The country’s former largest payday lender, QuickQuid, is liquidated by administrators who now say it will repay 30-50 pence on £ 1 in loans to clients next year
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Borrowers who have been mis-sold by collapsed payday lender QuickQuid will get back 30p to 50p for every £ 1 they loan.
This means that the typical payout will be around £ 850.
QuickQuid was Britain’s largest payday lender, but it closed in 2019 after its owner, Enova, left the UK market “due to regulatory uncertainty”.
The company had more than 3,000 unresolved complaints filed against it with the Financial mediation service by the time it closed.
Most of them were from clients who claimed to have obtained loans that they could not afford to repay.
QuickQuid is one of the brands of CashEuroNet UK, which also operated On Stride – a long-term and larger loan provider 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 accountants Grant Thornton.
Grant Thornton’s latest report said mis-sold customers would be repaid part of their loan by March of next year.
The company said it was handling 169,076 complaints regarding QuickQuid.
The Trustees accepted 78,519 of those claims, for a total value of £ 135.7million.
The average claim is £ 1,700, which means the typical QuickQuid customer would get 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 that compensation for successful claims would be “considerably lower” than it would have been before the lender’s bankruptcy.
However, the amount owed to QuickQuid customers is much higher than that paid to borrowers from bankrupt payday lender Sunny last year.
About half a million people who were mis-sold by Sunny only got 1% compensation .
Sunny’s directors, KPMG, said clients to whom policies were falsely sold before the company’s bankruptcy in June would likely lose any money owed.
Grant Thornton stopped supporting complaints from QuickQuid customers in February, so if you haven’t already, now is too late.
The company also said that around 2,000 QuickQuid customers had a loan of £ 100,000 with the lender, which would be repaid to them.
Earlier this month, The Mirror reported that the Aqua credit card company has lost several disputes with customers who say they have falsely loaned money and raised credit limits to people who would have trouble keeping it. refund.
These included people about the benefits and problem gamblers, some with so much debt that they had to take out 13 payday loans.
The Financial Ombudsman Service (FOS) sided with the consumer in nine decisions against New Day, Aqua’s parent company, in just three months.
One of those clients, 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 approached her credit limit.
Despite this, New Day raised it to £ 1,200 in September 2019, and Ms S complained to FOS that the company should have prevented this.
New Day told FOS he had no way of knowing about the gambling problem, but admitted it was wrong to increase the credit limit.