Pawnbroker refunds customers £2million for bad loans
THOUSANDS of borrowers could be eligible for reimbursement for unaffordable loans made between April 2014 and October 2019.
Pawnbroker H&T has announced it will refund customers more than £2million after finding more than one in ten loans should not have been granted at all.
Up to 9,800 loans made to 8,000 customers should have been rejected by H&T.
But that money is on its way back to customers, so if you borrowed cash between appointments, you could be owed back.
Specifically, from high-rate, short-term (HCST) loans made by the business during the period.
About 11.5% of HCST customers with unsecured loans are eligible for a refund.
Out of the total of £2m, £1.6m is on its way straight back to them as a refund.
That means each customer gets £264 on average, the company said.
The company has been reviewing these loans since 2019.
Regulators found that these products were unfairly sold to people and that the vendor failed to conduct the proper affordability checks.
Now the Financial Conduct Authority has given the green light to compensate customers.
The other remainder of the £2million cash pot will be available to adjust customers’ outstanding loan balances.
The company no longer offers expensive, short-term, unsecured loan products.
But you could be reimbursed for mis-sold loans even if you paid off the debt years ago – so it’s worth checking.
This is especially the case if you’ve been struggling with repayments or had to borrow money to keep up with them and got into debt as a result.
H&T announced that customers whose credit should not have been approved and who were due a refund will be contacted directly, so you don’t have to do anything to inquire about the refund.
The pawnbroker’s chief executive, Chris Gillespie, said: “H&T is committed to providing services that ensure the highest standards of customer care and regulatory compliance and we have worked extensively and constructively with the FCA throughout this review.
“We are pleased that the review is now complete and that the majority of H&T’s HCST loans are considered responsibly originated.”
We asked the company if there is a deadline to request a refund and will update this story once we know more.
The same goes for customers who think they’ve been impacted but haven’t been contacted – we’ll update this story once we know more about how to apply.
Exactly how much you get back depends on how much you borrowed and for how long.
You may need to provide details of the loan you have taken out with example emails or letters.
And you may have to prove that you couldn’t afford to take out the loan at the time you borrowed it.
It comes after millions had a chance to reclaim money from payday loans earlier in the year.
Provident Financial, Greenwood, Flo and Satsuma clients had until the end of February to sue for the badly sold loans that were issued between April 2007 and December 2020.
Meanwhile, QuickQuid customers could receive an average payout of £850.
And Money Shop, Payday Express and Payday UK customers saw cash refunds earlier this year.
Check out our guide to filing a bad loan claim and find a sample letter for filing a claim on the DebtCamel blog.
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