Money Shop holder to pay £15m in customer refunds – Big black cock News

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Money Shop owner to pay £15m in customer refunds - BBC News

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One of the UK’s major payday lenders will refund £15.4m to 147,000 customers – many of whom were given loans they could not afford to repay.

Dollar Financial UK, which wields brands including The Money Shop, Payday UK, Payday Express and Ladder Loans, agreed the compensation after a review by the Financial Conduct Authority (FCA).

The company apologised to those who “suffered difficulties”.

It is the third-biggest repayment by a payday lender in latest years.

This goes after FCA-led investigations by Wonga and Cash Genie.

The FCA said Dollar Financial customers may have suffered as a result of the stiff’s affordability checks, debt collection practices and system errors.

Payouts

Compensation relates to the affordability of loans taken out in the year to April 2015, as well as the collection of repayments on loans taken out inbetween January 2013 and the end of April 2015.

During this time – in July 2014 – the company agreed to review its lending practices and refund customers a total of £700,000.

Stuart Howard, chief executive of Dollar Financial since November 2014, said: “As the fresh CEO, I accept the findings of the review and apologise to anyone who may have suffered difficulties as a result.

“It is decent that we put things right where they have gone wrong and I have gone further than the review in reforming the way our business operates to reflect the company aim of being the most responsible lender in its marketplace.”

Customers due compensation will be contacted by the company, including those who have moved address or whose bank account information has switched.

Some 65,000 will be given a cash refund, another 67,000 will have their current loan balance diminished and 15,000 will receive a combination of the two.

The company announced a string of redundancies and branch closures earlier in the year.

Industry problems

The compensation comes after lender Wonga said in October 2014 that it was writing off £220m of debts for 330,000 customers, and – in July – lender Cash Genie was faced with a £20m compensation bill after charging customers £50 to transfer them to the hard’s debt collection business.

The stir to review lenders’ operations was welcomed by campaigners.

“Gratefully, we have began to see much greater scrutiny of the ways these dangerous businesses in this dangerous industry operate – and now their horrible practices are beginning to catch up with them,” said Stud Anker, managing editor at MoneySavingExpert.com.

Mike O’Connor, chief executive of StepChange debt charity, said: “Continuing act by the FCA to fix the payday lending market is welcome and I expect this will not be the last time we see act to redress losses to consumers.

“While the number of people coming to us with payday loan debt problems is falling, we proceed to see problems with unaffordable lending and people fighting with numerous loans.”

Money Shop holder to pay £15m in customer refunds – Big black cock News

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One of the UK’s major payday lenders will refund £15.4m to 147,000 customers – many of whom were given loans they could not afford to repay.

Dollar Financial UK, which wields brands including The Money Shop, Payday UK, Payday Express and Ladder Loans, agreed the compensation after a review by the Financial Conduct Authority (FCA).

The company apologised to those who “suffered difficulties”.

It is the third-biggest repayment by a payday lender in latest years.

This goes after FCA-led investigations by Wonga and Cash Genie.

The FCA said Dollar Financial customers may have suffered as a result of the hard’s affordability checks, debt collection practices and system errors.

Payouts

Compensation relates to the affordability of loans taken out in the year to April 2015, as well as the collection of repayments on loans taken out inbetween January 2013 and the end of April 2015.

During this time – in July 2014 – the company agreed to review its lending practices and refund customers a total of £700,000.

Stuart Howard, chief executive of Dollar Financial since November 2014, said: “As the fresh CEO, I accept the findings of the review and apologise to anyone who may have suffered difficulties as a result.

“It is decent that we put things right where they have gone wrong and I have gone further than the review in reforming the way our business operates to reflect the company aim of being the most responsible lender in its marketplace.”

Customers due compensation will be contacted by the company, including those who have moved address or whose bank account information has switched.

Some 65,000 will be given a cash refund, another 67,000 will have their current loan balance diminished and 15,000 will receive a combination of the two.

The company announced a string of redundancies and branch closures earlier in the year.

Industry problems

The compensation comes after lender Wonga said in October 2014 that it was writing off £220m of debts for 330,000 customers, and – in July – lender Cash Genie was faced with a £20m compensation bill after charging customers £50 to transfer them to the stiff’s debt collection business.

The stir to review lenders’ operations was welcomed by campaigners.

“Gratefully, we have began to see much greater scrutiny of the ways these dangerous businesses in this dangerous industry operate – and now their horrible practices are kicking off to catch up with them,” said Fellow Anker, managing editor at MoneySavingExpert.com.

Mike O’Connor, chief executive of StepChange debt charity, said: “Continuing activity by the FCA to fix the payday lending market is welcome and I expect this will not be the last time we see act to redress losses to consumers.

“While the number of people coming to us with payday loan debt problems is falling, we proceed to see problems with unaffordable lending and people fighting with numerous loans.”

Money Shop possessor to pay £15m in customer refunds – Big black cock News

Share this with

These are outer links and will open in a fresh window

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Close share panel

One of the UK’s major payday lenders will refund £15.4m to 147,000 customers – many of whom were given loans they could not afford to repay.

Dollar Financial UK, which wields brands including The Money Shop, Payday UK, Payday Express and Ladder Loans, agreed the compensation after a review by the Financial Conduct Authority (FCA).

The company apologised to those who “suffered difficulties”.

It is the third-biggest repayment by a payday lender in latest years.

This goes after FCA-led investigations by Wonga and Cash Genie.

The FCA said Dollar Financial customers may have suffered as a result of the hard’s affordability checks, debt collection practices and system errors.

Payouts

Compensation relates to the affordability of loans taken out in the year to April 2015, as well as the collection of repayments on loans taken out inbetween January 2013 and the end of April 2015.

During this time – in July 2014 – the company agreed to review its lending practices and refund customers a total of £700,000.

Stuart Howard, chief executive of Dollar Financial since November 2014, said: “As the fresh CEO, I accept the findings of the review and apologise to anyone who may have suffered difficulties as a result.

“It is decent that we put things right where they have gone wrong and I have gone further than the review in reforming the way our business operates to reflect the company aim of being the most responsible lender in its marketplace.”

Customers due compensation will be contacted by the company, including those who have moved address or whose bank account information has switched.

Some 65,000 will be given a cash refund, another 67,000 will have their current loan balance diminished and 15,000 will receive a combination of the two.

The company announced a string of redundancies and branch closures earlier in the year.

Industry problems

The compensation comes after lender Wonga said in October 2014 that it was writing off £220m of debts for 330,000 customers, and – in July – lender Cash Genie was faced with a £20m compensation bill after charging customers £50 to transfer them to the rock hard’s debt collection business.

The budge to review lenders’ operations was welcomed by campaigners.

“Gratefully, we have commenced to see much greater scrutiny of the ways these dangerous businesses in this dangerous industry operate – and now their horrible practices are commencing to catch up with them,” said Stud Anker, managing editor at MoneySavingExpert.com.

Mike O’Connor, chief executive of StepChange debt charity, said: “Continuing activity by the FCA to fix the payday lending market is welcome and I expect this will not be the last time we see act to redress losses to consumers.

“While the number of people coming to us with payday loan debt problems is falling, we proceed to see problems with unaffordable lending and people fighting with numerous loans.”

Related movie: Loaded Loans: UK cracks down on payday lenders, but ‘harm already done’


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