QuickQuid’s parent company is closing the business down in the UK after increasing pressure from regulators and aggrieved customers
The firm, which accounts for a quarter of the UK’s payday lending market, will stop lending by the end of the year thanks to “regulatory uncertainty,” according to a report on the BBC news website.
The US-based owner of the lender, Enova, was attempting to arrange a deal with the financial regulator the Financial Conduct Authority (FCA) as thousands of customer filed complaints about CashEuroNetUK, the UK-based parent company to the QuickQuid brand.
A statement from the firm reads: "Over the past several months, we worked with our UK regulator to agree upon a sustainable solution to the elevated complaints to the UK Financial Ombudsman, which would enable us to continue providing access to credit," said Enova boss David Fisher.
"While we are disappointed that we could not ultimately find a path forward, the decision to exit the UK market is the right one for Enova and our shareholders."
The news of the shut down of yet another high-profile lender comes just over a year after the collapse of Wonga after customers buried the firm in a costly mountain of complaints.
At the time of writing there is no apparent notice or information about the closure of the brand on its website.
Moneywise has contacted Quickquid for an explanation of what will happen to customers of the lender. We will update this piece if we receive a reply.
Reports from Sky News said that administration firm Grant Thornton had been lined up to handle the lender’s collapse. Moneywise contacted the firm but it is declining to comment at this time.
It is most likely that outstanding debts will be sold to other providers, as is what happened with Wonga customers that owed the firm money when it collapsed. But those customers with an outstanding claim against QuickQuid could be left in limbo with no company to pay back a compensation claim.
Consumers still looking to claim compensation may find that their settlement is not paid. Claims are usually settled in a matter of weeks but if a company goes into administration before a settlement has been reached the customer is unlikely to receive a payout.
Customers of QuickQuid are advised to keep making debt repayments as normal.