RENT-TO-OWN firm PerfectHome has been ordered to pay back lb2.1million to a large number of customers, in a victory for that Sun.
Some customers may have the loans wiped off, while others will be handed back cash because of the investigation by the financial watchdog.
In total, the rent-to-own firm, which takes weekly payments from customers for household goods, are obligated to repay 37,000 customers.
The news may come as the Sun launched its Stop The Credit Rip Off campaign aimed at exposing the real cost of borrowing from these firms.
On Monday, we called for more stricter affordability checks on rent-to-own firms however this still doesn't go far enough.
An investigation by the Financial Conduct Authority found that the hire purchase firm did not execute sufficient enough affordability checks which led to customers getting loans they couldn't manage to pay back.
The watchdog also found that some customers were charged late fees or arrears on their own insurance contracts, even though it was against PerfectHome's company policy.
Some customers were charged for insurance before they received the products, while some weren't always given a refund once they cancelled their agreement prior to the goods were delivered.
The FCA has ordered the firm to pay for lb1.7million to 4,000 customers who have been permitted to remove unaffordable policies.
The remaining lb400,000 will go to customers who were incorrectly charged late fees, made to pay insurance before their items arrived, and payments made before an insurance policy was cancelled before they received the products.
Jonathan Davidson, from the FCA said: "Unaffordable lending isn't acceptable in almost any circumstances. I'm pleased the firm has taken steps to deal with this and supply redress to people customers affected."
Customers won't need to take any action as PerfectHome will notify you if you are owed reimbursement.
Mike Sweetland, Leader of PerfectHome, said: "We wish to say sorry to our customers and we're putting that right. Those affected will be receiving letters from me personally with information about their redress payments which will be produced by cheque or balance adjustments."
Gillian Guy from Citizens Advice said: “While today's announcement is nice news for the 37,000 people affected, we need to recognise there are still fundamental problems in the rent-to-own sector.
“This is the third time that the FCA has already established to intervene in this market. The regulator must now put in place measures to protect people from expensive borrowing and spiralling debts.
“The FCA should use its upcoming high-cost credit review to build on the success of the payday loan cap and extend exactly the same protections to rent-to-own customers”.
Rent-to-own firms and doorstep lenders will hand out credit to struggling families where they'd normally be refused to borrow from a bank.
But this means that countless struggling families are left stuck paying sky-high rates of interest of up to 1,557 per cent a year.