Dollar Financial Group

Dollar Financial Group Global Corporation (DFG) DBA Money Mart Financial Services, Money Mart Financial Services is a US-based financial services group with over 700 locations in Canada and the United States.[1] It focuses on low-income or bad-credit consumers, providing short term loans (payday loans), pawnbroking and gold buying services.[1]

DFG’s brands include Money Mart (Canada and U.S.), The Check Cashing Store (Florida, U.S.), and Insta-Cheques.[2] In 2009 DFG was the largest provider of payday loans in the United Kingdom, with around a quarter of the market.[3] In February 2011 DFG additionally acquired the largest British internet payday lender, Month End Money (MEM) (including the brand PaydayUK) for $195m,[4] and suggested The Money Shop’s network could grow from around 350 shops to around 1200.[5] As of September 2018 the UK operations no longer offered paydays loans in-store or online[6].

The company was previously known as “Monetary Management Corporation”, changing its name in 1990.[2]

 

Regulatory action

In 2013, the United States Consumer Financial Protection Bureau issued a consent order against a subsidiary for making false statements about auto loans to soldiers and veterans. The company was required to refund $3.3 million to service members.[7] In June 2015, a year after its acquisition by Lone Star Funds, the company announced that it would wind down the program and cease taking on new customers.[8]

In October 2015, the UK Financial Conduct Authority ordered an affiliate to refund £15.4 million to 147,000 customers[9] after finding that the company was lending more to borrowers than they could afford to repay.[10]

References

  1. ^ Jump up to:ab c DFG, DFG
  2. ^ Jump up to:ab BusinessWeek, Dollar Financial Group Inc.
  3. ^Marie Burton, Consumer Focus, Keeping the plates spinning: Perceptions of payday loans in Great Britain
  4. ^“Dollar Financial Corp Consummates Previously Announced Acquisition of Purpose U.K. Holdings Limited, (MEM), the Leading Provider of Internet Loans in the United Kingdom”. Retrieved 2018-11-08.
  5. ^Walker, Peter (2011-02-11). “US payday loan firms plan rapid expansion in cash-strapped Britain”. the Guardian. Retrieved 2018-11-08.
  6. ^Hayward, Stephen (2018-09-01). “Payday loan firm Money Shop faces unclear future just days after Wonga goes bust”. mirror. Retrieved 2019-02-27.
  7. ^“CFPB Orders Auto Lenders to Refund Approximately $6.5 Million to Servicemembers | Consumer Financial Protection Bureau”. Consumer Financial Protection Bureau. Retrieved 2018-11-08.
  8. ^“Miles | Military Installment Loan and Education Services”. www.dfcglobalcorp.com. Retrieved 2018-11-08.
  9. ^Collinson, Patrick (2015-10-26). “Dollar Financial ordered to repay £15.4m to customers”. the Guardian. Retrieved 2018-11-08.
  10. ^“Payday lender Dollar to provide £15.4 million redress to over 147,000 customers”. FCA. 2015-10-26. Retrieved 2018-11-08.

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