Customers of QuickQuid payday lender will get up to half of their loans repaid
The country’s former biggest payday lender, QuickQuid, is being liquidated by administrators who now say it will repay 30-50p of every pound of loans to customers next year
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Borrowers who have been mis-sold by collapsed payday lender QuickQuid will get 30p to 50p back for every £1 of their loan.
This means the typical payout will be around £850.
QuickQuid was Britain’s largest payday lender, but it closed in 2019 after its owner, Enova, exited the UK market “due to regulatory uncertainty”.
The company had more than 3,000 unresolved complaints filed against it with the Financial mediation service at the time of its closure.
Most of them came from customers who claimed to have received loans they could not afford to repay.
QuickQuid is one of the brand names of CashEuroNet UK, which also operated On Stride – a provider of larger and longer term loans and formerly known as Pounds to Pocket.
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All have now stopped lending and are part of the administrative process led by Grant Thornton accountants.
Now the latest report from Grant Thornton says customers who were mis-sold would be repaid part of their loan by March next year.
The company said it was processing 169,076 complaints about QuickQuid.
Administrators accepted 78,519 of those claims, with a total value of £135.7 million.
The average claim is £1,700, meaning the typical QuickQuid customer would receive 30-50%, or around £850.
Customers will not get the full value of their claim because there are more claims to pay than there is money to pay them.
Grant Thornton previously warned compensation from successful claims would be “significantly lower” than it would have been before the lender collapsed.
However, the amount owed to QuickQuid customers is much higher than that paid to borrowers from failing payday lender Sunny last year.
About half a million people who were mis-sold by Sunny only got 1% compensation .
Sunny KPMG directors said clients who were wrongfully sold policies before the company went bankrupt in June will likely lose any money owed.
Grant Thornton stopped supporting QuickQuid customer complaints in February, so if you haven’t already, it’s now too late.
The company also said around 2,000 QuickQuid customers had £100,000 in credit with the lender, which would be repaid to them.
Earlier this month, The Mirror reported that credit card company Aqua had lost several lawsuits with customers who said it wrongly lent money and increased credit limits to people who should have hard to repay.
These include people on benefits and compulsive gamblers, some of whom were so in debt that they had to withdraw 13 payday loans.
The Financial Ombudsman Service (FOS) has sided with the consumer in nine decisions against New Day, Aqua’s parent company, in just three months.
One such customer, Mrs S, took out a New Day card in June 2019 with a credit limit of £450.
The customer said she used the money to gamble and got close to her credit limit.
Despite this, New Day raised it to £1,200 in September 2019, and Ms S complained to the FOS that the company should have prevented this.
New Day told FOS he had no way of knowing the problem with the game, but admitted he was wrong to raise the credit limit.