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.