Money lender Moola to reimburse clients $ 2.8 million for ‘unreasonable’ charges
Moola will issue approximately $ 2.8 million in credits or refunds to affected customers over the next 12 months. The amount of the credit or reimbursement will be the difference between the actual fees charged to the customer and the reasonable fees calculated by the Commission.
Following complaints from a budget service and concerns raised by the tribunal de grande instance regarding the level of Moola’s fees, the Trade Commission was invited to intervene in a debt collection procedure in September 2017.
During the investigation, he found that a default fee of $ 60 had been billed, while the reasonable fees calculated by the Commission were between $ 10.24 and $ 15.66 (depending on when the fees were billed).
The fees charged to set up loans (set-up fees) were $ 150 or $ 350 depending on the length of the loan, with reasonable fees being $ 4.47 or $ 5.48. Moola charged a processing fee of $ 50, while the reasonable fee calculated by the Commission was $ 10.86 or $ 12.25.
Commission President Anna Rawlings said the fees charged by Moola between 2016 and 2017 were not closely aligned with its activities.
“We consider that during the relevant period, Moola’s default charges, set-up charges and processing charges recovered costs that were not closely related to the matter for which the charges were. billed, as required by the CCCFA, ”Rawlings said.
“Moola acknowledges our point of view and is committed to crediting or reimbursing affected customers the difference between the charges billed and the charges we calculated were reasonable charges.”
The Commission also said that Moola had cooperated in its investigation and reduced its fees before and during the investigation. In June 2020, Moola introduced a cap on the daily rate.
Due to business disruption caused by COVID-19, Moola had six months to calculate the refunds she owed to customers.
Moola confirmed to the Commission that the affected customers have been identified. The difference between the amount invoiced by Moola and the reasonable amount advanced by the Commission has been calculated.
Customers who took out loans between February 2016 and July 2017 identified by Moola as having been charged unreasonable fees can expect to receive credit or reimbursement within the next 12 months.
Customers are encouraged to check the Moola website for updates.