QuickQuid collapse: do you still owe money? Are you entitled to compensation? What this means for you | London Evening Standard

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ritain’s largest payday lender is on the brink of collapse, throwing thousands of customers into financial uncertainty.

QuickQuid was rocked by over 3,000 complaints in the first half of this year, most of which came from people claiming they were badly sold loans they couldn’t afford.

The owner of the US-based lender, Enova, said he had tried for months to come to an agreement with the British authorities to find a “lasting solution to the high complaints”.

For those wondering if the loan department owes them any compensation or unsure if they still owe money, here’s everything you need to know.

It comes a year after rival lender Wonga collapsed / Pennsylvania

Should I continue my refunds on QuickQuid?

Yes. Customers of QuickQuid are expected to continue repaying the loan company despite uncertainty about its future, according to the government’s Money and Pensions Department.

The service’s acting general manager, Caroline Siarkiewicz, said: “While you may be tempted to stop your repayments, it is crucial to stick to your regular schedule because if you have entered into a loan agreement, you must fulfill it. .

“If you miss repayments, you could be hit with additional fees and charges, and that could hurt your credit rating as well. “

How do I know if I owe compensation from QuickQuid?

Five years ago, the Financial Conduct Authority (FCA) introduced rules to prevent people from being trapped in debt spirals, following an outcry from consumer activists and charities.

The regulator placed a cap on the amounts that payday lenders were allowed to charge in interest rates and fees, and introduced improved affordability controls.

If QuickQuid sold you a loan that you couldn’t afford at the time of borrowing, or if having the loan meant you couldn’t pay your bills or other debts then, under FCA rules , you were irresponsibly loaned out, and therefore you may be entitled to compensation.

According to the Money Blogger DebtCamel you may also be entitled to compensation if you took out back-to-back loans or renewed a loan multiple times as this suggests the loan was not affordable.

New limit on payday loans

How to claim compensation?

DebtCamel’s advice is as follows:

You must write a formal complaint letter to QuickQuid, or the lender in question, explaining how you were irresponsibly loaned.

You’ll need to include evidence of this, so be sure to check emails, bank statements, and credit reports carefully for relevant evidence.

You should also make copies of this evidence before sending it, in case anything happens to the relevant documents.

In your letter, make it clear that you are claiming “unaffordable loans” and request reimbursement of the interest and fees you have paid.

DebtCamel provides a template here.

Make sure you keep track of all receipts and other evidence surrounding your payday loans / Getty Images

What compensation can I expect to receive?

QuickQuid should repay all of the interest you paid from your third loan.

This is because payday loans are meant for short term problems and the lender should not have continued to give you loans.

You may be able to claim your first or second loan if it has been renewed, completed, or very large.

How long do I have to wait to receive compensation from QuickQuid?

Current regulations give lenders eight weeks to respond to a complaint.

However, QuickQuid claims to have loaned to over 1.4 million people in the UK, so delays are to be expected if the business collapses.

Tola Fisher, personal finance expert at Money.co.uk, explained: “If you are currently seeking compensation from QuickQuid for a mis-sold loan and it goes bankrupt, you will have to wait until the directors have liquidated the company. .

“Unfortunately, you might find yourself at the end of a long line to collect your money. “

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