The UK’s largest payday lender, QuickQuid, went into administration in late in 2019. What’s the truth? The customers of the company received more compensation than other borrowers. How did this company end up in such financial trouble? What can you do to make sure you’re getting the right amount of compensation? Here are some suggestions. First, send an official complaint letter. Include any relevant evidence and copies of documents. If you’ve fallen into financial trouble, you may be liable for charges and quick loans direct lender interest.
QuickQuid was the largest British payday lender.
The closing of the biggest payday lender in Britain is a blow for people seeking credit. The decision comes after a wave of complaints from customers as well as regulatory uncertainty. The owners of the lender were not able to reach a settlement with the Financial Ombudsman Service. But if the company’s collapse doesn’t deter those seeking credit, it could have a ripple effect for the entire sector. These are the top concerns.
QuickQuid’s collapse follows that of its rivals Wonga, The Money Shop due to restrictions imposed by the government. The company’s demise has led to thousands of compensation claims from customers, as well as the closing of its rivals CashEuroNet UK and On Stride. CashEuroNet UK was the UK’s most complained about payday lender as at the end of last year. In fact, the company represented 25 percent of the UK payday market for lending.
QuickQuid’s sudden collapse comes amid consumer complaints and regulatory uncertainty. Wonga’s closure prompted the UK government to create new regulations aimed at protecting consumers from lenders who use predatory practices. Other high-interest loan providers closed in the in the meantime. QuickQuid is the largest payday lender, is likely to be the next to go. Many people struggling with debt could consider this to be the closing of the market.
The new Financial Conduct Authority regulations put limits on the fees that payday lenders charge their customers. These changes are meant to prevent the spiral of debt. They also limit the amount payday lenders can charge clients and make lenders adhere to stricter standards. QuickQuid was the biggest payday lender before it was forced to close after being hit with a massive backlog of customer complaints. Its success has spurred many other lenders to follow the same model.
It was placed into administration in the final quarter of 2019.
After a London judge granted the company an additional year to cease operations payday lenders are experiencing difficult times. QuickQuid management stated that they have difficulty in settling complaints from customers due to the complex procedures. This led to a dramatic reduction in the number of customers. The firm’s collapse has left thousands of borrowers in an extremely difficult financial position. 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 system, and has committed to providing fast and simple service. The company has also partnered with Philip Day, a liquidator and retailer. However, there are no details regarding the amount of compensation that customers can expect to receive has been sent out yet. According to the Financial Ombudsman’s Office, more than 3,000 customers have filed complaint against the company. So, the payouts will depend on how the company shuts down.
Administrators have collected as much information about the company’s debts as they can. Around half a million customers are eligible to request repayment, and the company is unable to pay for all claims. However, a substantial number of claimants are left with outstanding debts, and the administrators have now decided to offer an PS18 million payment to those who are behind with payments.
The biggest payday lender in the U.K., QuickQuid, is set to close in the coming months. Cash Euro Net UK, which owns QuickQuid has hired Grant Thornton as its administrator. Grant Thornton is also handling the administration of Wonga. Cash Euro Net UK was awarded Grant Thornton its administrator after an open tender process.
Customers got more compensation than other borrowers
QuickQuid provided loans to customers who could not afford, requiring customers to pay back the loan in full without any financial aid. DebtCamel reports that QuickQuid loans could have come with some sort of compensation. How do you request compensation? You’ll need to submit an official complaint letter to QuickQuid.
After the fall of payday lenders Pounds to Pocket, On Stride, and QuickQuid several consumers have started to make claims for compensation. Many of these settlements were due to loan defaults. The Financial Ombudsman Service has confirmed that QuickQuid customers received more compensation than other loan borrowers. The amount of the compensation is to be determined by the administrators. Ultimately, it is up to the administrators publish a proposal on how to deal with complaints from customers.
Although it is not clear what amount the UK regulator will pay however, the total amount of the compensation is expected to be higher than other claims. The amount of compensation will depend on the amount administrators are capable of recovering. The Financial Ombudsman Service is available to help affected customers. There are a variety of options to claim compensation.
The lending platform on the internet was the subject of more than 3,000 complaints in the first quarter of the year. Many of these complaints concern mis-selling loans. QuickQuid will be withdrawn from the UK market by the company and customers will be compensated. Until then, it’s up the borrowers to make claims. The decision will be based on the amount of claims submitted by customers.
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 operates under the QuickQuid brand was unable to pass the affordability requirements in 2015, leading the US-listed firm to assume the role of administrator. The company’s administrators are Grant Thornton, who last was administrator of Wonga Group Ltd. in its insolvency in 2018.
The Financial Ombudsman has ordered the lender to pay interest on loans to those who have not paid them back. As the largest payday lender in the UK, QuickQuid could go into administration in the coming days. Similar issues have been experienced by CashEuroNet UK, the parent company of QuickQuid. The company is currently working on a new plan of action and plans to prevent a similar problem in the future.
The financial regulator has put a cap on the amount that can be paid on loans as well as the amount of fees and interest. Financial regulator says fees and charges should not be allowed to increase and should be reduced. It is not clear how much the financial industry will be impacted by this. Customers are advised to consult their financial advisors before applying for a payday loan. The Financial Conduct Authority is advised to monitor the payday loan market and ensure that fees and charges are reasonable.
The findings of the financial regulator expose the root causes of the payday lender. The biggest problems that the company faces include the refusal of the financial regulator to pay back the interest on loans made after 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 against it since last year. This is an impressive number, and the resulting fines for financial violations will be substantial.
It was regulated by the Financial Conduct Authority
Quick Quid was a payday loan company that emerged in the wake of the financial crisis but it has since been shut down. As of April, QuickQuid has not been regulated by the FCA and was unable to offer consumers loans. This has been the source of many complaints and has resulted in the closure of its competitors Wonga, The Money Shop and The Money Shop. Enova has also been criticized for its disciplinary practices.
In its review in its review, quick quid the FCA recommended that buy-now, pay later plans should be regulated. Although it may be convenient for certain individuals consumers, buying now and quickloans paying later plans can lead you to high-interest debt. These plans aren’t visible on credit reports or other credit reference agencies, so they are simple to get into. The FCA warned that the increase in use of these plans has increased its concerns about consumer protection and regulated providers. The government announced that it would adopt legislation as soon as it is possible to protect consumers.
The FCA’s response was not very positive to the complaints. It appointed a director from QuickQuid to serve as consultant, despite the fact that QuickQuid did not meet the FCA’s standards for regulatory compliance. The firm was eventually closed and thousands of complaints unresolved have been filed. The FCA’s website does not mention QuickQuid, it does show that it was under the supervision of the regulator.
QuickQuid’s practices are still under investigation by the federal government. While the FCA was responsible for regulating the company, QuickQuid went into administration. This is a reflection of the general criticism of payday lenders. The sector has grown because of the necessity for short-term financial assistance. Even though QuickQuid is now closed, many still require a quick solution to their financial issues.