Money Shop customers could end up with just £ 5 each on top of the abuse sales

The Money Shop suffered losses of £ 87million last year and much of the £ 18million set aside for refunds could go to accountants and lawyers.

Money Shop may end up refunding £ 5 to each customer

Customers of The Money Shop payday loans 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.








Refunds to The Money Shop customers may be much lower than expected
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Picture:

Daily Post Wales)






“Once again, clients end up with very little while experts are paid handsomely. “

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

It stopped issuing payday loans through its website and stores last year.

Since then, it has seen a sharp increase in complaints about people getting loans they couldn’t afford to repay.

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

Money Shop and other brands such as Payday UK are operated by Instant Cash Loans.

Its spokesperson 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.”

About Brandon A. Hood

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