The ombudsman wants more reasonable terms for loans that are not covered by new rules aimed at capping prohibitively high interest rates on consumer credit. Finland's Competition and Consumer Authority, KKV, could begin a class action lawsuit against two payday loan firms over extortionately high interest rates. The Finnish consumer authority is investigating the companies for allegedly charging up to €1,000 per month in fees on loans that were not repaid. If an agreement is not reached, KKV will take one month to gather plaintiffs before launching Finland's first ever class action suit. If the ombudsman wins, consumers would only have to pay up to 50% of the real annual interest rate on their loans, cutting individuals' costs by hundreds of euros.
Finland's Competition and Consumer Authority, KKV, could begin a class action lawsuit against two payday loan firms over extortionately high interest rates. The Finnish consumer authority is investigating the companies for allegedly charging up to €1,000 per month in fees on loans that were not repaid. If an agreement is not reached, KKV will take one month to gather plaintiffs before launching Finland's first ever class action suit. If the ombudsman wins, consumers would only have to pay up to 50% of the real annual interest rate on their loans, cutting individuals' costs by hundreds of euros.