The UK's largest payday loan provider QuickQuid is to shut up shop following a rash of complaints about sky high interest repayments to the Banking Ombudsam.
QuickQuid follows Wonga and the Moneyshop in exiting the payday loans industry following a tightening of regulations by the Financial Conduct Authority.
The decision to fold the lender came after customers filed more than 3000 complaints to the Financial Ombudsman in just six months.
QuickQuid is owned by US company Enova, which will incur a one-off after-tax charge of approximately $74 million to cover the costs of the shutdown.
David Fisher, Enova’s CEO says the company has been in discussion for months with the FCA to agree upon "a sustainable solution to the elevated complaints to the UK Financial Ombudsman".
“While we are disappointed that we could not ultimately find a path forward, the decision to exit the UK market is the right one for Enova and our shareholders," he says.