Britain’s largest payday lender QuickQuid ‘on the brink of collapse’ in Wonga’s footsteps

A payday lender could collapse within days of Wonga’s footsteps.

The QuickQuid brand, otherwise known as CashEuroNet UK, could be placed under administration in just a few days, reports The Mirror .

The potential collapse would come after Wonga was plunged into insolvency last year after a number of claims.

Grant Thornton, who manages the administration of Wonga , would have been prepared to take on the same role at CashEuroNet UK if the board of directors of the parent company decides to pursue insolvency proceedings.

During the first half of this year, the Financial Ombudsman Service (FOS) reported receiving more than 3,000 complaints about CashEuroNews regarding accessibility checks and the way it handles loans.

In 2015, the company, which also owned the Pounds to Pocket brand, agreed to pay customers £ 1.7million in compensation after failing to comply with accessibility tests which also triggered Wonga’s demise. .

CashEuroNet UK is owned by New York Stock Exchange listed Enova International, which is expected to report its third quarter financial results after market close on Thursday.

Enova claims to have provided more than five million customers worldwide with over $ 20 billion in loans and financing, while the QuickQuid website refers to “over 1.4 million customers and more.”

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The payday lending industry has come under enormous pressure in the UK following the introduction of stricter affordability controls and a capping the cost of short-term credit for consumers in January.

This came after the Financial Conduct Authority discovered that more than 5.4 million loans had been issued in the year up to June 30, 2018.

Peter Briffett, co-founder of Wagestream, said: “This is another nail in the coffin of the payday loan industry and a fantastic day for consumers.”

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