14 July, 2014
Following the Financial Conduct Authority’s announcement that Dollar, trading as the Money Shop, has agreed to repay £700,000 of interest and default charges to consumers, Peter Tutton, head of policy for StepChange Debt Charity said:
“We welcome today’s announcement and are hopeful this and other recent actions taken by the FCA indicate that the payday loan industry is finally being brought under control.
“Despite the payday lending industry’s repeated assurances that it was lending responsibly and that poor practice was a thing of the past, we have continued to see thousands of cases where people have been trapped in unsustainable and unaffordable cycles of high-cost borrowing, as loans are rolled over and borrowers take on multiple debts.
“Today’s announcement is further evidence that payday loan companies have failed to act in the best interests of borrowers.”
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