QuickQuid: Britain’s largest payday lender closes after 3,000 customer complaints

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The brand’s US owner, Enova, had worked for months to reach an agreement with authorities after filing more than 3,000 customer complaints about the company in just six months.

Most complained about lenders

QuickQuid is CashEuroNet UK’s best-known brand and claims to have lent more than 1.4 million people in the country.

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That is set to close after being rocked by thousands of complaints and regulatory uncertainty

Enova will take on a one-time charge of approximately $ 74 million (£ 58 million) after tax to help end its lending in the UK.

Announcing that the company will be pulling out of the UK this quarter, CEO David Fisher said, “We have worked with our UK regulator to come up with a sustainable solution to the increased complaints to the UK Financial Ombudsman that would allow us to do so , continue to have access to recognition for hard-working Brits. “

CashEuroNet UK has been one of the UK’s most complained financial services companies for some time and has received more than 3,000 complaints to the Financial Ombudsman Service in the first half of this year.

It was the most frequently complained payday lender in 2018 with over 10,000 complaints – 63 percent of which were confirmed in favor of the consumer.

In 2015, the company was forced to pay £ 1.7 million in compensation after loaning money to people who couldn’t afford to pay it back.

The payday sector has gotten into trouble since stricter rules were put in place under the city’s regulator, the Financial Conduct Authority (FCA), to keep people from spiraling down debt following an outcry from charities and consumer advocates.

The new rules put a cap on the amounts payday lenders were allowed to collect, forcing them to meet the FCA’s stricter standards in order to continue operating.

The company’s shutdown comes just over a year after Wonga (formerly the UK’s largest short-term lender) plunged into bankruptcy after a spate of customer compensation claims.

Auditor Grant Thornton, who is responsible for the administration of Wonga, is believed to be ready to take on the administration of the company.

Industry insiders say the industry has to change constantly to meet expectations.

Meanwhile, lenders are plagued with complaints from customers, often encouraged by claims management companies.

Those claims were one of the main reasons rival Wonga had to shut down a year ago and claims management companies fear that QuickQuid’s failure could be detrimental to consumers who have already seen an industry collapse.

What does it mean for customers?

It is still unclear how many jobs will be at risk from the closure and Enova has not clarified what will happen to its UK customers.

Tola Fisher, a personal finance expert at Money.co.uk, told Metro that borrowers are likely to have yet to repay their loans.

People who have complaints about the process could also expect delays.

Fisher said, “If you’re currently seeking compensation from QuickQuid for a badly sold loan and it goes bankrupt, you’ll have to wait for the administrators to liquidate the company.

“Unfortunately, you may find yourself at the end of a long line to get your money.”

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