Impending FCA review impacts Shop Direct share price
The Financial Conduct Authority (FCA), which is poised to review the borrowing charges made to customers, has caused some investors to sell their shares in Shop Direct causing its value to fall by £55 million. There is a general nervousness about the high interest rates charged to consumers by businesses like Shop Direct which are heavily reliant on the use of credit to generate high average order values. Many expect that Shop Direct could be ordered to repay significant sums to its customers.
There are campaigns running on social media offering "no win no fee" services for the reclaim of over-charged or wrongly communicated rates of interest which could potentially attract millions of past mail order customers in addition to the those who currently buy on credit from direct retailers.
To read more coverage on Shop Direct, in general, simply use the search bar on the top right of this page. To view any articles, you will need to subscribe.