CNPF finds breaches in 28 MOGO LOANS credit contracts and orders refunds
The financial regulator found breaches and unfair terms in 28 credit contracts signed by the car lender MOGO LOANS.
What it means for you
If you have a loan from MOGO LOANS, you can ask the company to check your contract and the costs you paid. Where the legal cost limits were exceeded, the company must refund the extra amounts it collected. The company must also review its other credit contracts for similar breaches.
What happened
The National Financial Market Commission (CNPF) found breaches of the law and unfair contract terms in 28 credit contracts of MOGO LOANS SRL, a car finance company. The company must fix the breaches and, where needed, refund interest, fees and penalties. CNPF also says it will ask a court to declare the unfair terms void.
In short
- CNPF found breaches in 28 credit contracts signed by MOGO LOANS.
- The problems include misleading information about real costs and limits on early repayment.
- In some cases, loan costs went above the ceilings set by law.
- MOGO LOANS belongs to Eleving Group, which has roots in Latvia, and is fully owned by the Latvian company AS Eleving Stella.
- For a car loan of 100,000 lei over 36 months, the fixed annual interest is 42% and the annual effective rate reaches 58.86%.
Original sources
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