Borrowers who believe the collapsed payday lender mis-sold a loan will need to apply for compensation through an online portal.
QuickQuid clients who believe they may have been poorly sold loans are told that they will soon be able to request “quick and easy” payments due to poor lender practices.
But the compensation will be “only a fraction” of what it would have been owed this time last week, before the company pulled out of the UK and went into administration.
Borrowers who believe collapsed payday lender QuickQuid mis-sold a loan will need to apply for compensation through an online portal, company administrators Grant Thornton said.
The portal is not live yet, but is expected to be similar to Wonga’s former customer claims service, which recorded 389,621 eligible claims after its collapse in 2018.
US-based QuickQuid owner Enova last week announced plans to close your business in the UK based on “regulatory uncertainty”.
On Friday, the firm officially crashed into the administration.
At the time of its collapse, the Financial Ombudsman said it had 3,000 outstanding customer complaints.
Trustees Grant Thornton have now warned that compensation for successful claims would be “considerably less” than it would have been before the lender’s collapse.
The amount actually paid on an eligible claim will be calculated when the company’s assets are sold.
Others, who believe they may have been poorly sold loans and have not yet filed a claim, will eventually have to submit an application through the online portal.
These will be evaluated using criteria agreed with the Financial Ombudsman.
“This is because the total value of all accepted claims received is expected to significantly exceed the money available to distribute,” administrators said.
Those affected are also invited to call customer service on 0800 056 1515 if the loan is with QuickQuid or 0800 210 0923 if the loan is with On Stride, but note that the lines are expected to be busy.
QuickQuid is one of the CashEuroNet UK brands, which also ran On Stride, a provider of larger, longer-term loans formerly known as Pounds to Pocket. Now they have all stopped lending and are part of the administration process.
Payday lender The Money Shop also closed earlier this year, the third in just over 12 months.