One of Britain’s biggest payday lenders may close one of its two Brighton offices in response to new regulations aimed at tackling exorbitant interest rates and extortionate fees.
Dollar Financial said that up to 350 staff could lose their jobs as it closed one of its three head offices and 200 of its 500 high street branches.
The company owns the Money Shop chain which has offices in Queen’s Road and London Road, Brighton.
The Queen’s Road branch is in the same street as the main office of the much cheaper East Sussex Credit Union which has premises in the Community Base building, on the corner of North Road.
The latest news comes months after rival payday lender Wonga announced a big drop in profits.
Dollar Financial said that it was looking at “removing duplication of facilities inherited through previous acquisitions”.
In a statement the company said: “Dollar Financial has informed all employees of a proposed consolidation of its online and retail businesses and has initiated a consultation process with elected employee representatives.
“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 is likely that some high street locations as well as one of the business’s three head offices will be closed.
“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.
“Dollar Financial is committed to ensuring that the business review is undertaken in a way that allows a comprehensive consultation and communication process with those likely to be affected.”
The company described itself as “one of the largest alternative financial services organisations in the world” and said that its British operations were a core part of the business.
It “remains committed to the UK market and recognises the important service it provides to its customers”.
Dollar Financial has head offices in Nottingham, Bicester, in Oxfordshire, and Bromley, Kent. It is the Bromley office which is likely to close as a result of the proposed rationalisation.
The company added: “The Money Shop, a subsidiary of Dollar Financial UK, has a network of around 500 high street stores nationally, of which 200 may be affected by this review of locations.
“In many cases the business has multiple locations in close proximity as a result of previous acquisitions.”
Good! These companies prey on the financially vulnerable.
East Sussex Credit Union charge 47% interest.