Dollar Financial, owner of the high street chain The Money Shop, plus online loan firms Payday UK, Payday Express and Ladder Loans – is being forced by the FCA (Financial Conduct Authority) to refund more than £15.4m to 147,000 customers. That’s an average refund of £104, though some will be much larger.
After an investigation into the firm, the City Watchdog ruled that Between April 2014 and April 2015 – after tough new lending rules came in – Dollar customers “may have suffered detriment as a result of the firm’s affordability checks, debt collection practices and systems errors”.
What should I do if I’m owed money?
You, don’t need to do anything, at least in theory, if you are owed money. Dollar say they will start contacting customers immediately and plan to hand over all repayments by early 2016, including tracking down people who have changed their address. More information can be found on The Money Shop, Payday UK, Payday Express and Ladder Loans websites.
How much will I get?
The exact amount of any refund will be assessed on a case by case basis. Dollar say some 65,000 customers will receive a cash refund while 67,000 will have their current loan balance reduced and around 15,000 customers will receive a cash refund and a reduction in their loan balance.
Our advice? Use any refund to pay off your payday loan balance; and then consider a cheaper loan source, like a Guarantor loan from www.Lendfair.co.uk