QuickQuid was the UK's largest payday lender
The demise of the largest payday lender in Britain is a slap in the face for those seeking credit. It comes after a wave of customer complaints. The owners of the lender were unable to reach an agreement with the Financial Ombudsman Service. However, if the bank's collapse does not discourage those seeking credit, it could have a ripple effect for the entire industry. These are the top concerns.
The demise of QuickQuid follows the collapse of its competitors Wonga, The Money Shop due to restrictions by the government. Its demise has triggered thousands of compensation claims from customers, and also the closure of its rivals CashEuroNet UK and On Stride. As of last year, CashEuroNet UK was the most complained about payday lender in the UK. The company was responsible for 25 percent of the UK's cash lending market.
The sudden demise of QuickQuid comes amid consumer complaints and regulatory uncertainty. The UK government introduced new regulations to protect consumers from predatory lending practices after Wonga's demise. Meanwhile, other high-interest loan companies have shut down. The largest payday lender in the United Kingdom, QuickQuid, may be the next to go. This could mean the end of the market for many people struggling to repay their debts.
The new Financial Conduct Authority regulations set an upper limit on the amount payday lenders can charge customers. These changes are meant to stop the spiral of debt. The changes also limit amount payday lenders can charge their customers and require lenders to meet more stringent criteria. QuickQuid was the largest payday lender before it went into administration after being confronted with a huge backlog of complaints from customers. Its success has spurred many other lenders to follow the same path.
It was placed into administration in the final quarter of 2019.
After an London judge granted the company an additional year to shut down payday lenders are experiencing difficult times. QuickQuid administrators have stated that they're having difficulty solving customer complaints due to the complex procedures. This led to a huge decrease in the number of customers. The collapse of the firm has left thousands of borrowers in an extremely difficult financial situation. Grant Thornton has been appointed to take over.
According to the administrator Grant Thornton, customers of QuickQuid can make an application online for compensation. The company will oversee the compensation process, and has committed to providing quick loan and easy service. The company has also partnered with Philip Day, a liquidator and retailer. There aren't any details on the amount of compensation customers are likely to receive have been given to customers have been released. According to the Financial Ombudsman's Office, more than 3,000 people have filed a complaints against the company. So, the payouts will depend on how the business closes.
The administrators have gathered as much data as they can about the obligations owed to the company. About half a million people can claim for repayments, and the company cannot afford to pay out all claims. However, a lot of claimants are in debt and administrators have decided to pay a PS18 million to those who have fallen behind in payments.
QuickQuid the largest payday lender in the U.K. is expected to close in the next few months. Cash Euro Net UK, best quick loans uk which is the owner of QuickQuid has arranged for Grant Thornton as its administrator. Grant Thornton is also handling the administration of Wonga. It is believed that Cash Euro Net UK went through a tender procedure before naming Grant Thornton as its administrator.
Its customers received more compensation than other loanees.
It was discovered that QuickQuid offered loans that customers couldn't afford and then required them to pay them in full without any financial aid. DebtCamel reports that QuickQuid loans could have come with a form of compensation. How do you ask for compensation? You'll have to send a formal complaint letter QuickQuid.
After the collapse of the payday lenders Pounds to Pocket, On Stride, and QuickQuid, many consumers have started to make compensation claims. A majority of these settlements were due to loan defaults. The Financial Ombudsman Service has confirmed that QuickQuid customers received higher compensation than other borrower. The amount of the compensation will be decided by the administrators. It is ultimately the responsibility of the administrators to release a plan of how to deal with complaints from customers.
Although it isn't known what amount the UK regulator will award the amount, the total amount of compensation is expected to be greater than other claims. The administrators' capacity to recover the funds will determine the amount of compensation. However, the Financial Ombudsman Service can help affected customers. There are numerous options available to claim compensation.
The company's online lending platform was the subject of more than 3,000 complaints during the first half of the year. Many of these complaints were about fraudulent sales of loans. Consequently, the company will withdraw QuickQuid from the UK market and pay its customers. It's now up to the borrowers to make claims. The decision will be based on the number of claims that can be made by the customers.
It was owned by CashEuroNet UK
Sky News reports that quick loan Quid, a British payday lending company has been placed in administration. According to the company CashEuroNet UK LLC (which trades under QuickQuid) failed to pass the requirements for affordability in 2015. This led to the US-listed firm acting as administrator. The firm's administrators are Grant Thornton, who last was the administrator for Wonga Group Ltd. in its bankruptcy in the year 2018.
The Financial Ombudsman has ordered the lender to pay interest on loans to those who haven't paid them back. As the largest payday lender in the UK, QuickQuid could go into administration within the next few days. The parent company of the company, CashEuroNet UK, has faced similar issues. According to reports, the company is currently working on a new plan of action and plans for the future that will prevent similar situations.
The financial regulator has set a limit on the total amount due on loans as well as the amount of fees and interest. Financial regulators say fees and charges shouldn't be allowed to rise and should be cut. It is unclear how much the financial system will suffer as a result. Customers are advised to speak with their financial advisors prior to making an application for a payday quickest loan. The Financial Conduct Authority is urged to keep an eye on the payday loan market and ensure that fees and charges are reasonable.
The findings of the financial regulator show the root causes of the payday lender. The biggest issues that the company faces include the financial regulator to pay back the interest on loans made following 2015 poor customer service and failure to comply with the rules of its financial regulatory body. A recent Financial Ombudsman Service report states that the company has received more than 4,000 complaints since the beginning of the year. This is a significant figure, and the resulting fines for financial violations will be substantial.
It was supervised and quick payday loans regulated by the Financial Conduct Authority
Quick Quid was a payday lending company that was established in the aftermath of the financial crisis. However, it has since been shut down business. As of April 2018, QuickQuid has not been monitored by the FCA and was unable to offer loans to consumers. This has been a source of many complaints and also led to the demise of competitors Wonga, The Money Shop and The Money Shop. Enova has also been criticised for quick quid its disciplinary practices.
In its report, the FCA stated that buy now plans with pay later dates should be restricted. While they are convenient for certain people, buy now pay later plans can lead to troublesome debt. These products are not visible on credit reports or other credit reference agencies. Therefore, they are simple to sign up for. The FCA warned that the rise of these plans has increased its concerns regarding consumer protection and licensed providers. The government has promised to introduce legislation as soon as possible to ensure the protection of consumers.
The FCA's response has been lackluster to the complaints. It appointed a director at QuickQuid as a consultant even though the company did not meet its regulatory standards. The firm subsequently folded and thousands of unresolved complaints came to light. Although the FCA's website doesn't not mention QuickQuid but it does reveal that it was under the supervision of the regulator.
The government is currently investigating QuickQuid and its practices. While the FCA controlled the company, QuickQuid went into administration. This reflects the widespread criticism of payday lenders. The market has grown because of the need for short-term loans. While QuickQuid is now closed, many still require a short-term solution to their financial problems.
