Moola will provide loans or refunds of approximately $ 2.8 million to affected customers over the next 12 months. The amount of the credit or refund will be the difference between the fee actually charged to the customer and the reasonable fee charged by the commission.
Following complaints from a housekeeper and the district court’s concerns about the amount of Moola fees, the Trade Commission was asked in September 2017 to intervene in the debt collection process.
During the investigation, it emerged that there was a $ 60 outage charge, with the reasonable charge charged by the Commission ranging from $ 10.24 to $ 15.66 (depending on when the charge was made).
Loan setup fees (setup fees) were either $ 150 or $ 350, depending on the loan term, with the appropriate fee being either $ 4.47 or $ 5.48. Moola charged processing fees of $ 50, with the reasonable fee charged by the Commission being either $ 10.86 or $ 12.25.
Commission chair Anna Rawlings said the fees charged by Moola between 2016 and 2017 were not closely aligned with their activities.
“We believe that Moola’s downtime fee, setup fee and processing fee reimbursed costs during the relevant period that were not closely related to the matter requested by the CCCFA,” said Rawlings.
“Moola recognizes our views and is committed to crediting or reimbursing affected customers as a reasonable fee for the difference between the fee charged and the fee we charged.”
The commission also said Moola helped with the review and cut fees before and during the investigation. In June 2020, Moola introduced a cap on the daily rate fee.
Due to operational disruptions caused by COVID-19, Moola was given six months to calculate the refunds due to customers.
Moola confirmed to the Commission that affected customers have been identified. The difference between the amount charged by Moola and the reasonable amount proposed by the Commission has been calculated.
Customers who took out credit between February 2016 and July 2017 and who were deemed inappropriate by Moola can expect to receive a credit or refund within the next 12 months.
Customers are encouraged to check the Moola website for updates.
