Following a review by the FCA, payday lender Dollar, trading as The Money Shop, has voluntarily agreed to refund over £700,000 of interest and default charges to 6,247 customers who, due to a systems error, received a loan amount which exceeded Dollar’s own lending criteria.
Dollar will contact all affected customers immediately and expects to provide refunds in cash totalling £79,000 with the remainder of customers having their outstanding balance reduced. Refunds will be paid once Dollar has confirmed customers’ up to date contact and bank details.
Dollar has also committed to improving its approach to assessing affordability. It has also agreed to appoint an independent Skilled Person to review its lending decisions.