Home Business owner Britain’s largest payday lender QuickQuid about to be administered?

Britain’s largest payday lender QuickQuid about to be administered?

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Britain’s biggest payday loan meltdown since Wonga could be on the cards with QuickQuid set to go into administration, according to reports.

Lender – which offers short-term loans with interest rates of up to 1,300% – could collapse in days, with Wonga administrators Grant Thornton doing the same job with QuickQuid, reports show from Sky News.

It would mark another casualty in the UK payday lending market since the Financial Conduct Authority introduced tougher rules in 2014 and 2015.

This introduced higher affordability checks and capped the amount borrowers could repay at double the amount they borrowed.

QuickQuid claims to have 1.4 million customers and the number of complaints about this has increased dramatically in recent years

Wonga has been bowled over by a backlog of complaints from customers who claimed he had mis-sold loans they couldn’t afford to borrow, while since his disappearance he has been beset by even more people seeking to reclaim their money. silver.

Its listeners Grant Thornton revealed in March that more than 40,000 people who borrowed from Wonga were trying to make claims at the time of bankruptcy, more than four times the number originally expected.

Meanwhile, the number of complaints about QuickQuid has exploded in recent years.

According to statistics from the watchdog, the Financial Ombudsman Service, the number of complaints about the beleaguered payday lender has tripled from just over 1,500 in the past six months to 4,692 in the first six months from last year.

In total, more than 10,400 complained to QuickQuid’s FOS in 2018, which contributed to a 130% increase in payday lender complaints in 2018-19 from the previous fiscal year.

Peter Briffett, co-founder and CEO of income streaming app Wagestream, said, “This is another nail in the coffin of the payday loan industry and a fantastic day for consumers.

“Those under financial pressure are better informed and financially literate than ever before, and there has never been a greater variety of payday loan alternatives available.”

Stress: The high cost of <a class=payday loans has resulted in thousands of complaints from customers who have claimed they have been mis-sold, and many have received payments.” class=”blkBorder img-share” style=”max-width:100%” />

Stress: The high cost of payday loans has resulted in thousands of complaints from customers who have claimed they have been mis-sold, and many have received payments.

A spokesperson for StepChange Debt Charity said: “Payday loans are generally a very expensive form of credit.

“We urge anyone relying on this type of credit to contact a reputable charity as soon as possible.

“If a person feels they need to take out high-cost short-term credit just to get by, they are likely to benefit from a debt counseling session instead.”

QuickQuid is owned by the American company Enova.

His other UK payday lender – Pounds to Pocket – which became On Stride Financial, agreed to reimburse clients £ 1.7million after failing to comply with new FCA accessibility tests.

Enova’s third quarter results are expected after the market close on Thursday. The company claims to have provided more than 5 million customers worldwide with more than $ 20 billion in loans and financing, while QuickQuid claims to have more than 1.4 million customers.

In June, This is Money exclusively revealed that another payday lender and pawnshop The Money Shop has gone out of business, putting hundreds of jobs at risk due to “poor financial performance” and ” unprecedented number of customer complaints ”.

In 2015 he was forced to pay £ 15million in compensation after the watchdog discovered customers may have suffered from the company’s affordability checks, debt collection practices and errors system.

The company exited the high cost credit market a year before going out of business.

After Wonga’s bankruptcy, QuickQuid chief executive Nick Drew insisted in September that his business was “profitable and growing, and we remain excited about the opportunities, especially in light of the dwindling performance. competition in the market ”.

This is Money has contacted QuickQuid for comment, but has not received a response at time of posting.

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