Cash back for overcharged consumers
Posted by editor (editor) on Dec 22 2009
2009 >>

The Office of Fair Trading has negotiated the reimbursement of almost $6000 to consumers who were overcharged on loan repayments from an online financial lender.

Minister for Fair Trading Peter Lawlor said the loan provider, Golden Bridge Enterprises (Aust) Pty Ltd, was also hit with a $10,000 fine and ordered to pay more than $300 court costs in a decision handed down by the Brisbane Magistrates Court earlier this month (09/12/09).

“A compliance check was initially carried out on Golden Bridge Cash Solutions’ business operations, run through their website www.cashsolution.com.au, in August 2008,” Mr Lawlor said.

“Golden Bridge, which offered consumers small loans of between $50 and $1500, was investigated by Fair Trading inspectors regarding their loan practices.

“Golden Bridge was found to have overcharged 132 Queensland customers between November 2007 and October 2008 by applying an annual interest rate of 486.89%.

“Interest rates in Queensland have been capped at 48 per cent since July 2008 to protect consumers from paying too much in interest and getting themselves further in debt.

“This was a clear example of exploiting consumers in need of financial assistance.

“Fair Trading officers were able to negotiate the return of money to those consumers who had been overcharged on their repayments.

“In addition, Golden Bridge ceased offering loans to Queensland residents from October 2008.

“Office of Fair Trading inspectors will continue to monitor the industry closely and won’t hesitate to take action against rogue traders who persist in ripping off their customers.”

Further information about financial lending is available at www.fairtrading.qld.gov.au or by calling 13 13 04.

Last changed: Jan 07 2010 at 2:23 PM