
P2P lender Dollar Financial, trading as The Money Shop, PayDay UK, Payday Express and Ladder Loans, has agreed with the Financial Conduct Authority (FCA) to refund over £15.4m to 147,000 customers.
An FCA representative had been reviewing the lender since July 2014, looking at whether customers were being treated fairly and whether they were only being lent money they could afford to repay.
The review found many customers were being 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 FCAS’s requirements.
It also agreed an approach with the FCA to provide redress to customers who were affected between 1 April 2014 and 30 April 2015 in respect to affordability issues and 1 January 2013 and 30 April 2015 in relation to collection issues.
In total:

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By GlobalData– 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
Jonathan Davidson, director of rupervision – 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."