Pawnbroker H&T was found to have wrongly sold 9,800 loans to 8,000 customers between April 2014 and October 2019. It will now refund customers up to £2million.
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Pawnbroker H&T is to repay customers more than £2million after some people were sold loans they could not afford.
A review found that 9,800 loans to 8,000 customers between April 2014 and October 2019 should never have been granted by the lender.
This represents about 11.5% – more than one in ten – of the total loans granted by H&T during this period.
The company has been reviewing these loans since 2019 and has now been given the green light to move forward with a compensation scheme by the Financial Conduct Authority.
H&T will pay £1.6m directly to customers, with an additional half a million available to adjust the balance of their outstanding loans.
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On average, each customer will receive £264, according to H&T chief executive Chris Gillespie.
He added: “H&T is committed to providing services that maintain the highest standards of customer service and regulatory compliance, and we have cooperated fully and constructively with the FCA throughout this review.
“We are pleased that the review is now complete and that the majority of HCST loans made by H&T are considered to have been loaned responsibly.”
How do I request my refund?
Those who need to be refunded should be contacted directly by H&T, who will walk you through the next steps in the refund request process.
“Customers whose loan should not have been granted and who are entitled to repair will be contacted directly and we will endeavor to complete the repair program as quickly as possible, so as not to prolong the uncertainty further,” said Mr. Gillespie.
We asked H&T if there is a specific contact line or email address for customers to contact us, if they haven’t heard from the lender but suspect they need to be refunded, and we will update this article when we receive a response.
Have you taken out a loan from H&T Pawnbrokers? Let us know: [email protected]
The Mirror also checks if there is a deadline for requesting your refund.
The amount you get back will depend on how much you borrowed and for how long. You will probably have to prove that you could not pay your loan.
If you believe you are entitled to a refund, you should start gathering evidence of your refunds – for example, letters or emails you have received from H&T.
You may still qualify even if you’ve finished paying off your loan.
A pawnbroker offers secured loans to people in exchange for an item of value.
If the person cannot repay this loan within an agreed period, the pawnbroker keeps the object as collateral.