Lone Star Funds’ payday lending problems spread to the UK
Lone Star Funds’ payday lending platform DFC Global has drawn regulatory scrutiny in the US. Now, as its focus shifts to Europe, British regulators are crying foul.
DFC Global operates in the United Kingdom under its Money Shop, Payday UK, Payday Express, and Ladder Loans brands. The UK’s Financial Conduct Authority on Monday ordered the company to refund £15.4 million to 147,000 customers after finding that the company was lending more to borrowers than they could afford to repay.
The FCA opened a review of the company’s lending practices in July 2014. The review found that “many customers were lent more than they could afford to repay.” The company must also “make a number of changes to its lending criteria in order to meet the FCA’s requirements for high-cost short-term lenders.”
Read more coverage of Lone Star Funds’ predatory lending practices at www.LoanSharkFunds.org.