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UK’s largest payday lender QuickQuid collapses in administration

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UK’s largest payday lender QuickQuid collapses in administration after thousands of customer complaints

  • QuickQuid collapse means it’s curtains for payday lending industry, experts say
  • Company website shows annual percentage rates of up to 1,300 percent
  • QuickQuid’s demise follows the collapse of rivals Wonga and The Money Shop

The UK payday loan industry appeared to be all but ended yesterday after QuickQuid collapsed into administration following thousands of customer complaints.

QuickQuid, which is owned by US parent company Enova, will be shut down after failing to strike a deal with regulators due to an avalanche of claims against it.

Along with other payday lenders, the company has been accused of preying on people in financial difficulty by giving them small loans at exorbitant interest rates.

It is feared that the shutdown of the company will leave thousands of complaints against it in limbo, the regulator, the Financial Ombudsman Service, unable yesterday to confirm if they could still be prosecuted. [File photo]

QuickQuid offers loans of up to £ 1,000 for new customers – or £ 1,500 for returning ones – and their website offers annual percentage rates (APRs) of up to 1,300%.

Last night it was confirmed that Grant Thornton had taken over QuickQuid’s trading company, CashEuroNet UK, as a director.

He is believed to have faced as many as 10,000 complaints, including many borrowers who obtained loans they could not afford to repay.

QuickQuid offers loans of up to £ 1,000 for new customers - or £ 1,500 for returning customers - and their website offers annual percentage rates (APRs) of up to 1,300%.

QuickQuid offers loans of up to £ 1,000 for new customers – or £ 1,500 for returning ones – and their website lists annual percentage rates (APRs) of up to 1,300%.

QuickQuid’s demise follows the recent collapse of rivals Wonga and The Money Shop, which followed a government crackdown on how much payday lenders can charge.

John Cullen, business recovery partner at accounting firm Menzies, said: “In the face of mounting regulatory pressures, the curtain seems to be looming in the payday lender market.

Martin Lewis, of MoneySavingExpert.com, said: “As with Wonga’s demise, if QuickQuid goes missing, in the long run it won’t be the cause of tears. These debts for the vast majority of clients were frightfully too expensive and unnecessary.

It is feared that the shutdown of the company will leave thousands of complaints against it in limbo, the regulator, the Financial Ombudsman Service, unable yesterday to confirm if they could still be prosecuted.

Grant Thornton said those who took loans from QuickQuid should continue to repay.

David Fisher, boss of Enova, said the company has “helped millions of hard-working people access fast, reliable credit.”

He blamed a “difficult and uncertain regulatory environment” in the UK for the woes of QuickQuid.

He is believed to have faced as many as 10,000 complaints, including many borrowers who obtained loans they could not afford to repay.

He is believed to have faced as many as 10,000 complaints, including many borrowers who obtained loans they could not afford to repay.

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