Quick Loans Latest to Surrender Payday Loans License
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Due to new rules and the threat of ever-increasing legislation, QuickLoans.co.uk has announced that they are surrendering their license to provide payday loans in the UK.
The company (Quick Loans Dot UK Ltd) is citing their reasons for leaving the market as 'The continuing, even increasing threats of political interference by the Government indicate that the lending environment is becoming more hostile. Regrettably, Quick Loans cannot justify continued investment of time and money in an uncertain market.'
QuickLoans.co.uk has handed back its license and will now cease lending with immediate effect. They follow what is a growing line of lenders leaving the UK Payday Lending Market.
Quick Loans Dot UK Ltd does not foresee a return to the UK market in the foreseeable future. With the opposition Labour party being even more hostile to the free market than the current Government, the company expects legislation to become more prohibitive to lenders' business models.
Company Director Graeme Wingate said, "With both main parties following the same view on different types of short-term loans, we see no light at the end of the tunnel and therefore have no option but to stop trading."
The closure of Quick Loans will result in the loss of 16 jobs. The company will cease all lending activity within the month and will wind down the loan book over the next 6 months.
Press Release Extra
The payday loans market is almost unique in the fact that there is a powerful group of people who believe that fewer suppliers equals cheaper prices. This seems to contradict the fundamental principles of supply and demand. Forcing payday lenders to leave the market is not the most sensible way forward. More lenders mean increased competition, more competition means cheaper prices.
We believe that a "politically correct" group of people and politicians with no experience of lending appear to think that lending is easy and that these people don't seem to take into account that not all of our customers make repayments on time, if at all.
The obvious answer if they truly believe this is for them to start their own lending service and undercut companies like us. In our view, these people are total hypocrites, with Martin Lewis being the biggest of these hypocrites. Out of the £300m he sold MoneySavingExpert.com, he hasn't loaned a penny to anyone at any rates.
The truth is lending is hard and difficult. The myth that we or any other loan company hands money out to anyone is totally wrong. Without price caps, we have seen London and Scottish, Welcome Finance, and many others go into administration because of customers not making repayments.
We are upset on behalf of our staff, some of whom have given us many years of service and through no fault of their own are now out of work. We are upset for our loyal customers who use us as a safe place to lend from. Only today, the Daily Mirror is reporting that loan sharks are harassing indebted parents at the school gates.
We believe that as legitimate lenders like us leave the market, the void will inevitably be filled by these types of rogues, and that responsibility for this must be met fully by people like Martin Lewis, The Politicians, and the FCA.
Graeme Wingate
Quick Loans
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Edit 18:00 14/05/2014
We are aware Martin has responded and we are open to debate and think it is only fair to let people read his views.
http://blog.moneysavingexpert.com/2014/05/14/i-formally-apologise-for-not-being-a-payday-lender/
Having read Martin's response we have a few points to make which we have