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Money Shop plans £18m customer payout pot

Money Shop plans £18m customer payout pot

Business
By Mark Kleinman, City editor One of Britain's biggest short-term consumer lenders is to ring-fence an £18m compensation pot for creditors as it prepares to wind itself up following a surge in customer complaints.Sky News has learnt that Instant Cash Loans (ICL), which owns The Money Shop, Payday Express and Payday UK, has been in talks with the City watchdog for several weeks about the programme. Sources said that ICL would begin writing to up to 2 million customers on Tuesday to seek their support for a scheme of arrangement, under which they could receive payments if they have a valid complaint about a loan they took out from the company.ICL is owned by the US-based hedge fund HPS Investment Partners, which has taken the decision to close a business