Payday lender QuickQuid to close amid thousands of customer complaints
25 October 2019, 10:10 | Updated: 25 October 2019, 10:12
QuickQuid is pulling out of the UK amid a barrage of compensation claims from unhappy customers.
Britain’s biggest payday lender QuickQuid is set to close in the UK amid reports it’s received more than 3000 complaints in the first six months of the year.
The company’s US-based owner Enova, says it’s had to close "due to regulatory uncertainty", with boss David Fisher admitting he’s “disappointed” about the closure.
He said: "While we are disappointed that we could not ultimately find a path forward, the decision to exit the UK market is the right one for Enova and our shareholders."
Enova will take a one-off after tax charge of around £58 million, which includes a cash charge of £33 million to support the end of its lending in the UK.
QuickQuid comes under the brand of CashEuroNet UK which offers short-term, high-interest loans, with rates up to 1300% interest.
But thousands of compensation claims have been made between January and June this year, with customers saying they were given loans they couldn’t afford to repay.
Similar companies have been struggling since tighter regulations were brought in by the Financial Conduct Authority (FCA) four years ago, which aim to prevent people being trapped in debt.
In 2014 and 2015 a cap was placed on the amounts of interest payday lenders were allowed to charge amid other stricter standards.
This is one of the biggest reasons why QuickQuid’s biggest rival Wonga was forced to close its doors in August last year.
The Money Shop also closed earlier this year.
Meanwhile, those with complaints against CashEuroNet UK could face long delays warns a personal finance expert at Money.co.uk.
Tola Fisher said: “If you’re currently claiming compensation from QuickQuid for a mis-sold loan and it goes bust, you will need to wait until the administrators have wound up the company.
“Unfortunately you might find yourself at the back of a long queue to get hold of your money.”