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| Money Shop could close 200 stores in restructure | Money Shop could close 200 stores in restructure |
| (35 minutes later) | |
| The Money Shop, a payday lender owned by US firm Dollar Financial, is amid a consultation process to close as many as 200 of its 500 stores, sources tell the BBC. | The Money Shop, a payday lender owned by US firm Dollar Financial, is amid a consultation process to close as many as 200 of its 500 stores, sources tell the BBC. |
| A full consultation process will need to be done before a final number emerges. | A full consultation process will need to be done before a final number emerges. |
| As many as 350 staff could be made redundant out of a total of around 3,000 employed by Money Shop. | As many as 350 staff could be made redundant out of a total of around 3,000 employed by Money Shop. |
| Tighter regulation has hit profits across the payday lending sector. | Tighter regulation has hit profits across the payday lending sector. |
| The company hopes to keep compulsory redundancies down by finding new roles for staff, the BBC has learned. It has already closed about 40 stores. | The company hopes to keep compulsory redundancies down by finding new roles for staff, the BBC has learned. It has already closed about 40 stores. |
| Loan cap | Loan cap |
| The firm's reorganisation may also include closing one of its three head offices. | |
| Money Shop's cutbacks follow the introduction by the Financial Conduct Authority this month of a cap on the costs of loans made by payday lenders. | Money Shop's cutbacks follow the introduction by the Financial Conduct Authority this month of a cap on the costs of loans made by payday lenders. |
| Payday loan rates are now capped at 0.8% per day of the amount borrowed. | Payday loan rates are now capped at 0.8% per day of the amount borrowed. |
| In total, no one will have to pay back more than twice what they borrowed, and there will be a £15 cap on default charges. | In total, no one will have to pay back more than twice what they borrowed, and there will be a £15 cap on default charges. |
| Dollar Financial said in a statement it had informed employees of the plan, which involves putting together its online and retail business. | |
| "Regrettably, it is possible that some 350 redundancies may be necessary as the company evolves its business to serve customers in a fair and sustainable way following the introduction of the new regulations on consumer lending, as well as removing duplication of facilities inherited through previous acquisitions," it said. | |
| "We fully acknowledge the impact these proposals may have on our people both personally and professionally and we will support affected employees through this process and into future employment." |