Sky News has reported that CashEuroNet UK, which trades as QuickQuid brand, could be placed into administration within a few of days. This is likely to be because of the number of complaints that have been brought against the company. The firm had to set aside £1.7m back in 2015 to redress customers over affordability tests.
Who are QuickQuid
CashEuroNet UK is owned by New York Stock Exchange-listed Enova International, which is scheduled to announce its third-quarter financial results after the market close on Thursday. Enova’s third-quarter results are due after the market close on Thursday. The company says it has provided more than 5million customers around the world with more than $20billion in loans and financing, while QuickQuid claims to have over 1.4million customers.
It is not entirely clear exactly how large the Quick Quid loan book is but Enova says it has provided more than 5 million customers around the world with more than $20bn in loans and financing, while QuickQuid’s website refers to “over 1.4 million customers and counting”.
If Quick Quid does fail then it will be 2nd biggest failure of the payday lending sector after Wonga.
It would mark another casualty in Britain’s payday loan market since the Financial Conduct Authority brought in stricter rules in 2014 and 2015.
This introduced greater affordability checks and capped the amount borrowers could pay back at double the amount they borrowed.
Grant Thornton, which is handling the administration of Wonga, is understood to have been lined up to be the administrators of CashEuroNet UK if the board of Enova decides to go down that path.