Are you owed money by leading Payday loan companies?

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

Why not consolidate your Payday loans with a lower cost Guarantor Loan?

Mike O’Connor, chief executive of StepChange Debt Charity, when interviewed recently, noted the following. “While the number of people coming to us with payday loan debt problems is falling, we continue to see problems with unaffordable lending and people struggling with multiple loans”.

So, good news that payday loans are falling, but is that a case of lower demand or simply a squeeze on the Payday loan providers by the FCA? In either event a Guarantor loan, at significantly lower APR, may be the answer to unaffordable or unavailable Payday loans when needed. Lendfair offer a Guarantor loan of just £500, but you can borrow up to £5,000 to consolidate multiple loans. A £500 Lendfair loan to replace a payday loan costs just £16.60 in interest in the first month, with regular repayments from just £30.55 pcm. APR 48.0% Compare that to your payday loan. www.lendfair.co.uk

Problem payday loans are falling, according to leading charity

Mike O’Connor, chief executive of StepChange Debt Charity, when interviewed recently, noted the following. “While the number of people coming to us with payday loan debt problems is falling, we continue to see problems with unaffordable lending and people struggling with multiple loans”.

Consider a lower cost alternative to your payday loans. www.lendfair.co.uk