Regulator, the FCA demanded that the firm instill a ‘customer comes first’ culture through staff training in its 451-branches across the UK. Meanwhile, the lender has exited the payday loan market and promised to change the way it offers loans and treats customers struggling to repay their debts, after agreeing a deal with the regulator.
The firm has halted debt collection calls to customers until it can demonstrate improvements have been made. The regulator will appoint a ‘skilled person’ to test the outcomes of the changes, it confirmed.
Martin Wheatley, the FCA’s chief executive, said: “This is an early victory for people that use payday lenders. We made our tougher expectations clear to Cheque Centre and they have wasted no time in making changes. I have said before that firms would need to dramatically improve their operation or exit the market, and we are now seeing that happening.
“This is an important step in the right direction and other payday lenders should take note,” warned Wheatley.
A helpline for Cheque Centre customers is offered on 0800 243028.
The FCA took over regulation of payday lending on 1 April 2014 and sent the Cheque Centre a letter setting out the regulators’ serious concerns in March this year, after an alert came out of the Office of Fair Trading.
