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 watchdog is lobbying JW-Yhtiot and Euro24 Finance to cancel customer agreements or cut annual interest costs in half as part of an out-of-court settlement. 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.