Payday lender Dollar agrees to pay £15.4m in compensation following FCA investigation

Dollar Financial UK, the owner of a number of short-term lending brands including The Money Shop and Payday UK, has agreed to pay £15.4m in compensation to its customers after a review by the Financial Conduct Authority (FCA).

The compensation relates to 147,000 customers, who the FCA believed had suffered as a result of the company’s affordability checks, debt collection practices and system errors.

This is the third FCA investigation in to the short-term lending sector in the space of twelve months following reviews of both Wonga and Cash Genie.

Stuart Howard, chief executive of Dollar Financial, said: "As the new CEO, I accept the findings of the review and apologise to anyone who may have suffered difficulties as a result."