Discretionary Commission Arrangements - Compaints and refunds
Moneybarn is a British car finance provider owned by Provident Financial Group plc. In 2019, Moneybarn reported an income of £922m and a total addressing balance of £3.4bn. Their net interest margin for the year was 7%. The company's latest financial report showed that underlying profits had risen by 9%, from £51m to £55m, although overall profit before tax reduced from £71m to £64m due to increased investment in customer service.
Moneybarn has recently been fined by the Financial Conduct Authority (FCA) for not helping customers who fell into debt difficulties and for unfair treatment of customers in arrears. As a result, they have had to set aside more than £30 million to pay back customers who were treated unfairly when they fell behind on their loans. This could have an impact on their financial performance in the coming months and years.
MoneyBarn has been in the news recently for all the wrong reasons. The Financial Conduct Authority (FCA) fined Moneybarn £2.77 million for not helping customers who fell into debt difficulties and for unfair treatment of customers in arrears.
The car finance provider was also ordered to pay more than £30 million to almost 6000 customers who were treated unfairly when they fell behind on their loans. Customers have complained that Moneybarn failed to check that the loan was affordable and have accused them of being a 'shady' company that should have been closed down years ago.
The FCA found that Moneybarn had not done enough to help customers who were struggling with their repayments, and had not taken appropriate steps to ensure customers could afford their loans in the first place. They also found that Moneybarn had charged too much for extra features, such as payment holidays, which left some customers trapped in poverty premiums and ‘rip-off’ high cost credit agreements.
It is clear from these findings that Moneybarn has been taking advantage of its customers by charging too much and failing to provide adequate support when they fall into debt difficulties. It is important for consumers to be aware of companies like this so they can make informed decisions about where they take out loans from in future.
https://www.trustpilot.com/review/www.moneybarn.com
https://www.thesun.co.uk/money/10979059/moneybarn-repays-30million-6000-customers-unfairly-loans/