Dollar Financial must repay millions to customers of Money Shop, Payday UK, Payday Express and Ladder Loans, Financial Conduct Authority rules
The payday lender behind familiar high street short-term loans business The Money Shop has been told to repay millions of pounds to customers by the finance watchdog.
More than £15.4m will be repaid to 147,000 customers after an investigation by the Financial Conduct Authority found Dollar Financial was lending more than people could afford to repay, and issues with its its debt collection practices and system errors
“The FCA expects all credit providers to carry out proper checks to ensure that borrowers don’t take on more than they can afford to pay back. We are encouraged that Dollar is committed to putting things right for its customers,” said supervision director Jonathan Davidson.
Read more: Payday lender Cash Genie told to repay £20m to customers
The redress will go to customers of The Money Shop, Payday UK, Payday Express and Ladder Loans who took out loans between 1 April 2014 and 30 April 2015, as well as 1 January 2013 and 30 April 2015.
Dollar Financial have now changed their lending practices.
In July another payday lender, Cash Genie, was told to repay £20m after the FCA found unfair lending practices.