Credit card company to refund £4m to customers

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Credit card company to refund £4m to customers

This is a duplicate of the Blog Entry made on: 24th March 2016 14:58

Credit card firm NewDay will refund over £4m to more than 180,000 customers following disclosures made to the Financial Conduct Authority (FCA). In 2015, NewDay reported that it had undertaken a review of its business in preparation for the FCA’s new regulatory regime. This included looking at the fairness of its charging model. NewDay had identified that, in a small number of circumstances, default fees and other charges triggered additional charges in a way they considered unfair. Delays in posting transactions also meant some customers incurred additional charges NewDay felt were unfair. NewDay immediately proposed to make a series of changes, including the removal of circumstances when default fees may be charged and setting up a suite of tailored alerts to enable customers to avoid incurring fees by making prompt payments.

More recently, NewDay also proposed to provide redress to the impacted customers which theFCA will be monitoring. NewDay determines that around three percent of its customers will be due redress under its scheme. NewDay will be writing to customers due redress over the next two to three months. In most cases, the customers will receive a credit on their account. NewDay will also be contacting historic customers. A limited number of customers will receive a cheque for the redress owed. Customers may also receive various additional compensatory interest payments.....Read more here