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Payday lender attacks FCA and MPs as it hands back licence

A payday lender has launched a stinging attack on politicians and the FCA calling them “hypocrites” as it handed back its lending licence.

Quick Loans Dot UK Ltd, which trades as QuickLoans.co.uk, has stopped lending immediately, citing interference from the regulator and politicians as the reason it has decided to stop lending.

The lender says 16 people will lose their jobs as it winds down its loan book over the next six months.

Writing on the lender’s website, director Graeme Wingate says: “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.”

However, Wingate went further, branding the regulator, MPs and even Moneysavingexpert.com founder Martin Lewis “hypocrites”.

Wingate says: “Forcing payday lenders to leave the market is not the most sensible way forward. More lenders means increased competition, more competition means cheaper prices.

“We believe that a political 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, Martin Lewis being the biggest of these hypocrites. Out of the £300m he sold Moneysavingexpert.com, he hasn’t loaned (sic) a penny to anyone at any rates.”

The FCA took over responsibility for the regulation of consumer credit, including payday lenders, last month and warned it will close down firms if they do not “play ball”.

The regulator is currently conducting an in-depth thematic review into payday lenders’ debt collection practices and how they treat borrowers. It will also consult on a cap on payday loan charges this summer.

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  • JW 28th May 2014 at 3:00 pm

    I really hope those providing comments are not involved advising anyone on financial services. 4000% APR for a payday product works out about £1 per £100 per day usually with a maximum term of 28 days. So at the end of 28 days you probably owe £128 in total. Fullstop. No more. End of calculation. The loan term is finished. Don’t mix up APR with simple interest. But I don’t blame anyone. APR is nonsense for short-term loans. Borrow £50 from a mate, pay him back and buy him a drink a couple of days later – and that is about 1.1 million % APR.

  • Julian Stevens 14th May 2014 at 6:39 pm

    “more competition means cheaper prices”. Really? At just what rates of interest were Quick Loans Dot UK Ltd lending money? Was it 4,000% AER or a more competitive 3,000% AER? Perhaps a more appropriate name for the company might be Quick Loan Sharks Dot UK Ltd. I may be wrong, of course, and the company’s AER might be a relatively trivial 100% AER, though I somehow doubt it.

  • Richard Murphy 14th May 2014 at 4:25 pm

    Oh please. They prey on the weak and the desperate and according to their website ‘The most expensive lender on our system has a Representative APR of 4566%’

    there’s no error there. Four thousand five hundred and sixty six per cent.
    So after 8 days you will owe twice what you borrowed. 8 days later this will double.

    Take a look http://www.quickloans.co.uk/our-rates.html

  • Simon Whittaker 14th May 2014 at 12:24 pm

    Whatever the merits of the rest of his arguments, Mr Wingate’s accusation that Martin Lewis is a hypocrite is totally unjustifiable. For a start, Moneysavingexpert.com was sold by Mr Lewis for up to £87 million (depending on performance) – not £300 million. Of this sum, £1 million was donated by him to Citizen’s Advice and a further £9 million to a Charities Aid Foundation trust; I also believe that some was donated to his staff. Along with Moneysavingexpert.com, Mr Lewis set up The MSE Charity – a charity whose objective is to promote improved financial literacy through education. Mr Lewis continues to fund (personally) the administration costs of this charity.

    I do not know (or care) whether Mr Lewis has loaned any money to anybody – but it does seem to me that he has personally lived up to the worthy principles that were the essence of the site founded by him. But possibly Mr Wingate would benefit from some of the education in financial literacy offered by the MSE Charity?

  • DH 14th May 2014 at 11:37 am

    Oh Boo Hoo !!!

    Welcome to the party; we have been treated like this for years !!!

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