Yes Loans forced to refund customers
Wales-based Yes Loans has been forced to be clear with customers it is not a lender and make refunds easier.
The Office of Fair Trading (OFT) has warned unless the firm does not improve and met the watchdog's standards it faces a fine of up to £50,000 and could lose its credit licence.
Yes Loans now needs to make it clear on its website and all literature that it offers a credit brokerage service - charging customers a fee for arranging a loan.
The firm offers loans to those with poor credit records, with its website advertising a typical APR of 48 per cent on deals.
The lender has come in for solid criticism from customers not taking up a loan that they could not get refunds.
Ray Watson, OFT director of credit, said: "Many businesses charge an up-front fee for brokering loans for consumers, and customers should be aware that if they use a broker but do not accept the credit offered, no matter what the reason, they are entitled to a refund less £5.
"The OFT will continue to take action against companies who fail to do so."
He added the OFT would continue to monitor the business practices of Yes Loans and "take further action if necessary".
The OFT also pushed Yes Loans to make its staff tell customers their have the right to cancel with 14 days and receive a refund.
Written requests for refunds will have to be answered within 30 days.
The OFT also ordered Yes Loans to stop linking to a separate website offering payday loans.
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