Credit Unions of Wales Respond to QuickQuid Collapse
People in Wales could avoid falling into unmanageable debt this Christmas following the collapse of payday lenders QuickQuid.
The UK’s largest high-interest loan provider is set to close after as many as 10,000 outstanding complaints were made from customers claiming they were mis-sold loans they could not afford.
Claire Savage, Policy Officer of Credit Unions of Wales said: “The collapse of QuickQuid means that more people could avoid high cost credit this Christmas but only if they can find a more affordable alternative.
“At Credit Unions of Wales we would urge people before taking out any form of credit to check not just the amount repayable every week but also the interest rate, the total cost of the credit and the total amount that will be repaid.
“Most importantly we encourage people to go to their local credit union and find out if they can offer them a better deal.”
The news comes following a survey of people in Wales revealed that eight in ten said Christmas will stretch their finances, with one in three predicting it will affect their ability to pay essential bills such as their rent or mortgage.
QuickQuid is the best-known brand of CashEuroNet UK. The Financial Ombudsman Service received more than 3,000 complaints relating to CashEuroNet UK between January and June 2019.
Tighter regulations were introduced five years ago to limit the interest rates and fees payday lenders could charge.
It also introduced enhanced affordability checks which led to the closure of other payday lenders including Wonga in August 2018 and The Money Shop closed earlier this year.
Credit Unions of Wales is an association of the country’s 18 Credit Unions, who work together to improve levels of savings and access to affordable credit for all members of the community.
As ethical saving and loans providers, with no external shareholders, credit unions are able to offer loans at reasonable rates from as little as £50-£15,000.
Interest on loans is charged on the reducing balance and come with no hidden charges and no penalties for repaying the amount early.