CashEuroNet (CEU), which owns the QuickQuid, Pounds To Pocket and On Stride brands, stopped giving loans and went into administration on 25 October 2019.
I will be talking about QuickQuid (QQ) rather than CashEuroNet as it is the more familiar name. Everything here also applies to loans from Cashruronet’s other brands, Pounds To Pocket and On Stride.
Grant Thornton has been appointed as Administrators. They have set up a page about Redress Complaints – this is their term for people who have asked for a refund because they were given unaffordable loans.
In late December the Administrators published their Proposals setting out how they expect the administration to work and asking people to vote to approve them. I have updated this article with the main points. See QuickQuid – the Casheuronet administrators’ Proposals & Voting for details.
From the Proposals, it is clear that the QuickQuid administration will follow the same pattern as the Wonga and Wageday Advance administrations
I will keep this page updated as questions are answered and details emerge over the next few months.
Background to the QuickQuid Administration
QuickQuid and its sister brands was one of the “Big Three” payday lenders in Britain, starting out in 2007
. After Wonga and the Money Shop Group had all stopped lending and gone bust over the last fifteen months, QuickQuid was left as the largest UK payday lender.
QuickQuid had well over a million customers. When it went into administration there were c. 500,000 customers with outstanding loans.
Many of these customers had prolonged borrowing from QQ. either rolling loans over or repaying one loan but being left so short of money that they had to borrow again. These customers have good reasons to win an affordability complaint and get a refund of the interest they paid.
Affordability complaints started on a small scale in 2015 and increased in the next few years.
In 2018, complaints going to the Financial Ombudsman (FOS) jumped with the involvement of Claims Companies and QuickQuid became the most complained about firm to FOS, excluding PPI complaints.
For a long time QQ refused to refund interest on any loans taken more than 6 years before or where the loans were given in 2015 or afterwards. This has resulted in a huge backlog of claims at the Financial Ombudsman, where QQ had made very poor offers to customers and then rejected an adjudicator decision.
In late July 2019, QQ agreed to accept several thousand FOS complaints it had previously rejected.
By accepting the FOS decisions on loans over 6 years, long chains of borrowing, and loans taken after 2015, the scale of QQ’s likely future liability for refunds will have become clear to the company.
After failing to persuade the FCA that a Scheme of Arrangement was appropriate, Enova, CEU’s large and profitable US parent, decided to close the UK business, blaming the regulatory environment in the UK.
How the administration will proceed
Customers with a valid claim for a refund will be “unsecured creditors” and they will only get paid a percentage of the refund they should have had. This will include:
- any refunds that were in progress after an amount was agreed or a Final Decision from a FOS Ombudsman;
- complaints that are underway at QQ;
- complaints that are underway at FOS;
- any new complaints which are sent to the Administrators.
The Administrators’ Proposals say:
- they will put up a Portal to allow current or previous customers to submit a Claim for unaffordable lending. This will only ask for your name etc so they can locate your account, not information about your loans or why you think they were unaffordable;
- people with complaints at QQ or FOS that have been accepted but not yet paid will not have to submit a Claim, this will be done automatically;
- the Administrators will develop an automated tool to assess a Claim for unaffordable lending and calculate compensation, but this will not be paid in full, see below;
- you will be notified of the calculated value of your Claim.
I expect the following points will also apply but they weren’t mentioned in the Proposals:
- all loans over 6 years will be considered as part of this assessment;
- there will be an internal appeal process after the assessment but no right to take these cases to FOS;
- loans which are decided to have been unaffordable will be deleted from your credit record.
The Administrators will attempt to realise all assets, including trying to recover as much as possible from borrowers who have outstanding loans.
When all assets have been realised, all claims assessed and priority creditors (such as employees) have been paid, the Administrators will divide up the remaining money so everyone gets the same percentage paid out.
At the moment nothing is known about how much money QQ will have to divide up. The Administrators say:
it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out.
I don’t think there is likely to be a payout much before a year.
QQ customers – what do you have to do now?
This is my best guess at the moment, based on what has happened in the Wonga and Wageday Advance administrations.
If you already have an agreed refund amount
This will be treated as a Claim in the Administration. You will be paid the same percentage as anyone else making a complaint, you do not get any priority.
If you have a complaint with QQ
QQ will stop work on your complaint. You won’t receive a decision within the 8-week time limit that previously applied and you will not be able to send your case to the Financial Ombudsman when you don’t receive a response.
Your complaint will automatically be treated as a Claim in administration.
If you have a complaint with the Financial Ombudsman
FOS has returned all the open complaints to the Administrators to settle. FOS doesn’t have any choice about this – it is legally what has to happen.
Your complaint will automatically be treated as a Claim in administration.
If you haven’t yet put a complaint in
You can send a short email to QQ customer services with the subject Affordability Complaint.
You don’t need your loan details, just give enough information so QQ can find your account. Something like the following will be fine:
Or you can wait for the Administrators to put live their new Claims page. This will be very easy – just a page where you input your name, email address etc so your loans can be identified.
Do NOT sign up with a Claims Company to do this. Or you will be paying them to just enter your name on a form!
If you have a current loan with QuickQuid or On Stride
Your loan still legally exists even though the lender has gone under. The Administrators will want you to carry on paying the loan repayments.
If you can make the payments without difficulty and if you haven’t borrowed a lot from QQ or OnStride, the best thing is probably for you to make the normal payments so your credit record will not be affected.
But stop and think if you have a good claim for being given unaffordable loans by QQ or OnStride. The more loans you had from them, the better your claim is. With only one or two loans, you probably won’t win an affordability complaint unless the loans were very big.
If you have a valid claim for a refund, this refund will be used to reduce or wipe out the balance you owe. You will therefore be better off if you do not make any more payments to QQ now… See Wonga customers and the right of set-off which explains this in detail.
If you will struggle to make the repayments you can ask QQ for a payment arrangement. This will spread your payments over a longer period. No extra interest will be added. If you are unsure, talk to a good debt adviser.
Do NOT borrow from another lender to make the QQ payments!
How could the regulators let this happen?
This is an excellent question… Stella Creasy, MP has called for an inquiry into the FCA over Wonga and QuickQuid. I have looked at the question here: More payday lenders go under in 2019 – was anything learned from Wonga?
The comments below this article are a good place to ask any questions. And you may be able to see where someone else has already found out the answer.