Stella Creasy calls for inquiry into FCA over Wonga and QuickQuid

Industry News | 10/11/19

Stella Creasy, the Labour politician and payday loans campaigner, has called for an investigation into the Financial Conduct Authority’s regulation of Wonga and QuickQuid after the collapse of the two lenders.

Wonga went bust last year after it was brought down by a deluge of compensation claims from customers sold high-cost loans. Last month, QuickQuid’s parent, CashEuroNet UK, was placed in administration by its US owner after it refused to pay compensation claims, leaving more than 1 million customers facing financial uncertainty.

The FCA, the financial services industry watchdog, investigated Wonga in 2014 and forced it to write off 330,000 loans worth £220m and compensate 45,000 other customers. In 2015, the FCA ordered CashEuroNet to write off more than 2,500 loans and refund about 1,500 people at a cost of £1.7m.

Source: The Guardian