QuickQuid payday lending giant to close

Mark Johnson's picture
by Mark Johnson

UK payday loans firm QuickQuid is to close down following thousands of complaints about the business and amid tightening regulation.

The London-based company’s owner, Enova, made the announcement on Thursday in its third quarter results statement.

TheUS-based parent company said it intends to exit the UK market in the fourth quarter of the year.

$74m exit charge 

It also said it expects to record a one-time after-tax charge of approximately $74 million, including one-time cash charges of approximately $43 million to support cessation of its UK lending activities.

"Over the past several months, we worked with our UK regulator to agree upon a sustainable solution to the elevated complaints to the UK Financial Ombudsman, which would enable us to continue providing access to credit for hardworking Britons," said Enovo CEO David Fisher. 

"While we are disappointed that we could not ultimately find a path forward, the decision to exit the UK market is the right one for Enova and our shareholders. 

“Looking ahead, we believe that our diversified product offerings provide meaningful growth as we allocate our resources where we see the greatest opportunities."

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