Lendly has said it is taking a “hard look” at the situation of thousands of borrowers, with some lenders returning loan orders back to borrowers who missed out on payments because of “technical errors”.

The lender has also revealed it is re-opening more than half of the 1.2 million loans that were affected by the error, with most of those due to be repaid on October 1.

“The vast majority of borrowers will receive their full payments and be reimbursed in full within the first week of October,” Lendles chief executive Chris Kavanagh said.

The news comes after the Department of Finance said a further 6.2 per cent of borrowers had been negatively impacted, with a further 1.9 per cent potentially negatively impacted. “

However, many borrowers will be subject to additional processing to re-establish payments and we will also be providing additional information and guidance to help them understand how this incident affects them.”

The news comes after the Department of Finance said a further 6.2 per cent of borrowers had been negatively impacted, with a further 1.9 per cent potentially negatively impacted.

In a statement, the department said that it would be investigating “any significant issues with borrowers’ loans”.

The company said it had also launched an “extensive and targeted review” of the way it processes borrowers’ loan requests.

It also said it would introduce a new, simpler system for the company to process the loan requests of its customers.

Lendls loan factory was a loan servicer based in Melbourne.

Its website said it “is a provider of high-quality mortgage products for families and small businesses in Australia”.

Lendlys CEO Chris Kavany says his company is taking “a hard look” after it received the first batch of loan orders being returned.

“It is an unprecedented and disappointing incident, and we want to reassure our customers that we will be taking a hard look at this issue in the coming weeks and months,” Mr Kavallas statement said.

Lending by Lendlr is a popular and trusted option for borrowers.

It allows borrowers to borrow on an existing mortgage and pay off the loan over a set period of time, with no upfront fees or interest rates.

The website states borrowers can pay interest on their loans for up to six months, but they can only borrow on their current home and cannot borrow on a house they no longer live in.

“Lendlr has over 15,000 customers across Australia, and is one of the fastest growing mortgage lending companies in Australia, with more than 5,000 loans currently available,” the company said.

It said it has now re-opened “a small number” of loans due to the error.

It is offering borrowers “financial support” to return the loan, which it said would be applied to their monthly mortgage payment.

“For borrowers who have already paid off their loan, Lendllrs goal is to ensure they are reimbursed fully within the next few weeks,” the lender said.

The company has also published a new FAQ on the “technical error” to clarify what happened.

LENDlr said it was “reviewing the issue” and it was taking “as much time as possible” to work through the issue.

“While we will not be able to make immediate adjustments, we will continue to work closely with lenders to work with them to understand their experience with this issue and how they can better support borrowers in the future,” the statement said