UPDATE – the emails from QQ on 5/6 November were sent in error.
Many people were worried these were a scam as the wording was odd, contradictory and often simply wrong.
They weren’t a scam – but they were very wrong and sending them was a mistake. QQ are now sending more emails saying:
You may have received one or more unexpected emails from us on 5 November 2020 relating to the assessment of a claim submitted. The email(s) were sent in error due to a technical issue during some routine email testing. We apologise for any confusion or concern. Please ignore the email(s) as they do NOT represent your official claim assessment outcome.
So there is no need to worry about these:
- you do NOT have to submit an Appeal to QQ as they have not rejected your Claim;
- if they said you still owe a balance and you know you don’t, you can ignore this.
If you had one and you haven’t submitted a Claim – this might now be a good time to do that!
UPDATE – the Claims Portal is now live, see below.
All Claims must be submitted by 14 February 2021.
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.
I will keep this page updated as questions are answered and details emerge over the next few months.
Background to the QuickQuid Administration
QuickQuid 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. They either rolling loans over or repaid one loan but were 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.
What is happening in the administration
Customers with a valid claim for a refund are “unsecured creditors”. This includes:
- any refunds that were in progress after an amount was agreed or a Final Decision from a FOS Ombudsman (FOS);
- complaints that were underway at QQ or FOS when QQ went under;
- any new complaints sent to the Administrators.
All complaints at FOS legally had to stop. They have been passed back to the Administrators. It isn’t possible to send any new complaints to FOS.
How to put in a Claim
In August 2020 the Administrators put up an easy Claims page.
This only asks for your name, address etc so they can locate your account, not information about your loans or why you think they were unaffordable.
The Administrators will only delete records from your credit files if you put in a Claim and the loans are decided to be “unaffordable”. So it is worth putting in a Claim even if the refund will be tiny just to get your credit records cleaned up.
All Claims have to be sent in before 14 February 2021.
See the FAQ on Redress Complaints for more details.
“The Claim portal won’t take my details”
Several people have said this in the comments below this article. You need to phone the CashEuroNet Customer Support Team at 0800 016 3250.
“Do I have to put in Claim if they already have my complaint / I won a FOS case?”
This isn’t clear.
I suggest everyone tries to put in a Claim just in case
You should be told how your claim is assessed within 120 days
This will be by email. For this 4 month period I suggest you check your junk/spam folder regularly to see if the response has arrived.
All emails that you receive will be from a “@casheuronetuk.co.uk”, “@mail.casheuronetuk.co.uk”, or “@uk.gt.com” email address. If you receive an email you aren’t sure about, phone the CashEuroNet Customer Support Team at 0800 016 3250.
You will be told which loans (if any) have been upheld the total value of your redress.
This is NOT the amount you will receive. You will only get a small percentage of that… That percentage won’t be known until all claims have been assessed – my guess is this will be in May-July 2021.
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.