Money Shop payday loan customers could get just £ 5 compensation for mis-selling


Money Shop payday loan customers could end up with as little as £ 5 each in compensation.

Britain’s largest convenience store, which once had 600 stores, suffered losses of £ 87million last year.

Its US owner, Dollar Financial, has set aside £ 18million to reimburse customers for mis-sales.

But £ 8million will go to accountants and lawyers – leaving clients as little as £ 5 each.

Sara Williams, founder of advice website Debt Camel, said: “Almost half of the £ 18million will be consumed by bills from accountants and lawyers. Again, clients end up with very little while experts get paid handsomely. “

Money Shop is the latest in a series of payday companies to struggle after regulators cracked down on fraudulent lending rates in 2015.

It stopped issuing payday loans last year. Since then, it has seen a sharp increase in complaints about people getting loans they couldn’t afford to repay.

Its website states: “It is unlikely that all claimants will receive a full remedy. “

Money Shop is operated by Instant Cash Loans. Spokesman Sheraz Afzal said: “Our goal is to shut down ICL in the best possible way while recognizing that there is no right way to do it.”


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