One of the UK’s largest payday lenders, QuickQuid, has confirmed that it will be entering administration following a number of compensation claims that has cost the company in the region of £58 million.
The company, owned by American-based Enova and trades under CashEuroNet became one of the largest payday lenders in the country and owns other brands including PoundsToPocket and OnStride.
In recent years, the payday loans industry has been faced with increasing regulation from the Financial Conduct Authority which has seen profits and margins wiped out due to a daily price cap of 0.8%, a capped default rate of £15 and much stricter lending requirements.
Ex-customers have been able to request refunds or compensation for any extra fees and charges that were deemed unworthy, plus 8% compound interest – something that has seen previous payday loan giant Wonga pay over £400 million in compensation to customers and cease trading in November 2018.
QuickQuid follows Wonga into administration along with other well-known lenders in the space such as The Money Shop, CashGenie and WageDayAdvance.
The company has hired Grant Thorton, the same administrators as Wonga, to complete the exit from the UK market.