UK’s largest payday loan provider QuickQuid to close, despite thousands of pending complaints
The UK’s largest remaining payday loan company will shut down, despite thousands of complaints about its still unresolved lending procedures.
Grant Thornton’s Chris Laverty, Trevor OSullivan and Andrew Charters were appointed co-directors of QuickQuid on October 25, 2019, according to a post on the company’s homepage. The company was listed on Casheuronetuk.co.uk, Quickquid.co.uk, Onstride.co.uk and Poundstopocket.co.uk in the UK.
All outstanding loans remain subject to the agreed terms and customers must continue to make their payments in the usual way, the company said.
Directors should work closely with the Financial Conduct Authority. The FCA posted an announcement on its website announcing that the company has gone into administration.
QuickQuid’s parent company Enova, headquartered in the United States, has said it plans to exit the UK market “due to regulatory uncertainty.”
Customers have filed for compensation, according to a BBC report, noting that they had obtained loans that they were unable to repay.
Notably, QuickQuid is the latest short-term, high-interest loan company to close due to tighter regulations.
QuickQuid has been the UK’s largest payday loan provider for the past few years. The company was larger than the large local loan company Wonga even before the latter closed in August 2018. The Money Shop, another UK lender, also closed earlier this year.
Kenneth Barker said he took on 11 different loans over a one-year period while working as a bartender in Essex in 2012.
The 28-year-old Leeds resident noted:
“The first was for £ 100. I paid back £ 160, but then needed a £ 150 loan to keep me up to date for the next month. It gradually got worse. To be honest, I knew what I was getting myself into, but sometimes you have no other choice.
Barker filed a complaint nine months ago, noting that he had secured unaffordable loans and received £ 50 in compensation from the company.
“I then turned to the financial mediator. It was accepted and I was offered £ 2,000. I was told I would have it within 28 days. I hope I will always have this money. I have no idea how this will play out or if I will receive this money.
Although he had to wait to receive compensation, he admitted that he was happy that a lender like QuickQuid was shutting down.
QuickQuid is a brand associated with CashEuroNet UK, which also operates On Stride, a larger, longer-term loan provider that was previously called Pounds to Pocket.
CEO of Enova David Fisher declared:
“Over the past few months, we have been working with our UK regulator to agree a lasting solution to the high number of complaints to the UK Financial Ombudsman, which would allow us to continue providing access to credit. “
“While we are disappointed that we were ultimately unable to find a way forward, the decision to leave the UK market is the right one for Enova and our shareholders.”
New rules introduced five years ago placed strict limits on the interest rates and fees that payday lenders can charge customers. There were also a large number of customer complaints, noting that they were mis-sold loans that they were not able to repay.
QuickQuid is reportedly facing approximately 10,000 outstanding customer complaints.
The business could close, however, its loans are still valid.
Caroline Siarkiewicz, Acting CEO of the Money and Pensions Department, said:
“While you may be tempted to stop your repayments, sticking to your regular schedule is crucial because if you’ve entered into a loan agreement, you have to stick to it. If you miss repayments, you could be hit with additional fees and charges, and it could hurt your credit rating as well.