QuickQuid, Britain’s biggest payday lender have gone into administration after talks with the UK Financial Conduct Authority fell through. CashEuroNet UK, the US owned lender which is comprised of the “QuickQuid, On Stride Financial and Pounds to Pocket brands”, announced that all three US owned UK lenders have gone into administration on the 25th October.
According to their website, whilst the Company has gone bust and is unlikely to cough up the millions it owes, the lawyers make it explicitly clear that all borrowers must continue to pay off their debts to the Company “all outstanding loans remain subject to the terms agreed with the Company and borrowers should continue to make payments in the usual way according to the company’s terms and conditions”(Enova International, Inc., 2019). Talk about having your cake and eating it…
Why have QuickQuid gone into administration?
QuickQuid received more than 10,000 complaints and legal challenges in recent months due to loans being mis-sold over affordability, with rates typically as high as 1575%. After entering talks with the FCA over a high volume of complaints in order to try and resolve this, the talks fell through and CashEuroNet UK pulled the plug, likely deciding it’s better to up and run with the QuickQuid they made rather than stay and have to answer and pay back those they took advantage of at a time of austerity, poverty, deprivation and record levels of unemployment in Britain.
What does this all mean for working people in Britain?
The double standards and rank hypocrisy of capitalism in Britain couldn’t be clearer. Punishment for the poor and reward for the rich is the message, as borrowers who have been mis-sold aren’t guaranteed to compensation whereas QuickQuid sell off their assets and leave with all the funds taken from hard working people, a pretty penny for the parent company CashEuroNet UK, a QuickQuid indeed.
What should workers do?
If you live and work in Britain, you are a British worker, no matter where in the world you are from, we believe that the only thing workers can do is to organise, educate and retaliate in order to protect ourselves and our families from austerity, oppression and all other problems put onto us by the wealthy class and bankers. This is one of the essential reasons workers in Britain have come together and formed our own organisation. One single fact strikes out clear as day, whenever there is trouble in the economy it is the workers that pay the price for the greed of the wealthy and the political class in Britain, when there’s a debt to be paid, the ruling class and bourgeois state expect us to foot the bill.
A few further links on this story
Enova International, Inc. (2019). Brands & Services – Enova International, Inc.. [online] Available at: https://www.enova.com/brands/ [Accessed 27 Oct. 2019].
Grant Thornton UK LLP. (2019). Grant Thornton CashEuroNet UK LLC Administration. [online] Available at: https://casheuronetukadministration.grantthornton.co.uk/administration/ [Accessed 27 Oct. 2019].
CPGB-ML. (2019). The true level of unemployment. [online] Available at: https://www.cpgb-ml.org/2019/10/26/news/true-level-unemployment/ [Accessed 27 Oct. 2019].
CPGB-ML. (2019). Shameful levels of malnutrition in Britain. [online] Available at: https://www.cpgb-ml.org/2019/09/13/news/shameful-levels-malnutrition-britain/ [Accessed 27 Oct. 2019].
CPGB-ML. (2019). Join the party or become a supporter. [online] Available at: https://www.cpgb-ml.org/join/ [Accessed 27 Oct. 2019].
CPGB-ML. (2019). Workers for Brexit: why our party supported leave in the EU referendum. [online] Available at: https://www.cpgb-ml.org/2019/03/29/tv/workers-for-brexit-why-our-party-supported-leave-in-the-eu-referendum/ [Accessed 27 Oct. 2019].
CPGB-ML. (2019). About the Communists. [online] Available at: https://www.cpgb-ml.org/about/ [Accessed 27 Oct. 2019].