Dollar Financial UK which owns brands including The Money Shop, Payday UK, Payday Express and Ladder Loans has agreed to refund 15.4 million to 147,000 customers. This follows the FCA investigation of Wonga and Cash Genie.
The redress which is the third biggest repayment by a Short Term Lender in recent years includes:-
- 65,000 customers who will be given a cash refund,
- 67,000 customers who will have their current loans reduced and
- 15,000 customers who will receive a combination of the above.
The redress relates to affordability of loans taken out as well as the collection of repayments on loans taken out between January 2013 and the end of April 2015. Customers due compensation will be contacted by The Money Shop or the relevant associate company, including those customers who have moved address or whose bank account information has changed.
Beverley Budsworth Managing Director of The Debt Advisor commented; “ It’s good to see that the new CEO of Dollar Financial, Stuart Howard has confirmed that he accepts the findings and has since undertaken a review of their practices to reflect their aim of “being the most respectable short term lender in the market”. The FCA investigations into the short term lending market has revolutionised this industry and has, hopefully, made short term lending much fairer to consumers. I do believe there is a place for short term lenders that banks and credit unions simply cannot cater for”.
Bev adds “The FCA review of the debt solutions industry has had a similar effect and as such the more unscrupulous operators have exited the market. This has resulted in creditors and debt collection companies becoming more accepting of debt solutions particularly debt management.”
There are a range of debt solutions available for individuals struggling with debt and the right type of solution depends on your circumstances. If you are struggling with debt issues please do give our team a call on 0800 0851 825 or use our contact form. Our advisors can speak with you about all available debt solutions such as Debt Management, IVAs, Bankruptcy and Debt Consolidation.
All debt solutions need to be carefully considered. IVA’s are formal solutions and failure to keep to the terms can result in your IVA failing and you could end up bankrupt.
There is also free debt help and advice available through a variety of debt charities. For more information, we recommend you visit www.moneyadviceservice.org.uk.