Payday lender QuickQuid to close
The UK’s biggest remaining payday loan provider QuickQuid is to close, after its US-based owner said it was leaving the UK market “due to regulatory uncertainty”.
QuickQuid, which charged a typical APR of 1300.5 per cent, had been on the receiving end of a high volume of complaints. Compensation claims had been made from customers who said they were given loans they could not afford to repay.
In Enova’s Q3 results David Fisher, Enova’s CEO, said: “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 for hardworking Britons.
“While we are disappointed that we could not ultimately find a path forward, the decision to exit the U.K. market is the right one for Enova and our shareholders. Looking ahead, we believe that our diversified product offerings provide meaningful growth as we allocate our resources where we see the greatest opportunities.”
QuickQuid is the latest firm offering short-term, high-interest loans to close after regulations were tightened. The Money Shop closed earlier this year while Wonga went into administration in August 2018.
Caroline Siarkiewicz, acting chief executive at the Money and Pensions Service, said: “Many QuickQuid customers will be feeling uncertain about what this means for them. While you may be tempted to stop your repayments, it is crucial to keep to your regular schedule, because if you have entered into a loan agreement you must fulfil it. If you miss any repayments you could be hit by fees and additional charges, and it could also harm your credit rating.”
Peter Briffett, co-founder and CEO of Wagestream, said: “This is another nail in the coffin of the payday loans industry and a fantastic day for consumers. Those under financial pressure are better informed and more financially literate than they’ve ever been and there has never been a wider variety of alternatives to payday loans available.
“After Wonga’s collapse, and now QuickQuid’s woes, this finally looks like the twilight of this greedy industry.”