Credits|The Consumer Ombudsman urges borrowers to demand reimbursement.
Credit unions Blue Finance Suomi and Bondora violated the price regulation stipulated for credit companies in the Consumer Protection Act, according to the Supreme Court (KKO). About the solution told The Finnish Competition and Consumer Authority, which urges consumers who have taken out a loan to complain and demand a refund.
KKO stated that when offering credits, the companies had charged various cost items that had not been counted towards the maximum amount of credit costs. The arrangements resulted in consumers having to pay more for loans than is allowed under the Consumer Protection Act.
With the help of the services offered by the credit companies, the consumer had the opportunity for a separate payment, for example, to change the repayment schedule, receive messages about credit or order a paper invoice.
The Supreme Court is evaluating the question of whether the fees charged by credit companies should be considered credit costs within the meaning of the Consumer Protection Act. KKO considered that the services in question were part of a contractual entity based on a credit relationship. It did not matter whether the service underlying the payment was voluntary or mandatory.
The Market Court previously imposed a fine of 100,000 euros on Blue Finance and a prohibition to continue pricing in violation of the Consumer Protection Act. The Supreme Court upheld the fine and ban.
Interest rate cap if exceeded, it follows that the consumer who signed the credit agreement has no obligation to pay the credit costs at all. The rule also applies retroactively. If the consumer has paid credit costs, the payments must be deducted from the credit capital and the consumer has the right to get back payments that exceed the credit capital.
“Consumers should complain to Blue Finance Suomi and Bondora so that they can receive the refunds they are entitled to by law. Reimbursement can be claimed for both valid and already repaid credit agreements,” states the consumer advocate Katri Väänänen in the bulletin.
The website of the Finnish Competition and Consumer Authority has sidekickwhich guides the consumer in preparing a complaint.
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