UK’s biggest payday lender QuickQuid is collapsing into administration

The UK payday loan industry appeared to be virtually over 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 reach an agreement with regulators over a flurry of compensation 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.

There are fears the firm’s closure could leave thousands of complaints against it in limbo, with the Financial Ombudsman Service regulator yesterday unable to confirm whether 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 its website quotes annual percentage rates (APR) 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.

It is believed to have faced as many as 10,000 complaints, many of them borrowers who received 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 its website quotes annual percentage rates (APR) of up to 1,300%.

QuickQuid offers loans of up to £1,000 for new customers – or £1,500 for returning ones – and its website quotes annual percentage rates (APR) 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 appears to be drawing on the payday lender market.”

Martin Lewis of MoneySavingExpert.com said: “As with the disappearance of Wonga, if QuickQuid disappears, in the long run it will not be a cause for tears. These debts for the vast majority of customers were horribly overpriced and unnecessary.

There are fears the firm’s closure could leave thousands of complaints against it in limbo, with the Financial Ombudsman Service regulator yesterday unable to confirm whether they could still be prosecuted.

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

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

He blamed a ‘difficult and uncertain regulatory environment’ in the UK for QuickQuid’s woes.

It is believed to have faced as many as 10,000 complaints, many of them borrowers who received loans they could not afford to repay.

It is believed to have faced as many as 10,000 complaints, many of them borrowers who received loans they could not afford to repay.

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