On the 23 October 2017, and with virtually no media scrutiny or coverage, Dollar Finance, the company that owns PaydayUK.co.uk. PaydayExpress.co.uk and the Money Shop, three of the most pre-eminent payday loan / short term credit lenders, has announced it has ceased offering online and telephone loans. A representative announcement posted on PaydayUK.co.uk provides the following information
We apologise for any inconvenience our online loan closure may cause you. We want to make the process of managing your loan as smooth as possible and keep you informed on what this means for you.
If you have an existing online loan and your repayments are usually taken from your debit card then you don’t need to do anything, we will continue to take payments as agreed. If you’ve missed a payment or you need to speak to us about your repayments please contact us by phone on 0330 024 1642* as soon as possible.
You can still login to your online account to update your contact details, make a repayment or change your password.
If you have any questions about this notice or your existing loan please see our FAQs below for more information. For all other queries you can contact our Customer Service Team who will be able to help you in the following ways:
Phone: 0330 024 1642*
Opening hours: Monday – Friday 8am to 7pm, Saturdays: 9am 4pm, Bank Holidays: 10am to 4pm.
Postal Address: Cardinal House, Abbeyfield Court, Abbeyfield Road, Nottingham NG7 2SZ”
Who is the Parent Company, Dollar Finance?
Established in 1979, the Dollar Financial Group have a long and extensive track record both sides of the Atlantic. Over in the United States, the brand counts names such as Money Mart, Loan Mart, Insta-Cheques, and We The People amongst its assets.
Dollar Finance’s UK subsidiary is Instant Cash Loans Limited (Company number 02685515) which operates PaydayUK.co.uk. PaydayExpress.co.uk and the Money Shop. It’s future is not clear, although there is no suggestion of any threat to the Money Shop’s store network
Instant Cash Loans has been the subject of criticism by the Advertising Standards Authority, with acomplaint upheld for a single advert that seemed to promote irresponsible borrowing, and not featuring the representative APR in a prominent enough location.
What’s gone wrong?
The payday loan industry is now more tightly regulated as a result of FCA Changes. These included price caps on amounts that could be charged. Historically payday loan lenders set frivolous fees with many not ensuring consumers could pay without undue difficulty.
What does it all mean?
The payday loan industry will be shaken by such a major American player withdrawing from the market. Whilst it could indicate a wider scale demise is imminent, the demand for payday loans will not diminish and the market is likely to consolidate into the hands of several large players. For example, rival CashEuroNet LLC has recently hailed a turnaround in fortunes, with Quickquid.co.uk becoming the UK’s largest lender.
Whilst the Money Shop will continue to trade from its extensive store network, this latest move is seeming the end of the road for two famous brands in PaydayUK and PaydayExpress.
Can I still claim?
Yes! It is little secret PaydayUK and PaydayExpress had historic issues around affordability. If you had month on month loans with any of PaydayUK.co.uk. PaydayExpress.co.uk and the Money Shop, why not apply for your no obligation claims pack?