Quick quid about to go bust

glennstar

sourcrates wrote: »

Yes the title is a tad mis-leading, the parent company (Enova) are withdrawing from the UK market, they are financially solvent, the fall guy is QuickQuid, who will, most likely, go bust, KPMG (Grant Thornton) are already lined up to administer the company.


The original concept was flawed from the beginning, the idea to lend up to 100% of your monthly income, then add a big dollop of interest on top, was never going to go well for the debtor, if they were short one month, how could they possibly repay the full loan the next month, and still afford to live ?


The answer of course was they couldn't, and hey presto, the rollover was born, which got you into an even worse mess, but then people got fixated on trying to borrow their way out of trouble, so they went to multiple lenders, borrowed again, and the mess got worse.

Sourcrates, this is only half the picture, as well you know. If you really want to go back to the start then I suggest you shine your sanctimonious spotlight on the world banking system and the 2008/9 crash which was the trigger for quite a lot of this.

Whilst the UK government (along with many others the world over) were engaged in QE, putting fabulous amounts of money into the banking system, the banks were in the process of tightening their lending criteria (predictably the compete opposite of what they were meant to be doing) removing access to cash for millions of sub-prime borrowers... and yes, this is where the PDLs you love to hate stepped in and no, I haven't seen a score card from a single one (and I have seen a few) where they lent 100% of income or even of disposable income.

The most I have seen, even before the 0.8% cap (you can currently pay more than twice that to HSBC on an unarranged overdraft) and the enhanced* affordability were introduced by the FSA (note the FCA had already been replaced due to its rank incompetence) was generally about 30% of disposable... although of course this was hard to check because of a useless CRA industry and, yes, the fact that borrowers would LIE about their circumstances - which, incidentally is a crime!

So if you're lining up the crooks (and the incompetent idiots) I suggest you cast your net a little wider than the PDL companies.

* If the FCA were competent and capable of doing their jobs then much of these problems could be avoided... only they aren't competent or, indeed, interested in the struggles of everyday normal folks. If you wish to contrast and and compare, simply look at the amount of effort they have put into corporate and SME lending, for example!!

Aqua1985

Disgraceful really. Companies like this should be forced to have UK directors who have some sort of accountability. The financial services compensation scheme should also be available for customers who have been hood winked by these charlatans. Operated a grossly unfair predatory business model and absconded when they needed to cough up!

twhitehousescat

Aqua1985 wrote: »

Disgraceful really. Companies like this should be forced to have UK directors who have some sort of accountability. The financial services compensation scheme should also be available for customers who have been hood winked by these charlatans. Operated a grossly unfair predatory business model and absconded when they needed to cough up!

yes this is the crux of the problem , operating but not answerable

the parent company for long term loans will still be operating in the UK

Robisere

I have great sympathy for some of those who were so desperate that they had to borrow from PDL's and enter a terrible cycle of borrowing from scumbag Peter to pay ratbag Paul. For example, those who could see no other way to feed, house and clothe themselves and their family. For those idiots who borrowed to buy the latest, biggest device, TV or whatever, I have nothing but scorn and contempt.

We have been in that position years ago and only a kind gesture from my lovely in laws kept us afloat. Until you are staring hunger, poverty and homelessness in the face, do not criticise those who had to make such a choice.

bris

Good riddance to them, but at the end of the day the borrowers made their own beds.


Whilst I do believe these loan sharks have no place on the UK I also believe if you borrow money you should pay it back.


No if's but or maybes. Default yes, who cares the sharks deserve that but to have to pay people back is a bit much.


Of course the other downside for these unfortunate people who need to borrow from these sharks is that no lending will be available to them now. So of course they win by getting a refund but what about 3 months or even 3 weeks from now when they are desperate again, then what? When they need them they can't have them because they have driven them away.

glennstar

Aqua1985 wrote: »

Disgraceful really. Companies like this should be forced to have UK directors who have some sort of accountability. The financial services compensation scheme should also be available for customers who have been hood winked by these charlatans. Operated a grossly unfair predatory business model and absconded when they needed to cough up!

The FCA states that companies who offer consumer finance in the UK need to have mind and management in the UK. As you can see from the Individuals section here and the Persons section of Companies house that 3 of the 4 directors are UK residents... so not too sure what point you are making.

boo_star

Les79 wrote: »

To what extent will they be held accountable?

None, just like that American woman won't ever be sent back to face the music over the accident that resulted in someone losing their life.

As much as I like Americans, they absolutely look after themselves when it comes to, well, anything.

Blackbeard_of_Perranporth

Aqua1985 wrote: »

Disgraceful really. Companies like this should be forced to have UK directors who have some sort of accountability. The financial services compensation scheme should also be available for customers who have been hood winked by these charlatans. Operated a grossly unfair predatory business model and absconded when they needed to cough up!

Poacher?

Aqua1985 wrote: »

Finally paid my overdue redress of £1000 after a long and frustrating wait. Added to my list of Wonga, Sunny and PDUK and over £5000 claimed back! For those of you still claiming keep going and chasing and it will all be worth it in the end!

Gamekeeper!

Aqua1985

Blackbeard_of_Perranporth wrote: »

Poacher?


Gamekeeper!

Not really sure of your point. I was one of the lucky ones who got the money I was owed and paid in full with interest, as I was entitled.

I feel sorry for the many thousands who are legally due redress and now CEN will run away and shirk their responsibilities. Shell company set ups like this should not be allowed and the FCA should hang their hand in shame.

glennstar

Aqua1985 wrote: »

Not really sure of your point. I was one of the lucky ones who got the money I was owed and paid in full with interest, as I was entitled.

Do you mind explaining this in a little more detail?

Aqua1985 wrote: »

I feel sorry for the many thousands who are legally due redress and now CEN will run away and shirk their responsibilities. Shell company set ups like this should not be allowed and the FCA should hang their hand in shame.

I partially agree. The FCA should blush somewhat... as for shell company - I rather think you should familiarise yourself with the laws of England and Wales governing incorporation. CashEuroNet LLC is a company incorporated in the US, legitimately trading here according to companies house.