People who borrowed from moneylenders might be able to have such loan written off and claim compensation afterwards, it has been revealed today.
This follows a court case recently won by a Donegal couple, who took on the State’s largest moneylender through the financial services ombudsman.
The couple had taken loans from Provident Personal Credit, but they were reportedly and illegally offered to take new loans before paying off the previous ones. The couple complained to the financial ombudsman, won the case, and got compensation.
They had £4,370 (€6,780) in loans written off, and were subsequently awarded £450 (€698) each in compensation.
It is now believed that up to 100,000 people in similar circumstances may be able to follow the same process to have their loans written off and receive compensation.
Provident was fined €105,000 by the Central Bank last December after the practice of illegally refinancing existing loans was brought to the attention of the Central Bank by whistleblowers working for the firm.