Information for The Money Shop, Payday UK, Payday Express and Ladder Loans customers

fermi

Information for The Money Shop, Payday UK, Payday Express and Ladder Loans customers about its redress scheme

Dollar Financial UK (‘Dollar’), trading as The Money Shop, Payday UK, Payday Express and Ladder Loans, has entered into an agreement with the FCA to provide £15.4 million redress to 147,000 customers for unfair practices.

A number of serious failings took place at the firm which caused detriment for many customers.

Affected customers will receive a combination of cash refunds and/or balance write-downs.

You can find further details about the redress scheme in our press release.

How The Money Shop, Payday UK, Payday Express and Ladder Loans customers will be informed whether they are due redress

Affected customers do not need to take any action. The Money Shop, Payday UK, Payday Express and Ladder Loans aim to start contacting all customers immediately to explain how the redress will be provided.

There is further information for customers who think they may have been affected on the firms’ websites listed at the bottom of this page.

What you should do if you still owe The Money Shop, Payday UK, Payday Express and Ladder Loans money

Customers should continue to make payments unless they are told to stop by The Money Shop, Payday UK, Payday Express and Ladder Loans. Borrowers who are experiencing financial difficulty should contact The Money Shop, Payday UK, Payday Express and Ladder Loans to discuss their options.

If you are struggling with your debts, there are free debt advice services which can help you. You can find out more on the Money Advice Service website.

You do not need to use the services of a claims management company

The Money Shop, Payday UK, Payday Express and Ladder Loans will write to all affected customers with details of how they will be paid the redress due. Affected customers will not need to apply for redress. There is therefore no need for customers to appoint a claims management company to represent them. Claims management companies charge for using their services and this could involve the payment of a significant fee relative to the amount of any redress received.

Where you can find further information and advice

Further information can be found on the following websites:

The Money Shop
Payday UK
Payday Express
Ladder Loans

You can contact The Money Shop, Payday UK, Payday Express and Ladder Loans Customer Engagement Team on 0330 024 1642 or via email at CET@dfconline.com or by letter at the following address: Dollar UK, PO Box 606, Hounslow, TW3 9RR.

fermi

http://www.fca.org.uk/news/payday-lender-dollar-to-provide-154-million-redress

Dollar Financial UK (Dollar), trading as The Money Shop, Payday UK, Payday Express and Ladder Loans has agreed with the Financial Conduct Authority (FCA) to refund over £15.4 million to 147,000 customers, who may have suffered detriment as a result of the firm’s affordability checks, debt collection practices and systems errors.

In July 2014, the FCA appointed a Skilled Person to review Dollar’s lending decisions, including whether customers were being treated fairly and were only lent sums that they could afford to repay. The Skilled Person also asked customers about their borrowing experiences.

The review revealed that many customers were lent more than they could afford to repay. The firm has since agreed to make a number of changes to its lending criteria in order to meet the FCA’s requirements for high-cost short-term lenders.

Jonathan Davidson, Director of Supervision - Retail and Authorisations at the FCA said:

“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.”

Dollar Financial UK has agreed an approach with the FCA to provide redress to those customers who were affected. The redress relates to loans taken out between 1 April 2014 and 30 April 2015 in respect of affordability issues and 1 January 2013 and 30 April 2015 in relation to collections issues. The agreed package will consist of a combination of cash refunds and balance write downs. The exact amount of redress each customer is due will be assessed on a case by case basis.

• 65,000 customers will receive a cash refund.
• 67,000 customers will have their current loan balance reduced.
• 15,000 customers will receive both a cash refund and a reduction in their loan balance.

Customers do not need to take any action. Dollar will start contacting customers immediately and plans to complete the redress exercise by early 2016, this includes tracking down those people who have changed their contact details or bank account information. There is also further information on The Money Shop, Payday UK, Payday Express and Ladder Loans websites.

fermi

While I posted that, MSE thread and article went live

Thread: Payday lender Dollar to refund over £15m to 147,000 borrowers

MSE News: Payday lender Dollar to refund over £15m to 147,000 borrowers