Store staff at leading short-term loan provider The Money Shop
have received a resounding thumbs up in a nationwide customer
survey as complaints about high street banks rise.
Nine out of 10 customers believe that staff at The Money Shop,
part of Nottingham-based Dollar Financial UK, are friendly and
treat customers fairly and honestly.
A further 91% said information about repayments and charges is
clear and easy to understand while just over half (55%) of bank
customers said they felt they received fair and honest treatment
from their banks.
The results coincide with findings published this week by The
Financial Services Authority (FSA) which reveals that blundering
banks are receiving 10,000 complaints from furious customers every
day.
Consumer groups were inundated with more than 1.85 million
complaints in the first half of 2011 - an increase of 6.5 per cent
on the previous year. The number of complaints has risen sharply
due to the scandal of mis-sold Payment Protection Insurance (PPI).
More than three million people are in line for compensation payouts
following the PPI scandal.
The consumer research* carried out by independent marketing
strategy and research company, The Development Team Limited,
shows high levels of satisfaction with payday loan products
and services from the UK's leading store-based consumer credit
provider.
Through its growing network of more than 400 high street stores,
The Money Shop offers unsecured short-term loans, often referred to
as payday loans, cheque cashing, secured pawnbroking loans, money
transfer, foreign exchange, debit cards and gold buying services
through its retail chain.
Six out of ten (61%) of Money Shop customers agreed that charges
and fees are reasonable while only a third (33%) of bank customers
felt the same way about their banks.
94% of Money Shop customers said they had never felt they were
being pressured by staff to extend existing loans.
Caroline Walton, The Money Shop's corporate affairs director
said: "We wanted to build a more complete picture of why people use
The Money Shop, rather than other short-term credit providers, and
also why they don't turn to the high street banks and building
societies.
"This survey shows The Money Shop is right to be proud of its
service and how it treats its customers - we are here to promote
responsible lending at appropriate levels. No one benefits if
customers find themselves spiralling into debt.
"Our fees are up-front and customers are clear about the amount
they will be paying. The annual percentage rates for these loans,
if repaid over a year, may be high but they are not designed as
long-term solutions.
"We offer relatively small amounts for a short period -
typically until the next payday - for a fixed amount. Bank
fees can soon add up to more, particularly if customers resort to
unauthorised overdrafts."
As well as The Money Shop, Dollar Financial UK operates online
lending services through its Month End Money and paydayuk.co.uk
brands; business loans, through Merchant Cash Express; jewellery
and pawnbroking through its specialists at Suttons and Robertsons
in London, Duncanson and Edwards in Edinburgh and Robert Biggar in
Glasgow. It employs more than 2,100 staff.
Dollar Financial UK is a leading member of the Consumer Finance
Association, which operates to maintain high standards of
responsible lending across the short-term credit industry, and is
licensed and regulated by the Office of Fair Trading.
The business is part of the US-based DFC Global Corp, which has
operations in the USA, the UK, Canada, the Republic of Ireland,
Sweden, Finland and Poland.