The UK’s largest payday loan provider, QuickQuid is on the brink of collapse leaving thousands of unresolved complaints from its customers.
QuickQuid’s owner, US firm Enova said that it will now leave the UK, citing the uncertainty around the UK regulatory system and current market.
The company is the latest firm offering short-term, high-interest loans to close after regulations were tightened five years ago.
QuickQuid is currently the biggest payday lender in the UK and was larger than Wonga; even before it folded in August last year.
Enova boss David Fisher commented: “Over the past several months, we worked with our UK regulator to agree upon a sustainable solution to the elevated complaints to the UK Financial Ombudsman, which would enable us to continue providing access to credit.
“While we are disappointed that we could not ultimately find a path forward, the decision to exit the UK market is the right one for Enova and our shareholders.”
QuickQuid is one of the brand names of CashEuroNet UK, which also runs a provider of longer-term, larger loans, known as Pounds to Pocket.
More than 10,000 complaints towards CashEuroNet are currently with the UK’s Financial Ombudsman Service. Any eligible complaints will now be added to the backlog.