Simon Read: No sympathy for dollar financial's £10m-a-year loss

 

Poor Dollar Financial. The giant American credit firm reported last week that its profits have been hit by the payday loan probe by the Office of Fair Trading.

The company owns Britain's biggest high street payday lender network, The Money Shop. It also owns two of the most-profitable internet lenders. Payday UK and Payday Express. In short, the little-known firm is regarded as Britain's second-largest payday lender after Wonga.

But in a shareholder update, it warned that profits will be hit by £10m a year because the OFT is forcing it to lend more responsibly by introducing tighter limits on who can borrow and for how long.

It reported that turnover from online lending in the UK fell 2.9 per cent in the three months to the end of June, a huge decline compared to the 34 per cent growth it recorded over the same period last year.

Forgive me for not shedding any tears for the company's plight. I'll save them for those who end up in a debt spiral after being tempted to take out a costly payday loan.

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