While the company hasn’t quite collapsed, CashEuroNetUK has announced plans to pull out of Britain – just months after the FCA introduced new accessibility guidelines on who and what it can lend to customers

Britain’s largest remaining payday lender will close as thousands of complaints about its controversial practices remain unresolved.

The owner of QuickQuid, US company Enova, has said it will exit the UK market “due to regulatory uncertainty”.

It comes as the financial ombudsperson warns that more than 3,000 complaints about his bad-selling tactics remain unresolved – largely led by clients who claim they received loans they couldn’t afford to repay.

QuickQuid is the latest company to offer short-term, high-interest loans to close after regulations tighten.

Enova, its US owner, said Thursday evening that it was withdrawing from the country after failing to reach an agreement with the British financial ombudsman on how to handle a multitude of complaints from QuickQuid customers.

Enova had been working for months to reach an agreement with authorities after customers filed more than 3,000 complaints against the company in the first six months of the year.

However, these talks have now collapsed.

“We worked with our UK regulator to agree a lasting solution to the high number of complaints to the UK Financial Ombudsman, which would allow us to continue to provide access to credit to hard-working Britons,” said the managing director David Fisher, announcing that the company will be pulling out of the UK this quarter.

It will take a one-time after-tax charge of around £ 58million, which includes a cash charge of £ 33million to support the termination of its UK loans.

Martin Lewis, Founder of MoneySavingExpert.com, said: “As with Wonga’s demise, if QuickQuid goes away, in the long run, it won’t be a cause of tears. Normally, when companies go bankrupt, fear is less competition Not here These loans were unnecessary, unwanted, unnecessary, destructive and addicting.

“It’s important to understand that the payday loan industry was built on the backs of marketing, not on need. They sold people the concept of a need to create demand and then pushed their products. These debts for the vast majority of clients were horribly overwhelmed. expensive and unnecessary.

“The only problem with QuickQuid’s demise is the potential for this large parent company to evade its obligation to pay compensation to people whose lives have been made miserable. I hope that doesn’t happen, I suspect. it will happen. Morality has never been at the forefront of the minds of these companies. “

I have a loan with QuickQuid – what does this mean?

“Many QuickQuid customers will feel unsure of what this means to them. Although you may be tempted to stop your repayments, it is essential to stick to your regular schedule, because if you have entered into a loan agreement, you must fulfill it ”Caroline Siarkiewicz, General Manager of the Money and Pensions Department , said.

“If you miss refunds, you could be hit with additional fees and charges, and that could also hurt your credit rating , which could impact your future access to credit, loans, a mortgage, and even your phone bill.

“11.5 million adults have less than £ 100 in savings and investment, so many people face cash flow issues that may make fast, short-term credit the only option. If you know you need a specific amount of money for a short period of time, there may be more affordable alternatives, so it’s a good idea to shop around before borrowing.

The Money Advice Service website has a to guide on alternatives to payday loans. You can also contact its free hotline on 0800 138 7777.

Was I mis-sold for a QuickQuid loan?

“QuickQuid’s neglect of consumer rights is deplorable,” says Aman Johal, of the consumer action law firm. Your lawyers .

“The company, which claimed to provide short-term financial support, is leaving an inconceivable number of victims out of pocket following its announcement to leave the UK market.

“An estimated 10,000 complaints from people who mis-sold money are pending. According to recent findings from the Financial Ombudsman Service, potentially 6,000 of them would likely have had their complaints confirmed and would not be compensated,” their consumer rights violated by the loan provider.

“This incredible liability leak cannot go unchallenged – QuickQuid must ensure that complaints are resolved and consumers’ rights are restored.

“Regulatory measures that have fought off predatory lending companies have created a better environment for consumers – but before QuickQuid leaves the UK it must do the right thing.”

If you think you have been mis-sold for a loan, first file your complaint in writing with QuickQuid.

If you are not happy with its resolution – or if you do not receive anything within eight weeks – then you can escalate it to the Financial mediator .

The arbitrators will then examine whether the company do whatever it takes (i.e. through affordability checks), if he has acted unfairly or unreasonably in any way and if the customer lost as a result of one of his failures (that is, when he has not acted in your best interest).