Payday loan refunds yet to be given to customers – Big black cock News

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Millions of pounds of payday loans refunds are still to be transferred back, a lender has said.

Dollar Financial UK, which wields The Money Shop, said that only 25% of the refunds agreed with the regulator in October had been paid back.

The remaining payout to people who were given loans they could not afford, which totals more than £7m, will not be finished until the end of June.

The lender said it had overhauled its operations during a raunchy year.

Facelift

The Money Shop, part of a US-owned group, is launching a fresh revamped branch in Derby on Monday in the very first part of a major facelift of premises across the UK.

Following rigorous fresh regulations on the payday industry brought in by the Financial Conduct Authority (FCA), the volume of loans across all short-term lenders has plunged.

The Money Shop cut the number of its branches from 600 to 250 in what chief executive Stuart Howard described as “a harsh 12 to 15 months”.

He said that there had been “night and day switches to the business”.

The rigid now considers short-term, high interest loans as only a petite part of its business, alongside loans given in instalments, money transfer and foreign exchange services.

“The entire business model had to switch,” he said. “We have put our house in order.”

He described the company’s relationship with the regulator as “much better”, albeit the company still awaits total consumer credit accreditation from the regulator.

Switches

The lender is the latest to be keen to showcase it had switched from the days of reckless payday lending.

A number of loans firms have switched management teams and advertising strategies.

However, Dollar UK will still be spending the very first half of the year paying millions of pounds to customers who suffered from poor affordability checks on loans taken out in the year to April 2015, as well as the collection of repayments on loans taken out inbetween January 2013 and the end of April 2015.

Mr Howard said the compensation agreement was “a line in the sand” for the company.

The compensation by Dollar UK comes after lender Wonga said in October 2014 that it was writing off £220m of debts for 330,000 customers, and – in July last year – lender Cash Genie was faced with a £20m compensation bill after charging customers £50 to transfer them to the rock hard’s debt collection business.

Payday loan refunds yet to be given to customers – Big black cock News

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These are outward links and will open in a fresh window

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Millions of pounds of payday loans refunds are still to be passed back, a lender has said.

Dollar Financial UK, which possesses The Money Shop, said that only 25% of the refunds agreed with the regulator in October had been paid back.

The remaining payout to people who were given loans they could not afford, which totals more than £7m, will not be ended until the end of June.

The lender said it had overhauled its operations during a rough year.

Facelift

The Money Shop, part of a US-owned group, is launching a fresh revamped branch in Derby on Monday in the very first part of a major facelift of premises across the UK.

Following stringent fresh regulations on the payday industry brought in by the Financial Conduct Authority (FCA), the volume of loans across all short-term lenders has plunged.

The Money Shop cut the number of its branches from 600 to 250 in what chief executive Stuart Howard described as “a rough 12 to 15 months”.

He said that there had been “night and day switches to the business”.

The rigid now considers short-term, high interest loans as only a puny part of its business, alongside loans given in instalments, money transfer and foreign exchange services.

“The entire business model had to switch,” he said. “We have put our house in order.”

He described the company’s relationship with the regulator as “much better”, albeit the company still awaits utter consumer credit accreditation from the regulator.

Switches

The lender is the latest to be keen to showcase it had switched from the days of reckless payday lending.

A number of loans firms have switched management teams and advertising strategies.

However, Dollar UK will still be spending the very first half of the year paying millions of pounds to customers who suffered from poor affordability checks on loans taken out in the year to April 2015, as well as the collection of repayments on loans taken out inbetween January 2013 and the end of April 2015.

Mr Howard said the compensation agreement was “a line in the sand” for the company.

The compensation by Dollar UK comes after lender Wonga said in October 2014 that it was writing off £220m of debts for 330,000 customers, and – in July last year – lender Cash Genie was faced with a £20m compensation bill after charging customers £50 to transfer them to the rock-hard’s debt collection business.

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