Dollar Financial Group

Dollar Financial Group Global Corporation
Private
Industry Financial services and Retail
Founded 1979[1]
Headquarters Malvern, Pennsylvania,
U.S.
Area served
 international
Key people
 John Grayken
Products Payday loans, pawnbroking and jewelry sales
Owner Lone Star Funds
Subsidiaries Money Mart
Website dfg.com

Dollar Financial Group Global Corporation (DFG) is a US-based financial services group with over 1000 locations in seven countries.[1] It focusses 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 Money Shop (UK and Ireland), The Check Cashing Store (Florida, U.S.), Loan Mart, Insta-Cheques, and We The People.[2] The group acquired high-end pawnbrokers Suttons & Robertsons in 2010.

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]

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

The company was purchased by private equity fund manager Lone Star Funds in 2014.[6]

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 servicemembers.[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. 1 2 3 DFG, DFG
  2. 1 2 BusinessWeek, Dollar Financial Group Inc.
  3. ↑ Marie Burton, Consumer Focus, Keeping the plates spinning: Perceptions of payday loans in Great Britain
  4. ↑ BusinessWire, 1 April 2011, Dollar Financial Corp Consummates Previously Announced Acquisition of Purpose U.K. Holdings Limited, (MEM), the Leading Provider of Internet Loans in the United Kingdom
  5. ↑ The Guardian, 11 February 2011, US payday loan firms plan rapid expansion in cash-strapped Britain
  6. ↑ "Lone Star Funds to Buy DFC Global," Wall Street Journal, 4/2/2014
  7. ↑ CFPB press release issued 6/27/2013
  8. ↑ Company website accessed 11/3/2015
  9. ↑ "Dollar Financial ordered to repay £15.4 million to customer," The Guardian, 10/26/2015
  10. ↑ FCA press release issued 10/26/2015
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