The Finnish Competition and Consumer Authority (KKV) on Tuesday revealed that over 1,500 Finns have pre-registered or sought assistance in connection with class actions to be brought against two payday loan providers. (Martti Kainulainen – Lehtikuva)

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OVER 1,500 Finns have pre-registered for or sought assistance in connection with class actions to be brought against two payday loan providers, reveals the Finnish Competition and Consumer Authority (KKV).

The pre-registration window for the class actions against Euro24 Finance and J.W. Yhtiö ended on Friday, 22 November.

The Consumer Ombudsman will next begin negotiations with the payday loan providers, which imposed real annual interest rates of over 300 per cent on 2,000-euro loans granted between mid-2016 and 2019. If a mutually satisfactory settlement cannot be found in the negotiations, the class actions will be filed with the District Court of Helsinki.

The real registration will in that scenario begin next year.

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“Tens of thousands of debtors have suffered from these two unreasonably costly loans, and we therefore hope that the group grows even larger,” said Consumer Ombudsman Katri Väänänen.

KKV stated in its press release that a total of 1,549 people contacted it to either pre-register for or request assistance in connection with the issue. Over four-fifths (85%) of the contacts were pre-registrations and the remaining 15 per cent assistance requests from people who are unable to participate in the class actions because a court has already ruled on or is considering their situation.

“We are satisfied that we were able to put together such a large group of pre-registrants and proceed to the negotiations. There are still a number of possible outcomes to this effort, but we are confident that many consumers will receive some relief to their unreasonably high borrowing costs,” said Väänänen.

Aleksi Teivainen – HT
Source: Uusi Suomi

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