View more on these topics

Payday lender in £15m FCA redress deal

FCA logo glass 2 620x430

Payday lender Dollar Financial UK has agreed to hand back £15.4m to customers following an agreement with the FCA.

The firm, which trades as The Money Shop, Payday UK, Payday Express and Ladder Loans, will refund the money to over 147,000 customers.

It comes after a skilled persons review of Dollar’s lending decisions, which found that between April 2014 and April 2015, customers were lent more than they could afford to repay.

Dollar has since agreed to make changes to its lending criteria.

FCA director of supervision for retail and authorisations Jonathan Davidson says: “The FCA expects all credit providers to carry out proper checks to ensure that borrowers don’t take on more than they can afford to pay back. We are encouraged that Dollar is committed to putting things right for its customers.”

The terms of the deal will see 65,000 customers offered cash refunds, while a further 67,000 will have their loan balances reduced, and 15,000 will receive both.

Dollar will start contacting customers immediately and plans to complete the redress exercise by early 2016.

In July, fellow payday loans firm Cash Genie agreed to pay £20m in redress to customers after the firm approached the regulator to confirm it had engaged in unfair practices on charges and interest, and refinancing of loans undertaken without explicit requests or permissions from customers.


FCA logo new 3 620x430

Payday lender to pay £20m redress after FCA intervention

A payday loans specialist has agreed to write off loans and refund payments worth more than £20m after reaching a deal with the FCA. Cash Genie will offer the redress to 92,000 customers, writing off charges and interest as well as refunding payments taken without authorisation. The agreement comes just over a year after the […]

FCA logo glass 3 620x430

Advisers question ex-FCA director of comms’ move to payday lender

Advisers have questioned the move by former FCA director of communications Zitah McMillan, who stepped down in the wake of the Davis review, to take a senior role at a prominent payday lender. McMillan joined DFC Global Corp, whose operations include The Money Shop, in January as international chief executive. She will head the firm’s […]

FCA logo new 3 620x430

FCA attacks payday lenders over ‘unacceptable practices’

The FCA has attacked payday lenders for failing to treat customers in arrears fairly following a 12-month thematic review of the sector. The regulator says the review, which covered 60 per cent of the market, found “serious non-compliance and unfair practices” in every single short-term credit firm. The FCA uncovered “unacceptable practices” from many lenders, […]


Regulator unveils payday lending clampdown

The Competition and Markets Authority will force payday lenders to publish clear product details on at least one FCA-regulated price comparison website to ensure borrowers are getting the best deals. In its final report on the payday lending industry, published today, the CMA says authorised comparison websites must have “clear, objective and comparable information on […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. Has / will this set a precedent, for any one who has lent money, not just payday lenders ? seems to infer yes it will

  2. I assume in addition to the loan write off and the fine not one client wanted to borrow less when these were set up?

    It’s a risk v reward lender because if you swim at the bottom the right offs of non payers must be extremely high particularly when they know they’ve got a fairy FCA on their side giving them their money back after non payment and not having any powers to recover. It will not be long before all these firms go and people are back with private loan sharks, after another set of unintended consequences!

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm