CashEuroNet, trading as QuickQuid and Pounds to Pocket has become the latest payday lender to be told by the FCA to pay out £1.7 million in compensation to customers.
CashEuroNet UK LLC, trading as Quick Quid and Pounds to Pocket has agreed with the Financial Conduct Authority (FCA) to provide redress to almost 4,000 customers to the value of £1.7m. This follows concerns raised by the FCA about the firm’s lending criteria.
An independent Skilled Person was appointed by the FCA in September 2014 to review CashEuroNet’s lending decisions which revealed that some customers were able to borrow amounts greater than they could afford to repay.
CashEuroNet has made changes to its lending criteria and has reassessed all loans that have been granted since 1 April 2014 and which were in arrears for 30 days or more against the new criteria.
The 3,940 affected customers will receive redress totalling £1.7 million as follows:
- 2523 customers will have their current loan balance written off.
- 961 customers will be paid a cash refund of interest paid on the unaffordable element of the loan, and;
- 456 customers will receive both a cash refund and have their current loan balance written off.
Customers do not need to take any action. Any customers that have taken loans out with QuickQuid or Pounds to Pocket do not need to take action, as CashEuroNet will be contacting their borrowers directly, intending to fully complete the redress exercise within the next 60-90 days.
Once contacted by CashEuroNet, if the redress you are entitled to affects your debt management plan with Harrington Brooks we will contact you to ensure that your plan and payments are appropriately reviewed.