One of Britain’s biggest payday lenders is being sued amid accusations that it broke the law by offering ‘predatory’ loans to customers. Lawyers in the US allege that executives at DFC Global, known as Dollar Financial in the UK and which owns The Money Shop and Payday UK, overcharged for loans and issued them to borrowers that could not repay. In March, Britain’s Office of Fair Trading told all 50 of the biggest payday lenders, including DFC Global, they must begin to comply with existing laws or face losing their licences. But in August, DFC Global told its US shareholders that changes it would need to make as a result would mean a drop in profits of about £10million a year. Shares in the business fell sharply on the day and are currently worth a third less than before DFC Global’s statement, or around £125million.