MSE News: Payday lender The Money Shop lent thousands too much money

Former_MSE_Helen

Over 6,000 borrowers who were lent more than they could afford are to be refunded a combined total of more than £700,000...

Read the full story:

Payday lender The Money Shop lent thousands too much money




Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

TighterThanTwoCoatsOfPain

I have to admit, whilst any lender has a duty to their shareholders/ owners not to expose themselves, I just can't buy into the idea that the lender knows better than me about what I can/ can't afford to pay. No one knows how much cash I really have than me.

They certainly shouldn't have any responsibility if I get in trouble and can't repay what I asked them to borrow.

Is personal responsibility dead?

Alexis95

Is it just me that is totally confused by this article?
Or just me that has lost out?

So a lender has lent some people too much money, and now instead as common sense would suggest to me, the borrower should be asked to pay back the extra, the lender is having to give the borrower even more money.

Well last Friday, my little brother was absolutely brassic and begged me to lend him £10 so he could go out with his mates that night.

Now I only had a couple of £20 notes in my purse at the time, so I kindly said I would lend him £20, and he could either give me £10 change back Saturday morning and the other £10 on Thursday when he gets paid, or if he blows the lot, I would wait until Thurdsay for the full £20 to be returned.

Guess what? Yep, he blew the lot.

Anyway, now he's read this article and is demanding another £10 off me as I overlent to him on Friday. Otherwise he says he will only pay me back £10 on Thursday.

We asked our mum as she is always reminding us that 'mum knows best', and mum said after also reading the article, that little brother does seem to have a point.

This cannot be right, surely? Please help.

rizla_king

They are being asked to pay back the balance they borrowed.

The refunds are made up of interest and charges that may not have been incurred if Dollar had not made the mistake they did.

Percy1983

It is a worrying sign of the times that nobody seems responsible for there own actions, they didn't force anybody to borrow money off them, they just gave people what they asked for.

Apples2

£79k in cash refunds to 6,247 people = £12.64 each.

I'm sure they will immediately forward that £12.64 to one of the other PDL they owe money to.

rizla_king

Percy1983 wrote: »

It is a worrying sign of the times that nobody seems responsible for there own actions, they didn't force anybody to borrow money off them, they just gave people what they asked for.

Yes, but responsibility is a 2 way street, and in this case the lender broke their own affordability assessments.

It's not even as if the loans have been written off or anything. It's just a small refund to recognise the mistake.

Percy1983

rizla_king wrote: »

Yes, but responsibility is a 2 way street, and in this case the lender broke their own affordability assessments.

It's not even as if the loans have been written off or anything. It's just a small refund to recognise the mistake.

I have to disagree, if you are responsible for yourself you don't need anybody to be responsible for you.

dealer_wins

The UK is slowly going mad with ruling like this!!

In a few years time we wont be allowed to go to the supermarket without prior approval of exactly what we are going to buy!!

ConsumerWizkid

I borrowed money even though I have no way of paying it back. The lender is to blame for not seeing through my lies when I told them I could!! DERRRP

Alexis95

rizla_king wrote: »

It's not even as if the loans have been written off or anything. It's just a small refund to recognise the mistake.

Are you sure about that?

The article says 6247 are affected.
The article says the lender is expected to refund £79k in cash
The article says the over-borrowing by those affected was on average £12

£79k divided by 6247 = £12.64
Coincidence?


The article goes onto say "The Money Shop will refund more than £700,000"; that's over £100 per customer on average.

- not bad for someone who borrowed on average £12 more than they should have in the first place.