Filed Under:  U.S. & World

Payday Lender to Close Stores Nationwide

Contributed by on January 10, 2015 at 9:40 am

Payday Loans - Money shop

London, England – Sept 4th, 2014: A man with a bicycle at the window of The Money Shop in the Soho District of London. The Money Shop now has over 500 stores in the UK

Payday lender The Money Shop set to close over 200 stores nationwide, resulting in hundreds of redundancies. The move comes amid new legislation from the Financial Conduct Authority to introduce a loan cap for payday lenders.

The high street lender, owned by US firm Dollar Financial, is implementing a reorganisation in the wake of this new development. Tighter regulations have hit profits hard across the entire payday loan sector. This downsizing could be a way for The Money Shop to try to claw their profit margins back up. However they do plan to try to keep redundancies to a minimum by redeploying staff into other roles.

Payday loan rates have now been hit with a 0.8% cap and new rules state that nobody can pay back more than double what they owe. Dollar Financial plans to implement an online presence in order to further boost the business and cut down on the issues caused by closing branches.

In a statement Dollar Financial were quoted as saying ‘…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.

The type of impact that these new laws will have on payday lenders nationwide remains to be seen. Perhaps more will follow in the footsteps of The Money Shop and try to revamp their business model to be more consumer-oriented.

SEO Manager at EyeCarePro
Jacob Maslow is an experienced specialist in Local internet marketing for the optometry field. He has an extensive background in SEO (Search Engine Optimization) and is an expert SEO strategist and e-marketing manager. Jacob has a passion for the kind of in-the-trenches work that gets effective results fast, and he is continually refining his SEO efforts to top yesterday’s results for his clients. The internet keeps growing and changing, and the world of SEO is evolving right along with it. Jacob thrives in this dynamic, ever-changing climate, which allows him to stay challenged and hone his skills to help his clients to excel and thrive. Combining hard numbers with creative thinking, Jacob will work closely with product manufacturers, vendors, purchasing departments and outsourcing firms to design strategies that provide long-lasting value. His specialties include SEO Strategy, e-Commerce Conversion Rates, eBay, Amazon, Internet Marketing Management, Link Building Campaigns, Pay per Click (PPC) Campaigns, Link Building Strategies, User Acquisition and more.