Credit Cards & Loans
QuickQuid borrowers to only get half the money owed for mis-sold loans
The borrowers were mis-sold loans they couldn’t afford before the lenders, owned by CashEuroNet, went into administration in 2019 and stopped lending.
QuickQuid charged a typical APR of 1,300%. The firm had been on the receiving end of a high volume of complaints from customers given loans they could not afford to repay.
Administrators at Grant Thornton had initially said affected borrowers were likely to receive a pay out of between 30p and 50p per £1 of interest, fees and charges paid on their mis-sold loans, plus 8% interest on top.
But Grant Thornton has now confirmed that customers of both firms will now receive 53.5p per £1 owed, plus interest.
Payday loans and other short-term loans were widely mis-sold before the rules were tightened for this type of lending. The Money Shop closed down in 2019 while Wonga went into administration in August 2018.
Customers of some firms have received a lot less of their money back than QuickQuid customers – for example, people owned money by Wage Day Advance got just 5.68p for every £1 owed and those owed money by Wonga received just 4p for every £1 owed.
Borrowers with these firms were often sold high interest credit that they couldn’t afford to repay.
Grant Thornton says the QuickQuid and Pound to Pocket pay outs were communicated to all successful creditors on 25 April and the cash will be paid into creditors’ bank accounts within the next two weeks.
It’s now too late to submit new claims or appeal decisions on mis-sold QuickQuid and Pounds to Pocket loans. A dedicated claims portal for those who believed they had been mis-sold was open between August 2020 and 14 February 2021.