Dollar Financial UK (Dollar), trading as The Money Shop, Payday UK, Payday Express and Ladder Loans has agreed with the FCA to refund over £15.4 million to 147,000 customers, who may have suffered detriment as a result of the firm’s affordability checks, debt collection practices and system errors.
In July 2014, the FCA appointed a Skilled Person to review Dollar’s lending decisions, including whether customers were being treated fairly and were only lent sums that they could afford to repay. The Skilled Person also asked customers about their borrowing experiences.
The review revealed that many customers were lent more than they could afford to repay. The firm has since agreed to make a number of changes to its lending criteria in order to meet the FCA’s requirements for high-cost short-term lenders.