More jobs are to be lost in Dumbarton with The Money Shop on High Street in Dumbarton is set to close along with another 20 of the company’s stores in Scotland.

The pawnbroker and pay-day lender announced in January that ‘restructuring’ would go ahead.

Tighter regulations have hit profits across the pay-day lending sector and Money Shop’s cutbacks follow the introduction by the Financial Conduct Authority introducing a cap on the costs of loans made by lenders.

Payday loan rates are now capped at 0.8 per cent per day of the amount borrowed. In total, no one will have to pay back more than twice what they borrowed, and there will be a £15 cap on default charges.

The company previously said it hoped to keep compulsory redundancies down by finding new roles for staff, however by last month it had already closed around 40 stores.

In a statement, Money Shop owner US Firm Dollar Financial said it had informed employees of the plan, which involves putting together its online and retail business. A statement read: “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. 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.” Jim Bollan, councillor for Leven, told the Reporter: “While the loss of any job is regrettable these type of pay day loan companies prey on the low paid and the poor and are directly linked to the rampant poverty in our communities. They rip the poor off and make profits on the backs of people’s misery and low income. It is only by substantially increasing low wages and state benefits will we eradicate these types of vulture businesses.”