- complaint numbers for QuickQuid have tripled since the last half of 2017
- Wonga’s complaints nearly doubled, forcing it to go into administration at the end of August
- other payday lenders such as Lending Stream, Sunny and Payday UK have also seen numbers of Ombudsman cases more than double in the last half year.
This jump has taken QuickQuid to be the most complained about banking and credit firm in Britain in 2018. Barclays had the next largest number of complaints and then Wonga.
This contrasts to the last half of 2017, when the big banks took the first five places, with Wonga coming in sixth and QuickQuid eighth.
Here are the worst firms for complaints, showing how the numbers of banking and credit complaints to the Ombudsman (this excludes PPI) have changed from the last half of 2017 to the first half of 2018:
|Jul-Dec 17||Jan-Jun 18|
Much of this increase has been attributed to Claims Management Companies (CMC). It has been reported that one CMC alone brought 2,138 cases to the Ombudsman in the first half of this year.
Wonga went under – is QuickQuid in trouble?
Wonga’s administrators have said:
Despite efforts to restructure the business, which included an injection of funding by the Group’s shareholders the business was unable to be restored to profitability due to the level of redress claims.
So people will be wondering if QuickQuid, which now has a larger number of complaints, is in trouble. Nick Drew, UK managing director at CashEuroNet UK (the company who owns the QuicQuid brand) says not:
Our business is profitable and growing, and we remain excited about the opportunities, especially in light of the diminished competition in the market.
So they are expecting to gain from Wonga’s demise. QuickQuid also has a large and profitable American parent company, Enova International.
But one problem ahead for QuickQuidis the large number of “over six year” payday loan cases. So far QuickQuid has been refusing to pay out on these older complaints. It is thought that there are over a thousand QuickQuid customers with complaints waiting on this decision.
Update: FOS has now decided that it can look at these complaints involving older loans. See Ombudsman decisions on payday loans over 6 years old.
Ombudsman upholding most payday loan refund complaints
Today’s statistics show that the Finanical Ombudsman is agreeing with the customer’s complaints in the majority of cases for many of the large lenders:
- Wonga 72%;
- QuickQuid 69%
- Sunny 65%
- Lending Stream 62%.
These are astonishingly high uphold rates – higher than any other type of product the Ombudsman covers. The average uphold rate for all banking and credit complaints is only 34%.
Payday lenders need to improve how they handle complaints
The FCA’s DISP rules say that firms should:
ensure that lessons learned as a result of determinations by the Ombudsman are effectively applied in future complaint handling.
A year ago in September 2017 the FCA wrote a Dear CEO letter about how they dealt with complaints. It was sent to all banking and consumer credit firms but was widely thought to be aimed at payday lenders.
The current high levels of customer complaints being won at the Ombudsman suggest that the payday lenders have not improved their complaints handling enough in the last year.
Lenders are continuing to reject or make poor offers to customers complaints even when they know from experience that similar cases are being routinely upheld by the Ombudsman. This is not treating their customers fairly.