Review of Affordability Measures Introduced by QuickQuid and Pounds to Pocket Completed;
CashEuroNet UK to offer redress to 4,000 customers
The Financial Conduct Authority (FCA) today announced findings related to CashEuroNet UK’s Section 166 review, which examined loans made by the company between 1 April 2014 and 28 February 2015, a period in which it issued loans to over 210,000 customers. This review focused primarily on protocols put in place by CashEuroNet UK in 2014 as part of its ongoing commitment to ensure it was meeting new regulatory requirements set by the FCA.
Through this process, CashEuroNet UK and its brands QuickQuid and Pounds to Pockets identified approximately 4,000 customers who received loans that did not meet its enhanced standards and who may have experienced detriment (approximately 2% of the customers served); a vast majority of these loans were made between April and August of 2014 while the company was introducing the new protocols. CashEuroNet UK will make redress to those customers by refund and/or account write-off. The cost is expected to be approximately £1.7 million.
“We appreciate the opportunity to work with the FCA and the Skilled Person to review our processes, and we are pleased they’ve witnessed how seriously we take our regulatory responsibilities and our constant desire to achieve good outcomes for our customers,” said Nick Drew, UK Managing Director. “We apologise to the 4,000 affected customers, and we are pleased to be able to address this with the announced redress plan.”
Customers do not need to take any action. CashEuroNet UK will contact affected customers within two days by email or they will soon receive a letter by post. The company plans to complete the refund process in 60-90 days.