borrowing at the time may have led to customer detriment and had an impact consumer decision making.”
Alistair Thompson, CMA director of remedies, business and financial analysis, said: “While it is disappointing to see so many customers not being properly informed, Shelby Finance’s commitment to writing off £500,000 in loans will help put this right.”
Thompson added: “We will continue to monitor the situation and will take further action if needed.”
Last year, Shelby Finance acquired a competitor, Curo, after Curo had entered administration.