QuickQuid was the country's largest payday lender.
The closing of the largest payday lender in Britain is a blow for credit seekers. It comes after a wave of customer complaints. The owners of the lender failed to reach a settlement with the Financial Ombudsman Service. If the demise of the lender doesn't dissuade credit seekers, it could be a negative impact on the entire industry. Here are some of the most pressing concerns.
The demise of QuickQuid follows the collapse of its rivals Wonga, The Money Shop because of restrictions from the government. The company's demise has resulted in thousands of compensation claims from customers and also the closure of its rivals CashEuroNet UK and On Stride. CashEuroNet UK was the UK's most criticised payday lender as of the year last. In reality, the company represented 25 percent of the UK payday market for lending.
The sudden demise of QuickQuid is accompanied by a flurry of consumer complaints and regulatory uncertainty. Wonga's closure prompted the UK government to introduce new regulations aimed at protecting consumers from unfair lending practices. Other high-interest loan companies have shut down in the in the meantime. The biggest payday lender in the UK, QuickQuid, may be the next to go. Many people struggling with debt could see this as the end of the line for the market.
The new Financial Conduct Authority regulations set limits on the fees payday lenders can charge customers. These changes are meant to stop debt spirals. These changes also limit the amount payday lenders are able to charge customers and require lenders to meet stricter standards. QuickQuid was the biggest payday lender until it was hit with an enormous backlog of customer complaints and went into administration. Many other lenders have followed its example after its success.
It was put in administration in the final quarter of 2019.
After an London judge granted the company an extra year to close its doors, payday lenders are facing difficult times. The managers of QuickQuid claimed they are having difficulty to settle customer complaints since the processes are so complex. This led to a significant decrease in the number of customers. The company's collapse has left a number of borrowers in an uncertain financial situation. Grant Thornton has been appointed to take over.
Grant Thornton, the administrator of QuickQuid announced that customers can apply online for compensation. The company will oversee the compensation process, and has promised to provide fast and simple service. The firm has also partnered with Philip Day, a liquidator and retailer. The amount of compensation that customers could be expecting have been revealed yet. The Financial Ombudsman's Office says that more than 3000 people have filed complaints against the company. Therefore, quick loans direct lender the payouts for compensation are dependent on the exact procedure by which the company is closed.
The administrators have gathered as much info as they can regarding the outstanding debts to the company. Around half a million customers are eligible to claim for repayments, and the company cannot afford to pay all claims. But, many claimants are in debt and administrators have decided to offer a PS18 million to those who are in arrears in payments.
The largest payday lender in the U.K., QuickQuid, Quick Loans Direct Lender is set to close within the next few months. Cash Euro Net UK, who owns QuickQuid has appointed Grant Thornton as its administrator. Grant Thornton will also be in charge of Wonga's administration. Cash Euro Net UK was given to Grant Thornton its administrator after an open tender process.
Customers received more money than other borrowers.
QuickQuid provided loans to customers they could not afford, which forced them all to pay back the loan in full without any financial assistance. DebtCamel reports that QuickQuid loans could have come with a form of compensation. How do you ask for compensation? You'll need to submit an official complaint letter to QuickQuid.
Many consumers began filing compensation claims after the collapse of payday lenders Pounds To Pocket, On Stride and QuickQuid. Many of these settlements were for defaults on loans. The Financial Ombudsman Service has confirmed that QuickQuid customers were compensated more than other borrower. However, the amount of compensation given will be based on the administrators' own plans. It is up to administrators to make a decision on how to deal with complaints from customers.
While it isn't certain what amount the UK regulator will pay the amount, the total amount of the compensation is expected be higher than other claims. The ability of the administrators to recover the funds will determine the amount of compensation. However the Financial Ombudsman Service can help affected customers. There are a variety of options for claiming compensation, including calling the Financial Ombudsman Service.
The lending platform on the internet was the subject of more than 3,000 complaints in the first half of the year. Many of the complaints concerned mis-selling of loans. So, the company is going to withdraw QuickQuid from the UK market and compensate its customers. The borrowers will be required to file claims until then. The number of claims that customers can submit will determine the final decision.
It was owned by CashEuroNet UK
Sky News reports that Quick quid is a British payday loan firm, has gone into administration and is no longer in operation. According to the company CashEuroNet UK LLC (which trades under QuickQuid) did not meet the requirements for affordability in 2015. This resulted in the US-listed company acting as administrator. Grant Thornton, who was previously Wonga's administrator Quick loans direct lender prior to the company's Group Ltd.'s bankruptcy in the year 2018 is now the company's administrator.
The Financial Ombudsman is forcing the lender to pay back the interest on loans to consumers who failed to repay them. As the largest payday lender in the UK, QuickQuid could go into administration in the next days. The company's parent company, CashEuroNet UK, has been facing similar problems. The company is working on a new plan of action and plans to avoid a similar issue in the near future.
The total amount due on loans, as well as the fees and interest have been set by the financial regulator. Financial watchdogs say that the charges and fees are excessive and should be cut. But, it's unclear how much the financial industry will suffer as a result of the closure. Customers are advised to consult their financial advisors before applying for payday loans. The Financial Conduct Authority is advised to be on the lookout for the market for payday loans and make sure that charges and fees are reasonable.
The findings of the financial regulator expose the underlying problems with the payday lender. The biggest issues with the company are the refusal of the financial regulator to pay back the interest charged on loans made after 2015 poor customer service, and failing to follow the rules of its financial regulatory body. According to an Financial Ombudsman Service report, the company has received more than 4,000 complaints since the beginning of the year. This is an impressive amount, and there could be severe financial penalties.
It was regulated and supervised by the Financial Conduct Authority
Quick Loans Direct Lender Quid was a payday loan company that was founded in the wake of the financial crisis but has now gone out of business. As of April 2018, QuickQuid has not been monitored by the FCA and was unable to provide consumers with loans. This has led to a number of complaints, and has also been a reason the reason why competitors Wonga and The Money Shop have closed. Enova has also been criticized for its practices in the field of regulation.
The FCA advised that buy now, and pay later plans be monitored. While it's a good option for certain people, buy now pay later plans could lead to troublesome debt. These plans do not show up on credit reports or other credit reference agencies, which makes them simple to join. The FCA cautioned that the rise in the use of these plans has raised concerns about consumer protection and the regulation of providers. The government said it would introduce legislation as soon as possible to safeguard consumers.
However the FCA's response the complaints has been a disappointing one. It appointed an executive from QuickQuid to act as a consultant, despite the fact that QuickQuid did not meet the FCA's standards for regulatory compliance. The company was eventually shut down and thousands of unresolved complaints accrued. While QuickQuid isn't listed on the FCA's website, it does show that it was licensed by the FCA.
The practices of QuickQuid are currently under investigation by the government. The company was monitored by the FCA however, QuickQuid subsequently went into administration. This is an indication of the widespread criticism against payday lenders. The sector has grown because of the need for short-term loans. While QuickQuid has closed, many people still need a short-term financial solution to their financial woes.
