QuickQuid’s parent company Enova has announced plans to exit the UK market.
The UK’s largest remaining payday loan provider, QuickQuid, will close after its US-based owner said it was leaving the UK market “due to regulatory uncertainty”.
QuickQuid, which billed a typical 1300.5 percent APR, had received a high volume of complaints. Compensation claims have been filed by clients who said they got loans they couldn’t afford to repay.
In Enova’s third quarter results, David Fisher, CEO of Enova, said: Credit for the hardworking Brits.
“Although we are disappointed that we were ultimately unable to find a way forward, the decision to leave the UK market is the right one for Enova and our shareholders. Looking ahead, we believe our diverse product offerings provide significant growth as we direct our resources where we see the greatest opportunities. “
QuickQuid is the latest company to offer short-term, high-interest loans to close after regulations tighten. The Money Shop closed earlier this year as Wonga entered the administration in August 2018.
Caroline Siarkiewicz, Interim Managing Director of the Money and Pensions Service, said: “Many QuickQuid customers won’t know what this means to them. While you may be tempted to stop your repayments, sticking to your regular schedule is crucial because if you’ve entered into a loan agreement, you need to stick to it. If you miss repayments, you could be hit with additional fees and charges, and it could hurt your credit rating as well.
Peter Briffett, Co-Founder and CEO of Wagestream, said: “This is another nail in the coffin of the payday loan industry and a fantastic day for consumers. Those under financial pressure are better informed and financially literate than ever before, and there has never been a greater variety of payday loan alternatives available.
“After the Wonga collapse, and now the woes of QuickQuid, it finally looks like the twilight of this greedy industry.”