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As QuickQuid collapses, is it all over for payday loan providers?

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As QuickQuid collapses, is it all over for payday loan providers?

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“Yes! Glorious. A different one down, additional to go!”

I t’s reasonable to state that the response to the closing of payday financing company QuickQuid happens to be nothing short of rapturous, hailed by jubilant campaigners on Twitter as another nail hammered to the coffin of a deeply unpopular industry.

The company’s collapse, following its United States owner Enova’s choice to grab of Britain after a crackdown by regulators, marks one of many last blows for a business model long accused of punishing susceptible borrowers with sky-high interest levels.

But perhaps the watchdogs whoever tougher rules put payday loan providers out out of company agree you will find a huge number of individuals desperately low on money whom depend on short-term financing to pay for unforeseen bills. Issue now could be where they shall turn rather.

“Both the pay day loan industry additionally the reasonably new peer-to-peer financing industry are vital for customers, specially that segment for the population that cannot easily obtain credit,” claims Roger Gewolb, founder of loan comparison site Fairmoney.

5 years ago, City regulators vowed to make the journey to grips utilizing the pay day loan industry, after it became clear that organizations had lent disproportionate amounts of money to individuals not likely to cover back once again the loans at exorbitant interest levels. Read More