Dollar Financial, a long established payday lender who own brands such as The Money shop and Payday UK, have agreed to refund nearly 150,000 customers to the value of £15.4 million after declaring to the FCA that they failed to protect customers and treated them unfairly. With the punishment handed to Dollar Financial, this adds to the pressure of the heavily criticised payday loan industry and competitors may feel the effect of Dollar Financial’s negligence.
Investigation Carried Out By Regulators
The FCA, who have been investigating Dollar Financial, have concluded that there was a number of compliance failures which has had an adverse effect on many of their customers main issues relating to methods used to collect debt and not carrying out affordability checks thoroughly. As a result of these finding’s Dollar Financial will need to repay over £15 million which is a major blow for the company that owns The Money Shop, Ladder Loans and Payday UK.
How The Process Will Work
The customers entitled to any return of funds are for loans obtained from between 1st January 2013 to April 30th, 2015. As this will be a pain-staking process they will look at each person’s case individually to determine the amount that they return to you. Dollar Financial have advised that customers do not need to contact them as they will be in contact as soon as possible and hope to finish the process early 2016. The reason that the process could take until next year is that many customers may have moved away and changed personal details so Dollar Financial will need to track these customers down. If the FCA believe not every attempt is being made to contact these customers this could land them in further hot water.