Britain's biggest remaining payday lender is to close, with thousands of complaints about its controversial practices still unresolved.
QuickQuid's owner, US-based Enova, said it will leave the UK market "due to regulatory uncertainty".
It comes as the Financial Ombudsman warns more than 3,000 complaints about its mis-selling tactics are still unresolved - largely led by customers who claim they were given loans they could not afford to repay.
QuickQuid is the latest firm offering short-term, high-interest loans to close after regulations were tightened.
Enova, its US owner, said on Thursday night that it is pulling out of the country after failing to reach an agreement with the UK Financial Ombudsman about how to deal with a slew of complaints from QuickQuid customers.
Enova had been working for months to reach a deal with authorities after customers filed more than 3,000 complaints about the company in just the first six months of the year.
However these talks have now collapsed.
"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 for hard-working Britons," chief executive David Fisher said, as he announced that the company would withdraw from the UK this quarter.
It will take a one-off after tax charge of around £58 million, which includes a cash charge of £33 million to support the end of its lending in the UK.
Martin Lewis, founder of MoneySavingExpert.com, said: "As with the demise of Wonga, if QuickQuid does go, in the long run, it’ll not be a cause for tears. Normally when firms go bust, the fear is diminished competition. Not here. These loans were unneeded, unwanted, unhelpful, destructive and addictive.
"It's important to understand the payday loan industry was built on the back of marketing, not need. They sold people the concept of a need to create a demand, then pushed their products. These debts for the vast majority of customers were hideously over-expensive and unhelpful.
"The only problem with QuickQuid’s demise is the potential that this big parent company wangles out of its obligation to pay the compensation to people whose lives were made miserable. I hope that won’t happen, I suspect it will happen. Morality has never been at the forefront of these companies’ minds."
I have a loan with QuickQuid - what does this mean?
"Many QuickQuid customers will be feeling uncertain about what this means for them. While you may be tempted to stop your repayments, it is crucial to keep to your regular schedule, because if you have entered into a loan agreement you must fulfil it," Caroline Siarkiewicz, chief executive at the Money and Pensions Service, said.
"If you miss any repayments you could be hit by fees and additional charges, and it could also harm your credit rating , which could impact your future access to credit, loans, a mortgage and even your phone bill.
"11 and a half million adults have less than £100 in savings and investments so lots of people face cash-flow problems which can make quick, short-term credit feel like the only option. If you know you need a specific amount of money for a short while there may be more affordable alternatives out there so it’s a good idea to shop around before you borrow.
The Money Advice Service website has a guide on alternatives to payday loans. You can also contact its free helpline on 0800 138 7777.
Have I been mis-sold a QuickQuid loan?
"QuickQuid’s neglect of consumer rights is deplorable," explains Aman Johal, at consumer action law firm Your Lawyers .
"The business, which claimed to provide short-term financial support, is leaving inconceivable numbers of victims out of pocket following its announcement to leave the UK market.
"An estimated 10,000 complaints from people mis-sold money are outstanding. Based upon recent results from the Financial Ombudsman Service, potentially 6,000 of those would likely have had their complaints upheld and will be left uncompensated with their consumer rights flouted by the loan provider.
"This unbelievable shirking of responsibility cannot go unchallenged – QuickQuid must ensure complaints are resolved, and consumer rights are restored.
"The regulatory measures which have warded off predatory loan firms have created a better environment for consumers – but before QuickQuid exits the UK, it must do what’s right."
If you think you've been mis-sold a loan, start by putting your complaint in writing to QuickQuid.
If you're unhappy with its resolution - or you receive nothing in eight weeks - you can then escalate it to the Financial Ombudsman .
Adjudicators will then look at whether the company did everything it was required to do (ie through affordability checks), whether it acted unfairly or unreasonably in any way and whether the customer lost out as a result of any of its failures (ie where it failed to act in your best interests).
