QuickQuid owner to repay customers £1.7m

The owner of QuickQuid and Pounds to Pocket is to repay 4,000 customers a total of £1.7 million after failures in its affordability procedures.

The Financial Conduct Authority said it had reviewed CashEuroNet's lending decisions and found certain customers were able to borrow more than they could afford to repay.

As a result, the payday lender has agreed to write off the loan current balance of 2,523 customers and pay a cash refund of interest paid on the unaffordable element of the loan of 961 others.

A further 456 will receive both a cash refund and have their current loan balance written off.

Customers do not need to take any action, as CashEuroNet will start contacting them immediately and plans to complete the redress exercise within the next 60 to 90 days.

Further information us available on the websites of QuickQuid and Pounds to Pocket.

Jonathan Davidson, director of supervision for retail and authorisations at the FCA, said: "We are pleased that CashEuroNet is working with us to address our concerns.

"It is important that firms carry out appropriate affordability checks and pay particular attention to fair treatment of those who have trouble meeting their loan repayments."

CashEuroNet UK managing director Nick Drew apologised to customers affected, adding: "We appreciate the opportunity to work with the FCA to review our processes, and we are pleased they have witnessed how seriously we take our regulatory responsibilities.

"We apologise to the 4,000 affected customers, and we are pleased to be able to address this with the announced redress plan."