First Direct refunding borrowers after admin error

Banking and Borrowing

Updated on 05 January 2015 | 0 Comments

Refunds on the way due to small print mistake.

First Direct is refunding borrowers who weren’t told that they could overpay on their loans.

The annual statements of those affected failed to mention this, even though it’s required under the Consumer Credit Act.

As a result, borrowers may not have known that they could pay off their loans early.

The error affects borrowers who took out a loan after 20th November 2010 and received their first annual statement on or before 3rd July 2014. The issue was brought to light by parent bank HSBC back in August last year.

First Direct is contacting everyone who is eligible for a refund, so they needn’t take any further action. Refunds will be paid from the time that the error occurred.

The bank believes that most borrowers did not suffer any detriment as a result of the mistake as they were aware that they could overpay anyway.

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