News Column

The Money Shop agrees to repay £700,000 in customer charges

July 15, 2014

MATT SCUFFHAM



THE MONEY Shop, which is owned by US-based Dollar Financial, has agreed to refund 700,000 in interest and default charges to customers who were loaned too much money.


The UK''s short-term loan industry has come under increasing scrutiny from politicians, regulators and even the Church of England for interest rates as high as 6,000 percent a year that cause hardship for many of customers.


The Financial Conduct Authority (FCA) said yesterday that The Money Shop would refund 6,247 customers who, due to a systems error, received loan amounts which exceeded the company's own lending criteria.


"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," said Clive Adamson, director of supervision. The Office of Fair Trading raised concerns about the group's lending decisions in February after a review of customer calls revealed some loans were being approved that did not meet company protocols.


Reuters


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Source: City A.M. (UK)


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