US payday lender giants could face legal action in the UK today after being accused of mis-selling loans to a million Britons.
Paydayrefunds.co.uk prepares legal action against Quickquid, Curo and Lending Stream after US payday lending giants have so far refused to disclose information about customers who could be repaid tens of millions of pounds in compensation.
The company issued a letter of action six months ago, which is due to expire next Friday. Paydayrefunds.co.uk has revealed that they have already appointed a lawyer to issue a High Court injunction against the lenders.
Paydayrefunds.co.uk Prepares Legal Action Against Quickquid
QuickQuid makes it easy for customers to borrow money, as users are greeted with a simple form when they arrive at the website
Payday loan programs were loosely regulated until 2014, when the Financial Conduct Authority (FCA) demanded that companies make amends on borrowers who had been dragged into new debt.
A cap was placed on industry fees as part of the move, but lenders reportedly failed to conduct proper credit checks, charging high interest rates and “preying on vulnerable people in the world. company, ”according to Vincent Vernon of paydayrefunds.co.uk.
Mr. Vernon, the director of the company, has 32,000 customer claims that need to be investigated, which could add up to tens of millions of claims.
Curo, an American loan company that operates as Wage Day Advance in the UK, recently went public in the US for $ 670 million.
Speaking to MailOnline, Mr Vernon told MailOnline: “The big US payday lenders Curo, which recently floated for $ 670 million in the US, QuickQuid and Lendingstream, have been preying on UK consumers for years with reckless loans.
US credit giants Curo, which operate Wage Day Advance in the UK, were recently listed on the US stock market for $ 670 million
“Following an FCA ruling that many of these loans were mis-sold and needed to be repaid, those same payday lenders are now unwilling to repay.
“We see this as a bigger scandal than the PPI because it directly affected the UK’s most vulnerable people, who were targeted for 2,000% APR loans without any of the checks required to see if those loans were affordable for them.
“Faced with tens of millions of pounds in claims payments, these lenders are now abandoning their old borrowers and coldly ignoring their right to compensation.
“PaydayRefunds.co.uk has now written to these lenders warning them of impending High Court legal action as we seek fair treatment for our clients. They can flout their regulatory requirements, but we hope the courts will hold them accountable. ‘
Andy Gannon, the operations manager of paydayrefunds.co.uk, said the average amount customers borrowed averaged around £ 1,100 – but the numbers could end up being much higher due to the high APR .
In some of the worst cases, people had taken out as many as 60 loans at exorbitant interest rates.
Lending Stream could face legal action as early as tomorrow after failing to respond to letters from paydayrefunds.co.uk
Mr. Gannon added that in the cases reviewed by QuickQuid, 72% of customers were successful with their complaints.
Under the new regulations, customers who had badly sold loans were entitled to full repayment of the amount, interest and associated fees, as well as lenders to pay eight percent interest on top of that figure. .
Legally, companies are supposed to investigate complaints within eight weeks.
Speaking to MailOnline, Mr Gannon said: ‘These companies would often trap some of society’s most vulnerable people in a never-ending cycle of debt.
“They texted clients who had not paid off their loans to ask if they wanted to take out another to pay off their existing loans.
“By simply answering yes to the text, they would have the money in customers’ bank accounts in just ten minutes.
“They have to take responsibility for their actions.
MailOnline has contacted Quickquid, Curo and Lending Stream for comment.