Lenders repay £149 million over errors

Would you regard it as utterly trivial if a P2x company overcharged some borrowers into paying too much interest, capital or both?

One thing about this that is clear is that the P2x companies are solely responsible for all of the loan calculations and documentation, so responsibility seems very clearly not with the lenders. Of course, in this the P2x firm is acting as an agent of the lenders, so ultimately if the P2x firm became insolvent it's the lenders who weren't entitled to charge the interest for each year with an inaccurate annual statement, so it's the lenders who could end up paying.

Past stories have included cases of calculation errors. The OFT announcement of the current action is here.

Very disturbing news james. I don't suppose I can counter-sue the regulator for omitting to regularly, perhaps monthly, remind all lenders and P2x platforms of this draconian rule?

Any bets on it being Round Financing?

I knew about the rule soon after it was introduced. I'm not a person who makes their business doing consumer lending and I expect those in that business to know the law no less well, and ideally much better, than I do. It shouldn't be hard to meet at least the mandated text parts. The relevant government department even provided lists of things to do to check that lenders were compliant. Interest calculation errors, well, I do expect calculations to be right also. It's another thing that should be a core competency of such a business.

I told at least one P2P vendor about it and asked them to be sure that their systems got it right.

Here, I'm posting in a place where I hope that P2P lenders lending to consumers will notice and act, since paying now beats paying later. Self-reporting to the regulator beats the regulator finding out in other ways because it increases the likely chance of and amount of penalties for breaking the law. Even self-reporting will be expensive if it's gone on for a long time.