Money Shop, PaydayUK & Payday Express owner to refund 150,000 customers
The FCA has ordered American based Dollar Finance, the owner of Money Shop, Payday Express and PaydayUK, to refund charges to some customers between April 2014 and April 2015. The FCA investigation found system errors and poor affordability checks.
Quite simply, customers were found to have borrowed more than they could repay. Under FCA guidance, lenders have duties to lend affordably.
Jonathan Davidson of the FCA remarked: “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.”
Lenders such as Wonga have also recently been forced to pay back / write off loans where lending was unaffordable.
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