CashEuroNet UK’s owner Enova has announced that the UK arm of its business is to close.
High-cost short term lender, CashEuroNet brands include QuickQuid and On Stride – a provider of longer-term, larger loans and previously known as Pounds to Pocket.
Enova Chief Executive David Fisher said “Over the past several months, we worked with our UK regulator to agree upon a sustainable solution to the elevated complaints to the UK Financial Ombudsman, which would enable us to continue providing access to credit.”
“While we are disappointed that we could not ultimately find a path forward, the decision to exit the UK market is the right one for Enova and our shareholders.”
Recent figures from the Financial Ombudsman Service (FOS) showed that the company had received 3,165 cases against CashEuroNet in the first half of the year. It was the second most complained-about company in the banking and credit sector during those six months.
Sky News has suggested that CashEuroNet, had lined up Grant Thornton as administrator for the UK business.