Are Quick Quid Loans UK harassing you about paying back your loan? Are you unable to repay the loans? Are Quick Quid Loans UK saying that they will take you to court? Do you believe that you should never have been offered the loan, as you couldn’t afford it. If these are issues you are having with Quick Quid Loans UK then read on to find out more about how to deal with them. You might be able to cancel your loan and even obtain a refund.
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
Who are Quick Quid Loans?
QuickQuid is a registered lender in the UK that used to offer personal short-term loans between £1,000 and £1,500. Customers could do a quick online application, with approval only taking around 10 minutes. However, QuickQuid is no longer accepting new loan applications as the company is currently under administration by Grant Thornton UK LLP.
Read what to do if you can’t pay back your debt.
Is it too easy for borrowers to take out loans?
It can be too easy to borrow money, as the internet has so many companies who are trying to get customers on board. With statements like ‘borrow money in minutes’ and ‘get loans in seconds’, it is no wonder that the allure to take out loans, can often be too tempting to resist. Some borrowers are able to take out loans when they have a terrible credit record, and this is what has led to many debt problems for borrowers.
What causes debt problems, and what is the government doing to deal with these?
With all these tempting slogans, it is no wonder that there are so many people who are suffering from debt problems. Although it is still bad, it is nowhere near as bad as it was in the past. The debt industry got so bad at one stage that the government had to step in and develop new regulations. This was due to the fact that the loan market was up at £2 billion, as a result of lending companies giving loans to borrowers who could not afford them. Together with unaffordable interest rates.
With a bit of investigation, the Financial Conduct Authority founds that many lending companies were failing to adhere to the regulations. This led to fines for some of the most well known lending companies, including Wonga who toppled £220 million. Unsurprisingly, this led to the demise of some of these companies, but the overall strategy worked, and the number of loans dropped from 10 million to 1.8 million. The amount of lenders also dropped to 60, from 240. The FCA found that these companies were lending to people who could not afford it, and many customers received a refund.
Are you due a refund? Read through the next section in which we look at these new rules in some detail. If Quick Quid Loans UK is in breach YOU MAY BE DUE A REFUND EVEN IF YOU HAVE PAID OFF THE LOAN.
Government loan interest and other charges caps
In order to protect borrowers from excessive charges, the Financial Conduct Authority introduced a range of price caps. Some of these are as follows:
- Cost cap of 0.8% per day – this is on the amount borrowed, and it includes interest and fees charged.
- Cap on default fees of £15 – default interest can still be charged after this, but the rules state that it must not exceed the original rate of 0.8% per day.
- Complete cost cap of 100% – you should not be asked to pay over 100% of the money borrowed.
The limits relate to all credit agreements with an interest rate of 100% or more a year and that will be either fully or substantially repaid within one year.
Other regulations were in force by May 2017. With these new regulations, the lender must provide details of products on a price comparison website, which must be authorised by the FCA. Borrowers must receive a summary of the cost of borrowing.
If Quick Quid Loans UK are found to be in breach of these regulations and they are attempting to charge you more than they should be, your credit agreement becomes unenforceable and they cannot make you repay the loan.
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Believe it or not, some loan companies try to operate without being authorised. According to the law, only authorised businesses can make credit agreements. If they do not have authorisation, they are not in a position to be able to enforce payments. If you stop paying the loan company, there is nothing they can do to make you pay it.
If you wish to check whether Quick Quid Loans UK is authorised, jyou can enter their name on the Interim Permission Consumer Credit Register search page. Additionally, you can search the financial services register. If there is no valid up to date entry on either of these registers, you can just stop paying them. They do not have the power to enforce this.
There are other indicators that Quick Quid Loans UK might not be operating legally. They may have a lack of information available on their company website, or the information on the website may be out of date or it could be different from the information that appears on the two directories. A non-disclosure of true APR can also be a sign that all is not right with the lending company.
Would you like to make a complaint about Quick Quid Loans UK?
If Quick Quid Loans UK are breaching the regulations, and you feel they are not treating you fairly, you can make a complaint. If Quick Quid Loans UK do not resolve the complaint, or they fail to respond to you within eight weeks, you have the right to escalate it to the Financial Ombudsman.
In order to make your complaint, you should compile all the evidence you have to support it, including any phone calls, emails or letters. If the company has called you excessively, this could be used as evidence. The more evidence, the better, and you should also let them know how you would like the complaint to be resolved.
If you have not received a satisfactory response from Quick Quid Loans UK you can escalate your complaint to the financial ombudsman. The Financial Ombudsman can be reached by phone on 0800 023 4567 or 0300 123 9123
If Quick Quid Loans UK have not been treating you fairly, you may end up receiving a refund on the loan, if it has been paid within six years. If this is the case, you will receive the loan refund, as well as interest and any other charges you have paid. You could also receive 8% interest on any payments you have made.
In situations were the loan has been found to have been unaffordable, you may be able to get the balance cancelled, and the loan taken off your credit record.
The first step thing to do is to write to your lender with details of the case, and your request for compensation.
If there is no satisfactory response within 8 weeks you may wish to follow it up by speaking to the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123.
Continuous Payment Authority and What You Need to Know
In most cases, the loan companies will ask that you repay your debt via a Continuous Payment Authority (CPA.) With a CPA, the loan company may take money from your account to pay off the debt, at any time they wish. Although they should let you know when they plan to do this, many don’t, and of course, this could leave you in an extremely difficult situation. You won’t know when to expect the payment to be debited, so you could be taken completely unawares.
It could be the case that Quick Quid Loans UK take a payment from your account which leaves you in a position where you can’t pay your rent, mortgage and/or your utility bills. In the most serious cases, you could end up putting your home at risk.
Thankfully, there have been new regulations put into place regarding CPA’s, and these regulations state that the loan company may only try to take the money on two occasions. If it fails, they cannot try again.
Other rules around CPA state that they are not permitted to take partial payments from your account. If you don’t have enough in your account to cover the entire loan payment, they must not take anything at all. You may agree that they take a partial payment, but this is the only way they can take less than the full value. If they do take a partial payment without your permission, or they try to take it on more than two occasions, they are in breach of the regulations.
If they are in breach of the regulations, you have the right to report them to the financial ombudsman. You can do this by phoning 0800 023 4567 or 0300 123 9123.
What if you are unable to repay the loan?
If Quick Quid Loans UK are acting legitimately, you will still owe the money. If you can’t afford to make any payments, there are some steps you can take to deal with the situation.
If you have already set up a CPA, standing order or a direct debit, you can contact the bank and ask them to cancel it. Quick Quid Loans UK will not be in a position to be able to take any payment, and you will feel in more control of your account. It is a good idea to let Quick Quid Loans UK know what you pan to do, although this is not something you are obligated to do. You must give them permission to take any payments in the future.
Regardless of this, you will still owe the money, and you will need to pay it back. It can be tempting to run and hide from the debt, but this won’t make it go away. Speak to Quick Quid Loans UK and let them know about your financial situation. They have a legal obligation to treat you fairly, and should be willing to allow you to set up a suitable repayment plan, which suits your needs.
The law states that lenders must:
- Provide you with information about where you can get free debt advice.
- Refrain from attempting to recover the debt, while you develop a repayment plan and this may possibly include a debt advisor.
- Ensure you are given ample time to pay back the loan, this may include freezing interest and additional charges.
Why you should not roll the loan over
Quick Quid Loans UK may give you an option to roll the loan over, but this will accumulate interest and charges, so it is not the most favourable idea. This could lead you into even more debt. It is much better to set up a repayment plan.
Getting free help with your debt
If you are in debt and want some advice on sorting out your finances, these are some organisations who provide free independent advice.
- Contact Citizens Advice who provide help with debt issues, as well as other personal problems you may be enduring
- Contact StepChange Debt Charity who will give you debt advice and help you manage your finances
- Contact National Debtline a company who provide free debt advice
Should you expect loan companies to be sharks?
Loan companies always receive a bad press. This is down to the reasons we discussed earlier, including the fact that many lend to people who can’t afford it, and that they charge excessive rates. Not all are like this though, and many loan companies offer a great service, which really helps those who need it most. The new regulations have made it safer for borrowers to use these companies, but unfortunately, debt problems are still prominent, and very much still a problem which needs addressing.
If Quick Quid Loans UK are failing to follow regulations, you may not need not to pay them, as the debt has become unenforceable. If you are not in a position to pay the loan back, you should contact one of the organisations above, who will be able to provide you with free debt advice and support.
If you can’t pay back your loan do check out my other article here.