Vanquis Bank is to pay 1.2 million customers around £169 million in compensation and a further fine of £1.9 million following an investigation by the Financial Conduct Authority.
The credit card firm was investigated over its credit card repayment offer, which allowed customers to freeze their account for up to two years without incurring any interest, or take a payment holiday once a year.
The Financial Conduct Authority has today ruled that Vanquis didn’t tell customers that the full cost of the product included an interest component where there was an end of month unpaid balance on their credit card, with the APR ranging between 19.9% to 79.9%.
Customers who are affected by this will automatically receive the compensation, even if they are no longer with Vanquis Bank. We’re checking full details of how this will be organised and how to make sure Vanquis has your up-to-date contact details, and will update this story when we know more.
More to follow…