Recommendation - 13 January 2017

Key Issues: Personal loan | Loan application | Lease application | Medium amount contract | Consumer lease | Interest rate cap

Case summary

The consumer’s complaint is about her lease with the FSP, entered into on 6 June 2014.

We find that the consumer’s arrangement with the FSP, while called a lease, in fact operates as a personal loan. As a result, the FSP has failed to apply the 48% interest rate cap.

To resolve this complaint, we recommend that the FSP refund $990.38 to the consumer. 

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  Recommendation |  13 January 2017

This complaint was referred to the Ombudsman for a Determination.