Payday lender Quickquid lines up administrators
Quickquid is on the brink of collapsing into administration following a crack down on pay day lenders.
Cash Euro Net UK, which trades under the name Quickquid, has lined up Grant Thornton as administrator as it prepares for a potential insolvency process, which could be launched in the next few days, Sky News reported.
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Quickquid is the UK’s largest remaining payday lender after rival firm Wonga became insolvent following compensation claims and regulatory pressure.
Grant Thornton, which is also handling Wonga’s administration, is waiting in the wings to take on the same role if Cash Euro Net UK decides to enter an insolvency process.
A competitive tender process took place before Grant Thornton’s appointment, Sky News said, citing sources.
Cash Euro Net UK was the subject of more than 3,000 complaints to the Financial Ombudsman Service in the first half of the year, and is one of the most complained-about consumer finance providers in the country.
The firm is owned by New York-listed Enova International, which is expected to publish its third quarter financial results after market close this evening.
The UK’s payday lenders have come under increasing regulatory pressures in recent years.
Read more: Regulator warns payday lenders over risky loans
Wonga filed for administration in August last year after a surge of customer compensation claims for irresponsible lending pushed it over the edge.
The firm had struggled with multiple consecutive annual losses after the Financial Conduct Authority capped the fees and interest controversial short-term lenders could charge in 2014.
Main image credit: Getty