Payday lender the Money Shop to refund £15.4m rules FSA
Dollar Financial UK, owner of payday money lender The Money Shop will refund £15.4m to customers as a result of a ruling from the Financial Conduct Authority (FCA).
The watchdog found that a high volume of customers were granted loans they could not afford to pay back. 147,000 customers will receive refunds from the company which has under its umbrella The Money Shop, Payday UK, Payday Express and Ladder Loans.
The FCA said customers were hit by the company’s affordability checks, debt collection and a number of system errors.
The figure marks the third biggest ever refunded by a pay day lender following Wonga (£220) and Cash Genie (£20m) investigations.
Stuart Howard, chief executive of Dollar Financial, said: “As the new chief executive, I accept the findings of the review and apologise to anyone who may have suffered difficulties as a result.
"It is proper 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."
A full 65,000 customers will receive a cash refund, an additional 67,000 will have their loan repayments reduced ad 15,000 others will receive a combination of both.