BRITS who took out a loan with collapsed payday lender QuickQuid are set to get a compensation payment next year.
Customers who were missold loans will get 30p to 50p for every £1 of their loan, and the average payout will be around £850.
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QuickQuid went bust in October 2019 after its owner, US-based Enova decided to quit the UK market.
The move came after it received more than 3,000 customer complaints in the first six months of the year and followed the collapse of Wonga just a year earlier.
Grant Thornton was appointed as administrator to CashEuroNet, which operates the QuickQuid and On Stride brands.
The latest administrators report says compensation payments to customers who were missold loans will be made in or before March 2022.
The total number of accepted claims was 78,519 with a total value of £135.7million.
That means the average claim is for around £1,700, but the company won’t refund the total amount.
Customers will get 30% to 50% of the value – which would total up to £850.
This is because it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out.
However the final rate and timing of the payment could change and is dependent on a number of factors, including the wind down of ongoing operations and tax clearance from HMRC.
How can I claim compensation?
People who were sold unaffordable loans were able to claim compensation from QuickQuid and its sister brands.
They needed to prove that they couldn’t afford to take out the loan at the time that they borrowed it.
If having the loan meant that someone couldn’t pay bills or other debts then they were irresponsibly lent to.
Customers were entitled to compensation if they had any late repayments, or if they took out back to back loans because this shows that they really couldn’t afford to take out a new one
The administrators launched an online claims portal for customers to submit a claim after QuickQuid went bust.
Customers were asked to provide contact details associated with their account and the company then assessed their claim.
The final date to submit a claim was February 14 this year – the portal has now closed and you can’t submit a new compensation request.
If you did make a claim, you should have heard back by now as the administrator had to let you know within 120 days.
If it was accepted, you’ll be told your accepted claim value – but the payment will be less than that.
It is expected to be between 30% to 50% of that amount.
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